Green Sector Supports 105,000 Jobs
Net-zero-related industries are supporting more than 105,000 jobs in Scotland and contributing £10.2bn to the economy, according to new industry research.
The jobs include roles in building and maintaining infrastructure such as wind farms and hydropower schemes, as well as installing domestic technologies including solar panels and heat pumps.
A Major Part Of Economic Output
The research, produced by CBI Economics, found that the green sector represents 4.9% of Scotland’s total economic output.
That contribution is more than double the size of agriculture’s share, underlining how central net-zero industries have already become to Scotland’s economy.
Perth And Kinross Leads Locally
Perth and Kinross was identified as a particular hotspot for net-zero activity.
According to the report, 12% of the local economy is linked to net-zero industries, reflecting the area’s long-standing hydropower schemes and newer renewable energy projects.
What Net-Zero Industries Include
Net-zero industries are those involved in reducing or balancing greenhouse gas emissions so that Scotland no longer adds to the total amount of planet-warming gases in the atmosphere.
The UK has a legally binding commitment to reach net zero by 2050. Scotland has set an earlier target of 2045, supported by its renewable energy potential and available land for carbon-absorbing tree planting.
Context For Oil And Gas Job Losses
The figures provide context to claims that 1,000 jobs a month are being lost in the oil and gas sector.
The CBI report says Scotland now has more than 3,000 businesses operating in the net-zero economy, most of them small and medium-sized companies spread across the country.
Regional Strengths Vary
Green industries contribute the highest share of economic value in Perth and Kinross, Aberdeen and East Lothian.
In Aberdeen and the wider north-east, activity is focused on offshore wind, hydrogen production and carbon capture and storage. In East Lothian, the emphasis is on electricity transmission infrastructure, specialist manufacturing and fabrication.
Small Businesses Drive Growth
One example is Gensource in Musselburgh, which installs renewable technologies such as solar panels and electric vehicle chargers.
The company began four years ago with two people working from a back bedroom and has grown to 20 workers, including two apprentices.
Energy Crises Increase Demand
Gensource saw orders rise after the two most recent energy crises, first following Russia’s invasion of Ukraine in 2022 and then after the U.S.-Israel war on Iran.
Director Josh King said energy price instability is driving demand because consumers want cheaper energy and fewer surprises in their bills. He argued that renewables can help deliver both.
Political Debate Intensifies
The research comes as political consensus around net zero has weakened.
Scientists argue that cutting emissions is necessary to reduce the risks of climate change, including wildfires and extreme weather. However, some opposition parties, including the Conservatives and Reform UK, have questioned whether the country can afford the policies required.
Higher-Than-Average Earnings
The study found that average earnings in Scotland’s net-zero sector are 5.2% above the Scottish average, at about £41,000.
This reflects the skilled nature of many roles supported by the sector, particularly in engineering, infrastructure and renewable energy development.
A Large Investment Pipeline
The report says Scotland is well placed for further growth, with a pipeline of net-zero-related investment valued at £211bn.
That represents about 34% of the UK’s total pipeline, suggesting Scotland could continue to play an outsized role in the clean energy transition.
Scotland Punches Above Its Weight
Laura Anderson, senior associate at the Energy and Climate Intelligence Unit, said the research shows that net zero is already a substantial part of Scotland’s economy.
She said clean energy is growing across the UK, but Scotland is punching above its weight. The report suggests that net-zero industries are no longer a future ambition for Scotland, but an established source of jobs, investment and regional economic value.
