UK net-zero economy study: Resilient against recession

Report shows Britain's green economy grew in 2023 despite a recession, with investments in climate-friendly technology and energy sources increasing.

The green economy in Britain experienced substantial growth in 2023, defying the broader recession that affected the overall economy. The report, released on February 27, emphasized the importance of climate-friendly investments and urged politicians to continue supporting these initiatives as the country heads into a general election.

According to the study conducted by think-tank Energy and Climate Intelligence Unit in collaboration with business lobbyists CBI and The Data City research group, the UK's "net-zero economy" expanded by nine percent to a value of £74 billion (S$126 billion) year-on-year. This growth was attributed to various factors such as electric cars, carbon capture, and renewable energy sources like solar and wind power.

Despite the recent economic downturn, the net-zero economy in the UK has shown resilience and progress. ECIU director Peter Chalkley highlighted the significance of this growth, emphasizing that thousands of jobs are dependent on net-zero initiatives across the country. He posed a critical question regarding the willingness of political parties to provide the necessary leadership, stability, and investment to drive further growth and compete in the global race for net-zero.

The report also revealed that net-zero businesses, supply chains, and employee spending contributed to 3.8 percent of Britain's GDP in the previous year, supporting hundreds of thousands of jobs. CBI chief economist Louise Hellem stressed the need for increased sector investment in the upcoming budget update, urging the government to establish a comprehensive "net-zero investment plan."

The Conservative government has set a target to achieve net-zero carbon emissions for the UK by 2050, but with a general election expected this year, the future of climate policies remains uncertain. The main opposition Labour party has expressed its intent to prioritize clean energy initiatives, with plans to lift the de-facto ban on new onshore wind turbines and significantly increase green energy generation.

Labour's spokesman for energy, Mr. Ed Miliband, outlined the party's vision to transform Britain into a "clean energy superpower," emphasizing the potential for doubling onshore wind, tripling solar power, and quadrupling offshore wind generation. These ambitious goals align with the broader focus on renewable energy and sustainable practices, highlighting the importance of continued support and investment in the UK's green economy.