West Midlands 'net zero' economy worth nearly £6 billion, new report shows

The report, commissioned by the Energy and Climate Intelligence Unit (ECIU), reveals that the UK net zero economy is a significant driver of growth, innovation and productivity - suggesting that it will be vital for the Government’s wider growth agenda.

A group of six West Midlands local authorities – Birmingham, Sandwell, Solihull, Coventry, Warwick and Rugby – are earmarked as a £1.59 billion net zero ‘hotspot’ for the productivity of its green businesses.

The UK’s net zero economy now generates £83.1 billion in Gross Value Added (GVA) and has grown 10% in the past year.

“The net zero economy continues to demonstrate that there are huge emerging markets for green technologies that the UK must capitalise on," said Louise Hellem, Chief Economist at the CBI.

“It is clear, you can’t have growth without green. At a time when the cost of doing business has squeezed appetite for capital investments and high energy prices are being cited as a drag factor across the economy, investments in clean technologies can significantly bolster competitiveness and productivity.

“2025 is the year when the rubber really hits the road – where inaction is indisputably costlier than action. We are approaching critical points of no return for achieving essential outcomes in energy security and emissions reduction. Long-term sustainable growth is unattainable without a future powered by clean, affordable, and secure energy.”  

The research reveals that the West Midlands attracted more net zero foreign direct investment projects than any English region outside London in 2024, although it also saw the sharpest year-on-year decline in the number of such projects by 41%.

Employment within the sector has also seen significant growth nationally of 10.2% over the past year. Net zero businesses support the equivalent of 951,000 full-time jobs, which are typically better paid than the UK average, with employees in net zero businesses earning an average of £43,076 per year.  

This compares to median gross annual earnings for full-time employees across the UK of £37,430 in April 2024. 

Peter Chalkley, Director of the Energy and Climate Intelligence Unit, said: “The Climate Change Act and the UK’s resulting relative policy stability have been a foundation for this sustained net zero growth, but it cannot be taken for granted and political signals matter for investors.

“Nearly a million British livelihoods now depend on the net zero economy which has at its core thousands of small businesses based all around the UK, from Grimsby to Gateshead to Glasgow, insulating homes and manufacturing equipment”.