Green economy grew to £46.7bn in 2018

The turnover of the UK’s low-carbon and renewable energy economy rose to £46.7 billion in 2018 – a £2.1 billion increase on the year before – according to the latest estimates from the Office for National Statistics (ONS).

The number of people directly employed by the sector is thought to have grown by almost 5,000 to the equivalent of 224,800 full time jobs.

Energy efficient products accounted for the largest share of turnover at £19.3 billion. They were also by far the largest source of employment, providing the equivalent of 167,900 full time positions.

Low-emissions vehicles came second in terms of revenue at £4.4 billion, following by bioenergy at £4.3 billion and nuclear power at £3.8 billion. Offshore and onshore wind were roughly tied at £3.7 billion each.

Note: Some sectors are not listed in this article.

“The overall growth in this crucial sector is fantastic news and underlines that where robust policy frameworks are in place – as they are for renewable power – innovation and good jobs follow,” commented George Day, head of markets, policy and regulation at the Energy Systems Catapult.

“The next challenge is to replicate this success in areas where more progress is needed, particularly in buildings. All buildings need to be zero carbon by 2050, and we will need new technologies that work for buildings old and new.

He continued: “The market for energy in buildings is huge – worth billions of pounds. To tap into this, businesses will need to retool and radically reskill to deliver zero-carbon heating products and services that people desire.”

But he said this will require “robust policy”, including emissions performance standards, regional retrofit programmes and local energy planning.

However, the Trades Union Congress said the figures represented an “appalling failure” on the part of government, noting that despite the urgent need to decarbonise there were 11,000 fewer green jobs in 2018 than there were in 2014.

General secretary Frances O’Grady said: “This is a dreadful record. The climate emergency is a major threat to the living standards of British people. But we are making next to no progress transforming our economy to safeguard our future.

“There should be a very good news story to tell. A path has been open to us for a long time now that’s full of opportunities to create good quality green jobs. By taking this path, we can revitalise towns and communities that lost traditional industries.

“No more excuses – the government must sit down with unions and businesses to plan a just transition to a fairer greener economy.”

Meanwhile, the Scottish government has announced plans to require offshore wind developers to provide statements setting out how and where their project is expected to impact the local and national supply chain when apply for a lease.

Under a new agreement with Crown Estate Scotland, these commitments will then be formally incorporated in the leases and there will be “contractual consequences” if they are not delivered.

Economy secretary Derek Mackay said: “Scotland is the ideal location for offshore wind, but recent projects have not delivered the significant economic opportunities we want to see for Scottish businesses.

“The Scottish government has been calling for the offshore sector to do more by awarding contracts to our indigenous supply chain but recent disappointments suggest that more has to be done.

He continued: “The measures agreed with Crown Estate Scotland will help to release more of those economic benefits for the Scottish economy and ensure that the Scottish-based supply chain is considered when tendering for work or making long-term conditions.”

Crown Estate Scotland will launch ScotWind – its first leasing round for a decade – in spring 2020.