The UK’s net zero economy now underpins the jobs of 1.1 million UK workers, who together generate £105 billion in Gross Value Added (GVA) for the UK economy, a new report commissioned by the Energy and Climate Intelligence Unit (ECIU) with analysis provided by the independent consultancy CBI Economics and The Data City, has found. [1]
From solar panel installers to electric car production line engineers, these workers generate £119,300 in economic value per full-time job, around 1.5 times the national average – against the backdrop of the UK’s wider productivity stagnation. This leads to higher wages, with net zero jobs earning £43,142, 11% higher than the current national average of £39,039.
This, the fourth annual report on the scale and nature of the UK’s net zero economy, found 22,700 small firms (employing less than 50 people) and six ‘billion-pound’ economic hotspots spread across the UK including in Scottish Central Belt, West and North Yorkshire, and North Wales and Cheshire.
The report, officially launched in Hull, found that Yorkshire and the Humber region leads the way in England with the highest shares of net zero GVA as a proportion of the local GVA (4.4%). Yorkshire and the Humber’s net zero economy supports over 79,000 jobs.
Louise Hellem, CBI Chief Economist, said:
“This report makes clear the sustained scale of the opportunity in the UK’s net zero economy. It shows that clean power and decarbonisation are no longer future ambitions – they are already a significant and growing part of the UK’s industrial base.
“Supporting more than a million jobs across the country, the net zero economy is already shaping lives and livelihoods in every part of the UK, from the Central belt in Scotland to industrial heartlands in Yorkshire and the communities of Wales – well beyond the six £1bn hotspots identified in this report. Across energy, manufacturing, services and supply chains, the UK has the expertise to build on this strength and capture even greater commercial opportunities.
“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. With global competition intensifying, government and business must work together to attract investment and scale up delivery. The UK cannot afford to step back from an industry already contributing £100bn to the economy and with huge future growth potential.”
Peter Chalkley, Director of the Energy and Climate Intelligence Unit, said: “Reaching net zero emissions is scientifically the only way to bring the climate back into balance and stop climate change but it’s now become a major part of the UK economy.
“Thousands of small businesses across the UK are the unsung heroes of this net zero economy, installing solar panels on rooves, manufacturing parts for electric cars and in doing so creating greater energy independence for the UK, shielding us from the oil and gas price crises of recent times.
“With the UK’s net zero workforce having surged past one million, communities from Hull to Ellesmere Port, and North Lanarkshire to Somerset need to see consistent stable policy into the future. With global demand now falling for petrol cars and installations of net zero tech like solar panels and heat pumps rising, the UK is in a global race to develop future-proof clean industries. Standing still or looking back just isn’t an option for job security.”
