The UK’s net-zero economy—industries and services driving decarbonisation—has become one of the nation’s strongest growth stories. In the past year alone, the sector’s Gross Value Added surged by 10% to around £83.1 billion1. This far outpaces overall economic growth, showing that investing in climate action boosts UK business rather than holding it back.
Green jobs on the rise
Employment in net-zero sectors also grew by more than 10%, now supporting roughly 951,000 full-time roles1. Nearly a million livelihoods now depend on clean energy, electric transport, building retrofits, and professional environmental services.
At Syntegra, we see this trend first-hand. Our team has added specialists in energy modelling and sustainable engineering to meet growing client demand, mirroring the national shift towards green skills and careers.
Benefits across the UK
This growth is not limited to London. Regions like the West Midlands, Yorkshire & Humber, and Southwest England account for a large share of net-zero activity. Former industrial hubs such as Teesside and Grimsby are now leaders in offshore wind, battery manufacturing, and clean industrial clusters.
The net-zero economy also has a strong multiplier effect. Every £1 of value created generates about £1.89 elsewhere through supply chains and spending. This ripple effect strengthens local economies and creates new opportunities for business and communities alike.
SMEs and investment fuel innovation
Most growth is led by small and medium enterprises. SMEs make up 94% of net-zero sector companies, from cleantech start-ups in Glasgow to heat-pump installers in Gateshead. They bring agility and innovation to markets like renewable energy, home insulation, and environmental consultancy.
Private investment is also rising. Nearly £26 billion has flowed into UK net-zero businesses over the past 20 years, and the pace is accelerating. Investors are drawn by the UK’s climate commitments and the market certainty they provide.
Political Parties’ Policies on Net Zero and Buildings
Labour (Current Government)
Labour’s “Make Britain a Clean Energy Superpower” plan pledges £6.6 billion in the next Parliament to upgrade five million homes with insulation, solar panels, and low-carbon heating2. It also plans to reinstate Minimum Energy Efficiency Standards (MEES) for rented properties by 20302.
Through the Great British Energy Act 2025, the party has launched Great British Energy—a publicly owned clean-energy company—to accelerate renewable generation and fully decarbonise electricity by 20303 4.
Conservative Party
The Conservatives’ 2024 manifesto (“Clear Plan. Bold Action. Secure Future.”) backs renewable energy—particularly offshore wind and solar—and proposes planning reforms to speed up infrastructure delivery. It also establishes a “Green Industries Growth Accelerator” to support low carbon manufacturing5.
However, recent leadership statements have cast uncertainty on the UK’s 2050 net-zero target, with the new Conservative leader declaring the goal “impossible” and signalling plans to revise or drop it due to cost concerns6.
Reform UK
Reform UK rejects much of the net-zero framework. Its manifesto calls to “scrap Net Zero and related subsidies”, accelerate domestic fossil-fuel extraction, and cut green regulations. The party argues that decarbonisation mandates are too costly for industry and households7.
Implications for the Built Environment
- Labour’s policies are likely mean stricter energy performance standards for new and retrofitted homes, with higher expectations for insulation, smart controls, and renewable heating.
- Conservative shifts away from a firm 2050 net-zero target create uncertainty for investments in sustainable building materials and heat pump infrastructure.
- Reform UK’s stance could relax or reverse many requirements, lowering regulatory pressure but risking market confidence, green job growth, and climate performance.
Alan Wing King Comment:
“As CEO of Syntegra Group, I believe it is essential for any political party leading the UK government to strike the right balance between ambitious net zero targets and the economic certainty that households and businesses urgently need. With the cost of living rising and many feeling the pinch, we must ensure that climate action is not seen as a burden, but as a catalyst for sustainable growth and prosperity.
The evidence is clear: the UK’s net-zero economy is already powering significant job creation and economic growth, with nearly a million green jobs and a sector growing faster than the wider economy. However, to maintain this momentum, we need policies that look beyond short-term political cycles. This means providing stable, long-term incentives and subsidies for green industries, supporting innovation, and giving businesses the confidence to invest in skills, technology, and infrastructure.
A consistent, cross-party commitment to decarbonisation, paired with practical support for those most affected by the transition, will help ensure that the benefits of the green economy are felt by everyone. Now is the time to promote business growth, create high-quality jobs, and deliver a fairer, greener future for all, not just for short-term political gain, but for the long-term prosperity of the UK.”
Conclusion
The UK’s net-zero economy is proving that growth and green go hand in hand. With a 10% surge in output and 951,000 jobs, it shows climate action can power prosperity. But political policy matters deeply. For builders, developers, and consultants, clear and ambitious standards enable better planning, investment, and design.
At Syntegra, we will continue guiding clients through this landscape, interpreting new standards, anticipating policy shifts, and helping deliver sustainable, energy-efficient building solutions that support both the environment and the economy.
Footnotes
- Energy & Climate Intelligence Unit. (Feb 2025)UK net zero economy grows 10% in a year, finds new report
- Labour Party. Make Britain a Clean Energy Superpower. (2025). Labour.org.uk
- UK Government. Great British Energy legislation passes Parliament. (15 May 2025). Gov.uk
- UK Government. Great British Energy Bill – Overarching Factsheet. (2025). Gov.uk
- Baker McKenzie. UK General Election Manifesto and Policy Tracker 2024. (June 2024). Bakermckenzie.com
- The Guardian. Conservative Party to ditch 2050 net-zero commitment. (17 March 2025). TheGuardian.com
- The Guardian. Why Tories and Reform are attacking Net Zero policies. (15 June 2025). TheGuardian.com
You must be logged in to post a comment.