The CBI says the UK needs to keep pace in the global competitiveness race in these markets, which requires political commitment to policy frameworks that increase production. The global value of hydrogen electrolysers is forecast to be £22.4bn by 2030.

The UK now has one of the lowest proportions of spending to address climate change of many comparable global economies, with France having committed over twice and Germany over four times as much spend, according to the CBI.

The CBI is engaging with its UK-wide membership, representing almost a quarter of the private sector, to develop the policy strategy that will deliver the highest growth route to UK decarbonisation as the basis of a major Green Growth business campaign in 2023. McKinsey & Co is providing the underlying research and analytical support.

European export opportunities could be as high as £8bn for hydrogen electrolysers and £3bn in offshore wind goods and services by 2030.

“In practice the UK should be well placed to capture a significant proportion of this economic opportunity given its specialist knowledge and innovation capabilities,” it states.

In European markets, REPowerEU, passed in May 2022, has been designed to diversify energy supplies and accelerate the clean energy transition. The €300bn total package is combined with the roll-out of solar, wind and hydrogen accelerator projects, dedicated funding for industrial decarbonisation and faster renewables permitting and hydrogen deployment. It also sets series of new EU-wide targets, such as energy efficiency to increase from 9% to 13% by 2030.

In the US, the Inflation Reduction Act, passed in August 2022, represents unprecedented economic stimulus and commits its largest share to energy and climate funding – $370bn over the next 10 years. Most is in the form of tax credits for a broad range of green technologies which corporations can claim in full and receive as direct payment even if the credit is higher than their tax liability.

It has been designed to catalyse domestic energy production and manufacturing through on-shoring conditions, and reduce the US’ carbon emissions by approximately 40% by 2030.

Alpesh Paleja, CBI Lead Economist, said while the UK economy performed better than expected in November, the data can’t mask underlining problems.

“High inflation is severely impacting household budgets and businesses are facing intense cost pressures,” he said. “The question for the government now is not whether we will fall into recession, but how long and deep the recession will be. If we want to curb the extent of a downturn, then the Prime Minister and the Chancellor need to stay alive to enacting pro-growth measures.”