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UK energy transition supports 1.1 million jobs and contributes £105bn
9/6/2026
News
Industries supporting the UK economy’s decarbonisation now support 1.1 million jobs and generate £105bn of economic value each year, according to new analysis commissioned by the Energy and Climate Intelligence Unit (ECIU).
The report, produced by CBI Economics and The Data City, found these activities account for 3.8% of UK gross value added (GVA). They have also become an increasingly significant part of the country’s industrial base, spanning sectors including energy generation, manufacturing, engineering, construction and professional services. More than 23,000 businesses operate within the segment, with the vast majority (96%) small and medium-sized enterprises.
Workers in the sector are also more productive than average, generating £119,300 in economic value per job, around 48% higher than the national average, while mean salaries are approximately 11% above the UK average.
The ECIU report identified six economic hotspots where low-carbon industries generate more than £1bn in GVA, including areas in Scotland, Yorkshire and North Wales. Among England’s regions, Yorkshire and the Humber recorded the highest share of such activity, supporting more than 79,000 jobs.
Researchers also highlighted the scale of future activity already in development. The UK’s renewable energy pipeline now represents £455bn of planned investment across 262GW of capacity, with around two-thirds of projects either under development or in the construction phase.
Separate studies examining Scotland and Wales found that industries linked to the energy transition contributed more than £14bn in combined GVA during 2025 and supported nearly 150,000 jobs, underlining the growing role of low-carbon industries in the economies of the UK’s devolved nations.
In Scotland, industries linked to the transition contributed £10.2bn in GVA and supported more than 105,000 jobs in 2025, equivalent to 4.9% of Scottish economic output and 3.9% of employment. Activity spans energy generation and infrastructure, advanced manufacturing, engineering, construction, environmental services, and professional and technical services.
The report highlights Scotland’s central role in future UK energy infrastructure development. Around £211bn of planned UK energy infrastructure investment is located in Scotland, representing 34% of the national pipeline. Major projects include offshore wind developments, grid reinforcement schemes and energy storage infrastructure.
In Wales, energy-transition industries contributed £4bn in GVA and supported more than 41,300 jobs, accounting for 4.3% of economic output and 3.1% of employment. The sector includes more than 1,300 businesses operating across renewable energy, manufacturing, construction and engineering supply chains.
Researchers found that firms operating in the transition economy generate around £117,500 of value per worker, approximately 1.7 times the Welsh average. Planned renewable energy infrastructure projects worth £13.1bn could support further growth in the years ahead.
The Scottish and Welsh studies suggest the transition is becoming an increasingly important contributor to economic activity across the UK’s nations and regions.
The reports conclude that future growth will depend on converting planned investment into completed projects, supply-chain activity and long-term employment. Workforce development, policy stability and industrial capacity are expected to play an important role in determining how much of the economic value generated by the transition remains within the UK.
Middle East conflict could reinforce focus on domestic energy investment
The UK’s growing pipeline of energy-transition projects comes at a time when the International Energy Agency (IEA) says the conflict in the Middle East is likely to reshape global energy investment priorities, reinforcing the importance of domestically available energy resources.
In its World Energy Investment 2026 report, the agency says the disruption is expected to influence future investment decisions and project priorities, particularly among fuel-importing countries, with greater emphasis placed on energy resources available within their own borders, including renewable energy, electricity networks, storage infrastructure and nuclear power.
The agency also notes that confidence in major energy transit routes has been weakened by the conflict, prompting governments and investors to reassess supply-chain risks and long-term energy security strategies.
While the immediate impact on investment levels is expected to be limited, the IEA says the conflict is likely to leave a lasting mark on how energy projects are prioritised and financed in the years ahead.
