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UK green economy: what the Environmental Goods and Services Sector data reveals about the scale of the transition

The ONS measures the UK green economy through the Environmental Goods and Services Sector accounts. The CBI and DESNZ publish parallel estimates. This guide reconciles the figures and explains what each dataset actually captures.

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Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 2 Jun 2026
Last reviewed 2 Jun 2026
✓ Fact-checked
UK green economy: what the Environmental Goods and Services Sector data reveals about the scale of the transition
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TL;DR

Multiple official and industry datasets measure the size of the UK green economy: the ONS Environmental Goods and Services Sector accounts, the Department for Energy Security and Net Zero low carbon and renewable energy economy survey, and the Confederation of British Industry annual green economy estimate. The latest CBI figure put the net zero economy at roughly GBP 83 billion of gross value added in 2024. The three datasets capture different things and answer different questions.

Last reviewed: 2 June 2026

UK economy

The size of the UK green economy is one of the most disputed numbers in British economic policy. The Office for National Statistics, the Department for Energy Security and Net Zero, and the Confederation of British Industry each publish their own figures. They diverge because they measure different things. This guide explains what each measures, where they overlap, and how to read the latest release without being misled.

Key facts

  • The CBI estimated UK net zero economy GVA at around GBP 83 billion in 2024.
  • The ONS Environmental Goods and Services Sector accounts cover output, employment and value added for environmentally focused activities.
  • DESNZ runs the Low Carbon and Renewable Energy Economy survey covering 17 sectors from offshore wind to energy efficient lighting.
  • Onshore and offshore wind capacity continues to grow under Contracts for Difference auctions run by the Low Carbon Contracts Company.
  • The UK's legal net zero target is set out in the Climate Change Act 2008 (as amended) and targets net zero emissions by 2050.

What the ONS measures: Environmental Goods and Services Sector

The Office for National Statistics produces the Environmental Goods and Services Sector accounts under the international System of Environmental Economic Accounting standard. These accounts measure output, gross value added, employment and exports for activities whose primary purpose is environmental protection or resource management. The scope includes water management, waste management, renewable energy generation, energy efficiency products and services, and pollution control. Because the ONS uses a strict primary purpose test, a wind turbine manufacturer is in scope but a general engineering firm that happens to supply parts to a wind project is not, unless its environmental output exceeds the threshold.

What DESNZ measures: Low Carbon and Renewable Energy Economy survey

The Department for Energy Security and Net Zero runs a separate annual survey, the Low Carbon and Renewable Energy Economy survey, covering 17 sectors from offshore wind and solar PV to alternative fuels and energy efficient lighting. This survey was previously run by the ONS and shifted to DESNZ to allow more frequent and policy aligned reporting. The DESNZ figures are particularly useful for tracking installed renewable capacity, jobs in named subsectors, and turnover by region.

What industry measures: the CBI net zero estimate

The Confederation of British Industry produces an annual estimate of the UK net zero economy in partnership with the Energy and Climate Intelligence Unit. The CBI definition is broader than the ONS primary purpose test, capturing supply chain activity and embedded environmental work in firms whose primary output is not labelled green. The 2024 estimate put net zero economy GVA at around GBP 83 billion and reported the sector growing faster than the wider economy. The CBI figures are produced for advocacy and headline figures and are not National Statistics.

How to read the next official release

The three datasets are not interchangeable. When the headline says the UK green economy is worth X, the figure depends on which definition is in use. Official statistics published by the ONS and DESNZ are the appropriate benchmark for academic and policy analysis. The CBI figure is the appropriate benchmark for industry sizing claims about supply chain reach. The Climate Change Committee, which is the statutory adviser to government under the Climate Change Act 2008, publishes its own progress reports each summer and is the authoritative source on whether the UK is on track to meet legally binding carbon budgets.

Important

This article explains official UK statistical sources and does not constitute investment guidance on any green sector firm or fund. Estimates of sector size depend on methodology and definitions. Cross check any headline figure against the original release before citing it.

Common questions

Which official body produces the UK green economy figures?

The Office for National Statistics produces Environmental Goods and Services Sector accounts. The Department for Energy Security and Net Zero runs the Low Carbon and Renewable Energy Economy survey. The Climate Change Committee produces progress reports against statutory carbon budgets.

Why do estimates of the green economy differ so widely?

Different definitions. The ONS uses a strict primary purpose test. DESNZ covers 17 named subsectors. The CBI captures wider supply chain activity. Each is internally consistent. They are not interchangeable.

Is the UK on track for net zero by 2050?

The Climate Change Committee publishes annual progress reports against the legally binding carbon budgets that lead to the 2050 target. Recent CCC reports have warned that delivery is off track in several sectors including buildings and surface transport.

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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

CT
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

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