The transition to green manufacturing could add between £8bn and £20bn to the UK’s GDP a create up to a million jobs. And the UK is well placed to lead the way if it acts now, according to a new report from the Manufacturing Technologies Association. But for it to succeed, the government must also adopt the right regulatory framework.
The shift to green growth will be revolutionary, says the report, entailing decarbonising processes and products all along the supply chain, as well as reducing the carbon that products require in use.
The transition will require significant investment. The Commission on Climate Change has estimated that the transition to net zero greenhouse gas emissions by 2050 will require sustained investment of around 1 to 2% of GDP annually through to 2050.
But the UK is well positioned in international comparisons, and the transition plays to its strengths such as its ability to innovate. It already has an estimated 400,000-odd jobs in low-carbon businesses and their supply chains, providing a sound base for further development. It also has strong digital capabilities, it is a global leader in green legislation and has a strong research base.
It is in the UK’s interest to “respond constructively, to make the transition as smooth as possible, and keep costs down”, the report says. The restructuring will “forge a new economic backbone based on sustainable output and quality jobs”, it argues. Other benefits will range from a reduction in general pollution to easing traffic congestion and reducing noise. There will be greater energy security, and less energy price volatility.
An estimated £8bn to £20bn could be added to the output of UK manufacturing and its supply chains. Between 37,000 to 90,000 jobs could be created in UK manufacturing, with a further 34,000 to 83,000 in the supply chain, and a total of 400,000 to a million jobs in the economy as a whole.
But for this to be achieved, constructive government policy is also needed, to provide the right regulatory framework and assistance to facilitate the transition, including an industrial strategy integrated with a clean growth strategy.
MTA chief executive James Selka said: “Going green is a necessity. The UK has a worldwide reputation for innovation in manufacturing and engineering. This report highlights the need to invest to make to the transition to a decarbonised economy. With strong national guidance and the right structure in place by the government and fully integrated into an industrial strategy, we are well placed to become world leaders in green manufacturing.”
The report can be downloaded here