How Renewables are Helping the UK Net Zero Economy

The UK's net zero economy is showing remarkable growth, outpacing overall economic performance three times.

In 2024 alone, this green segment expanded by an impressive 10%, contrasting starkly with the overall sluggish economic growth.

Analysis from the Confederation of British Industry (CBI) shows the growing importance of the climate-focused industries, such as renewable energy, electric vehicles, heat pumps, energy storage, green finance and waste management.

These sectors together have contributed a substantial £83bn (US$105bn) in gross value added to the economy, demonstrating their lucrative potential.

With 22,000 companies operating within this sphere, nearly a million jobs have been created across the UK.

These jobs are not only plentiful but also lucrative, offering an average annual wage of £43,000 (US$54,142), significantly above the national average of £37,400 (US$47,091).

"Looking for growth? Then you should be looking in the clean, green sectors," says Rachel Orr, CEO of Climate Outreach.

Regional net zero growth

Unlike many sectors concentrated around London and the Southeast, net zero industries are proving to be a boon for regional growth too.

Areas such as the West Midlands, Yorkshire, Humberside, and South West England are emerging as vibrant hubs for climate technologies.

Companies like Schneider Electric have invested heavily in these regions, including a US$53m investment in a new manufacturing facility in North Yorkshire.

The sector's expansion is also accompanied by increasing productivity, which bodes well for the overall economy.

According to CBI reports, net zero jobs are 38% more productive than the general workforce.

This growth not only leverages recent advancements in technology but also sets a sustainable path forward, making the UK potentially a leader in the global green economy.

CBI’s Chief Economist Louise Hellem says: “It is clear, you can’t have growth without green – 2025 is the year when the rubber really hits the road, where inaction is indisputably costlier than action,” she explains.

Rollo Maschietto, Public Affairs Manager at REA believes this is an opportunity that the UK government cannot afford to pass up on.

"The government has a choice to make: double down on this momentum or risk falling further behind," he explains.

Enhancing energy security

The move towards a net zero economy also promises greater energy security for the UK, reducing reliance on volatile fossil fuel markets — which have been particularly unstable following geopolitical conflicts like Russia’s invasion of Ukraine.

Pursuing increased domestic clean energy capacity can provide a buffer against such shocks, ensuring more stable energy prices for UK households.

However, despite these promising developments, the UK cannot sit back and relax.

Other economies, particularly in the EU and China, are advancing rapidly in the clean energy sector.

The EU's green sector contributes 50% more to its economy than the UK's, and in China, these industries made up 10% of GDP in 2024.

“We don’t want to risk the higher and more volatile energy bills that we’ll get if we continue to rely on fossil fuels,” says Luke Murphy, Chair of the All-Party Parliamentary Group on Climate Change.

“We don’t want Putin’s boot remaining on our neck.”

The pathway set by the net zero transition is not just about compliance or environmental responsibility — it's a robust economic strategy that can deliver significant financial returns and sustainable growth for the UK.

Ed Miliband, the UK’s Energy Secretary, has recently relaunched the government’s Net Zero Council, which will preside over policy in this area.

Since the report’s publication, he has described the CBI’s findings as irrefutable.

“These numbers speak for themselves. Net zero is essential to growth, a strong economy and money in working people’s pockets," Ed Miliband explains.

"Our mission to make Britain a clean energy superpower is the route to energy security, good jobs and investment in our communities.”

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