UK net zero economy adds more than £70b to GVA
Businesses involved in the net zero economy contribute £71 billion in Gross Value Added (GVA) to the UK economy, more than twice that of the energy sector itself, a new study finds.
The report commissioned by the Energy and Climate Intelligence Unit (ECIU) also found that 840,000 (3.2%) jobs are supported by these companies, with an average wage of £42,600 compared to the £33,400 national average.
The net zero economy is also highly productive, generating £112,300 in GVA per employee, 1.7 times higher than the national average of £64,400.
It reveals that the net zero economy is stronger and significantly more productive in the UK regions, identifying 20 ‘hot spots’ across the UK where net zero makes up a larger than average proportion of the local economy.
These include the Tyneside/Teeside coast, south Yorkshire/North Derbyshire, the Mersey River and Cambridgeshire.
London lags behind, suggesting net zero is playing an active part in ‘levelling-up’.
Commenting on the report, Peter Chalkley, director of ECIU, said: “From insulation fitters to heat pump engineers and agritech pioneers, businesses in the net zero economy are adding £70 billion to the UK economy.
“Billions of pounds of private sector investments are being made in net zero with the hot spots of activity being outside of London in places like Tyneside, Merseyside and Derbyshire.
“The net zero economy is addressing levelling-up and the UK’s productivity problem, but with the EU and US investing heavily in clean technologies, the question now is will the UK keep up or try to stick with industries of the past?”
Tom Thackray, director of decarbonisation at the CBI said: “This report underlines the real benefit to firms across multiple sectors – right across the country – of embracing that challenge. We can see how environmentally sustainable economic growth – for example, the development and scaling of renewable energy – will help stimulate economic activity across the UK and in turn help to reduce regional inequality.
“And while it is a challenge that businesses need to embrace, green growth is also one of the big opportunities in the coming years for the UK economy.”
