As the dreaded year of 2020 began, the United Kingdom relied on renewable energy with an all-new vigor. For the first time, the power created by clean energy projects eclipsed fossil fuels in the region, ensuring almost 50% of Britain’s lights were kept on with renewable sources. And analysts are saying that it could be their ticket to economic recovery.
According to USA Clean Energy Association, economists and environmentalists, businesses that were harnessing energy from the wind, sea, and sun were skyrocketing the UK’s economy by enticing billions in investments and producing thousands of jobs in the sector.
The Clean Energy Sector Has Proved This in The Past
Following the 2009 financial crisis, the United Kingdom’s clean energy sector proved what a benefit it could be to the economy. The Confederation of British Industry (CBI) figured out that the green field contributed to one-third of Britain’s economic growth between 2010 and 2011.
The region’s typical economic engines (i.e., financial services firms and banks) kept floundering, leaving the GDP growth stuck below 1%. But the economic value of the solar industry was boosted by 7%, and offshore wind contributions climbed by nearly 17%.
As per the CBI report, there shouldn’t be a choice between going green or heading for growth. After all, green businesses were already on the path to becoming a massive pillar of the UK’s growth.
A member of Renewable UK remarked that after the last financial crisis, Britain’s green economy was a substantial contributor to new fiscal expansion. It supported tens of thousands of jobs and found brand-new export markets across the globe.
He stated that the industry will again play a proactive part in rebuilding the economy as the area continues rebuilding after the coronavirus pandemic. Bennett believes going green is the best chance the UK has of a forward-thinking, productivity-enhancing recovery.
Investment Opportunities Within Britain’s Green Sector are Rampant
Much of the risk associated with renewable energy investments has disappeared, thanks to the ever-decreasing technology costs (mainly solar) and the UK’s commitment to a carbon-neutral economy by 2050. Not to mention the financial support offered by the government for those who invest in renewable sources.
The viability of green investments has been further bolstered by the murky waters of other investment opportunities — fossil fuels have fallen from many investors’ preferences.
Many economists believe the renewable energy industry’s financial support and the public policy encouraging the infrastructure could produce an employment and economic tailwind set to spur Britain’s recovery and battle the climate crisis.
The COVID-19 pandemic exacerbated the need to ensure the economy is resilient and sustainable in the long run, which means going green.
So Many Gains to Be Had Around the World
Worldwide, renewable energy could ensure a major recovery from the pandemic by boosting global GDP gains by $100 trillion dollars from 2020 to 2050 compared to leaving things as they stand.
Keith Anderson, the CEO of Scottish Power, adds that the environmental and economic advantages of green recovery investments are aligned. There’s never been a better time for investors to enter Britain’s ever-growing renewable energy sector to spur the region’s expansion.