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Economy
Jun 02, 2026
Analyzed by GPT OSS 120B

UK Green Economy Generates Over £100bn Annually, Study Shows

AI Summary
A CBI‑ECIU analysis reveals the UK’s net‑zero sector now contributes more than £100 billion a year, supports over a million jobs and is underpinned by £455 billion of planned investment. The findings highlight rising wages, strong regional impact and growing political tension over the country’s climate targets.

A new CBI‑ECIU analysis finds the UK’s net‑zero economy now delivers over £100 billion of annual economic output, supports more than a million jobs and is backed by a £455 billion investment pipeline.

Net‑Zero Sector Surpasses £100bn Annual Output

The report, commissioned by the Energy and Climate Intelligence Unit, quantifies the scale of the UK’s green economy across energy, manufacturing, services and supply chains.

  • 308,000 people employed directly in solar, wind, EVs, insulation and related trades.
  • Including supply‑chain roles, employment rises to 1.1 million jobs.
  • Average net‑zero wage: £43,000 per year – about 11% above the national average of £39,000.
  • Each net‑zero worker generates roughly £120,000 of value for the wider economy.

£105bn Gross Value Added and £455bn Investment Pipeline

Economic contribution metrics underscore the sector’s importance.

  • Gross value added (GVA): £105 billion, representing nearly 4% of UK GDP.
  • Planned energy‑infrastructure investment: £455 billion.
  • Projected to boost productivity at a time when the UK faces low‑productivity challenges.

Boost to Jobs, Wages and Regional Competitiveness

Beyond headline numbers, the green economy is reshaping regional labour markets and political debate.

  • Approximately 22,000 small businesses are active in renewable and efficiency projects.
  • Policy drivers include the government target to decarbonise electricity by 2030 and the broader net‑zero goal for 2050.
  • Opposition from the Conservative and Reform UK parties, as well as statements from former PM Tony Blair, threatens to curtail future growth.
  • Minister for Climate Katie White emphasised electrification and home‑grown clean power as essential for energy security.

Policy Push and Market Risks Shape the Next Decade

Looking ahead, the sector’s trajectory hinges on sustained political support and continued investment.

  • If net‑zero targets are maintained, the economy could expand beyond the current £100 billion annual output, attracting additional private capital.
  • A reversal of climate policy could jeopardise up to £455 billion of planned projects and erode high‑wage jobs.
  • Continued decarbonisation of the power system by 2030 is expected to further accelerate job creation and GVA growth.