- News -

Net zero worth £70 bn to UK economy

Published February 6, 2023

The net zero economy is worth £71 billion to the UK economy, a report has found. It is also stronger outside London, particularly in 20 hot spots where net zero makes up a larger than average proportion of the local economy.

The net zero hotspots identified in the report, commissioned by the Energy and Climate Intelligence Unit (ECIU), include the Tyneside/Teeside coast, south Yorkshire/North Derbyshire, the Mersey River and Cambridgeshire.

In some of the hot spots identified, the net zero economy is contributing as much as 5-7% of an area’s Gross Value Added (GVA). Meanwhile, in London, the net zero economy only contributes 3.1% GVA to the economy.

The report found there are are almost 20,000 businesses – ranging from insulation fitters to heat pump engineers to agritech – in the net zero economy. These businesses support 840,000 jobs, with an average wage of £42,600 compared to the £33,400 national average. The net zero economy also generates £112,300 per employee, 1.7 times higher than the national average of £64,400.

The report a wide variety of sectors operating in the net zero economy. They include energy sectors such as renewables, energy storage, demand response and efficiency and low-carbon heating. Other sectors include agritech, carbon capture, waste management, recycling, low-emission vehicles; and low-carbon consultancy and green finance.

Venture investment into the net zero economy is growing at more than 30% per year. In 2021, venture funding into the net zero economy reached £710 million, 10 times higher than venture investment into the oil and gas sub-industry, which saw a total of £49 million in venture investment.

Commenting Peter Chalkley, Director of ECIU, said: “Unleashing private sector investment by freeing up planning and creating the right market structures is imperative to growing our £70bn net zero economy further.”

Tags Net Zero