3,000 businesses now driving Scotland’s net zero economy – analysis
From Perth and Kinross to East Lothian and Aberdeen, hundreds of businesses, 90% small and medium-sized, are now involved in Scotland’s clean economy.
By George Smeeton
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New analysis has found that net zero-related industries contribute £10.2 billion in Gross Value Added (GVA) and support over 105,000 jobs, representing 4.9% of Scotland’s total economic output and 3.9% of employment.
The report, commissioned by the Energy and Climate Intelligence Unit (ECIU) with analysis provided by the independent consultancy CBI Economics and The Data City [1], found that 3,000 businesses, mostly (90%) small or medium-sized, spread right across the country are now part of the Scotland’s net zero economy.
There are particular economic ‘hotspots’, for example, Perth and Kinross where more than a tenth of the local economy (12.0%) is net zero-related, based around proximity to major renewable generation assets, including hydroelectric schemes and large-scale onshore wind developments, supported by established grid infrastructure.
Jobs in the net zero economy are highly productive, generating more than one-and-a-half (1.7) times as much value as the Scottish average with salaries 5.2% above average at £41,800. Net zero roles are typically concentrated in skilled occupations requiring technical, engineering and professional expertise, supporting above-average wages.
Net zero emissions is scientifically the only way the world can stop worsening climate change. There are signs that the world is shifting more quickly towards clean net zero technologies as a result of the US-Iran conflict which has caused oil and gas prices to spike again; France recently announced that it will reduce its share of fossil fuels in final consumption from 60% to 40% by 2030 [2] and Germany’s latest onshore wind auction was heavily oversubscribed [3].
Commenting on the report, Michelle Ferguson, CBI Scotland Director, said: “It’s hugely encouraging to see the sheer scale of the opportunities afforded to Scotland by the net zero economy. Scotland has been at the heart of the UK’s energy sector for half a century and is now rightly taking its place at the forefront of the clean energy transition.
“With businesses of all sizes playing a key role, the net zero economy has the potential to bring long-term jobs, investment and growth to communities right across the country. Getting this right is critical to boosting energy security and delivering on our ambitions for growth.
“Really making the most of this incredible opportunity requires lasting partnership between business and government, at both UK and devolved level. Protecting Scotland’s knowledge base, streamlining planning processes, investing in skills and strengthening high-value supply chains are critical to delivering the energy transition and ensuring the country’s energy legacy remains central to its economic future.”
Laura Anderson, Senior Associate at the ECIU, said: “It’s Scotland’s small businesses that are helping to drive its clean economic growth. As North Sea oil and gas output continues to decline, whether new drilling occurs or not, without faster scaling of these new industries workers and communities risk being left without the opportunities they deserve. Some of these jobs are contingent on building out the energy infrastructure to join up the new power sources coming online.”
“With conflict in the Middle East following just a few years after Russia’s invasion of Ukraine, countries right around the world are speeding up their efforts to get off oil and gas, electrifying their economies and speeding up the build-out of renewables.”
The analysis found that approximately £211 billion of planned UK energy infrastructure investment is located in Scotland, representing around a third of the UK’s total pipeline value.
Josh King, Director and Co-founder of Gensource, a small but growing renewables firm in Musselburgh which installs a range of tech including solar PV, battery and EV charging [4], said: “Doubling down on renewables is not ideological – it is practical, popular and essential to long-term energy security. Recent global events have made it starkly clear that reliance on fossil fuels is not a stable or secure long-term option. Renewable energy is domestic, resilient and increasingly the choice people want to see backed.”
Other net zero economic hotspots include:
- Aberdeen City which supports a tenth (9.4%) of Scotland’s net zero economy by value. The city’s transition is closely linked to the repurposing of North Sea oil and gas capabilities towards offshore wind, hydrogen production and carbon capture and storage, and net zero jobs make up around 13% of the total workforce.
- Perth and Kinross where net zero industries, such as the major renewable generation assets nearby, results in the net zero economy making up around 12% local GVA which is the highest concentration in Scotland. The region is also home to businesses supporting building decarbonisation and project delivery, such as IMS Heat Pumps and Easy Heat Systems that specialise in low-carbon heating solutions.
- East Lothian where 6.8% of the local economy is supported by the net zero economy. The region is closely linked to renewable energy development along Scotland’s east coast, particularly offshore wind projects in the Firth of Forth and associated transmission infrastructure.
ENDS
Notes to editors:
1.The report is available to download here: https://eciu.net/analysis/reports/scottish-net-zero-economy-in-2025
2. AFP: https://www.france24.com/en/live-news/20260429-france-s-roadmap-to-exit-fossil-fuels-by-2050
4. Gensource: https://gensource.co.uk/
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, t: 020 8156 5305, m: 07894 571 153, email: george.smeeton@eciu.net
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The Energy and Climate Intelligence Unit is a non-profit organisation supporting informed debate on energy and climate change issues in the UK. For more information or to receive our daily newsletter, please visit our website: http://eciu.net/
About CBI Economics
CBI Economics is the economic consultancy arm of the Confederation of British Industry (CBI), providing independent, data-driven research and analysis to public and private sector clients. Its work applies robust economic methodologies tailored to client objectives, while operating independently from the CBI’s member-led policy and advocacy functions. CBI Economics delivers objective analysis and insights, with findings and conclusions reflecting its own evidence-based assessment.