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UK net zero economy grows 9%, with ‘hotspots’ in electoral battlegrounds
6/3/2024
The UK’s net zero economy grew 9% in 2023, according to a new report commissioned by the Energy and Climate Intelligence Unit (ECIU).
According to the ECIU report, the total gross value added by businesses involved in the net zero economy now stands at £74bn, in contrast to stagnation of the wider economy’s GDP growth at just 0.1% in 2023. However, the report warns that without further investment and policy stability, the strength of future growth is in jeopardy as the US and European Union (EU) compete to attract and develop clean industries.
The analysis, provided by CBI Economics and The Data City, found that jobs in the net zero economy are highly productive, generating £114,300 in economic activity, more than one and a half times the UK average of £72,550. They are also better paid by almost £10,000, the average net zero salary being £44,600 compared to the £35,400 UK average.
Scotland, Wales and the Midlands have particularly strong net zero economies with London having the lowest proportion of its economy based on businesses in net zero sectors.
Battleground constituency seats in England and Wales (based on new boundaries) are three times more likely to be a net zero economic ‘hotspot’. These seats include High Peak, Stroud, Cheadle, Derby North, Lancaster and Wyre, Broxtowe and Hazel Grove.
Some areas with particularly high concentrations of net zero activity are amongst the most deprived in the country; for example, Hartlepool, Nottingham, Redcar and Cleveland are among the top 10% local authorities for income deprivation in England.
The analysis found that around two in three (65%) of the top 25 net zero hotspots and half of the top 50 net zero hotspots in England and Wales are classified as key electoral battlegrounds heading into the general election.
Commenting on the report, RenewableUK’s Nathan Bennett said: ‘This report makes clear that in places like Grimsby, Blyth, Hull and Barrow, which are hubs of the offshore wind sector, and Sheffield, where we have a growing green hydrogen industry, people now have lived experience of the benefits of clean energy investment in their communities – and that voters may consider this at the ballot box this year. As many of these areas are marginal constituencies, we may see each party’s policies on green growth making a considerable difference to the outcome of the next election.’
Peter Chalkley, Director, ECIU, noted that: ‘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. Thousands of jobs depend on net zero in constituencies right across the country, including many key battleground seats. 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?’
