West Yorkshire businesses were last week urged to join “the decarbonisation revolution”, with a new report revealing the region’s burgeoning green sector is set for a growth explosion after bringing in £8.1bn to the economy last year.
Green Economy report
The newly published Green Economy report reveals the region’s Green Technologies and Services (GTS) sector – which includes everything from wind to alternative fuel vehicles – is set for massive growth with sales set to soar by a massive 37% to £11.1bn by 2026.
This project is funded by the UK Government through the UK shared prosperity fund and is supported by West Yorkshire Combined Authority (WYCA) and Mayor of West Yorkshire, Tracy Brabin.
The report was produced by Green Economy, part of The Growth Company, it helps tradespeople, businesses and local authorities deliver their transition to net zero by providing expert support, training and access to local sales opportunities as well as analysing and developing the local green supply chain.
Green Economy’s West Yorkshire Green Technologies & Services Sector Mapping report also shows the huge contribution the region’s 2,914 GTS businesses and 53,000 employees, play economically and environmentally.
Its authors stressed the report should be the springboard for the sector to work alongside bodies like Green Economy to ensure they plug skills gaps, overcome industry barriers to decarbonisation and create more high-quality local jobs with employment in West Yorkshire’s green tech sector representing just 2.1% of the county’s workforce in 2023 – compared to 5.9% for England as a whole.
Key findings of the report include:
- West Yorkshire’s GTS sector is valued at £8.1bn and expected to grow to £11.1bn by 2026 – a 37% rise. Sales in the sector grew by 6.1% from 2020/21 to 2021/22 and 6.4% from 2021/22 to 2022/23, mirroring UK trends.
- The top three sub-sectors in the region by sales in 2022/23 were: wind – £1,248mn in sales, 6,926 employees and 422 businesses; building technologies – £895mn in sales, 7,325 employees and 377 businesses; and alternative fuel vehicles – £877mn in sales, 5,578 employees and 326 businesses.
- The three largest exporting sub-sectors in West Yorkshire in 2022/23 were energy from waste (£89.4mn), alternative fuels (£72.2mn), alternative fuel vehicle (£50.1mn).
- West Yorkshire’s GTS exports in 2023 were valued at £500mn representing 2.9% of the UK’s GTS exports and aligning with West Yorkshire 2.9% share of the overall UK GTS 2023 market. West Yorkshire contributed 3.3% to England’s GTS 2023 export market, slightly lower than its 3.4% share of England’s GTS 2023 sales. Notable exporting sub-sectors included energy from waste and alternative fuels.
- Leading sub-sectors include wind, building technologies and alternative fuels while emerging sectors include carbon finance, geothermal and air-source heat pumps, all expected to see over 60% increase in sales.
What’s behind the green technology sector growth?
Analysis by Green Economy found the GTS sector growth was due to a combination of factors. These include demand being stimulated by legislative drivers such as a proposed ban on petrol cars and a national push to retrofit and make homes more energy efficient, to local programmes funded by the WYCA and centrally funded initiatives like the Public Sector Decarbonisation Fund requiring local providers of green technology.
Amy House, director of Green Economy, said the report showed the massive strides West Yorkshire’s GTS was making. And she stressed the expected huge growth meant it was a perfect time for traders and businesses to capitalise on the opportunities the region’s rampant green sector offered. She said:
“This report should leave nobody in doubt over the enormous contribution the green tech and services sector makes to West Yorkshire’s economy with sales expected to grow to £11.1bn by 2026. Coupled with rising exports and the expected growth in sales among emerging sectors including carbon finance, geothermal and air-source heat pumps the report delivers a hugely positive trajectory.
“However, now is not a time to be complacent. Employment in West Yorkshire’s GTS sector in 2023 only accounted for 2.1% of the city-region’s workforce, compared to 5.9% for England. It is therefore imperative whether you are a sole trader or a large company that you join the decarbonisation revolution and enlist the free support of experts like Green Economy so we can collectively plug skills gaps, create more high-quality local jobs and ensure the region grows by using their own supply chain.”
Mandy Ridyard, business advisor to the Mayor of West Yorkshire, said:
“West Yorkshire’s green sector is booming and it’s fantastic to see further growth on the horizon. As we work to deliver net zero by 2038, we’re investing now to ensure that people have the skills they need to secure the good, well-paid, green jobs of the future.
“Unleashing this huge opportunity for green growth will help us build a stronger, brighter West Yorkshire for people and business.”
Green Economy
Green Economy helps local firms grow or diversify into the sector with its team of consultants helping installers, tradespeople and other suppliers receive free specialist advice and access to market intelligence, peer networking and training with traders able to explore new sales opportunities with a free profile on their marketplace – a business directory of local green technology suppliers.
It simultaneously helps GTS businesses grow by offering expert support to develop robust and competitive net zero strategies.
Traders, companies, and local authorities seeking decarbonisation support can find more details here.
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