The Confederation of British Industry (CBI) has released a report revealing that the UK’s shift towards a greener economy has generated £71bn in economic benefits while creating jobs and investment opportunities in areas that have been hit hard by industrial decline. The report, entitled “Mapping The Net Zero Economy,” examined the regions in the UK that have benefited the most from policies aimed at reducing greenhouse gas emissions. The report highlights the role of green technology, with more than 20,000 businesses contributing to the push towards net zero emissions and creating 840,000 jobs across various sectors, including renewable energy and waste management.
The Benefits of the Green Economy
The CBI report found that the green economy is stronger and contributes more to growth in regions such as Scotland and English regions like Tyneside, Teeside, Merseyside, and the Humber, than in London and the South East. The report also revealed that green jobs pay significantly more, with an average wage of £42,600, which is higher than the national average of £33,400. Furthermore, the report states that the net zero economy is addressing the issue of leveling up and the UK’s productivity problem.
Global Competition for Green Funding
The UK has long been seen as a leader in green technology, particularly offshore wind, but its position is at risk due to the passing of the Inflation Reduction Act (IRA) in the United States last year.
The Act puts aside $369bn (£297bn) for action related to tackling climate change, making America an attractive destination for green investment. Tom Thackeray from the CBI warns that there is now a “global competition” for green funding, and the UK needs to build on the good work that has already been done to avoid losing out and losing jobs.
Challenges Facing the UK
While the UK has made progress in the transition to a greener economy, it still faces challenges such as restrictive planning regulations for onshore wind and solar, a lack of consistency in policy, and slow planning and consent for renewables and vehicle charging. Tory MP Chris Skidmore’s Mission Zero report last month revealed that the UK was falling behind in the net zero race, citing these issues as holding back private sector investment.
Conclusion
The CBI report underscores the positive economic impact of transitioning to a greener economy in the UK, with advancements in green technology driving growth and creating new job opportunities. However, to stay ahead in the global race for green funding, the UK must address existing challenges, such as restrictive planning regulations for onshore wind and solar, and a lack of policy consistency.
By accelerating planning and consent for renewables, vehicle charging infrastructure, and other green technologies, the UK can maintain its leadership position in tackling climate change while fueling economic growth and job creation.
