The UK’s net zero sector is expanding at a remarkable pace, outpacing the overall economy and proving that sustainability and economic growth go hand in hand. According to new analysis by the Confederation of British Industry (CBI), the net zero economy grew by 10% in 2024, generating an impressive £83 billion in gross value added (GVA)—a key measure of economic productivity.

This growth has translated into high-wage jobs across the country, with nearly one million people now employed in net zero businesses, from renewable energy and electric vehicles to green finance and energy storage. Workers in these industries earn an average salary of £43,000 per year, which is £5,600 more than the national average. The data highlights a clear message: investing in net zero initiatives doesn’t just combat climate change—it creates jobs, strengthens energy security, and boosts the economy.

Green Growth vs. Political Debate

Despite the positive economic impact, net zero policies remain a subject of political contention. The Chancellor, Rachel Reeves, recently emphasised that economic growth and net zero are not in conflict—instead, they represent the industrial opportunity of the 21st century. In contrast, some political figures, such as Reform UK’s Nigel Farage, claim that net zero policies are harming the economy, while the Conservative Party has questioned its long-term viability.

However, the CBI’s chief economist, Louise Hellem, argues that green growth is essential for economic success. She warns that 2025 will be a pivotal year, where failing to act on climate change will become costlier than taking action. The UK must accelerate its transition to clean energy and sustainable industries if it wants to remain competitive on the global stage.

The Power of Net Zero Jobs

One of the most promising aspects of the net zero economy is its geographic distribution. Unlike traditional economic growth, which has been largely concentrated in London and the South East, net zero industries are thriving nationwide. The West Midlands, Yorkshire and the Humber, and South West England are emerging as major hubs, while Scotland has seen a 20% rise in net zero jobs since 2022.

Not only are these jobs more evenly spread, but they are also 38% more productive than the UK average. This means that employees in the net zero sector are generating higher economic value per worker, leading to greater efficiency and profitability.

Energy Security and Economic Stability

The UK’s reliance on fossil fuels has left it vulnerable to fluctuating energy prices, particularly in the wake of Russia’s invasion of Ukraine. Soaring gas prices have driven up energy bills, highlighting the urgent need for greater energy security. Investing in clean energy—such as wind, solar, and hydrogen—can protect households and businesses from volatile price swings while reducing dependence on foreign energy sources.

Luke Murphy, chair of the all-party parliamentary group on climate change, stressed the importance of seizing the economic opportunity presented by net zero policies. He pointed out that while the UK’s net zero sector is growing rapidly, it still lags behind other economies. Across the EU, the net zero economy contributes 50% more to GDP, while in China, clean energy accounted for a record 10% of GDP in 2024.

A Clear Path Forward

The net-zero economy is proving to be a key driver of prosperity, delivering job creation, innovation, and energy security. As the UK navigates economic uncertainty, it’s crucial that businesses and policymakers recognise the transformative potential of net zero industries. With the right investment and policy support, the UK can position itself as a global leader in green growth, ensuring long-term prosperity for both businesses and workers.

As Ed Miliband, Energy Secretary, stated: “These numbers speak for themselves. Net zero is essential to growth, a strong economy, and money in working people’s pockets.”

The future is green, innovative, and full of opportunity—the question is whether the UK will embrace it or fall behind.

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