Green-thinking businesses are contributing significantly to the value of the UK economy, according to a new comprehensive report.
There are almost 20,000 businesses currently within the net zero economy which are contributing £71 billion (3.7%) in Gross Value Added (GVA) to the UK economy, the research from the UK Energy and Climate Intelligence Unit (ECIU) shows.
Supported with analysis provided by CBI Economics and The Data City, the report shows the power of the green economy with the total GVA by businesses involved in the net zero economy said to be more than twice that of the energy sector itself.
Some 840,000 (3.2%) UK jobs are supported by businesses in the net zero economy, with an average wage of £42,600 compared to the £33,400 national average. According to the research, the net zero economy generates £112,300 in GVA per employee, which is 1.7 times higher than the national average of £64,400.
In terms of green economy GVA, Scotland, the north-west, and Thames Valley are key drivers, while in terms of overall green economy jobs creation Hampshire, Leeds/Yorkshire, and South Wales are hot on the aforementioned regions’ heels.
Peter Chalkley, director at the ECIU, says in the report foreword: “On the banks of the Tyne and Tees, set against a backdrop of years of industrial decline, the green shoots of a different kind of re-industrialisation are now apparent.
“From the manufacture of offshore wind turbine platforms to green hydrogen glass production, new industry is emerging in our industrial heartlands.”
He added: “And while London languishes in last place on the leaderboard, it is other regions where net zero is playing a larger role in local economies with net zero hot spots from Derbyshire and Yorkshire to Merseyside and Tyneside. The analysis suggests that net zero business is addressing the challenge of levelling-up but also of struggling productivity rates.”
