Sliding metal prices impacted UK green economy in 2010-12

The figures are part of a statistical bulletin by the ONS looking at green economy activities undertaken in the UK between 2010 and 2012.

The ‘recycling’ and ‘waste management and waste water’ sectors recorded the largest decline in value added to the industry within the two year period – contributing £613 million and £527 million respectively.

The fall has been blamed on the low value wholesale of waste and scrap in the two year period, which dropped by 31.7% due in part to a decline in global metal prices.

However, the waste management and waste water sector went on to contribute £9.4 billion to the environmental goods and services sector in 2012, the largest value added to environmental goods and services that year according to the ONS.

In comparison, ‘production of renewable energy’ contributed £2.2 billion to the environmental goods and services sector value added, with around 20% from domestic energy production and the remainder by main power producers and auto-generation units of businesses.

ONS found that combined waste management and waste water services generated 35.8% of added value, with around four-fifths added through private corporations and a fifth produced via general government activities.

Jobs

And, waste helped contribute to the highest levels of employment within the sector between 2010 and 2012 ‘by far’, with 120,600 full time equivalent jobs created alone in 2012.

Meanwhile, resource management activities also rose between 2010 and 2012 by 12.5% – with value rising from £25.8 billion to £29 billion in the two year period.

The report notes that output from resource activities has increased much more rapidly than environmental protection, largely due to the growth in renewable energy production.

The main area of growth observed in environmental protection over the two years was in waste water management, with an increase in output from £6.9 billion to £7.8 billion.

In total, the environmental goods and services sector contributed £26.3 billion to the economy in terms of value added in 2012- or 1.6% of GDP.

The ONS bulletin states: “There is increasing demand in the UK, and internationally, to measure the progress towards a green economy; in order to establish how the economy is moving towards improving and protecting the environment from further deterioration (sustainable development), and the amount of green jobs created. Furthermore, information on green growth is required to assist in the development of environmental and economic policies.”