Net zero-related industries contribute £4bn of gross value added (GVA) to the Welsh economy and support over 41,300 jobs, according to new research commissioned by the Energy and Climate Intelligence Unit (ECIU). The analysis, conducted by CBI Economics and the Data City, reveals that more than 1,300 businesses—mostly small or medium-sized (87%)—are now part of the Welsh net zero economy. Around 15% of these firms have started up in the past five years.
Productivity and Wages Above Average
Workers in the net zero economy are highly productive, generating £117,500 of value on average—approximately 1.7 times the Welsh average. This productivity supports higher wages, with workers earning £39,812 on average, about 11% above the Welsh industry average of £35,796.
The GVA contribution of net zero represents 4.3% of Wales’s total economic output and 3.1% of employment. The analysis also identifies a potential £13.1bn renewable energy generation infrastructure pipeline in Wales, representing 10.9 gigawatts of capacity, though not all projects are guaranteed to be built.
Regional Hotspots
Wrexham records the highest share of local economic activity supported by net zero at 7%, supporting more than 2,340 jobs. The area has a concentration of net zero businesses roughly eleven times higher than the UK average. Other net zero economic hotspots include Pembrokeshire (5.3% area GVA, 1,600 jobs), Rhondda Cynon Taf (5.2% area GVA, 2,890 jobs), and Newport (5.1% area GVA, 2,620 jobs).
Jobs are distributed across energy generation, manufacturing, construction, engineering, and professional services, including solar panel installers and electric vehicle charging companies. Around 160 firms are involved in electric heat pumps and other renewable heating sources.
Industry and Political Reactions
Russell Greenslade, CBI Wales director, said: “With our unique natural assets, strength in advanced manufacturing and well-established supply chains, we’ve long known that the net zero economy presents a major commercial opportunity for Wales. This new report underlines just how central the net zero economy is to our future prosperity.” He added that the UK and Welsh governments must work with business to create a stable environment and invest in skills.
Peter Chalkley, director of the ECIU, said: “Reaching net zero emissions is scientifically the only way to bring balance back to the climate and stop climate change, but it’s also now a major component of the Welsh economy. There is real jeopardy for jobs and livelihoods if Wales starts to fall behind.” He noted that Wales has slipped behind England and Scotland in renewable energy construction.
A Labour source commented: “When it comes to our energy infrastructure, Plaid claim to be pro green energy but have shown themselves to be a party of blockers. The UK Government has already invested heavily in boosting these sectors in Wales, supporting jobs and helping to lower bills. Plaid shouldn’t put that progress in danger.”
