Yorkshire outperforming London as a net zero jobs 'hotspot', new CBI research finds

Leeds and surrounding areas of West Yorkshire are ranked eighth nationally, with net zero-related activities such as renewable energy, low-emission vehicles and low-carbon heating now making up £1.68bn of the economy – around 4.7 per cent of the total. This includes nearly 17,500 people in full-time employment in the net zero economy, a total of 3.6 per cent of the county’s jobs.

The net zero economy in the Humber, meanwhile, is worth over £500m (4.1 per cent of the region’s economy).

In contrast, only 3.1 per cent of London’s economy is made up of net zero-related activities.

Across Yorkshire, the Leeds East constituency stands out relative to the size of its economy, and has high business activity in renewable energy. In South Yorkshire and North Derbyshire, meanwhile, the renewables sub-sector has a significant presence within the net zero economy.

In Humberside, Humber Zero is an ambitious plan to decarbonise the Humber Industrial Cluster by 2040 – currently the largest CO2 emitting cluster in the UK – to become the world’s first net zero industrial cluster. This includes scaling offshore wind farms and the development of new technologies such as carbon capture and storage (CCS) and green hydrogen. The Humber is an area of high net zero activity, and renewable energy in particular.

Jim Erskine, head of commercial at Magtec, a leading manufacturer of drive trains for electric vehicles based in Rotherham, said: “The Yorkshire and Humber region has always been at the forefront of technical evolution and now is no exception. Magtec has been leading the charge to change how we all power our vehicles and especially HGVs and buses as they are responsible for high levels of pollution.

"With the majority of our supply chain in the region and most of our employees living close, Magtec is not only creating highly skilled jobs itself, more than 50 since moving to its new facility in 2021, but throughout the community.

"Couple Magtec’s in house design and manufacturing capability with its strong relationships with local business and RTOs such as AMRC in Sheffield and the future looks very bright for the region. A joined-up plan for establishing the region as the place to be for net zero technology business looking to improve all our futures is critical.”

Peter Kavanagh, Chief Executive of Knaresborough-based Harmony Energy – which last November “energised” Europe’s largest Battery Energy Storage System (BESS) by MW/H in Pillswood, East Yorkshire, said: “Yorkshire is a superb region for renewable energy projects, be it solar, wind or BESSs. It has plenty of space and a population of five million people, and unlike the industries we don’t need financial support from the government to make it happen.”

Alexander Stafford, MP for Rother Valley, said: “The net zero transition presents a great opportunity for growth, with well paid jobs and thriving green industry.”

Bill Adams, co-chair of the Yorkshire and Humber Climate Commission’s Future Economy panel and regional secretary of the TUC in Yorkshire and the Humber, said: "It is no surprise that the region is getting on with working towards the net zero economy and supporting the development of new businesses and new jobs in the process. The Yorkshire and Humber Climate Commission brings together regional politicians, business leaders, trade unions, community groups and others to promote and encourage investment in training and skills and new technologies to ensure that as we move towards net zero we create good jobs across the whole region and make sure no-one and nowhere gets left behind."