"Net zero economy is powerhouse of job creation and economic expansion" says CBI
Tue 25 February 2025
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A new report from CBI Economics says that the UK's net zero economy now generates £83.1 billion in Gross Value Added (GVA) and has grown 10% in the past year. The report says that the UK's net zero economy is a significant driver of growth, innovation and productivity, showing that it will be vital for the Government’s wider growth agenda.
The report, commissioned by the Energy and Climate Intelligence Unit (ECIU) says that employment within the net zero sector has also seen significant growth of 10.2% over the past year. Businesses focused on net zero now support the equivalent of 951,000 full-time jobs, which, the report says, are typically better paid than the UK average.
As well as being well paid, net zero jobs are also more productive; each full-time role generates £105,500 in economic value, 38% above the UK average. The sector has a strong multiplier effect, with every £1 of value generated by the net zero economy creating an additional £1.89 in the wider economy.
Louise Hellem, Chief Economist at the CBI, said: “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.”
The report finds that the net zero economy is highly distributed around the UK regions and that the net zero economy is particularly important to the Scottish economy, making up around 4.9% of the country’s GVA (£9.1 billion).
Commenting on the report, the Conservative Party Mayor for Tees Valley, 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."
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