Robust industrial strategy can make net zero the UK’s growth engine

• New report from the Aldersgate Group identifies key opportunities for resilient low carbon growth and calls for decisive action from the government to ensure that the industrial strategy maximises these opportunities.
• Crucially, it highlights that the modern industry strategy must futureproof growth by ensuring businesses can grow in a sustainable and resource-efficient way. The publication sets out recommendations to accelerate progress on a sector-by-sector basis. Its findings are bolstered by live business case studies that demonstrate how major businesses across the country are already delivering economic benefits.
• The report warns that failing to maximise the potential of delivering net zero at this stage would create significant risks for the private sector, including stranded assets, costly retrofits, and challenges for the energy system.

Today the Aldersgate Group publishes a new report that sets out how the UK can futureproof economic growth by seizing the opportunities presented by decarbonisation across a range of sectors, and enabling growth aligned with net zero and nature targets.

It calls for a cross-sectoral industrial strategy that places decarbonisation at its heart and provides a long-term vision for the UK’s green industrial growth to achieve this. The strategy must include a clear focus on enabling policy measures and regulatory frameworks to provide certainty and crowd in private investment.

Priority sectors identified by the government for the industrial strategy all have significant scope for future growth driven by decarbonisation, if supported by policy. These sectors are advanced manufacturing, financial services, clean energy, digital and technologies, creative industries, life sciences, defence, and professional services.

This report features live business case studies that demonstrate the private sector appetite for ambitious climate policy, and how the net zero economy can drive growth across the country. This includes examples from major international businesses and industry leaders, including CEMEX, Siemens Gamesa, Associated British Ports, Netflix, AVEVA, Nestle, Legal & General, and WSP.

Rachel Solomon Williams, Executive Director, Aldersgate Group, said: “This government is standing at an inflection point. As it prepares its industrial strategy, alongside the spending review and a number of other strategies, it is presented with a unique opportunity to create a genuinely enabling environment for growth that is aligned with sustainability. We know from engagement with major businesses across the economy that they recognise the imperative of the climate transition and want to see the UK lean into its competitive advantages to make decarbonisation a key growth driver. Government must set out policy frameworks which enable these industrial sectors to continue delivering for the UK economy while safeguarding the environment and futureproofing growth.”

Sam Clark, Co-Founder, Material Evolution: “This report rightly emphasises that the future of UK industry must be low-carbon, circular, and resilient. At Material Evolution, we’re proving this is not just possible—it’s profitable. By repurposing industrial waste into ultra-low carbon cement, we’ve shown that innovation in foundational industries can drive both economic growth and environmental leadership. A clear, long-term industrial strategy will be essential to unlock investment and help pioneering businesses like ours scale at pace.”

Julia Barrett, Chief Sustainability & Compliance Officer at Willmott Dixon, said: “The upcoming industrial strategy is an important mechanism that government can use to set out a clear, long-term plan that drives low carbon growth. Many companies already  recognise the significant economic potential that decarbonisation presents for their business and for the  UK.  At Willmott Dixon we are already seeing the demand for net zero products and services translating into our pipeline of work.  However, the right policy and regulatory measures are crucial to enable future success. This report sets out a clear picture of the major opportunities on offer across a range of sectors, and demonstrates that by acting now, the Government can ensure it delivers on its growth mission long into the future.

Nazli Dabidian, Director, CBRE, said: “The real estate industry is at a pivotal moment in the UK’s energy transition journey, where this transition presents significant opportunities for sustainable profit growth. By prioritising investments in energy-efficient buildings, renewable energy integration, and low-carbon infrastructure and physical climate risk resilience, the sector can unlock long-term value while reducing risks while ensuring resilient growth and managing risk.”