Britain's net zero economy grows by 9%

The UK's net zero economy grew by 9% in 2023, according to a new report commissioned by the Treasury. Energy and Climate Intelligence Unit (ECIU).), with analysis provided by Economics of the Central Bank of Iraq And Data City.

The total gross value added (GVA) of companies participating in the net zero economy now stands at £74 billion. This contrasts with the stagnation of the broader economy, with GDP growing by just 0.1% in 2023. [2]. But CBI Economics warns that without more investment and political stability, the strength of future growth is at risk as the US and EU compete to attract and develop clean industries.

The analysis finds that net zero jobs are highly productive, generating £114,300 of economic activity, more than one and a half times the UK average of £72,550. They are also better paid, at around £10,000: the average net zero salary is £44,600, compared to £35,400 on average in the UK.

Scotland, Wales and the Midlands have particularly strong net zero economies, while London has the lowest proportion of its economy based on businesses from net zero sectors.

In England and Wales, seats in the most controversial constituencies (under new boundaries) are three times as likely to be a 'hotspot' for a zero-sum economy.

In addition, around two in three (65%) of the top 25 net zero hotspots and half of the top 50 net zero hotspots in England and Wales are rated as major electoral battlegrounds ahead of the general election.

Louise Hillem“It is clear that action is needed to grow our net zero economy,” the CBI’s chief economist said. In the spring budget presentation presented by the Central Bank of Iraq, we called on the Minister of Finance to develop a net-zero investment plan, to identify green investment gaps and implement policies to attract private financing. This is one of many tools the government can use to help companies redouble their efforts to achieve green growth, but there are many others. “We hope this report will start a wider discussion about how the UK can benefit from these opportunities.”

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Peter ChalkleyThe ECIU Director added: “Against a backdrop of economic recession, the zero-emissions economy is bucking the trend, but it is clear that the political volatility of the past year has damaged investor confidence at a time when the US and EU were investing billions to compete for clean industries. Thousands of jobs are on net zero emissions in constituencies across the country, including many key seats. The question now is whether political parties will provide the leadership, stability and investment needed to generate greater growth, or whether they will withdraw from the global race to net zero. .

The analysis found that companies received a net £279 million in public funding Innovate UK And 12.3 billion private investments during 2021-2022. In 2022, £1.5 billion will be invested in the low-emission vehicle sector, more than, for example, in the biopharmaceutical sector (£1.4 billion). However, the UK fell in EY's clean energy attractiveness index last year.

Net zero economic sectors include renewable energy, energy storage, green finance and recycling.

Thomas Farquharchief commercial officer of the clean technology startup HayatoHe said: “The UK’s net zero economy is a vibrant and dynamic area to be part of, offering huge growth opportunities for new and innovative businesses. SMEs will be the drivers of the net zero economy and represent 61% of private sector employment. However, for this to be achieved This growth, it is necessary for the government to provide policy coherence and unwavering ambition.

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