UK net zero economy supports more than one million workers

(Alliance News) - The UK's "net zero" economy now supports 1.1 million workers and delivered GBP105 billion in economic value in 2025, economists and energy experts have found.

The number of jobs, services and goods that contribute directly or indirectly towards cutting the country's planet-heating emissions to net zero by 2050 is growing rapidly, according to the analysis led by the Confederation of British Industry's economics consultancy.

From solar panel installers, clean energy company executives, renewable technology suppliers or electric car production line engineers, these workers are no longer a marginal part of the economy but play a key role in the UK's industrial base, the researchers found.

The report, which was released on Tuesday, said these jobs tend to be high quality against a backdrop of wider productivity stagnation in the UK, generating GBP119,300 in economic value per full-time job, which is around 1.5 times the national average.

Net zero workers also earn on average GBP43,142, which is 11% higher than the current national average of GBP39,039, the analysis suggests.

Elsewhere, the researchers found that the sector is primarily made up of small and medium-sized firms, which represent 96.4% of 23,500 companies.

And for every GBP1 in value generated by the net zero economy, a further GBP1.85 is generated in the wider economy, according to the paper.

But it also supports regional, not just national growth, with opportunities increasing in areas where they are often most needed, the researchers said.

They identified six "billion-pound" economic hotspots, including in the Scottish Central Belt, West and North Yorkshire, and North Wales and Cheshire.

Louise Hellem, CBI chief economist, said the report demonstrates that the economic case for the energy and climate transition is "stronger than ever".

"What it really clearly shows is that the net zero economy is not just a future prospect or niche part of the market, it really is a major and embedded part of the UK's industrial base," she said.

"This is really a story about growth, about competitiveness, and it's about resilience."

The UK has seen a surge in investment towards net zero sectors, especially since Labour came to power in 2024 with a "clean power mission".

Ministers have pledged to remove almost all fossil fuels from running the electricity grid by 2030, rolled out policies that back the transition and banned new licences for oil and gas exploration.

The report found that the UK's renewable energy pipeline represents a GBP455 billion investment opportunity, with two-thirds already in active or construction phases.

Peter Chalkley, director of the Energy and Climate Intelligence Unit, which commissioned the report, 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 roofs, 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."

But the researchers also warned that ministers must provide a clear and ongoing direction of travel for businesses and investors if the UK is to capture future opportunities, with many net zero projects requiring long-term certainty because they are delivered over years, if not decades.

Chalkley said the communities and workforces relying on the energy transition "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," he said.

"Standing still or looking back just isn't an option for job security."

However, the findings also come as the UK's net zero ambitions face growing opposition, with some arguing that the country should exploit its remaining fossil fuel reserves to maintain energy security, protect jobs and bring down bills at a time of geopolitical volatility.

In a lengthy essay published last week, former Labour prime minister Tony Blair again argued that the UK should prioritise cheaper energy and electrification over net zero, and back new oil and gas exploration.

Asked whether political pushback could be damaging to the UK's net zero progress, Tania Kumar, CBI energy transition policy director, said: "From an analytical perspective, putting policy to one side, you cannot refute the fact these new sectors are growing.

"At this point in time, where we're desperately looking for where there are growth sectors in the economy, we are demonstrating that this is where you're getting it from essentially."

She argued that economies across the world are all investing in the transition to various degrees, and researchers are seeing a year-on-year increase in investment in these sectors.

"The terminology will continue to get thrown around but we can see that there is that confidence from business leaders… that the investment case is there for these new products and that growth," she said.

Minister for climate Katie White said: "What businesses and communities are delivering across the country is a great British success story – bringing down costs, improving homes, supporting British industry with good, skilled jobs whilst helping protect nature.

"Some would rather ignore the challenge of the climate crisis and leave our children to pick up the bill for climate change, but this government believes in a simple British principle – safeguarding our country for future generations."

By Rebecca Speare-Cole, Press Association Sustainability Reporter

source: PA

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