An ambitious path to achieving Net Zero could reap huge rewards for areas of the country most in need of an economic boost, according to a report.
Energy UK’s Community Capital report produced with Oxford Economics shows that the South-West and West Midlands – both areas that currently have a GDP per head below the national average – could be the biggest beneficiaries from the most rapid transition to Net Zero, thanks to the specialism of their manufacturing sectors.
Under the most ambitious scenario, the GDP of each area of the UK would be 5.4%-7.5% greater in 2050 than under the current trajectory – which would amount to a boost of £141 billion for regions outside London and the South-East.
Areas with concentrations of carbon-intensive industries and proximity to depleted oil and gas fields, such as the North-East of England and Scotland as well as South Wales, are also well placed to lead the way in carbon capture and hydrogen projects.
Dhara Vyas, Energy UK’s Deputy Chief Executive said investment in clean energy can bring economic growth to areas away from London and the South-East.
“Those benefits can reach all corners of the country if we commit fully to the energy transition – especially areas whose traditional industrial and manufacturing bases have declined but also make them well-equipped to lead the way in this next clean industrial revolution.”