The most recent report commissioned by the Energy and Climate Intelligence unit (ECUI) with analysis provided by CBI Economics and The Data City has revealed that there are almost 20,000 businesses whose work is within the net zero spectrum contributing £71 Billion in Gross Value Added (GVA) to the UK economy (3.7% of the total).
The Energy & Climate Intelligence Unit commissioned CBI Economics to explore the size, scale, and regional distribution of the net zero economy. The report mapped the UK’s net zero hotspots and the businesses driving the country’s transition to net zero greenhouse gas emissions.
The report finds that the total GVA added by businesses operating in the net zero economy is more than twice that of the energy sector itself.
It also shows that approximately 840,000 jobs are supported by businesses in the net zero economy, with an average wage of £42,600, which is higher when compared to the £33,400 national average.
The report also suggests that the net zero economy is highly productive, generating £112,300 in GVA per employee, which is 1.7 times higher than the national average of £64,400.
Peter Chalkley, Director of ECIU commented that billions of pounds of private sector investments are being made in net zero with the hotspots of activity being outside of London in places like Tyneside, Merseyside, and Derbyshire.
He said:
“The net zero economy is addressing levelling-up and the UK’s productivity problem, but with the EU and US investing heavily in clean technologies, the question now is will the UK keep up or try to stick with industries of the past?”
There are 20 hotspots across the UK identified by the report where net zero businesses form a larger than average proportion of the local economy. These hotspots include the Tyneside/Teesside coast, south Yorkshire/north Derbyshire, the Mersey river, and Cambridgeshire. London, however, is lagging behind.
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Tom Thackray, Director of Decarbonisation at the CBI, commented that the report underlines the real benefit to firms across multiple sectors and throughout the UK of embracing the challenge of investing in clean technologies rather than sticking with fossil-fuel industries of the past.
He said:
“We can see how environmentally sustainable economic growth, for example, the development and scaling of renewable energy, will help stimulate economic activity across the UK and in turn help to reduce regional inequality. And while it is a challenge that businesses need to embrace; green growth is also one of the big opportunities in the coming years for the UK economy."
According to a new YouGov poll released alongside the report from ECUI, people within the Tyneside and Teesside hotspot predict that renewable energy and clean technology will be the sector most likely to create long-term growth in the local economy. Respondents also argue that renewable energy and clean technology should be given priority by the government and supported, to generate more growth in the area.
Kelly Becker, President of Schneider Electric UK&I, said:
“The UK is already seeing the economic benefits of a green economy. In addition to macroeconomic pluses, further investment in the transition, which must include a significant focus on cutting energy waste, will alleviate the crippling cost of energy plaguing consumers. Through a green economy, the UK can take back control of its energy supply. As other countries come to the same realisation around the benefits of a green economy, the race for global market share and technologies to support the transition has begun. The UK government must work hand in hand with the private sector to accelerate the creation of a greener economy. Only through public-private partnerships will the UK keep pace with the global push for greener economies.”
Net zero economy businesses operate in a range of sectors and specialisms. There are many businesses operating in energy generation to education creating low carbon jobs. Here are a couple of examples of these businesses.
One such company is 3ti which is the UK’s leading designer and installer of solar car parks. A 3ti solar car park uses a three-technology (3t) approach to generating and using renewable energy. The roof of the car park is made up of solar panels, which generate electricity to power electric vehicles and store energy in a battery storage system. 3ti’s team is based in Leatherhead, Surrey and is responsible for the UK’s two largest solar car parks: one at Bentley Motors in Crewe and another at JP Morgan Chase in Bournemouth.
The company has installed 10MWp of solar PV across 2,500 parking spaces. They have also launched a pop-up solar car park and EV charging hub, Papilio3. The company is helping to enhance the UK’s car charging infrastructure and the switch towards the electrification of transport.
Another example of a business generating jobs in the renewable energy sector is Gower Power. Gower Power enables the sustainable development of communities, their assets, and resources, providing consultancy, advice, and support to release the regenerative power of renewable energy, land-based livelihoods, and resourceful people.
The business is owned by local individuals and organisations and specialises in setting up, developing, and financing small socially and ecologically focused enterprises. It provides business support services for their ongoing administration and management, as well as consultancy for renewable energy projects across the UK.
Gower Power initiated Wales’s first community-owned solar farm, Wales’s largest Community Supported Agriculture Scheme, and numerous other projects delivering social impact.
In Swansea alone, over the past 3 years, Gower Power has put £1.5million of renewable assets into community ownership across three projects, which has helped to establish £2million of social impact funds for the benefit of the Swansea community.
It is clear to see that the net zero economy can promote strong productivity across the UK, even in regions with historically lower productivity. An example of this being, that in the Midlands (East and West) the net zero economy is 2.5 times more productive than the regional average.
