The UK’s Net Zero Economy Reaches More Than £100bn in Value

The transition to net zero is becoming a major economic transformation shaping how energy is produced, how industries operate and where investment is directed across the UK. 

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 net zero economy now contributes approximately £105bn (US$141bn) in Gross Value Added and supports more than one million jobs across the country. 

The report highlights that net zero activity is embedded throughout energy, manufacturing, construction, infrastructure and professional services, demonstrating that sustainability is increasingly central to the UK's long-term competitiveness, productivity and regional growth.

A net zero economy

The report makes clear that sustainability and net zero are becoming defining features of the UK's future economy. 

The net zero economy supports approximately one point one million full-time equivalent jobs, with employees generating around £119,300 (US$160,550) in economic value per worker, 48% above the UK average. 

These higher-productivity roles span engineering, renewable energy, manufacturing, consultancy, finance, infrastructure delivery and environmental services. 

The report also notes that wages within the net zero economy are on average 11% higher than the national average, highlighting the growing importance of green jobs in supporting economic prosperity.

Developing the workforce needed to deliver the transition is said to require continued investment into green skills, closing the green skills gap.

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The report also emphasises the need for execution, supply chain development and the capacity to deliver large-scale infrastructure projects. 

As countries compete globally for clean energy investment, access to skilled workers and technical expertise will become increasingly important. 

“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 benefits, the report also links the net zero transition directly to addressing climate change, highlighting that achieving net zero emissions is necessary to stabilise global temperatures and reduce climate-related risks. 

The UK's progress towards net zero has already contributed to lower emissions, increased energy independence and the growth of new industries. 

As the report states, the transition offers an opportunity to support sustainable growth, strengthen competitiveness and create economic opportunities across every region of the UK. 

Construction and infrastructure development

The report demonstrates that construction and infrastructure development are fundamental to delivering the UK's net zero ambitions. 

Net zero activity extends beyond renewable energy generation, supporting major investments in industrial decarbonisation, energy infrastructure and building technologies. 

Construction-related sectors play a significant role in developing renewable energy projects, transmission networks, battery storage facilities and low-carbon industrial sites. 

The report identifies a £455bn (US$612bn) renewable energy infrastructure pipeline across 262 GW of capacity, requiring extensive construction activity throughout the UK.

“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, 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.”  

According to the report, Hinkley Point C in Somerset will provide 3.2 GW of low-carbon electricity for up to 60 years, while large-scale pumped storage hydroelectric projects such as Glen Earrach and Coire Glas in Scotland require multi-billion-pound investments. 

The report also notes significant battery energy storage developments in Yorkshire, North Scotland and Aberdeenshire, alongside hydrogen infrastructure projects that support industrial decarbonisation. 

“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.”

Energy and the transition to clean power

Energy remains at the heart of the UK's net zero economy and is one of the largest drivers of investment and economic activity identified in the report. 

Renewable energy generation represents the largest net zero sub-sector, comprising more than 8,000 businesses across the UK. 

The report states that the transition towards domestically generated, low-carbon energy is increasingly viewed not only as an environmental objective but also as a means of improving energy security and reducing exposure to international fossil fuel market volatility.

The UK's renewable energy pipeline includes approximately 130 GW of battery storage, 48 GW of offshore wind, 45 GW of solar photovoltaics and almost 23 GW of onshore wind projects. 

Around two-thirds of this pipeline is already active or under construction, demonstrating significant momentum within the sector. 

The report also highlights the importance of electricity transmission infrastructure, with £56bn (US$75.3bn) of planned investment required over the next five years to connect renewable energy generation to homes and businesses. 

In addition, nuclear energy projects such as Hinkley Point C and Sizewell C are set to provide secure, low-carbon electricity alongside renewable technologies. 

Supply chain and manufacturing opportunities

One of the report's most significant findings is the strength of the net zero economy's supply chains. 

For every £1 (US$1.35) generated directly by net zero businesses, an additional £1.85 (US$2.49) is created throughout the wider economy, demonstrating extensive linkages between industries. 

The report estimates that £51.2bn (US$68.9bn) of the sector's total economic contribution comes through supply chain activity, supporting more than 520,000 jobs across the UK. 

This highlights the importance of manufacturers, engineering firms, technology providers and specialist service companies in supporting the transition.

Manufacturing is particularly important in industrial regions such as the Midlands, Yorkshire and the Humber and Wales. 

The Birmingham-Coventry Corridor has emerged as a significant centre for low-carbon propulsion systems and battery innovation, supported by facilities such as the UK Battery Industrialisation Centre. 

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

The report emphasises that strong domestic supply chains improve resilience, reduce delivery risks and allow the UK to capture a greater share of the economic value generated by global clean energy investment. 

With more than 96% of net zero firms classified as SMEs, smaller businesses are also playing a critical role in driving innovation, supporting local economies and expanding manufacturing capacity.