The UK is currently the 6th largest low carbon and environmental goods and services (LCEGS) economy, but is still trailing behind the US and China. In fact, by region, Europe makes up only 27% of the global market, falling behind both the Americas (30%) and Asia (38%). This latest study from the DBERR presents new market data on the LCEGS sector in the UK, its regions, and internationally. The study draws from over 720 sources, including activities undertaken by companies across the whole environmental supply chain, from R&D, through manufacturing into distribution, retail, installation and maintenance services. Companies are included in the supply chain where 20% of their turnover is supplied into the LCEGS sector, but importantly only the sales activity relating to this sector is included in this study.
Key findings from the report:
Globally, traditional environmental activities account for £657 billion (21.6% of the global total), Renewable Energy for £940 billion (30.9%) and the emerging low carbon activities for £1449 billion, or 47.5%.
Of the 23 products and services included in the global analysis, the largest by market value are Alternative Fuels, 18.5% (part of the Emerging Low Carbon sector), Building Technologies, 12.8% (Emerging Low Carbon sector), Wind Power, 11.5% (Renewable Energy sector) and Alternative Fuels for Vehicles, 11.2% (Emerging Low Carbon sector).
It is estimated that overall the global LCEGS sector grew by approximately 4% in 2007/8. Growth performance varied across the 23 subsectors (but was higher for most Renewable Energy subsectors), creating new market opportunities in all global economies.
The value of the UK LCEGS sector was £106.5 billion in 2007/8. In terms of size, this puts the low carbon and environmental economy somewhere between the UK’s healthcare and construction sectors.
Approximately half of the value of the overall LCEGS sector (48%) lies in the extended value and supply chain activities identified as part of this study. The specialist (i.e. nonsupply chain) market values for the UK are £10.81 billion for the Environmental sector, £17.89 billion for Renewable Energy Technologies and £26.59 billion for the Emerging Low Carbon sector.
Click here to read the full report
Picture from Creative Commons: Flickr: Vlastula