The UK's green transition: this is no time to flinch

Growing up in the North-West of England, the so called ‘talent drain’ to the South-East was a familiar story. To get ahead and further their career, many of my friends and colleagues moved to the Capital after university and early in my career, I did the same.

But with the green energy revolution upon us, the future could present a very different picture for young people in regions outside of London. Cleantech investors are looking for space to build and manufacture in the UK’s industrial heartlands, where there is a supply of ready workers eager to gain new skills and opportunities.

It is estimated that the green transition (to cleaner energy, transport and manufacturing) will create hundreds of thousands of new jobs – anywhere between 150,000 to 400,000 – boosting not only employment opportunities but the economy as well, significantly. Young people will have the option of pursuing careers where they want to live, be it in London or elsewhere, in future-oriented industries such as clean energy, green infrastructure and mobility.

It is estimated that the green transition will create hundreds of thousands of new jobs - anywhere between 150,000 to 400,000 – boosting not only employment opportunities but the economy as well, significantly.

Such an injection of investment and jobs will be transformational for local economies and, importantly, the communities around them, helping to spread prosperity beyond London and into towns not just cities.

What’s more, that momentum will fuel the export of insight and expertise to help other countries on their ‘green transition,’ fuelling even further growth.

It's worth stating that London has a critical role to continue playing as a vibrant, global financial centre that attracts capital and investors to the UK. This is about levelling up and spreading prosperity across the country.

So, what is holding us back?

Given the current cost of living and energy crises, the natural reaction of many businesses maybe to pause the pursuit of net zero. But the energy crisis is a stark ‘reality check’ on the dramatic impact of slowing down on the road to net zero, rather than speeding up.

One of the key ways to make that gear change is to ‘commercialise the conversation’ – what will accelerating progress towards net zero achieve for businesses? There is a mindset change needed to convert net zero from a compliance task to a driver of growth.

Last month, the Government launched an independent review into the delivery of net zero that was headed by Former Energy Minister Chris Skidmore MP. It aims to ensure climate goals are pro-growth and pro-business. Cited in the announcement, Chris says:?“I want to ensure that net zero isn’t just viewed as the right thing to do for our environment – but becomes an essential driver of economic growth.”

Our EY Carbon team – led by Rob Doepel – contributed to that review to help build the global business case for green transition and reframe the discussion in the boardroom. This supports our perspective on value-led sustainability: we don't view EY's Net Zero ambition as ‘a cost of compliance’ requirement, but one that that drives competitive advantage for business and for the United Kingdom.

Stick to the path

Although there are significant economic forces squeezing the UK at the moment, from currency fluctuations to a cost-of-living crisis to weak economic growth, now is not the time to flinch. We simply cannot afford to wait to move on the green transition to secure a future of low cost, renewable energy.

Cleantech provides huge opportunities for jobs, skills and investment. What’s more, it could help to spread wealth more evenly throughout the UK, helping to level up economic growth across the regions. The country’s future prosperity and global competitiveness is at stake.