The net zero sector is growing three times faster than the overall UK economy, analysis by the CBI shows.
Between 2023 and 2024, the net zero sector grew 10.1% – three times faster than the 3.2% growth in the overall UK economy.
The analysis by the Confederation of British Industry (CBI) found the sector now generates £83.1 billion in Gross Value Added (GVA), a measure of how much value companies provide through goods and services.
The report, commissioned by the Energy and Climate Intelligence Unit, analysed the economic growth attributable to businesses working in net zero including waste management and recycling, green finance, renewable energy, electric vehicles, heat pumps, and energy storage.
With 10,625 businesses active in this sector, the renewable energy planning database – a database of renewable energy projects over 150KW to capture additional renewable energy businesses – was the largest component of the net zero economy.
Renewables and waste management and recycling were the next largest sub-sectors, with 7,138 companies and 5,428 companies, respectively.
The net zero economy is not only driving environmental progress but also delivering transformative economic and social benefits across the UK.
The report said: “The net zero economy is not only driving environmental progress but also delivering transformative economic and social benefits across the UK.
“With its high productivity, investment, and innovation, the sector is a vital pillar of the UK’s transition to a sustainable future.”
The analysis found that employment within the net sector has grown by 10.2% over the past year, with the net zero sector supporting the equivalent of 951,000 full-time jobs.
Jobs in the sector are also outliers for productivity, the analysis found, as each full-time role generates £105,500 in economic value, 38% above the UK average.
The West Midlands, Yorkshire & the Humber, and South West England were the largest net zero hotspots in the UK, collectively accounting for 16.3% of the net zero economy, or £4.7bn to the UK net zero economy.
Scotland’s net zero economy grew by 21.3% since 2022, contributing £9.1 billion in GVA and supporting 100,700 full-time jobs.
The analysis found net zero businesses attracted £23 billion in private investment since 2019, alongside £1.1 billion in Innovate UK grants.
