Unexpected green energy ‘hotspots’ emerge in North as industry supports 225,000 jobs

Areas in Yorkshire and Cheshire are identified as green energy hotspots, as well as existing locations in the North East and Humber

The drive to net zero is supporting 225,000 jobs in the North and adding more than £20bn to the economy, a new report says – with some unexpected ‘hotspots’ of activity being identified.

The annual report on the green economy from CBI Economics says the North East has the highest proportion of firms in England involved in the net zero economy, while the green sector in the Humber contributes the highest percentage of its GDP anywhere in England.

But it has also identified West and North Yorkshire, and the area around Cheshire, Warrington and North Wales as ‘hotspots’, both of which have green sectors worth more than £1bn. The Yorkshire area is highlighted for a range of energy projects, while Cheshire is benefiting from hydrogen projects around Ellesmere Port and Middlewich.

The report, which was commissioned by the independent Energy and Climate Intelligence Unit, says that renewable jobs are better paid than others, with an average salary of £43,142. But it warns that a breakdown in political consensus on net zero – with parties like Reform and the Conservatives signalling they would reverse or slow down current investments in green technology – risks putting the sector’s growth in jeopardy.

Louise Hellem, CBI chief economist, said: “This report makes clear the sustained scale of the opportunity in the UK’s net zero economy. It shows that clean power and decarbonisation are no longer future ambitions; they are already a significant and growing part of the UK’s industrial base. At a time when the UK must strengthen energy security and drive growth, the net zero economy is becoming central to the country’s competitiveness.”

Peter Chalkley, director of the Energy and Climate Intelligence Unit, said: “Reaching net zero emissions is scientifically the only way to bring the climate back into balance and stop climate change but it’s now become a major part of the UK economy. Thousands of small businesses across the UK are the unsung heroes of this net zero economy, installing solar panels, manufacturing parts for electric cars and in doing so creating greater energy independence for the UK, shielding us from the oil and gas price crises of recent times.”

The report has been backed by Darren Davidson, the Newcastle-born UK vice president for Siemens Energy. He said: “We welcome the findings of this report because they underline something those of us in the industry can already see clearly: the energy transition is not only essential for the UK’s future, it’s already creating skilled jobs, driving investment and revitalising communities right across the country.

“In my view, there has never been a more exciting time to work in the energy sector. We are transforming how Britain powers homes, businesses and industry, and that means creating long-term opportunities for people with the skills, ambition and commitment to build a cleaner, more secure energy system.”