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‘Green’ industries to add £4 billion and 30,000 jobs to south west economy, suggests government report
New government figures show that ‘green' jobs will be at the heart of the south west economy. With the region's low-carbon industries experiencing annual growth of 5 per cent, the south west can expect a rise in the value of the sector from £8.6 billion to almost £13 billion over the next decade, despite the economic downturn
"Never has their been a clearer message that renewable energy and energy efficiency businesses can drive forward the south west economy," said Merlin Hyman, chief executive of Regen SW, the region's sustainable energy agency. "Our own research has shown how important the sector is, and now national statistics back this up. We're very fortunate here in the south west - we have exceptional natural resources and a great history of entrepreneurial activity, so we must make the most of this low-carbon revolution."
Merlin added: "Environmental industries are no longer in a minority sector. In fact, the value of the UK sector, said to be £107 billion, now lies somewhere between the healthcare and construction sectors, and almost a third of this can be attributed to renewable energy business."
The Department for Business, Enterprise and Regulatory Reform (BERR)'s report - ‘Low Carbon and Environmental Goods and Services: an Industrial Analysis' states: ‘If forecasts are correct, the environmental economy will grow by about 45 per cent over the next eight years, with much of this growth generated by renewable energy activities - a reflection of the drive to reduce carbon emissions under international targets, unstable energy prices and the desire to improve energy security.'
The report also shows that currently the south west employs 74,000 people in environmental goods and services, but, based on national growth figures, the anticipated rise could take this to well over 100,000 employees over the next eight years.
In the south west, the government's figures show that the renewable energy sub-sector (heat and electricity) is currently worth £2 billion, and that a huge £833 million of this can be attributed to wind energy. With current annual growth of almost eight per cent, this indicates the significant importance of wind energy to the region's economy.
Merlin pointed out, however, that the leaders of many countries - including President Obama in the USA - are putting huge investment into green jobs, making the sector highly competitive: "We now need the government to follow this positive rhetoric with the major investment in incentives, skills and business support that we need if the south west and the UK generally is going to seize this opportunity."
Earlier this week, Regen SW took 16 small and medium-sized sustainable energy businesses from around the south west to Ecobuild, the UK's biggest ‘green' building show. Many of these businesses reported that they are currently recruiting extra staff and see no signs of a downturn in their growth.
"This is extremely promising," added Merlin, "and these businesses not alone in battling against current economic trends.
Today's summit, held at the Royal Society in London was be addressed by Peter Mandelson, Ed Milliband, and Lord Stern.
To read the full Low-carbon industrial strategy and the accompanying analysis, go to: http://www.berr.gov.uk/whatwedo/sectors/lowcarbon/lowcarbonstrategy/page50105.html
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Notes to editors
About Regen SW
Regen SW, which receives its core funding from the South West of England Regional Development Agency, is the sustainable energy agency for South West England. It was previously the region's renewable energy agency, and it now has an extended remit to include energy efficiency.
Regen SW's purpose is to speed up the transition to a low carbon economy in the South West England. It works to accelerate the uptake of renewable energy, champion energy efficiency initiatives and to grow the region's sustainable energy businesses.
The South West RDA has invested more than £3.3 million of funding to Regen SW since 2002.
About the South West RDA
The South West RDA leads the development of a sustainable economy, investing to unlock the region's business potential. It works in partnership with public, private and social purpose organisations to drive up the region's productivity by giving people the skills they need, encouraging enterprise, improving infrastructure, regenerating places, and promoting the strengths of the region. For more information see www.southwestrda.org.uk
For further information
Please contact James Reddy, Regen SW communications manager on 01392 474322/07967 835947 or email jreddy@regensw.co.uk
