Thursday, August 12, 2021

The green economy in the U.K. is now four times larger than its manufacturing sector

The report comes as the government faces criticism for a lack of policy details regarding net-zero goals

Author of the article: Daniel Johnson
Publishing date: Aug 11, 2021 

Wind turbines stand at Whitelee Windfarm, the U.K.'s largest onshore windfarm, operated by ScottishPower Renewables, a unit of Iberdrola SA, on Eaglesham Moor near Glasgow, U.K., on Monday, Aug. 11, 2014. Scottish independence risks undermining investment in low-carbon energy because the smaller nation wouldn't be able to afford the same level of subsidies as Britain combined, the U.K. Department of Energy and Climate Change said in April. PHOTO BY PHOTOGRAPHER: SIMON DAWSON/BLOOMBERG
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U.K.’s green economy is now worth about £200 billion ($346.65 billion CAD), four times larger than the country’s manufacturing sector, according to a report, with the green economy expected to continue growing.

Experts say the low carbon sector could help mitigate the climate crisis, the Guardian reported, while creating sustainable jobs and improving the quality of life, by providing benefits like cleaner transportation, better-insulated homes and reduced air pollution. The report found that over 75,000 businesses from green industries like turbine manufacturing and recycling plants employ over 1.2 million people in the country.
“This data, by examining the full extent of the low carbon economy from the grassroots up, shows us just how important it already is for the UK economy and the progress already made,” said Sarah Howard, the report’s author.

The report was created by kMatrix Data Services, which creates yearly assessments of the low carbon economy in the U.K., and is based on 900 data sources from the government, private sector and academia.

The research found that the country’s manufacturing sector is worth about £55.6 billion ($96.37 billion CAD), while the construction sector is worth about £132.9 billion ($230 billion CAD).

The report indicates that wave and tidal, wind and solar power all grew at a rapid pace in recent years. The country’s low carbon industry grew by 7.4 per cent during the 2018-19 fiscal year, but contracted by nine per cent during the 2020-21 fiscal year. However, the industry is expected to bounce back following COVID-19 recovery efforts.

“It also illustrates (that) the chains and networks of supply are present and scalable, enabling the significant growth required in the wider sector,” said Howard regarding the report. “What we need now is a comprehensive policy framework and the required rapid growth can be achieved.”

The report highlights that the green economy has grown, despite insufficient government support.

The U.K. government has also faced criticism for not putting forward a detailed policy that will allow it to meet its own climate targets.

In July, Chris Stark, the chief executive of the Climate Change Committee said the “progress was illusory.”

Ed Miliband, the head of the Labour party’s climate team, said the government’s failure to grasp the challenge and potential opportunities from transitioning to a low carbon economy is hindering communities across the U.K..

“Tackling the climate emergency could transform our society and our economy, creating new jobs wherever people live, growing British industries and making our businesses more competitive,” said Miliband. “To truly transform our economy, we need the government to show leadership and bring forward a green investment plan equal to the scale of the emergency we face and the task of economic transformation.”

Nick Molho, the executive director of Aldersgate Group, said that the U.K. government’s net-zero strategy should include collaborating with local authorities and community groups to help the net-zero transition with local jobs.

Molho said that a country-wide body could help the country support its workforce as the economy transitions to net-zero emissions, aided by local bodies of industry, government, union, and educational representatives.

“[They] could be tasked with carefully planning the changes needed in their areas to support a successful transition to net zero emissions,” Molho said.

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