UK's low carbon market defies recession to clear £110bn mark

The UK's low carbon market defied the recession throughout 2009, exceeding expectations to grow 4.3 per cent during the year to £112bn, according to new figures to be released later today.

The data, which was compiled by consultancy firm Innovas on behalf of UK Trade & Industry (UKTI), also revealed that over 900,000 people are now employed by businesses providing environmental goods and services.

In a further indication of the burgeoning strength of the carbon market, the carbon finance sector enjoyed the fastest growth rate of 7.9 per cent, followed closely by the wind energy industry which grew 6.5 per cent, and the solar market which grew six per cent.

The weak pound also helped drive exports of low carbon goods, with the UK solar industry alone seeing exports expand by around a quarter to over £1bn.

The full report will be released at a UKTI event in London later today where business minister Pat McFadden is expected to announce the launch of a new comprehensive government review of low carbon business opportunities.

The review will be undertaken as a joint effort between the Department of Energy and Climate Change and the Department of Business Innovation and Skills, and will aim to identify those low carbon sectors where the UK has a competitive advantage that could be used to address emerging overseas markets.

The review is expected to consult widely with businesses, economists and the UKTI in order to successfully identify the most potentially lucrative overseas markets and sectors.