Stalling net-zero in the UK ‘indisputably costlier than action’, says CBI

The UK’s green economy generated £83.1bn in gross value added (GVA) in 2024 – a year-on-year increase exceeding 10% despite headwinds for the national economy at large. Opportunities for further growth, compounded by the risks of inaction, means that growing low-carbon sectors should be a no-brainer for policymakers.

This is edie’s headline takeaway from a new report published 24 February by trade body CBI’s Economics division and the Energy and Climate Intelligence Unit (ECIU) think-tank.

The analysis identified 22,800 businesses as part of the UK’s net-zero economy, as of December 2024. Sectors included in the analysis include energy-efficient building technologies, energy storage, low-carbon heating, pollution control, renewable energy generation and planning, waste management, carbon capture and relevant consultancy.

These businesses collectively generated £83.1bn of GVA in 2024, up from £71bn in 2022.

CBI Economics calculated that, for every pound of this GVA, an additional £1.89 of GVA was created across the wider economy. In other words, the economic benefits including this ripple effect exceeded £157bn.

Workers are attracted to the industries driving the net-zero transition, the analysis further highlights, because its high productivity has resulted in high wages. The businesses assessed collectively employed around 951,000 people as of December 2024, up 10.2% year-over-year. A typical employee earned £43,100 pro rata in 2024, more than £6,000 higher than the national average.

Each role generated £105,500 in economic value, 38% above the UK average.

Many of these roles are located outside of London, with the report’s authors highlighting how green growth could contribute to the Government’s ambition to financially benefit working people as well as its mission to accelerate grid decarbonisation. The West Midlands, Yorkshire & the Humber and the South East of England are identified as particular ‘hotspots’, but jobs have been created in all regions.

The report makes clear that these industries are primed for further rapid growth with the right supporting environment created by policymakers. Should the UK fail to capitalise on this opportunity, it warns, it risks losing out to international competition.

The CBI’s chief economist Louise Hellem said: “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.”

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