TL;DR
The Office for National Statistics publishes annual Low Carbon and Renewable Energy Economy (LCREE) data measuring the size of the UK green economy. The sector continues to grow turnover and full-time equivalent employment, with energy efficient products and low carbon electricity as the largest sub-sectors.
Last reviewed 3 June 2026
Key facts
- ONS LCREE turnover (most recent published year): around £83 billion, with full-time equivalent employment of around 270,000 jobs.
- Energy efficient products and low carbon electricity are the two largest sub-sectors by turnover.
- The Department for Energy Security and Net Zero publishes parallel data on jobs in clean energy through the Net Zero Jobs Tracker.
- UK net zero target: legally binding 2050 target under the Climate Change Act 2008, with carbon budgets set every five years by the Climate Change Committee.
- The UK Emissions Trading Scheme (UK ETS) covers around a third of UK greenhouse gas emissions.
What 'the UK green economy' actually means
The Office for National Statistics measures the 'low carbon and renewable energy economy' (LCREE) annually. The measure covers six sub-sectors: low carbon electricity, low carbon heat, energy efficient products, low emission vehicles and infrastructure, low carbon services, and energy from waste.
The most recent LCREE data, published annually with a lag, shows total turnover at around £83 billion and full-time equivalent employment of around 270,000 jobs. Energy efficient products (insulation, lighting, controls, appliances) and low carbon electricity (offshore wind, onshore wind, solar, nuclear) account for most of the turnover.
Definitions matter. The ONS LCREE measure is broader than 'renewable energy' alone because it includes energy efficiency products and services. It is narrower than some climate-economy estimates that include all environmentally relevant activity.
Jobs and regional distribution
The Department for Energy Security and Net Zero publishes a Net Zero Jobs Tracker alongside the ONS data. The headline employment number masks significant regional concentration. Offshore wind jobs concentrate in coastal regions: Humberside, the North East, East Anglia, and Scotland. Energy efficient products jobs spread more evenly across the UK.
The Climate Change Committee, the statutory advisory body, has modelled employment under different net zero pathways. The committee's seventh carbon budget recommendations include workforce development and reskilling for sectors where jobs will decline (high-emission heavy industry without carbon capture) alongside sectors where jobs will grow (insulation retrofit, heat pump installation, grid build-out).
What this means for household energy bills
The growth of the green economy interacts with household energy bills through three mechanisms.
Wholesale electricity prices: Renewables-heavy generation tends to lower wholesale prices when wind and solar output is high. The April 2026 Ofgem default tariff cap reduction reflected lower wholesale gas and electricity prices alongside other factors.
Network charges and policy costs: Around a quarter of a typical energy bill is network and policy costs, including support for renewables development and energy efficiency schemes. These are recovered from all consumers regardless of supplier choice. Ofgem reviews these costs as part of the price cap methodology.
Energy efficient products: Heat pumps, insulation, double glazing and LED lighting reduce household energy demand. The Boiler Upgrade Scheme provides £7,500 toward heat pump installation in England and Wales. The Energy Company Obligation (ECO) and Great British Insulation Scheme support insulation retrofit for eligible households.
Advisory: Green economy data measures activity, not climate impact. A growing low carbon economy does not automatically mean falling emissions: emissions depend on the speed of transition relative to economic growth. The Climate Change Committee's annual progress report is the authoritative assessment.
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Disclaimer
This article is for general information only and does not constitute financial, legal, tax, insurance, or investment advice. Kael Tripton Ltd is registered with the Information Commissioner's Office (ICO ZC135439) as a data controller but is not authorised by the Financial Conduct Authority. Figures and rules are correct at time of publication and may change. Always check the primary source linked below before acting on any information, and seek advice from a qualified professional for your specific circumstances.
Sources
Frequently asked questions
How big is the UK green economy?
The most recent ONS LCREE data shows turnover of around £83 billion and full-time equivalent employment of around 270,000 jobs. The data is published annually with a lag.
Where can I find UK green economy data?
ONS publishes the Low Carbon and Renewable Energy Economy (LCREE) annual survey. The Department for Energy Security and Net Zero publishes a Net Zero Jobs Tracker. The Climate Change Committee publishes annual progress reports.
How do green economy jobs differ by region?
Offshore wind concentrates in coastal regions including the North East, Humberside, East Anglia and Scotland. Energy efficient products jobs spread more evenly across the UK. Heat pump installation jobs are growing in line with the Boiler Upgrade Scheme.
Does the growth of renewables reduce my energy bill?
Renewables-heavy generation tends to reduce wholesale electricity prices when output is high, but network and policy costs make up a significant portion of bills. The relationship is not one-for-one.
What grants help households reduce energy bills?
The Boiler Upgrade Scheme provides £7,500 toward heat pump installation in England and Wales. The Energy Company Obligation (ECO) and Great British Insulation Scheme support insulation retrofit for eligible households.
