Report finds climate action and net-zero economy boost UK jobs
This comes as the UK Government sets its proposed level for the Seventh Carbon Budget.
Endorsed by the Environmental Audit Committee and the Climate Change Committee, the updated Carbon Budget sets a science-led target of ~87% emissions reduction in the period 2038 to 2042.
This is inspired by evidence-based assumptions that the country will take a consumer choice-led approach to the adoption of technologies such as solar, batteries and electric vehicles.
Meanwhile, the government expects families and businesses to continue reaping the benefits of the clean energy transition in coming decades.
The Budget builds on the Climate Change Act 2008, which is backed by British businesses, scientists, trade unions and civil society, and has provided a framework for combining economic growth and climate action.
An independent report from the Energy and Climate Intelligence Unit, The race for net zero, supported by the Confederation of British Industries Economics, shows that the net-zero economy supports over one million jobs in the UK, adding £105bln in gross value added (GVA) to the economy in 2025 alone.
Since July 2024, the UK has seen over £90bln of private investment announced in clean energy, including carbon capture projects in Teesside and nuclear at Sizewell C off the Suffolk coast.
The Office for Budget Responsibility has also made it clear that the costs of climate damage are getting higher, while the cost of the net-zero transition is getting lower. A delivery plan for how Carbon Budget 7 will be met will be published as soon as is reasonably practical after Parliament has approved the Budget.
The race for net zero report also identifies that 22,700 small firms (employing less than 50 people) now depend on the UK’s net-zero economy.
From solar panel installers to electric car production line engineers, these workers reportedly generate £119,300 in economic value per full-time job, around 1.5 times the national average.
This leads to higher wages, with net-zero jobs typically earning £43,142, 11% higher than the current national average of £39,039.
The Yorkshire and the Humber region leads the way in England, with the highest shares of net-zero GVA as a proportion of the local GVA (4.4%) – the region’s net-zero economy supports over 79,000 jobs.
