Net zero has firmly established itself as a cornerstone of sustainable growth in the UK, according to a new report from the Confederation of British Industry (CBI).

Produced in partnership with thinktank the Energy and Climate intelligence Unit (ECIU) and business analysts The Data City, The Future is Green says that the UK net-zero economy has grown by 10.1% since 2023. The segment now generates £83.1bn in gross value added (GVA).

On the basis of criteria defined by The Data City, the report states that the UK net-zero economy comprises 22,800 businesses. Over the past year, those companies have generated a total of £28.8bn – just over half the size of the economy of Northern Ireland, and surpassing the annual contributions of major sectors such as advertising and market research (£28.5bn) and crop and animal production (£11.6bn).

Last year, net-zero-based commercial activity generated £23bn in investment funding and foreign direct investment. In tandem, the sector boasts a strong multiplier effect, with every £1 of value generated creating an additional £1.89 in the wider economy.

In addition, net-zero commerce supports employment equivalent to 951,000 full-time jobs, with 273,000 roles directly rooted in the work of net-zero companies and a further 679,000 supported in the supply chain.

Importantly, those jobs were 38% more productive than the UK average, generating £105,500 in economic value per full-time position. That led to higher-than-average wages, with those jobs bringing in an average annual gross of £43,076 per full-time worker.

Local strengths

Looking back over the past few years, the report notes that 2023 marked the highest level of investment funding in UK net-zero businesses, at £6.4bn. That was £0.6bn more than the private investment level for 2022 and a £500m rise on 2021.

Between 2020 and 2021, private investment into net-zero enterprises grew by a massive 413% (£4.7bn). The report suggests that this surge of activity has contributed to the segment’s current health. Meanwhile, the report cites figures from the Department for Business and Trade showing that net-zero-based foreign direct investment (FDI) reached £20.1bn in FY2023-24: a £6.4bn (46.5%) rise on FY2022-23.

In terms of its geographical spread, net zero is “fostering transformative opportunities” across the UK, with local hotspots “driving both regional and national progress toward sustainable economic growth”.

The market leverages local strengths and natural materials; coastal areas are supporting offshore wind farms, and resource-rich zones are driving the production of renewable energy. As a result, those industries are creating thriving hubs of innovation.

Regionally, the largest hotspots of net-zero activity are contained in the West Midlands, along with Yorkshire and the Humber and the South West of England. Collectively, those hotspots account for 16.3% of the market.

Several emerging hotspots are also poised to solidify their status as leading net-zero contributors, including Aberdeen – home to the government’s Great British Energy. The Humber and Teesside industrial clusters are key hubs for carbon capture, hydrogen production and offshore wind.

“The results of this growth are clear,” the report says. “The net-zero economy is not only driving environmental progress but also delivering transformative economic and social benefits across the UK. With its high productivity, investment and innovation, the sector is a vital pillar of the UK’s transition to a sustainable future.”

Points of no return

For CBI Chief Economist Louise Hellem, the net-zero economy continues to demonstrate that there are “huge emerging markets for green technologies” that the UK must capitalise on.

“It is clear, you can’t have growth without green,” she said in a statement. “At a time when the cost of doing business has squeezed appetite for capital investments and high energy prices are being cited as a drag factor across the economy, investments in clean technologies can significantly bolster competitiveness and productivity.”

In Hellem’s assessment, 2025 is the year when inaction is “indisputably” costlier than action. “We are approaching critical points of no return for achieving essential outcomes in energy security and emissions reduction,” she said. “Long-term sustainable growth is unattainable without a future powered by clean, affordable and secure energy.”

ECIU Director Peter Chalkley pointed out that almost a million British livelihoods now depend on the net-zero economy, which contains thousands of UK small businesses from Grimsby to Glasgow, insulating homes and manufacturing equipment.

He added: “This net-zero workforce has grown whole new British industries like offshore wind, enabling the UK to compete in the global markets’ unstoppable shift to cleaner technologies. In effect, the UK pump-primed offshore wind, which has enabled other countries to use the technology to cut emissions globally.”

For ICAEW Climate Change Manager Sarah Reay, finance professionals at the heart of businesses and/or advising them are well placed to take advantage of opportunities stemming from the net-zero transition. She explains: “By leveraging transition finance, we can unlock the necessary investments to decarbonise our economy, creating a robust market for sustainable innovations.

“This shift is already generating a surge in jobs within sustainability specialisms, driving economic resilience and fostering a skilled workforce for the future. Despite current geopolitical distractions, it’s crucial to stay focused on our long-term net-zero goals. It’s a commitment that not only enhances our energy security, but provides leverage to reposition the UK as a global leader in sustainable development.”