Close
17 June 2025

Are Net Zero and economic growth compatible?

Jump to section

BIEE Webinar: Are Net Zero and economic growth compatible?

14:00-15:00 | Tuesday 17 June 2025 | Online

Free to attend, register via the button below.

Register here


Are Net Zero and economic growth compatible?

In recent weeks the UK Government’s ambitions for clean power by 2030 and Net Zero have been questioned as too costly and risking economic growth in the face of ongoing fiscal constraints and the current wider economic context. In this webinar we will explore the links between the Net Zero transition and economic growth and review the evidence on whether decarbonising the economy can deliver jobs, and support growth by presenting research by CBI Economics and the Centre for Energy Policy (CEP), University of Strathclyde.

  • CBI Economics Report on the economic opportunities of Net Zero “The Future is Green”, was commissioned by the Energy and Climate Intelligence Unit (ECIU) to measure the contributions of the UK’s net zero economy and assess the opportunities the sector brings by analysing the sector’s economic impact at national, regional, and local levels.
  • CEP research funded by SP Energy Networks, explored the economy-wide implications of SPEN’s investments in the electricity network as part of the RIIO T3 process and provides some important insights to the overarching question as well as how wider and more efficient electricity networks can enhance productivity; the need for investment in electricity infrastructure ahead of anticipated demand increases; and the implications of electrification of the UK economy. How will SP Energy Network’s RIIO-T3 Investment Plans Impact the Wider UK Economy?

Our speakers:

  • Louise Hellem – Chief Economist, CBI
  • Antonios Katris – Senior Research Fellow, Centre for Energy (CEP), University of Strathclyde

Speakers

Louise Hellem

CBI (Confederation of British Industry) / Chief Economist

Louise Hellem

CBI (Confederation of British Industry) / Chief Economist

Louise is the Chief Economist at the CBI and a member of its Executive Committee. She and her team provide business leaders with advice on the UK economic outlook and global risks. Building on the insights from members, she shapes the CBI’s overall view on economic and fiscal policy and leads the CBI’s discussions with senior politicians and policymakers in these areas. Louise also oversees the CBI’s economic consultancy business CBI Economics.

Before moving into the role Louise was the Director of Economic Policy at the CBI. She led the CBI’s policy work on tax and regulation, as well as developing the CBI’s strategy and evidence base for enhancing the competitiveness of the UK’s business environment. Prior to joining the CBI, Louise spent 13 years at HM Treasury as a member of the Government Economic Service, where she led on a number of different analytical and policy issues, including National Living Wage policy and assessing the economic and distributional impacts of policy measures at fiscal events.

Louise holds an MSc in Economics from the University of Bristol and studied Economics and International Development at Bath University.

Antonios Katris

Centre for Energy Policy (CEP), University of Strathclyde / Senior Research Fellow

Antonios Katris

Centre for Energy Policy (CEP), University of Strathclyde / Senior Research Fellow

Antonios Katris has been a member of the Centre for Energy Policy (CEP) since 2015 and is currently a Senior Research Fellow. His research focus spans across multiple areas of energy policy, currently focusing on the fuel poverty support measures and the development of low-/zero-carbon fuels. He mainly uses computable general equilibrium (CGE) models to study the economy-wide impacts of net zero interventions and policies and identify trade-offs and implications for policy and other stakeholders (academic and non-academic).

His body of research work includes areas such as the improvement of energy efficiency in residential properties, the electrification of private transportation and residential heating, exploring the impacts of decarbonising industries and offshoring industrial activity, and the potential impacts of nuclear decommissioning in the Scottish economy. More recent research topics include the implementation of social and smart electricity tariffs, the differences in socio-economic impacts between fuel poverty support actions and the implications of the transition to net zero in local economies. Antonios holds a Ph.D. in Economics from the University of Stirling.

Chair

Peter Taylor

University of Leeds / Chair in Sustainable Energy Systems

Peter Taylor

University of Leeds / Chair in Sustainable Energy Systems

Peter has over thirty years of experience working on a wide range of energy and climate change policy issues. He currently holds a joint appointment at the University of Leeds as Professor of Sustainable Energy Systems in the Schools of Earth and Environment and Chemical and Process Engineering. Peter has acted as advisor to a number of United Nations organisations, the International Energy Agency, the European Commission and various UK government departments. His research is strongly interdisciplinary, combining engineering, economics and policy to explore transitions to sustainable low-carbon energy systems. He contributes to several large national research centres including the UK Energy Research Centre, Energy Demand Research Centre, Supergen Energy Networks Hub, Industrial Decarbonisation Research and Innovation Centre and the ESRC Centre for Climate Change Economics and Policy.

Prior to joining the University of Leeds, Peter was Head of the Energy Technology Policy Division at the International Energy Agency in Paris from 2007 to 2011, responsible for high profile publications such as the Energy Technology Perspectives and the Energy Technology Roadmap series. In an earlier consultancy career, he was Technical Director of a major UK energy and environmental practice.

Peter graduated from the University of Nottingham in 1990 with a BSc in Physics, Applied Physics and Electronics and subsequently gained both an MSc in Environmental Technology (1991) and a PhD in Energy Policy (1995) from Imperial College, London.

Are Net Zero and economic growth compatible?

I would argue it is probably more a case of ‘can they be’ rather than ‘are they’ compatible, to which I believe the answer is yes to ‘can they’ but possibly challenging to ‘are they’ with current policies.

I strongly believe that if we are to stand a chance of meeting net zero on time then policies and technologies need to be based on more complete, whole systems thinking, approach than it currently appears to be. Furthermore, policies and technology needs to follow the science rather than established interests. To achieve economic growth business needs to be competitive, which in the majority of cases realised some extent on the cost of energy for those businesses. The cost of energy for a business depends not only on the unit energy cost, but also the amount used so both aspects need to be addressed in combination.

As an example consider a glass manufacturer which uses very large amounts energy, currently mostly in the form of fossil gas.

The approach of that is being promoted in the North West is to use blue hydrogen to replace fossil gas. This introduces substantial energy losses, most likely in the form of additional fossil gas usage¹, in the methane reforming process to produce the hydrogen plus there is the cost of the equipment (SMR) to do this. An alternative approach, which I do not believe is currently being considered, would be to add carbon capture directly to the glass manufacturing process, which would result in no increase in fossil gas (possibly slightly less²) demand and accordingly less CO2 to be captured so also less clean energy required for this process too.

Oakley it seems like the agenda it’s been driven by the energy Industries desire to provide/cell clean fuel to its customers rather than taking a whole systems thinking (#WST) approach to the whole glass making process.

  1. The energy losses in the SMR process could possibly be provided by renewable energy in the form of electric, rather than gas, heating, but I suspect this is likely to be substantially more expensive but it could actually reduce overall CO2 produced and would reduce overall gas usage and thus also CO2 capture quantity and cost.
  2. If carbon capture was added to the glass making process/kiln, instead of the fuel supply, by implementing oxy-fuel (rather than air fuel/gas) heating this could potentially slightly increase efficiency and probably make it easier to achieve high levels, very close to 100%, of CO2 capture. This would use a similar principle to the Allam-Fetvedt cycle gas turbine that can provide, near as damnit, 100% CO2 capture without the need for CO2 absorbents.

Comments for BIEE Members only.
Sign in or become a member today.

Sign up to our Events Newsletter

To receive email updates about our forthcoming events and news please sign up here.

Sign Up