- The UK's net zero economy contributes £105 billion to economic output, according to new research.
- More than 1.1 million jobs are linked to net zero activities and supply chains.
- An estimated £455 billion of energy and infrastructure investment is in the pipeline.
The UK's net zero economy now contributes more than £100 billion a year to economic output and supports more than one million jobs, according to new research that comes amid growing political debate over the future of Britain's climate targets.
The report, produced by CBI Economics for the Energy and Climate Intelligence Unit (ECIU), estimates that the UK's net zero economy generates £105 billion in gross value added and is associated with 1.1 million jobs across businesses, supply chains and related industries. Researchers also identified a potential £455 billion pipeline of investment in energy and infrastructure projects linked to the country's transition to a lower-carbon economy.
The findings arrive as some politicians and campaigners continue to question the UK's net zero commitments, while supporters argue the transition is already delivering economic benefits through jobs, investment and higher productivity.
Jobs, wages and growth
According to the report, around 308,000 people work directly in sectors linked to net zero activities, including solar panel installation, home insulation, wind turbine manufacturing and electric vehicles. When supply chains and supporting industries are included, that figure rises to 1.1 million jobs.
Workers in the sector earn an average salary of more than £43,000 a year, around 11 per cent higher than the national average of £39,000, the research found.
The report also suggests that each worker in the net zero economy contributes nearly £120,000 annually to wider economic activity, around one-and-a-half times the national average. Researchers said the sector currently accounts for almost 4 per cent of the UK's total economic output.
Louise Hellem, chief economist at the Confederation of British Industry, reportedly said clean power and decarbonisation had become a growing part of Britain's industrial base. She added that the UK has the expertise to expand its position across energy, manufacturing, services and supply chains, as quoted in a news report.
Researchers identified around £455 billion of potential investment projects linked to energy infrastructure and the transition to cleaner sources of power.
The report attributes much of this activity to the government's target of decarbonising the electricity system by 2030 and achieving net zero emissions by 2050.
Around 22,000 small businesses are also involved in activities linked to reducing greenhouse gas emissions and expanding renewable energy, according to the analysis.
The findings are likely to add to an increasingly heated debate over Britain's climate strategy. Some political figures have called for net zero targets to be scaled back, arguing that the policies impose additional costs on households and businesses.
However, Hellem reportedly argued that stepping away from net zero could damage Britain's long-term competitiveness. She said the UK could not afford to retreat from a sector already contributing more than £100 billion to the economy and offering significant growth potential.
Debate over Britain's energy future
Supporters of climate policies say the economic case for net zero is strengthening as investment and employment continue to grow.
Sandra Bell of Friends of the Earth reportedly said abandoning climate action would risk leaving the UK behind in the global race to build low-carbon industries.
The report also highlights the decline of traditional North Sea oil and gas employment. Researchers noted that around 200,000 jobs have been lost in the basin since 2013 as production has gradually fallen.
Katie White, minister for climate, reportedly said expanding clean energy would help improve energy security and reduce exposure to future fossil fuel price shocks.
The latest research is the fourth in a series examining the economic impact of net zero policies. Previous studies suggested the sector has been growing faster than the wider UK economy, reinforcing its increasingly prominent role in Britain's future growth plans.
