UK Net-Zero Economy Generates Over £100 bn Annually and Supports More Than a Million Jobs

Research commissioned by the Energy and Climate Intelligence Unit (ECIU) and produced by CBI Economics finds that the UK’s net-zero sector contributes more than £100 bn a year to gross value added (GVA), roughly 4 % of national output. Direct employment in activities such as solar-panel installation, home insulation, wind-turbine manufacturing and electric-vehicle production totals about 308 000 workers. When supply-chain and related roles are included, the figure rises to 1.1 million jobs.

The Guardian

The growth is linked to the government’s commitment to decarbonise electricity by 2030 and to achieve net-zero greenhouse-gas emissions by 2050. These targets have underpinned an estimated £455 bn of potential investment in energy infrastructure that is currently in the pipeline. The policy framework also encourages small-business participation; roughly 22 000 small firms are engaged in net-zero-related activities.

The Guardian

Net-zero workers earn an average salary of £43 000, about 11 % higher than the national average of £39 000. Each employee in the sector generates nearly £120 000 of value for the wider economy, a rate 1.5 times the national average. The sector’s contribution is measured as £105 bn in gross value added, reinforcing its role in addressing the UK’s broader productivity challenges.

The Guardian

CBI chief economist Louise Hellem argues that clean power and decarbonisation are already integral to the UK’s industrial base and that the sector is central to future competitiveness. The climate minister, Katie White, stresses that accelerating electrification and domestic clean power is essential for energy security and for shielding households and businesses from fossil-fuel price shocks. Both officials frame the net-zero economy as a strategic asset for the nation’s economic future.

The Guardian

Right-wing parties, including the Conservative Party and Reform UK, have called for the removal of net-zero targets and a reduction in renewable-energy support. Former Labour prime minister Tony Blair has also advocated for a shift toward fossil-fuel development. Critics cite the decline of North Sea oil and gas employment—about 200 000 jobs lost since 2013—as evidence that traditional energy sectors remain vulnerable.

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• “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, CBI

The Guardian

• “At a time when the UK must strengthen energy security and drive growth, the net zero economy is becoming central to the country’s future competitiveness,” — Louise Hellem, CBI

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• “The UK cannot afford to step back from an industry already contributing £100bn to the economy and with huge future growth potential.” — Louise Hellem, CBI

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• “Katie White, minister for climate, said: “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.” — Katie White, Minister for Climate

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• “ Sandra Bell, climate campaigner at Friends of the Earth, said: “The naysayers calling to dismantle climate action clearly don’t want what’s best for Britain or the millions of people struggling with the cost of living, otherwise they’d be pushing to reap these huge rewards.” — Sandra Bell, Climate Campaigner, Friends of the Earth

The Guardian

The sector’s rapid expansion—three times faster than the broader UK economy in previous reports—suggests a growing contribution to national competitiveness. By diversifying energy supply and creating higher-paid jobs, the net-zero economy is positioned as a buffer against future fossil-fuel price volatility.

The Guardian

The £100 bn figure and the 1.1 million-job count capture only businesses directly engaged in net-zero initiatives. The Office for National Statistics estimates that the wider green economy, encompassing waste management, pollution remediation, water and nature sectors, adds more than 600 000 direct jobs, indicating that total green-sector employment may be substantially larger.

The Guardian

The £455 bn of projected energy-infrastructure investment signals continued expansion. Upcoming policy reviews will determine whether the current net-zero targets are maintained, altered, or repealed, shaping the sector’s trajectory over the next decade.

The Guardian