The UK's net zero sector experienced significant growth in 2024, expanding at a rate three times faster than the overall economy, according to new analysis from the Energy and Climate Intelligence Unit (ECIU).
The report, commissioned by ECIU and conducted by CBI Economics, reveals that the net zero economy grew by 10% in 2024, generating a total of £83 billion in gross value added (GVA). Of this, £28.8 billion came directly from businesses operating within the net zero sector, while £54.3 billion stemmed from supply chain activities and broader economic contributions linked to net zero enterprises.
“The net zero economy continues to drive significant growth across the UK, with businesses and local communities reaping the benefits,” said a spokesperson from the Energy and Climate Intelligence Unit. “This transition offers vast opportunities for both economic growth and regional development.”
As of December 2024, there were 22,800 businesses in the UK involved in net zero-related activities. Notably, 3,850 of these businesses saw growth of over 10% in the past year, showcasing the potential for expansion within this sector.
The report also highlighted the key role of renewable energy in driving growth within the net zero economy. The Renewable Energy Planning Database (REPD) tracks over 10,600 renewable electricity projects, and, along with renewables businesses, represents the two largest components of the net zero economy, accounting for significant economic activity.
Regions such as London and the South East contributed the highest amounts to the net zero economy, with £16.2 billion and £13.1 billion in GVA respectively. However, despite this concentration of activity, the net zero sector accounts for only a small percentage of the region's total GVA (2.8%) and employment (2.6%).
The analysis also emphasized that the net zero economy is far more concentrated in regions outside of London, presenting opportunities for economic growth in other parts of the country. This shift towards regional growth reflects the diverse and expanding nature of the UK's net zero transition.
The findings suggest a promising outlook for the future, with continued opportunities for growth and development in the green economy.
