Chapter 4 – Economic opportunity, green jobs and skills

4.1 Climate action, economy and skills – key facts and sources of information

Toolkit chapters

4.1 Climate action, economy and skills – key facts and sources of information

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How decarbonisation can boost the green economy

Illustration showing actions to decarbonise which lead to a thriving economy for all
Actions to decarbonise which lead to a thriving economy for all include:
Creation of new jobs in the low carbon economy, skills training for those in high carbon industries to support a just transition, economic benefits from community energy schemes, investment opportunities, reduced energy costs, skills and training, and creation of better places to do business through reduced congestion.

Taking action to decarbonise can have significant beneficial effects on the local economy. The UK Low Carbon & Renewable energy (LCRE) economy is defined as economic activities that deliver goods and services that generate significantly lower emissions of greenhouse gases, predominantly carbon dioxide. 

Key facts

  • Turnover in the UK (LCRE) economy was £42.6bn in 2019.
    • An estimated 202,100 people were employed full time in the LCRE economy in 2019.
    • 40% of these jobs, and 31% of this turnover, are in the energy efficient products sector.
    • The second largest sector in terms of turnover is now the low emission vehicles sector.
  • The value of goods and services exported by low carbon businesses annually exceeds £7bn.
  • Research by Ecuity for the Local Government Association estimates that renewable and low carbon technologies could support 1.38 million jobs across the UK by 2050.
  • Local authorities are key players in the local economy, spending around £200 billion annually, providing them with an opportunity to drive growth in the low carbon goods and services sector. Local authorities can also help to grow jobs related to nature restoration and rewilding. Nearly 700,000 new green jobs could be created by 2030 if councils were given a greater role in local job creation, the Local Government Association has said.
  • According to a survey by Good Energy, almost half of 18–34-year-olds would like a career in the green economy. Comparatively, working in fossil fuels was perceived to be unattractive, with only 6% of respondents wanting to pursue a career in the industry. The survey also found that most young people (57%) would like to be employed in an environmentally sustainable business.
  • The UK cycle industry is worth three times more than the UK steel industry, and employs twice as many people. Cycling related businesses generate at least £5.4bn for the UK economy each year and they sustain 64,000 jobs.  
  • Expanding sustainable public transport options is good for the economy: In 2021, congestion cost the UK a total of £8bn, with the average Briton losing 73 hours to traffic.

Figure 1 – Employment by LCREE sector

A pie chart showing employment by LCREE sector
A pie chart showing employment by LCREE sector is broken down into seven segments:
Renewables – 41,000, Energy Efficiency – 123,400, Nuclear -15,700, Alternative Fuels – 700, Financial and Advisory Services – 6,000, Vehicles – 19,100, and Fuel Cells – 1,900
A pie chart showing employment by renewables sector
A pie chart showing employment by renewables sector is broken down into nine segments:
Offshore wind – 10,100, Onshore wind – 4,700, Solar photovoltaic – 5,500, Hydropower – 1,200, Other renewable electricity – 400, Carbon capture and storage – 300, Renewable heat – 8,400, Renewable combined heat and power – 2,200, and Bioenergy – 8,200.
A pie chart showing employment by energy efficiency sector
A pie chart showing employment by energy efficiency sector is broken into three segments
Energy efficient lighting – 22,700, Other energy efficient products – 87,000, and Energy monitoring, saving or control systems – 13,700.

LCREE employment by sector, UK, 2020. Source: https://www.ons.gov.uk/economy/environmentalaccounts/datasets/lowcarbonandrenewableenergyeconomyfirstestimatesdataset

Accessing facts that relate to your area

Source:

 Perceptions of the green economy, BEIS (2018)

Description:

Young people interested in a job in the green economy by region.

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Source:

Grantham Institute report (2018), London School of Economics 

Description:

Low carbon and renewable energy economy data is only available by nation, not by region. However, LSE analysis reveals the following: low-carbon employment levels are highest in Scotland, with around 30,000 low-carbon employees, followed by the Southeast and Northwest of England, and then the Yorkshire and Humber region. 

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Source:

BRES dataset – ONS

Description:

The Business Register and Employment Survey provides data by combined authority and local authority. Job classifications do not specify low carbon, but approximate data can be derived from standard industry codes e.g. electricity transmission/distribution. 

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Source:

Local green jobs: accelerating a sustainable economic recovery, Local Government Association (2021)

Description:

Report by the Local Government Association providing an analysis of green jobs required for a net zero economy in England and where these will be located in coming years, broken down by sector, region and local authority area. Includes interactive maps and datasets.

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Source:

Green Jobs Barometer, PwC UK

Description:

An interactive tool that measures the relative performance of UK regions and industry sectors on their progress developing green jobs over time. To be used as an evidence base to assess and support a fair transition to net zero.

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