Britain’s net zero sector is growing at triple the rate of the wider economy, according to a new analysis released by the Confederation of British Industry (CBI) this morning.
The sector expanded by 10 per cent in 2024, generating £83billion in gross value added (GVA) to the UK economy, in a boon for the Labour Government’s goal of bolstering economic growth.
According to the CBI, these findings directly challenge claims that climate action hampers economic growth, showing instead that environmental progress and economic benefits can work in tandem.
The net zero economy now accounts for 1.1 per cent of the UK’s total GVA, making it larger than both the farming sector and the advertising and market research industries.
Furthermore, this robust growth follows a nine per cent increase in 2023, demonstrating sustained momentum in the green economy.
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A new report has revealed how net zero industries are contributing to the economy
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Analysis revealed that 22,000 businesses now operate in the UK’s net zero sector, spanning areas from renewable energy to green finance. These companies employ nearly one million people in full-time positions across the country.
Workers in the sector enjoy above-average wages, with typical annual salaries of £43,000 – some £5,600 higher than the national average.
The sector has also demonstrated superior productivity, with net zero jobs showing 38 per cent higher productivity compared to the UK average.
These findings encompass businesses working across multiple green industries, including electric vehicles, heat pumps, energy storage, and waste management and recycling.
Keir Starmer has cited the Government’s focus on net zero
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Louise Hellem, the CBI’s chief economist, emphasised the link between economic growth and environmental action.
“It is clear, you can’t have growth without green – 2025 is the year when the rubber really hits the road, where inaction is indisputably costlier than action,” she said.
She highlighted that critical deadlines for energy security and emissions reduction are approaching.
“It’s really fantastic to see the growing strength of the net zero economy in the UK and we need to really continue to see that ambition,” Hellem added.
Recently, MPs have hit back at the suggestion net zero is beneficial for the economy, including Reform UK’s assertion that “net zero is crippling our economy” and the Conservative party’s stance that it “leaves us economically worse off”.
There appears to be strong regional distribution across the United Kingdom when it comes to the net zero economy, the CBI found.
The West Midlands, Yorkshire and the Humber, and South West England have emerged as the largest hotspots for green economic activity.
Scotland has seen particularly impressive growth, with net zero jobs increasing by 20 per cent since 2022.
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The report concluded that “the net zero economy is not only driving environmental progress but also delivering transformative economic and social benefits across the UK”.
Energy Secretary Ed Miliband responded to the findings, stating: “These numbers speak for themselves. Net zero is essential to growth, a strong economy and money in working people’s pockets.”
He emphasised Britain’s ambition to become a “clean energy superpower” as the route to energy security and community investment.
While the UK’s net zero sector shows strong growth, it still lags behind its European counterparts, with EU economies deriving 50 per cent more value from their green sectors.
China’s clean energy sector has also made significant strides, contributing a record 10 per cent of the country’s GDP in 2024.
Labour MP Luke Murphy, chair of the all-party parliamentary group on climate change, warned: “There are huge costs to not seeing this transition as an economic opportunity.”
