Green economy powers on

With overall economic growth continuing to flatline, the UK green economy is growing strongly, says think tank

Green industry turnover is expected to be almost 40% higher in 2014 than in 2007, when the financial crisis emerged. By contrast, growth across the rest of the economy is likely to be below 5% by 2014, just in line with pre-recession levels.

These figures come from new analysis by the Green Alliance of existing data from government departments and the CBI.

The environmental think-tank concludes that the transition to a green economy is already having a positive effect, contributing around £122 billion to the UK economy in 2011/12 and now employing more people than the automotive and telecommunication sectors combined.

“Quietly and without fanfare, green business has become a UK success story,” states the report. “We are often told of the benefits that come from creating a greener economy. It is now clear that we don’t need to wait for these benefits. The UK has moved and we are seeing the advantage.”

According to the analysis, the green economy has grown by between 4% and 5% each year since 2008 and is projected to grow by at least 5% over the next few years.

It also reveals that, of the top 20 UK infrastructure projects confirmed or started in 2012/13, which are worth a combined £26.1 billion, low-carbon projects account for 88% of total spending.

The UK exported low-carbon and environmental goods and services (LCGSs) worth £11.8 billion to 52 countries in 2010/11, reports the think-tank, creating a trading surplus in LCGSs of £1 billion.

The UK is also a leader in helping the global transition to a low-carbon economy, with one-third of all global asset-finance investment in new energy between 2007 and 2012 receiving both legal and financial advice from the UK.

The Green Alliance says the success of the UK green economy is the outcome of setting ambitious environmental targets.