The net zero sector is growing three times faster than the overall UK economy, according to analysis commissioned by the Energy and Climate Intelligence Unit.
The net zero economy grew by 10% in 2024 and generated £83bn in gross value added (GVA), with £28.8bn directly from net zero businesses and £54.3bn from supply chain activities and broader economic contributions.
CBI Economics was commissioned by the Energy and Climate Intelligence Unit (ECIU) to measure the contributions of the UK’s net zero economy and assess the opportunities the sector brings across regions and local communities.
As of December 2024, the UK had 22,800 net zero businesses.
Of all 22,800 net zero businesses, 3,850 had seen growth of over 10% in the past year.
The Renewable Energy Planning Database (REPD), followed by renewables are the two largest components of the net zero economy, with 10,625 and 7138 businesses respectively active in this sector.
The REPD tracks the progress of UK renewable electricity projects over 150kW and includes companies that have applied for permission or are operating a renewable energy site generating over 150kW.
The future is green: the economic opportunities brought by the UK’s net zero economy
London and the south east have the largest absolute amounts of net zero economic activity, £16.2bn and £13.1bn, respectively.
This collectively makes up over a third (35%) of the UK net zero economy and is largely driven by the high concentration of professional, scientific, and technical services firms and head office activity that are part of the net zero economy and operate out of London and the south east.
However, despite the larger scale of activity in London, the net zero sector only makes up 2.8% of regional GVA and 2.6% of regional employment and is far more concentrated in regions outside of London.