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Powering Prosperity: How electrification can strengthen the UK's economy, resilience and energy security

A new report from the Corporate Leaders Group UK (CLG UK), convened by the Cambridge Institute for Sustainability Leadership (CISL) and funded by the We Mean Business Coalition, examines how different energy pathways could affect economic growth, employment and energy security in the UK.  

The report compares three alternative development pathways against a current policy baseline using macroeconomic modelling by Cambridge Econometrics.

Cambridge Econometrics provided the macroeconomic modelling underpinning the analysis, assessing the impacts of:

  1. An electrification-led pathway

  2. A mixed technologies pathway

  3. A fossil fuel-led alternative

Arlington Report (1)
Powering prosperity

How electrification can strengthen the UK’s economy, resilience and energy security

View the report

The modelling found that an electrification-led pathway could deliver stronger economic performance than the alternative scenarios.

Key findings include:

  • Higher economic growth and productivity, with sustained investment in domestic infrastructure and clean technologies. By 2050, UK GDP would be more than one percentage point larger than under current policies.

  • Employment benefits, creating around 250,000 more jobs than current policies by 2050 across sectors including construction, manufacturing and services.

  • Improved energy security, through reduced dependence on imported oil and gas and lower exposure to global energy price volatility and supply disruptions.

The report concludes that a faster and more coordinated transition to electrification could support stronger growth, greater economic resilience and improved energy security for the UK. It also identifies a number of barriers that need to be addressed to accelerate electrification and capture these potential benefits. 
DF-1

Dóra Fazekas

Managing Director (Hungary)

t: +36 1 882 3500

e:df@camecon.com

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