Lessons from the UK: Long-term legislation, financial incentives and research infrastructure to build an economy that balances quality growth and environmental protectionה
Britain is famous in many areas: iconic bands like the Beatles and Queen, leading football teams, Shakespeare, the late Queen Elizabeth II, and the English tea time. In addition to these, Britain was the site of the bulk of the Industrial Revolution in the 18th and 19th centuries. Since then, a series of inventions and innovations have begun to shape modern life and link human economic activity with the burning of fossil fuels and greenhouse gas emissions into the atmosphere. Today, it is difficult to imagine life without electricity, without engines, and without a smartphone in your pocket. Whether it is the country's sense of responsibility or high environmental awareness, Britain is currently experiencing tremendous growth in the Net Zero sector, a sector in which industry is working to zero out greenhouse gas emissions.
Economical to protect the environment
report A recent study published in the UK shows that the British economy is becoming a greener economy, without harming economic growth and employment. "The idea of net-zero is that economic activity will not produce [greenhouse gas] emissions from the outset, or will be able to 'offset' these emissions," says Dr. Yanai Farha, head of the Department of Economics and Management at Tel Hai University-in-Creation, which deals with environmental economics, natural resources and agriculture. That is, in the net-zero sector, the amount of carbon dioxide emitted into the atmosphere is equal to, or less than, the amount of carbon dioxide that industry captures from the atmosphere through various processes and technological means. "On the one hand, we use resources from the environment: water, land and minerals. On the other hand, it is a closed physical system, and what 'goes in' must 'go out' back into the environment," explains Farha. According to him, what goes out back into the environment – waste and pollution – has local consequences. and globality For the short term and the long term.
One industry that offsets greenhouse gas emissions is solar panels. The process of producing energy using solar panels emits carbon dioxide, most of it during the manufacturing of the panels, but it is a small amount. neglect Compared to electricity generation from burning coal. Other examples are industries that deal with waste treatment, recycling, green transportation, In green construction And even in green investments.
It is worth working in the sector
In 2024, the UK’s net-zero sector grew by around 10 percent – three times the growth of the UK economy. £83 billion, more than 3 percent of the UK’s GDP, comes from net-zero industries. A third of this comes directly from green business activity, and two-thirds comes from the supply chains and additional economic activity that these industries encourage. In other words, for every “green” pound that comes from the net-zero sector, the UK economy generates two more pounds. In other words, the contribution to the economy does not stop with a business producing a product that in itself contributes to zero emissions, but continues to its suppliers, whose production activity increases as a result – even if they themselves are not necessarily green. “The UK has a long heritage of industrial innovation and environmental regulation,” says Farha. He says that over the years, British regulation has been done carefully, while protecting jobs and influenced by the long-term environmental vision of the European Union. "Fortunately for Britain, Brexit did not come with a complete separation from these principles," he says.
According to the report, in 2024, about a million people, or about 3 percent of the British workforce, were employed in net-zero businesses. This is an annual increase of 10 percent in the number of people employed in the sector. The average salary is 43 thousand pounds per year – 15 percent higher than the British national average. In addition, the report shows that the growth potential of the net-zero economy in the UK is attracting a lot of investment. In the years 2019-2023, private investors in the country invested 23 billion pounds in green businesses – a higher amount than that invested in artificial intelligence businesses in the UK in the same years. In addition, at the same time, the British Innovation Authority distributed grants worth an additional billion pounds to businesses and initiatives in the net-zero sector.
Net-Zero Economy in Israel?
Farha explains that we do not have a heritage similar to the British when it comes to long-term environmental policy. "In Israel Clean Air Act Enacted in 2008. in the UK – already in the 50s." Farha claims that Israel has an excellent human infrastructure of professionals in the private sector, the public sector, and academia, who will know how to come up with solutions. According to him, the development of a net-zero economy can come with the help of stronger regulatory measures: Landfill levy Higher that will require solid waste treatment And a carbon tax That will change consumption and production patterns. Despite the great potential, "the result we see in practice, certainly in legislation, is one of political equilibrium. From every change, there are stakeholders who will lose," he explains.
"There is a development of green industry in the country. However, to a large extent, this is the success of entrepreneurs who identified opportunities," he says. According to him, on the Tel Aviv Stock Exchange there is "Tel Aviv-Cleantech Index"which tracks the performance of these companies and allows us to quantify the market value of businesses operating in the field."
In the UK, the net-zero economy is also an opportunity. From an environmental perspective, it will allow progress towards goals such as zeroing greenhouse gas emissions by 2050 and creating a sustainable future. The transition to a greener economy could also increase the supply of high-paying jobs, lower energy prices and increase energy security in light of the diversity of energy sources. “A sustainable economy assumes that the way we currently consume resources from the environment and emit back into it will not work forever,” says Farha. Therefore, there is a need for an economic system that will last longer and that will also allow us to enjoy a wealth of options in the future. “If we continue on the current path, future generations will not be able to maintain the same standard of living and enjoy the same quality of the environment as we do,” he concludes.
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