UK Net Zero economy grew 9% in 2023, says new report

The UK’s Net Zero economy grew by 9% in 2023, contributing some £74bn in goods and services and 765,000 jobs to the wider economy, according to a new report by the Energy and Climate Intelligence Unit and CBI Ecnomics.

The authors say that the health of the Net Zero economy, which includes renewable energy, building energy efficiency, electric vehicles, carbon capture technology and green finance, stands in stark contrast to the 0.1% GDP growth for the UK economy as a whole over ther same period.

They also warn that, without further investment and the right policy support from government, future growth in the green economy will be put at risk, especially amid increasing global competition.

Other findings from the report include:

• Net Zero jobs were on average £10,000 better paid than the UK average of £35,400
• The number of Net Zero businesses rose by 4,000 to 23,745 in 2023
• Scotland, Wales and the Midlands have particularly strong Net Zero economies with London having the lowest proportion of its economy based on businesses in Net Zero sectors
• With an eye on the general election, the report says many battleground constituency seats in England and Wales are ‘Net Zero Hotspots’ such as High Peak, Stroud, Cheadle and Derby North
• Some areas that are among England’s top 10% local authorities for income deprivation, such as Hartlepool, Nottingham and Redcar, also have high concentrations of Net Zero activity.

Louise Hellem, Chief Economist at the CBI, said: “The UK’s transition to Net Zero brings immense opportunities for our economy. Our report, together with the Energy and Climate Intelligence Unit, highlights how businesses are already seizing those prizes – creating jobs and attracting investment, whilst boosting our energy resilience. But we also know that there’s much work to be done to fulfil the UK’s potential, and accelerate our journey to Net Zero.”

Peter Chalkley, Director of the Energy and Climate Intelligence Unit, said: “Against the backdrop of economic stagnation, the net zero economy is bucking the trend, but it’s clear that the policy U-turns of the past year have damaged investor confidence at a time when the US and EU are investing billions to compete for clean industries. Thousands of jobs depend on net zero in constituencies right across the country, including many key battleground seats. The question now is will political parties provide the leadership, stability and investment needed to generate further growth or shy away from the global race for net zero.”

For more details see: The UK’s Net Zero economy