Green jobs contributing £10.2bn to Scotland's economy, says CBI

Net-zero-related industries are supporting more than 105,000 jobs in Scotland and contributing £10.2bn to the economy, according to industry research.

The jobs include roles building and maintaining infrastructure such as wind farms and hydropower schemes, as well as domestic installations of solar panels and heat pumps.

The research by the CBI (Confederation of British Industry) concludes that the green sector represents 4.9% of Scotland's total economic output - more than double that of agriculture.

It identifies Perth and Kinross as a particular hotspot where 12% of the local economy is net-zero related.

Net-zero industries are those involved in the drive to ensure Scotland is no longer contributing to the total amount of planet-warming greenhouse gas emissions in the atmosphere.

The UK has a legally-binding commitment to reach that point by 2050 while in Scotland, which has more available land for planting trees to absorb carbon dioxide, the target date is 2045.

The employment figures provide context to the often quoted claim that 1,000 jobs a month are being lost in oil and gas.

The CBI report says Scotland has more than 3,000 businesses working in the net-zero economy, most of which are small to medium sized.

While those companies are spread across the country, the areas where green industries contribute the highest proportion of economic value are Perth and Kinross, Aberdeen and East Lothian.

One of those companies is Gensource in Musselburgh which installs renewable technologies including solar panels and electric vehicle chargers.

It has grown rapidly since it was launched four years ago by two people in a back bedroom and now has 20 workers, including two apprentices.

Orders spiked after both of the two most recent energy crises, triggered by Russia's invasion of Ukraine in 2022 and more recently the US-Israel war on Iran.

Gensource director Josh King believes the net-zero targets are good for growth, jobs and the economy, particularly at a time when energy prices are being severely affected by geopolitics.

"We've got price instability and, ultimately, that drives demand because people want cheaper prices but, also, they want no surprises in their bills," he said. "Renewables can help deliver that."

The research comes against a backdrop of fracturing political consensus around the need to achieve net-zero greenhouse gas emissions as a means of tackling climate change.

Scientists point out that it's the only way to protect against the impacts of a warming planet – such as wild fires and extreme weather - but some opposition parties, notably the Conservatives and Reform UK, have said the country cannot afford the policies required.

The study was carried out by CBI Economics for the climate think tank the Energy and Climate Intelligence Unit (ECIU).

It found that average earnings in the sector were 5.2% above the Scottish average at £41,000, reflective of the amount of skilled job it supports, particularly in engineering.

In Perth and Kinross, roles are concentrated on the abundant hydropower schemes, which have existed for decades, along with newer onshore wind farms such as the Griffin Scheme near Aberfeldy.

In Aberdeen and the wider north-east it's more focused on offshore wind as well as hydrogen production and carbon capture and storage.

In East Lothian there's a focus on electricity transmission infrastructure as well as specialist manufacturing and fabrication.

The report says Scotland is well placed for growth within the sector, with an pipeline of investment valued at £211bn which is about 34% of the UK's total.

Laura Anderson, senior associate at the ECIU, says the research shows that net-zero is already substantial and a core part of Scotland's economy.

"This is an economy that is strong and is embedded into our economy in many different regions," she said.

"We know that clean energy is growing across the UK and Scotland is punching above its weight."