A recent report showed that Britain’s green economy grew in 2023 despite a broader recession. The report urged politicians heading into a general election to continue investing in climate-friendly initiatives.
The study, conducted by think-tank Energy and Climate Intelligence Unit in collaboration with business lobbyists CBI and The Data City research group, revealed that the UK’s “net-zero economy” – from electric cars to carbon capture and renewables like solar and wind power – increased by 9% to £74 billion ($94 billion) year-on-year.
Meanwhile, official data indicated that the overall British economy had slipped into recession in the last six months of 2023.
According to Zawya, ECIU director Peter Chalkle said, “Against the backdrop of economic stagnation, the net zero economy is bucking the trend. Thousands of jobs depend on net zero… right across the country.”
“The question now is will political parties provide the leadership, stability and investment needed to generate further growth or shy away from the global race for net zero?” Chalkley asked.
The UK government, under the Conservative Party, has set a goal to achieve net zero carbon emissions for the country by 2050. However, the Labour Party is expected to win the upcoming general election and take over power from the Tories.
According to a report, businesses, supply chains, and employee spending that support the transition to net zero amounted to 3.8% of the UK’s GDP last year.
CBI’s chief economist, Louise Hellem, sees this transition as an opportunity for the country’s economy and has called for more sector investment in the government’s budget update next week.
She also urged the British finance minister, Jeremy Hunt, to create a “net-zero investment plan” in the latest tax and spending plans to further grow the net zero economy.