UK Low-Carbon Economy Grows by 11.8% to £77 Billion in 2024

UK low-carbon sector turnover reaches £77 billion

The UK’s low-carbon and renewable energy economy generated £77 billion in turnover during 2024. This represents an 11.8% increase from the previous year. The figure marks a substantial rise of £8.1 billion compared to 2023.

For context, the broader UK economy grew by just 1.1% over the same period. The low-carbon sector has significantly outpaced national economic growth. This performance continues a decade-long pattern of expansion.

The Office for National Statistics tracks this sector annually. Their dataset covers low-carbon electricity generation, energy-efficient products, renewable energy systems, and electric vehicles. The most recent figures were released in late 2025.

Since 2015, turnover in this sector has increased by 91.3%. Consequently, the sector has nearly doubled in scale over ten years. Employment has also risen, growing by 51.6% across the same period.

The number of UK businesses operating in low-carbon activities reached 118,000 in 2024. This figure represents a 24.9% increase year on year. These businesses span manufacturing, installation, and service provision across renewable and efficiency technologies.

Regional distribution shows England leading growth

England accounted for the largest share of turnover at £58.7 billion. Scotland followed with £13.3 billion in sector activity. Wales contributed £3.4 billion, while Northern Ireland generated £1.5 billion.

Low-carbon electricity generation led all subsectors with £33.6 billion in turnover. This represents 43.7% of the total sector value. Meanwhile, energy-efficient products employed the most workers at 130,000 full-time equivalents, comprising 42.8% of sector employment.

Total employment across the low-carbon economy stood at 304,000 full-time equivalents in 2024. However, this figure declined by 4.1% from 2023, representing a loss of 13,000 positions. Policy uncertainty in areas such as energy efficiency insulation contributed to this reduction.

Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit, commented on the figures. She noted that the statistics confirm strong growth in the UK’s net zero economy. Sectors such as electric vehicles and energy infrastructure showed particular strength. She emphasized that policy stability will prove critical as the UK competes for investment.

Renewable electricity generation hits new milestone

Renewables produced 50.8% of UK electricity in 2024. This marked a 6.5% increase compared to the previous year. Great Britain achieved 73.8% clean power generation when nuclear is included alongside renewables.

This figure rose from 68.3% in 2023. The government has set a target of 95% clean power by 2030. Therefore, substantial further capacity will need to come online over the next six years.

The renewable energy market in the UK was valued at approximately £18.5 billion in 2024. Wind power held the largest share at between 36% and 38.5% of the market. Solar energy is growing fastest, with a forecast compound annual growth rate of 21.8%.

Including indirect turnover from supply chains and related activities, the sector reached £109.2 billion in 2024. This broader measure captures the full economic footprint of low-carbon activities. It includes component manufacturing, professional services, and maintenance operations.

RenewableUK’s Barnaby Wharton highlighted job creation across supply chains. These jobs span 70 constituencies, from Teesside to Belfast. Consequently, the economic benefits extend well beyond traditional energy hubs.

Sector wages exceed national average by substantial margin

Workers in the low-carbon economy earn wages 23% above the UK mean. This wage premium reflects the technical skills required across many roles. It also indicates strong demand for qualified workers in a growing sector.

Projections suggest the UK renewable market will expand at 20.6% compound annual growth rate through 2030. Under this scenario, market value would reach approximately £56 billion by the end of the decade. Wind and solar installations are expected to drive most of this expansion.

Some forecasts indicate the sector could create 725,000 net new jobs by 2030. However, this depends on sustained policy support and infrastructure investment. Recent employment declines in energy efficiency demonstrate how policy uncertainty can affect job creation.

Power sector emissions have fallen 79% since 1990. Meanwhile, UK GDP has risen 75% over the same period. This decoupling of economic growth from emissions represents a significant achievement. It demonstrates that economic expansion and emissions reduction can occur simultaneously.

Despite this progress, challenges remain. Grid constraints caused £2 billion in renewable curtailment in 2022. This means wind and solar generators were paid to switch off because the grid could not accommodate their output. Addressing these infrastructure limitations is essential for continued sector growth.

Commercial implications for UK businesses

The sector’s rapid growth creates opportunities across multiple business areas. Manufacturers of renewable energy components face increasing domestic demand. Installation and maintenance services will need to expand capacity to meet deployment targets.

For SMEs, the low-carbon economy presents both opportunities and requirements. Many businesses will need to adapt operations to serve this growing market. Others will face increasing expectations from customers and supply chain partners regarding their own environmental performance.

Public sector procurement increasingly favors suppliers with strong environmental credentials. Carbon reporting requirements affect businesses bidding for government contracts. Consequently, demonstrating low-carbon practices can improve competitiveness in tender processes.

Energy-intensive businesses may benefit from the transition to renewable power. Long-term contracts for renewable electricity can provide price stability compared to gas-dependent generation. This helps manage energy cost risks in financial planning.

However, the employment decline in energy efficiency subsectors signals risks. Policy changes can quickly affect business conditions in regulated areas. Businesses operating in policy-dependent markets need to monitor government announcements carefully.

Export opportunities continue to grow as other countries pursue similar transitions. UK low-carbon exports reached £10.2 billion in 2022. Businesses with proven technologies or services may find international markets receptive. Nevertheless, competition from other countries is intensifying as clean technology becomes a global priority.

Supply chain businesses serving the low-carbon sector face rising demand. Component manufacturers, logistics providers, and professional services all play essential roles. Building expertise in low-carbon markets can position businesses for sustained growth as the sector expands.

Essential facts about the low-carbon economy

• UK low-carbon and renewable energy turnover reached £77 billion in 2024, an 11.8% increase from £68.9 billion in 2023.
• The sector has grown 91.3% since 2015, nearly doubling in scale over ten years while the broader economy grew more slowly.
• Sector employment stood at 304,000 full-time equivalents in 2024, though this represented a 4.1% decline from 2023 due partly to policy uncertainty.
• Low-carbon electricity generation contributed £33.6 billion in turnover, representing 43.7% of total sector value in 2024.
• Renewable sources produced 50.8% of UK electricity in 2024, with Great Britain achieving 73.8% clean power including nuclear generation.
• The number of businesses active in low-carbon activities increased 24.9% to reach 118,000 in 2024.
• Workers in the sector earn wages 23% above the UK average, reflecting technical skill requirements and strong labor demand.
• Power sector emissions have fallen 79% since 1990 while UK GDP increased 75%, demonstrating economic growth can occur alongside emissions reduction.

Strategic considerations for business planning

Businesses should assess how the low-carbon transition affects their sector. Manufacturing firms might explore opportunities in renewable energy supply chains. Service providers could develop expertise in supporting businesses through environmental compliance.

Understanding the policy landscape is increasingly important. Government targets for clean power and net zero will shape regulatory requirements over coming years. Early preparation for these changes can reduce compliance costs and identify opportunities before competitors.

For businesses considering investments in renewable energy, current market conditions present both opportunities and challenges. Technology costs have decreased substantially. However, grid connection timescales can be lengthy in some areas. Therefore, early engagement with distribution network operators is advisable.

Workforce planning needs to account for skills requirements in a low-carbon economy. Technical roles in renewable energy, energy efficiency, and environmental management are likely to see continued demand. Training programs can help existing staff transition into these roles.

Businesses in energy-intensive sectors should evaluate their exposure to energy price volatility. Power purchase agreements for renewable electricity can provide long-term price certainty. This approach may prove more cost-effective than remaining exposed to gas market fluctuations.

The employment decline in energy efficiency demonstrates how quickly conditions can shift. Businesses in policy-sensitive areas should diversify their activities where possible. This reduces vulnerability to single policy changes.

Companies bidding for public sector contracts need to understand evolving procurement criteria. Environmental performance increasingly influences contract awards. Carbon reporting and environmental compliance capabilities are becoming standard expectations rather than optional extras.

Supply chain resilience deserves attention as the sector grows. Demand for key components and materials may outpace supply at times. Businesses should assess their supply chain dependencies and consider whether alternative sources are available.

Further reading

The Office for National Statistics publishes annual data on the low-carbon and renewable energy economy. These releases provide detailed breakdowns by subsector, region, and employment figures.

The Department for Energy Security and Net Zero sets policy direction for the transition. Their publications and consultations outline upcoming regulatory changes and support schemes. Monitoring these announcements helps businesses anticipate policy developments.

The Energy and Climate Intelligence Unit provides analysis of energy sector trends. Their research covers policy impacts on business and employment in clean energy sectors.

RenewableUK represents wind, wave, and tidal energy industries. Their reports track deployment progress and supply chain development across the UK. This information helps businesses understand market dynamics in specific renewable technologies.