A new report has revealed that the UK’s net zero economy grew by 9% in 2023, in stark contrast to the 0.1% growth seen in the economy overall.
The report also pointed out that strong future growth from green businesses was being put at risk by government policy reversals, lack of investment and competition from the EU and US.
According to the report by the Energy and Climate Intelligence Unit (ECIU) and the Confederation of British Industry (CBI), thousands of new green companies were founded in 2023 and overall the sector was responsible for the production of £74bn in goods and services and 765,000 jobs.
Hotspots of net zero businesses and the well-paid jobs they provide occur across the country, rather than being concentrated in London and the south-east, the report found. It also highlighted strong net zero activity in some of the most deprived areas and in marginal constituencies that will be focal battlegrounds in the coming general election.
limiting the damage from the climate crisis. Doing so would not only bring an economic boost but also cut energy costs for households and businesses and ensure energy security by ending the UK’s reliance on volatile fossil fuel markets, the report authors said.
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Peter Chalkley, who is the director of ECIU, said: “Against the backdrop of economic stagnation, the net zero economy is bucking the trend, but it’s clear that the policy U-turns of the past year have damaged investor confidence at a time when the US and EU are investing billions to compete for clean industries. The question now is: will political parties provide the leadership, stability and investment needed to generate further growth – or shy away from the global race for net zero?”
Louise Hellem, who is the chief economist at the CBI, said that the transition to net zero presents unprecedented opportunities for the UK to become a more resilient and productive economy while also tackling climate change. [Businesses] really don’t want to see net zero issues politicised.”
Story was adapted from the Guardian.
