London’s Green Economy Thrives Post-Pandemic, Reaches £54.9 Billion
London’s Low Carbon and Environmental Goods and Services (LCEGS) sector has shown remarkable resilience and growth, with sales reaching £54.9 billion for the financial year 2023/24. This represents a recovery from the pandemic-induced downturn and a continuation of a trend of increasing economic activity in the green sector.
Sector Growth and Employment
The LCEGS sector in London has been on a growth trajectory since 2007/08, with total sales rising significantly within that period. Following a slight decline during the height of the COVID-19 pandemic, where sales dropped to £42.9 billion in 2020/21, the sector rebounded strongly, matching pre-pandemic levels by 2022/23 and exceeding them in the current fiscal year. This growth is reflected in the employment figures as well, with over 341,000 people employed by more than 20,000 businesses operating in this space.
In the latest reporting period, employment within the sector grew at an annual rate of 9.5%, surpassing the national average of 7.9%. This strengthened workforce highlights London’s position as a leading hub for sustainable business practices.
Export Contributions
In 2023/24, London’s LCEGS sector exports were valued at £3.8 billion, making up 23% of the UK’s total exports in this area. This demonstrates not only the local market’s expansion but also its significant role in the broader UK economy, as the nation seeks to assert itself in the green marketplace.
Composition of the Sector
The LCEGS sector’s composition remains consistent, divided into three main categories: Low Carbon (60%), Renewable Energy (30%), and Environmental (10%). Collectively, these categories encompass 24 sub-sectors, with the five largest—carbon finance, wind energy, geothermal resources, building technologies, and alternative fuels—accounting for 72% of total sales in London. Each of these sub-sectors has experienced growth in sales, workforce, and the number of companies involved since the previous year.
Importance of the Findings
This report is significant not only for stakeholders within the sector but also for policymakers, investors, and environmental advocates. As the UK navigates its transition towards a greener economy, the LCEGS sector serves as a crucial indicator of progress and potential pathways for future growth. The data underscores London’s commitment to sustainability and positions it as a leader in the combat against climate change.
Source: official statements, news agencies, and public reports from kMatrix Data Services Ltd.
https://www.london.gov.uk/programmes-strategies/environment-and-climate-change/london-low-carbon-market-snapshot-2025
