A new report by the Energy & Climate Intelligence Unit, which was compiled by CBI Economics, finds that the net zero economy in the UK generated approximately £105 billion in gross value added (GVA) in 2025 – a 26% increase on the previous year (£83.1bn). That brings it to around 3.8% of UK economic output.
The report argues that the UK’s transition to net zero is no longer simply an environmental policy agenda but it is now a significant economic transformation. It concludes that the net zero economy has become a major component of the UK’s industrial base, generating substantial economic value, jobs, investment, and productivity gains across all regions of the country.
What do they base this conclusion on?
In addition to generating £105 billion in GVA, for every £1 generated directly in energy production, £1.85 is created elsewhere in the economy – in manufacturing, construction, professional services and finance.
The net zero economy supported 1.1 million jobs, 308,000 of those directly employed by businesses in the sector and the rest in companies that support and supply those companies.
Workers in the sector are more productive and better paid than average. Productivity is reported to be around 45% more than the UK average and wages are 11% higher than the national average – £43,000 vs £39,000 a year (The Guardian).
The sector is highly entrepreneurial with more than 23,500 businesses, 96% of which are small and medium-sized enterprises (SMEs). SMEs have between 10 and 250 employees and a turnover of less than £25.9m (Perry’s Accountants).
The economic benefits of the net zero economy are seen across the UK, in England, Scotland, Wales and northern Ireland. There are opportunities in manufacturing, engineering, construction, finance and professional services, renewable energy and emerging technologies.
There are concentrations in areas that are industrial or energy-focused like Scotland, Yorkshire and the Humber, Wales and the East Midlands and economic centres like London and the south east, but investment in the energy and climate transition is happening across all regions. This is good news for local communities.
“Clean power and decarbonisation are already a significant and growing part of the UK’s industrial base. Across energy, manufacturing, services and supply chains, the UK has the expertise to build on this strength and capture even greater commercial opportunities.” – Louise Hellem, chief economist for the Confederation of British Industry (CBI) (The Guardian)
The UK’s renewable-energy project pipeline is valued at around £455 billion and two thirds of this is already under development. It aims to quadruple the renewable energy capacity of the UK to around 262 gigawatt capacity. It includes offshore wind, solar, hydrogen, and energy storage.
Making the most of this opportunity requires:
- Stable and predictable government policy
- Investment in domestic supply chains
- Workforce development and skills planning
- Measures to attract private capital and improve competitiveness
“As Britain faces another fossil fuel shock, the only way to shield households and businesses is by accelerating electrification and clean, homegrown power that we control. What businesses and communities are delivering across the country is a great British success story – bringing down costs, improving homes, supporting British industry with good skilled jobs whilst helping protect nature.” – Katie White, minister for climate (The Guardian)
The net zero economy in the UK
The net zero economy in the UK is growing rapidly. There is a substantial renewable energy pipeline that is already under construction or in development which has the ability to deliver not only 262 gigawatts of capacity – but economic value: jobs, investment, productivity gains – across the country.
It is not a pipe dream. In fact, it is already providing the UK with an economic advantage, but for it to continue to do so, it needs consistent policy and the successful delivery of planned infrastructure projects.