UK net zero economy grows 10% in a year, finds new report

“The net zero economy continues to demonstrate that there are huge emerging markets for green technologies that the UK must capitalise on.  
 
“It is clear, you can’t have growth without green. At a time when the cost of doing business has squeezed appetite for capital investments and high energy prices are being cited as a drag factor across the economy, investments in clean technologies can significantly bolster competitiveness and productivity. 
 
“2025 is the year when the rubber really hits the road – where inaction is indisputably costlier than action. We are approaching critical points of no return for achieving essential outcomes in energy security and emissions reduction. Long-term sustainable growth is unattainable without a future powered by clean, affordable, and secure energy.”  
 
Peter Chalkley, Director of the Energy and Climate Intelligence Unit (ECIU), said: “The Climate Change Act and the UK’s resulting relative policy stability have been a foundation for this sustained net zero growth, but it cannot be taken for granted and political signals matter for investors.
 
“Nearly a million British livelihoods now depend on the net zero economy which has at its core thousands of small businesses based all around the UK, from Grimsby to Gateshead to Glasgow, insulating homes and manufacturing equipment.
 
“This net zero workforce has grown whole new British industries like offshore wind, enabling the UK to compete in the global markets’ unstoppable shift to cleaner technologies. In effect, the UK pump-primed offshore wind which has enabled other countries to use the technology to cut emissions globally. 
 
“Reaching net zero emissions means we stop adding more pollution to the atmosphere which is the only way we can stop climate change worsening and stop the extremes driving floods and heatwaves which increasingly threaten our economies.”
 
The report found that the net zero economy is highly distributed around the UK regions.  The West Midlands, Yorkshire & the Humber, and South West England contain the largest contributing hotspots of net zero activity, collectively accounting for 16.3% of the net zero economy; job productivity in these areas also significantly outperforms regional averages.
 
The net zero economy is especially important to the Scottish economy, making up around 4.9% of the country’s GVA (£9.1 billion). Net zero economic activity also supports 100,700 FTE jobs, around 3.8% of the country’s total.
 
Net zero businesses are often smaller businesses too; of the 15,600 employers identified within the net zero economy, 94% were SMEs with fewer than 250 employees, while 6% were large employers with over 250 reported employees.
 
As a relatively new sector with significant growth potential, the report found that it is highly attractive to investors; businesses identified as part of the 2024 net zero economy have attracted £25.9 billion from private investors over the past 20 years.

Also commenting, Tees Valley Mayor Ben Houchen said: "Teesside, Darlington, and Hartlepool are at the heart of the UK’s push towards creating good quality local jobs, in the industries of the future. 
 
"We’ve secured billions in investment for cutting-edge projects like Net Zero Teesside Power, offshore wind, and hydrogen production and this report proves just how vital this sector is for growth, and our region's future prosperity.
 
"We’re proud to be a key player in the UK’s industrial economy, and we’ll keep doing everything we can to ensure our region remains the first choice for businesses, investment, and the industries of tomorrow."

Melanie Onn, MP for Great Grimsby and Cleethorpes said: "Green energy and the industries growing around it are creating thousands of new jobs in Great Grimsby and Cleethorpes that are helping to transform our local economy."
 
“It’s exciting to see our area at the heart of this transition, with new opportunities opening up for local people in a sector that’s only going to keep expanding. The shift towards net zero isn’t just good for the environment—it’s driving investment, creating skilled jobs, and securing long-term prosperity for our community. With Great Grimsby already leading the way in offshore wind, there’s a huge amount of potential for further growth, and I’m committed to making sure our community benefits from every opportunity that comes with it.”
 
There will be a report launch event in Grimsby, on Monday 3 March, details of which will be confirmed shortly.