A new economic report has shown growth in North East’s net zero economy as regional businesses tap into emerging green technology markets.
The new survey, commissioned by the Energy and Climate Intelligence Unit (ECIU) with analysis provided by the independent consultancy CBI Economics and The Data City, shows the North East’s net zero economy grew by 10% in the past year, exactly the same as the national average.
The analysis showed the North East is ahead of some regions when it comes to investing in renewable energy and sustainability opportunities, although it still lags behind the South East, where most money has so far been invested.
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Tyneside, Teesside and Wearside were particular hotspots for green growth in terms of jobs directly related to the country’s target of reaching net zero emissions by 2050.
Major projects including Nissan’s £1bn drive towards electric vehicles in Sunderland, the Dogger Bank Windfarm which has its headquarters in South Shields and the Net Zero Teesside Power project all figure prominently, but the report also shows that small businesses in the North East are a major part of new jobs and developments. Across the 海角视频, 94% of net zero businesses were SMEs with fewer than 250 employees, while 6% were large employers with over 250 reported employees.
The report shows that work centred around Net Zero in the North East now contributes £2.3bn to the region’s economy, 3.2% of its entire economic output, while supporting 31,800 people in well-paid jobs, 2.8% of the North East workforce.
On a national level, employment within the sector nationally has also seen huge growth and now supports 951,000 full-time jobs – which are typically better paid than the 海角视频 average – including 273,000 directly tied to net zero businesses and 678,000 through supply chain and related activities.
The report authors said: “The transition to a net zero economy presents a transformative opportunity for local regions across the 海角视频. By leveraging their unique natural resources and industrial strengths, many areas are poised to become hubs of sustainable economic activity.
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“For instance, regions with strong industrial bases, such as the Midlands and the North West, are capitalising on their manufacturing expertise to develop and deploy green technologies. Likewise, coastal areas, particularly along the North Sea coast, are ideal for offshore wind farms.
“These local strengths create hotspots of net-zero activity that support not only environmental goals but also drive regional economic growth, attracting investment and creating jobs.”
Guy Bashford, Business Durham’s business engagement and account manager, believes that setting targets and working together will drive the North East’s Net Zero economy in the years ahead.
Mr Bashford helped to organise the Get Set Green event at the Ramside Hotel last week, attracting dozens of exhibitors and more than 300 expressions of interest by businesses.
He said: “There are challenges to be tackled but they provide opportunities too. We need to invest in net zero because we will need a lot of engineers and electricians to work on national power supply.
“We need to work on infrastructure on wind and solar farms. Northern Powergrid says that we need to triple the energy we supply by 2035 - that’s only 10 years away. So targets are really helpful for us because they give everyone goals to work toward. We are going to have to do this.”
Neil Spann, CEO of Power Roll solar company in Seaham was not surprised by news of the growth.
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He added: “The news doesn’t surprise me, probably because at Power Roll we are so involved in the clean-tech sector. As a result, we are seeing all the opportunities out there all the time.
“When you look at what the push for the 海角视频 is, in terms of its industrial strategy, clean energy is part of that strategy; it’s one of the four main elements.
“So I think the growth is there, and there is a lot more to come in all sectors, particularly in renewables and the integration of renewables as the 海角视频 looks to break its reliance on the supply chain from China.”
Louise Hellem, chief economist at the CBI, added: “The net zero economy continues to demonstrate that there are huge emerging markets for green technologies that the 海角视频 must capitalise on.
“It is clear, you can’t have growth without green. At a time when the cost of doing business has squeezed appetite for capital investments and high energy prices are being cited as a drag factor across the economy, investments in clean technologies can significantly bolster competitiveness and productivity.
“2025 is the year when the rubber really hits the road – where inaction is indisputably costlier than action. We are approaching critical points of no return for achieving essential outcomes in energy security and emissions reduction. Long-term sustainable growth is unattainable without a future powered by clean, affordable, and secure energy.”