2 minute read with link to full report
Report shows manufacturers are well placed to lead a green revolution
A new report, published by the Manufacturing Technologies Association (MTA), has found that, if the UK moves towards green manufacturing, it could see as much as £20bn added to the UK’s GDP and up to 1 million jobs created.
Climate change is having a huge impact on the world we live in and the calls to tackle it are growing louder every day. The MTA report shows that the UK is well placed to lead the way in this green future, if it acts now.
Since the early 1990s, the UK has reduced carbon emissions by around 44% and is the first major economy to commit to a net zero emissions target.
James Selka, chief executive of the MTA, said: “Going green is not an option, it’s a necessity. The UK has a worldwide reputation for innovation within manufacturing and engineering. This report highlights the need to invest to make the essential transition to a decarbonised economy. By embracing green technology, we can transform our economy as a whole and work towards sustainable growth, creating new, higher paid jobs and protecting the environment in the process.”
The Committee on Climate Change, which underpinned the net zero target, estimated that an increase in investment in green technologies in the order of 1 to 2 % of GDP per year up to 2050 was needed.
Green growth is an important economic driver – growing around four times faster than the overall economy. Starting early gives companies the best chance of staying ahead and diversifying into future products and markets. Green transition involves decarbonising processes and products along the supply chain, as well as reducing the carbon that products require in use.
The effect on GDP stands to be large, adding some £8bn to £20bn in output to UK manufacturing and its supply chains. The effect on jobs also stands to be substantial:
• Creating 400,000 to 1 million jobs in the economy as a whole;
• 37,000 to 90,000 jobs in UK manufacturing, and;
• a further 34,000 to 83,000 jobs in the supply chain.
James Selka concluded: “We have seen through the Covid-19 pandemic that when government engages with manufacturers that change can be implemented quickly. With strong national guidance and the right structure put in place by the UK government and fully integrated into an industrial strategy, we are well placed to become world leaders in green manufacturing. We need continued investment in resources like the High Value Manufacturing Catapult to spur progress. The possibilities for growth are substantial. UK manufacturers are ready for this challenge.”