Environment Protection: Expenditure

Department for Energy and Climate Change written question – answered on 23rd December 2015.

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Photo of Baroness Young of Old Scone Baroness Young of Old Scone Labour

To ask Her Majesty’s Government, further to the reply by Lord Bourne of Aberystwyth on 15 December (HL Deb, col 1981), (1) what is the detailed breakdown of the figure of £122 billion spent annually in the UK on the low carbon economy, and (2) for each element of that figure, what proportion is spent by government, local government, business, individuals, and other bodies.

Photo of Lord Bourne of Aberystwyth Lord Bourne of Aberystwyth The Parliamentary Under-Secretary of State for Energy and Climate Change, Lord in Waiting (HM Household) (Whip), The Parliamentary Under-Secretary of State for Wales

The size and performance of the UK low carbon economy report published by the Department for Business, Innovation and Skills [1] estimated that in 2013 the low carbon economy generated £70.8 billion in turnover [2] for those businesses operating directly in the sector. This grew to £121.7 billion when the supply chain is included. The breakdown of the £121.7 billion by sector for direct and indirect activity in 2013 is published in the report and is reproduced in Table 1 below. The report has not assessed the proportion of spend by different groups (e.g. government, local government, business, individuals, and other bodies) for these sectors.

Table 1: Turnover by sector: 2013 (£million nominal)

Sector of low carbon economy

Direct [3] Turnover

Indirect [4] Turnover

Total Turnover

Onshore wind

3,600

2,700

6,300

Offshore wind

2,000

1,500

3,500

Nuclear energy

7,700

4,400

12,100

Hydroelectric energy

1,100

800

1,900

Marine

200

200

400

Solar PV

5,000

3,500

8,400

Energy generation from waste and biomass

2,400

1,800

4,100

Carbon capture and storage

400

200

600

Biomass equipment

1,500

1,100

2,500

Geothermal

500

300

800

Heat pumps

1,900

1,300

3,100

Solar thermal

500

300

800

Heat networks

100

100

200

Energy-efficient lighting

2,100

1,400

3,500

Insulation

3,100

2,400

5,500

Energy-efficient windows and doors

1,500

1,300

2,800

Heat recovery and ventilation

900

600

1,500

Energy controls and control systems

1,400

900

2,200

Sustainable architecture and buildings

500

400

900

Low carbon advisory services

1,700

1,100

2,800

Low carbon finance

600

300

900

Recycling - recovery and reprocessing of materials from waste

12,400

9,500

21,800

Alternative fuels

15,200

10,900

26,100

Low emission vehicles

4,600

4,200

8,800

Total low carbon

70,800

50,900

121,700

Source: BIS (March 2015); the Size and Performance of the UK Low Carbon Economy

[1] BIS (March 2015), The Size and Performance of the UK Low Carbon Economy https://www.gov.uk/government/publications/low-carbon-economy-size-and-performance

[2] Turnover is defined as total revenues generated from business activities.

[3] Direct activity is that immediately connected to one or more of the low carbon sectors. For example, this would include companies which manufacture wind turbines or develop

[4] Indirect activity is that which occurs in the supply chain and supports activity in the direct low carbon sector. Although companies in the supply chain were not identified explicitly, their economic impact was estimated using multipliers.

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