The UK's Green Economy is Now Worth More Than £100bn

The UK’s net zero economy now generates £105bn (US141bn) and supports more than one million jobs, with the expansion of clean energy acting as a central driver of investment, productivity and skills growth.

The transition to net zero is rapidly reshaping the UK’s energy system, influencing how power is generated, distributed and consumed, while also redirecting capital into low-carbon infrastructure and technologies.

According to 'The Race for Net Zero: The UK Net Zero Economy and the Transition to a Competitive Future by the Energy & Climate Intelligence Unit', the sector contributes approximately £105bn (US$141bn) in gross value added and supports more than one million jobs nationwide.

The findings underline how deeply embedded energy transition activity is across sectors including power generation, grid infrastructure, manufacturing and professional services, positioning energy at the core of the UK’s future competitiveness and growth.

The economics of the energy transition

The report makes clear that the evolution of the UK’s energy system is now a defining feature of its wider economic trajectory.

The net zero economy supports approximately 1.1 million full-time equivalent roles, with workers generating around £119,300 (US$160,550) in economic value per employee, 48% above the UK average.

Many of these higher-productivity roles are directly linked to energy-related activities, including renewable generation, grid development, engineering and infrastructure delivery, alongside advisory and financial services tied to the energy transition.

Wages within the net zero economy are on average 11% higher than the national benchmark, reinforcing the role of energy transition jobs in supporting economic resilience and long-term prosperity.

However, scaling the energy transition will depend on continued investment in skills, particularly in engineering, construction and technical disciplines needed to deliver complex energy projects.

The report also highlights the importance of execution capability, supply chain readiness and large-scale project delivery as global competition for clean energy investment intensifies.

“British scientists first distilled the concept of net zero – simply put, you need to stop adding more emissions to the atmosphere (than are sucked back out) otherwise temperatures won’t stabilise; you have to stop adding to the problem or you won’t stop climate change,” says Pete Chalkley, Director, Energy and Climate Intelligence Unit, in the report.

“This British science, that scientific fact, has spawned a global race to cut emissions.

“When countries and US States committed to net zero are combined, 84% of global GDP is covered.

“This year will mark five years since the Glasgow COP climate conference when the UK helped kick-start the global drive to net zero.

“Now more than 1,200 of the world’s largest 2,000 companies have a net zero commitment.”

Beyond economic metrics, the report reinforces that transforming the energy system is essential to reducing emissions, stabilising global temperatures and mitigating climate risk.

The UK's progress has already contributed to lower emissions, greater energy independence and the emergence of new energy industries.

Infrastructure build-out powering net zero

Delivering net zero is fundamentally tied to the expansion of energy infrastructure across the UK.

The report highlights how activity extends well beyond renewable generation, encompassing grid upgrades, storage systems, industrial decarbonisation and low-carbon building technologies.

Construction sectors are playing a central role in enabling energy projects, from transmission networks to battery storage and low-carbon industrial hubs.

A £455bn (US$612bn) renewable energy infrastructure pipeline spanning 262GW of capacity underscores the scale of development required.

“The domestic and international political landscape has shifted significantly since we last partnered with the Energy & Climate Intelligence Unit to assess the contributions of the net zero economy,” says Louise Hellem Chief Economist at the Confederation of British Industry, in the report.

“But while the politics may have evolved, the economic story has remained consistent and is now stronger than ever.

“The UK’s net zero economy is now a major part of the national industrial base.

“It supports more than a million jobs and generates more than £100bn in economic value, with activity embedded across energy, manufacturing, construction and high-value services.”

Major energy projects illustrate this momentum. Hinkley Point C in Somerset will deliver 3.2GW of low-carbon electricity for up to 60 years, while pumped storage schemes such as Glen Earrach and Coire Glas represent multi-billion-pound investments in grid flexibility.

Battery storage developments across Yorkshire, North Scotland and Aberdeenshire, alongside hydrogen infrastructure, are also supporting the decarbonisation of energy-intensive industries.

“The green transition is NOT a cost to the economy but rather its most powerful growth engine,” writes Adam Elman, Sustainability Director at Google, on LinkedIn.

“In fact, the UK net zero economy now generates £105bn (US$141bn) in Gross Value Added and supports one million jobs across the country.

“The latest analysis from CBI (Confederation of British Industry) Economics and Energy and Climate Intelligence Unit has some important findings.

“The economic case has never been clearer. We must double down on these investments to secure long term resilience and growth.”

How renewables have contributed

Energy remains the backbone of the UK’s net zero economy and its largest source of investment activity.

Renewable generation is the single biggest sub-sector, with more than 8,000 businesses operating across the country.

The shift towards domestically produced, low-carbon energy is increasingly seen as critical not only for decarbonisation but also for strengthening energy security and reducing exposure to volatile fossil fuel markets.

The UK’s project pipeline includes around 130GW of battery storage, 48GW of offshore wind, 45GW of solar photovoltaics and nearly 23GW of onshore wind capacity.

Approximately two-thirds of these projects are already operational or under construction, signalling strong delivery momentum.

Grid infrastructure is another priority area, with £56bn (US$75.3bn) of investment required over the next five years to connect new generation capacity to homes and businesses.

Nuclear projects such as Hinkley Point C and Sizewell C will complement renewables by providing stable, low-carbon baseload power.

Supply chains enabling energy growth

The report also highlights the strength and importance of supply chains underpinning the energy transition.

For every £1 (US$1.35) generated directly by net zero businesses, a further £1.85 (US$2.49) is created across the wider economy, reflecting strong industrial linkages.

Supply chain activity accounts for £51.2bn (US$68.9bn) of total economic contribution and supports more than 520,000 jobs.

This includes manufacturers, engineering firms, technology providers and specialist service companies that enable the deployment of energy infrastructure.

Industrial regions such as the Midlands, Yorkshire and the Humber and Wales are emerging as key hubs for energy-related manufacturing and innovation.

The Birmingham-Coventry Corridor, for example, is developing into a centre for battery technology and low-carbon propulsion, supported by the UK Battery Industrialisation Centre.

Meanwhile, projects such as the Agratas gigafactory in Somerset are expected to expand domestic battery production capacity and support thousands of jobs.

With more than 96% of net zero firms classified as SMEs, smaller businesses are also playing a vital role in scaling innovation and supporting the UK’s growing clean energy ecosystem.