Race for net zero could provide £57bn boost to the UK economy by 2030: Beckie Hart

While the UK economy remains relatively resilient in the face of significant headwinds, the inflationary environment coupled with higher interest rates are weighing on business investment and productivity.

Businesses in Yorkshire and the Humber are desperately looking to unlock green investment opportunities to boost growth but fear the UK is not keeping pace on the global stage.

The Climate Change Committee recently warned that the UK is no longer a world leader on climate issues.

In contrast, the US and EU have invested billions of pounds to support green investment via the US Inflation Reduction Act and the EU Net Zero Industry Act.

The good news is that the UK isn’t out of the race just yet.

New analysis from the CBI’s Going for Green Report shows that if the UK were to capture green growth prizes it could potentially offer gains of £57 billion to GDP within the next seven years.

However, to achieve this requires government and business to work together to secure market share, create jobs and boost supply chains.

Indeed, the UK has previously had the competitive advantage as the first major economy to sign net zero into law and by reducing emissions faster than its counterparts.

And despite lacking the fiscal ability to outspend its international competitors, it can leverage regulatory and policy expertise to stand out and get ahead.

Critically, in our region the business community is keen to secure the sustainable growth that the country’s transition to net zero can bring.

That could take the form of hydrogen production, off and onshore wind, carbon capture and storage or sustainable aviation fuel manufacture.

Above all, business needs reassurance across the political spectrum that achieving net zero is a priority.

Government must accelerate major policy decisions to stimulate green markets and incentivise investment in the green economy.

Making green growth a key priority requires a change of mindset as much as it needs changes in policy.

Net zero needs to become embedded across the architecture of government and designated as a key consideration when devising tax and regulatory policy.

To ensure that happens, we need a new mechanism to promote coordination across government departments – as well as devolved governments – and to leverage key moments, like the Budget and Spending Review, to measure progress.

As economic uncertainty looms, businesses of all sizes, sectors and corners of the UK urge government to advance the green economy.

In time this will strengthen UK competitiveness and in the long term deliver fairer, more sustainable growth for the benefit of all.

Beckie Hart is CBI regional director for Yorkshire and Humber