Going Green: Economic benefits of having a UK green energy policy​​​​​​​

Recent figures show the huge economic benefits of adopting clean technologies and ditching polluting and expensive oil and gas. As Chancellor Rachel Reeves said: “There is no tradeoff between economic growth and net zero. Quite the opposite. Net zero is the industrial opportunity of the 21st century.”

The Confederation of British Industry (CBI) shows that the green economy is booming in the UK, growing by ten per cent in 2024 and contributing £83.1 billion in gross value added (GVA). That far outpaces the whole UK economy, which grew by less than one per cent in the same period.

Visit https://www.statista.com/statistics/281734/gdp-growth-in-the-united-kingdom-uk/ website.

And the CBI says that for every pound of this GVA, an additional £1.89 of GVA was created across the wider economy. In other words, the economic benefits including this ripple effect exceeded £157 billion.

Providing energy security and one million jobs

Britain’s green sector includes about 22,000 businesses and employs nearly one million people, with average wages of £43,000. These are essential and well paid jobs – £5,600 higher than the national average and spread across the UK rather than just big cities. Scotland alone had a 20 per cent increase in net-zero jobs in 2024.

Visit https://www.edie.net/stalling-net-zero-in-the-uk-indisputably-costlier-than-action-says-cbi/#:~:text=The%20UK’s%20green%20economy%20generated%20£83.1bn%20in%20gross,despite%20headwinds%20for%20the%20national%20economy%20at%20large website.

Apart from being a great jobs creator and a welcome boost to the UK’s finances, moving to renewable energy sources is vital for enhancing our energy security.

The ongoing war in Ukraine has shown us how important energy independence is to improve security of supply. Our current reliance on fossil fuels from abroad has significantly increased all our energy bills. By increasing the energy we produce from renewable resources like wind, hydro and solar also gives us, the consumers a direct financial boost.

The UK Climate Change Committee (CCC) says that by adopting energy-efficient technologies, like heat pumps and electric vehicles, an average household could save £1,400 a year on fuel bills in the future. By making these climate-friendly changes to our lifestyles, we’re not only reducing our carbon footprints, we’re also helping to reduce our bills.

Investment opportunities

Green technologies and infrastructure are proving to be smart investments too, according to the CCC. Investments in wind and solar energy projects have been delivering high returns, ranging from two times the initial investment to as much as ten times.

These investments not only lessen damage from global warming but also generate direct financial gains, leading to a more robust economy.

Visit https://www.theccc.org.uk/publication/the-seventh-carbon-budget/website.

The UK's commitment to a green future positions us as a global leader in sustainability. By capitalising on our strengths in renewable energy and green finance, the UK can set the standard for other countries, attracting international investment and encouraging innovation.

The need for government support

Currently the fossil fuel industry receives huge subsidies from the tax payer whilst making eye watering profits whilst we pay for the harm from extreme weather events. The green transition needs clear and consistent government support to overcome hurdles such as upgrading infrastructure including the grid. A tax on pollution would help signal to industry where to make investments so Government initiatives continue to be a crucial part of success.

Business and public support

Whilst the economic advantages are there for everyone to see, there is a lot of disinformation around and that’s why we need an urgent public information campaign to shout from the roof tops about why Going Green is good for business. Public Participation: The missing piece of the puzzle to increase resilience and reach net zero – Aldersgate Group.

Celebrity spot

Seven-times Formula 1 champion Lewis Hamilton is in pole position when it comes to conservation. The British driver, who switched teams from Mercedes to Ferrari this year, has been vocal about environmental issues and supporting more sustainable motor sports. He founded X44, an Extreme E team promoting eco-conscious racing, and has funded several reforestation projects. Lewis, who’s also a vegetarian, says: “We’re so fortunate to have and occupy this planet, so we better start treating it right.”

Visit https://www.we.org/en-GB/we-stories/we-day/this-earth-day-lewis-hamilton-is-fighting-climate-change website.

Green swap

Choose naturally produced wine instead of conventional. Natural winemaking uses less fossil-fuel powered machinery, doesn’t use synthetic chemicals and won’t harm animals or insects during the winemaking process. Choose a bottle from a European country if possible.

Why the UK needs to create more reservoirs

As global warming intensifies and population growth increases, the UK faces a growing water crisis.

More extreme weather patterns caused by climate change have led to periods of intense heat where demand increases such as for paddling pools and drought where rainfall is far below expected levels. These factors together with a fast-growing population, are putting strain on supplies and creating water shortages.

The Environment Agency (EA) warns that London could run out of water within 25 years, and London ranked ninth in a list of global cities most likely to run out of drinking water.

Visit https://www.bbc.co.uk/news/world-42982959 website.

Can more reservoirs solve our water crisis?

More reservoirs would allow excess water to be stored during wet periods and used when supplies run low.

This would help avoid the risk of shortages and also help prevent flooding by controlling water flow. So, investing in new reservoirs now will help to future-proof the UK’s water supply and provide resilience against our increasingly unpredictable weather.

The amount of water we will consume in the UK is set to rise massively. According to the EA, the UK will need an extra five billion litres of water per day in the next 25 years. That’s over two million wheelie bins full of water daily, on top of the water we already use.

The National Infrastructure Commission has warned that without urgent investment, parts of the country could face severe water shortages. By building new reservoirs, we can help to stabilise the water supply, reducing our reliance on emergency measures like hosepipe bans and rationing.

We currently rely on a network of existing reservoirs, rivers, and groundwater sources to meet demand, but those are under increasing pressure – and although there hasn’t been a reservoir built in England and Wales in 30 years, the Government recently announced plans to build nine new ones.

Visit https://www.gov.uk/government/news/reeves-i-am-going-further-and-faster-to-kick-start-the-economy website.

Supporting biodiversity

Reservoirs don’t have to just be water storage facilities; they can become thriving ecosystems that support wildlife too. Many existing reservoirs, like Rutland Water in the East Midlands and Carsington Water in Derbyshire, have become vital habitats for birds, fish, and plants.

Many are also recreational spaces, offering activities like birdwatching, sailing and nature walks, and they can contribute to local economies by creating jobs in construction, maintenance, and tourism.

Prioritising investment in water infrastructure and streamlining planning so more reservoirs are built are key to avoid more frequent shortages. We also need sensible measures to conserve water, to help secure a more reliable water supply for the future. The charity One Home provides water saving advice, which if you are on a metre will save you money on your bills too.

Visit https://onehome.org.uk/topics/your-home-topics/energy-saving/water-shortages-7-top-tips-on-how-to-conserve-water-in-a-drought-and-potential-hose-pipe-bans/website.

Fact or fiction

“Some countries completely rely on renewable energy for all their electricity.”

FACT.

Costa Rica, Norway, Iceland, Paraguay and Uruguay all power their electricity grids from purely renewable sources like geothermal, wind and solar. Closer to home, Scotland often meets more than 100 per cent of its electricity demand from renewable sources, and exports its surplus.

Visit https://www.un.org/en/climatechange/science/mythbusters website.