• Swindon & Wiltshire Economy
• Monday February 24 2025
• Author Name: Peter Davison

South West a ‘hotspot’ for economic growth driver Net Zero, says CBI

Forget ‘cut the green crap’ – the net zero sector is growing three times faster than the UK economy overall, according to the CBI, with the South West singled out as a hotspot.

The latest CBI Economics report, published today (Monday) suggests the sector has become “a powerhouse of job creation and economic expansion” with over 10 per cent growth in the total economic value supported by the net zero economy since 2023.

In 2024, there were 22,800 net zero businesses, with SMEs making up 94 per cent of the sector.

Together, they contributed £28.8 million to the economy and supported 273,000 jobs.

The report estimates that the supply chain boosts the contribution to the UK economy to more than £83 billion, and supports 951,000 jobs – a shade under three per cent of all the jobs in the UK.

The report says the South West, the West Midlands, Yorkshire, and the Humber “are emerging as hotspots, contributing 16 per cent of the nation’s net zero economy.”

The authors add that the sector is also attracting record investment, with £6.4 billion raised in 2023 alone.

“In 2023/24, net zero businesses attracted £23 billion in funding, with £20.1 billion coming from foreign direct investment (FDI), a growth of 47 per cent compared to 2022/23,” says the report.

“The UK’s net zero economy isn’t just about hitting climate targets – it’s a dynamic and fast-growing sector that’s creating jobs, boosting productivity, and attracting billions in investment,” said Isaac Gravener, an economist with CBI Economics.

“With sustainability at its core, this green revolution is proving that economic success and environmental responsibility go hand in hand.”

Image courtesy of keepwakin at Pixabay