The Net-Zero Economy Now Supports Over a Million Jobs: Why SMEs Are Driving It
Will Marshall
MD
The transition to net zero is often framed as a cost to be managed or a regulation to be met. New research published in June 2026 tells a different story. The UK's net-zero economy now underpins the jobs of more than a million workers and has grown into a genuine engine of economic value. What stands out most is who is building it: the overwhelming majority of the firms involved are small and medium-sized enterprises, not large corporations.
A growth story, not a cost story
According to the latest analysis from the Confederation of British Industry (CBI) and the Energy and Climate Intelligence Unit (ECIU), the UK's net-zero economy now supports 1.1 million jobs. Far from a niche concern, it has become a substantial part of the national economy.
The value those workers generate is equally striking. The sector contributes around £105 billion in Gross Value Added (GVA), and has expanded by more than 10% since 2023 — outpacing the wider economy during a period of otherwise sluggish growth.
These are not low-value roles. Net-zero jobs generate roughly £119,300 in economic value per full-time worker, around 1.5 times the national average, and pay salaries some 11% above the national average. For an economy searching for productivity gains, the green sector is quietly delivering them.
SMEs are the backbone
The headline figure for smaller businesses is the most telling. The report identified 22,700 net-zero firms employing fewer than 50 people, meaning the vast majority of businesses in this economy are SMEs rather than large enterprises. The narrative that decarbonisation is the preserve of well-resourced corporates does not hold up against the data.
This matters for two reasons. First, it shows that small businesses can compete and grow in the green economy without the balance sheet of a multinational. Second, it demonstrates that the installers, manufacturers, consultants and service providers powering the transition are predominantly small and local — the kind of firms that anchor regional economies.
The wider ripple effect
The benefits extend well beyond the businesses directly involved. The analysis found that for every £1 of value generated by the net-zero economy, a further £1.85 is created in the wider economy through supply chains and spending. Few sectors offer that kind of multiplier.
Regional distribution is also more even than many assume. The report identified six "billion-pound" economic hotspots across the UK, including the Scottish Central Belt and West and North Yorkshire. Yorkshire and the Humber leads England, with the net-zero economy supporting more than 79,000 jobs locally. For SMEs outside London and the South East, this signals real opportunity close to home.
The challenges behind the headline
A balanced reading requires acknowledging the obstacles. Growth of this kind is not guaranteed, and political signals around net zero have become less consistent. Investment decisions depend on policy stability, and businesses planning long-term projects need confidence that the direction of travel will hold.
Smaller firms also face a gap between opportunity and capability. Many lack the in-house expertise, time or financing to identify where they fit in the net-zero supply chain or how to reduce their own emissions. Indeed, separate research shows sustainability has recently slipped down the SME priority list under cost pressure. The economic prize is real, but capturing it requires skills and planning that are not evenly distributed.
What this means for UK SMEs
For small business owners, the report reframes a familiar question. The issue is no longer whether sustainability is worth the effort, but how to position the business to benefit from a sector already growing faster than the economy around it. There are several practical starting points:
- Map your footprint first. Understanding current emissions is the foundation for any credible strategy and increasingly a requirement from larger customers.
- Look for supply-chain opportunities. The net-zero economy needs installers, advisers and service providers — many SMEs are closer to it than they realise.
- Build internal capability. Equipping staff through Carbon Literacy Training turns ambition into informed action.
- Use the regional momentum. Local net-zero clusters create partnership and procurement opportunities that smaller firms are well placed to win.
The path forward
The evidence is now difficult to dismiss. The net-zero economy is not a future aspiration but a present-day source of jobs, value and growth, and small businesses are at the heart of it. The firms that treat the transition as a strategic opportunity, rather than a compliance burden, are the ones most likely to share in its expansion — and, as the financial benefits of sustainable practice become clearer, the case grows stronger still. With the right knowledge and planning, UK SMEs are not just participants in this shift; they are increasingly its driving force.
Kickstart your journey into sustainable growth, with all the tools you need to get going at Bright.
