The UK’s green economy is worth £105bn and generating ‘high-wage jobs’ across every UK nation and region, research from the Confederation of British Industry finds.
Despite being often framed as a cost or a constraint on the economy, the research found that net zero generates around £105bn in Gross Value Added (GVA) and supports 1.1m full-time equivalent jobs.
GVA is a way of measuring how much value a business, industry, or region contributes to the country’s economy.
According to the analysis, for every £1 of economic value created directly by net zero firms, a further £1.85 is generated across the wider UK economy through supply chains and household spending.
Established in 1965, the Confederation of British Industry (CBI) is the UK’s largest British business interest group.
The analysis, produced by CBI Economics, found the net zero sector supports jobs in energy, manufacturing, construction, engineering, and professional services.
The sector is underpinned by more than 23,500 businesses, according to the research, over 96% of which are small or medium-sized enterprises.
The CBI said that net zero is one of the UK’s ‘most productive and geographically distributed industrial sectors’.
Louise Hellem, Chief Economist at CBI, said net zero is a ‘significant and growing’ part of the UK’s industrial base.
“What stands out is not just the scale, but the breadth. Net zero-related activity is embedded across energy, manufacturing, construction, engineering and professional services, with activity present in every nation and region of the UK,” Hellem said.
However, she warned the opportunity is not guaranteed.
“The ability to convert investment pipelines into delivered projects, develop the necessary skills, and create a stable environment for business investment will be critical to determining how much value the UK ultimately captures,” she continued.