The UK’s journey to net zero could generate billions of pounds for the economy by improving air quality and reducing illness, according to a new report from the Clean Air Fund.
The report, The Clean Air Dividend of Net Zero, estimates that decarbonisation measures across transport, buildings, industry and electricity generation could deliver £7.7 billion in productivity gains by 2050 by creating a healthier workforce, reducing sickness absence and helping people remain in work for longer.
The analysis, carried out by CBI Economics and WSP, suggests cleaner air could result in 38 million additional working days by mid-century, equivalent to around 168,000 full-time working years returned to the UK economy.
Researchers also estimate that improvements in air quality could prevent around 264,000 premature deaths and almost 500,000 hospital admissions linked to respiratory and cardiovascular diseases by 2050, easing pressure on the NHS while improving public health.
Air pollution remains the UK’s biggest environmental threat to human health, with the report estimating it costs more than £500 million every week through ill health, healthcare costs and lost productivity. The researchers argue that reducing emissions of harmful pollutants such as nitrogen dioxide (NO₂) and PM2.5 through climate policies would bring some of the earliest and most tangible benefits of the transition to net zero.
The report models scenarios aligned with the UK Climate Change Committee’s Balanced Pathway to net zero, examining the effects of electrifying road transport, replacing fossil fuel heating with low-carbon alternatives such as heat pumps, decarbonising industrial processes and expanding clean electricity generation.
Beyond the economic gains, the report highlights wider social benefits. By 2050, cleaner air could lead to almost 2.5 million fewer school days being missed because of illness, potentially improving educational outcomes while reducing the need for parents and carers to take time off work.
The researchers also estimate that emissions of black carbon, a pollutant linked to respiratory and cardiovascular disease as well as climate warming, could fall by 37%.
London is projected to see some of the largest benefits, accounting for more than nine million additional working days and over 44,000 avoided premature deaths by 2050. Although home to around 13% of the UK’s population, the capital would account for approximately 17% of the lives saved through improved air quality.
The report concludes that the health benefits of cleaner air should be recognised as a key advantage of climate action, arguing that policies to reduce greenhouse gas emissions can also deliver immediate improvements in people’s health, strengthen the economy and reduce pressure on public services long before the UK reaches net zero.
Jane Burston OBE, CEO of the Clean Air Fund, said: ‘Clean air action delivers some of the strongest returns in public policy. Cleaning our air will boost our economy and our health while tackling climate change. Improved air quality is one of the most significant and immediate benefits of net zero delivery, with the potential to add nearly £8 billion to the economy by 2050.
‘For the UK to make the most of this opportunity, we should be accelerating the transition to zero emission vehicles and clean heat sources for residential and commercial buildings, alongside wider decarbonisation measures that will significantly improve people’s health.’
Katie White OBE MP, Parliamentary Under-Secretary of State (Minister for Climate) said: ‘This report is a breath of fresh air, clearly showing that strong climate action can save lives while growing the economy.
‘After two fossil fuel crises in just five years, we are going further and faster to deliver clean, homegrown power. And by electrifying homes across the country, we are making sure the benefits are felt directly by working people through lower bills, greater energy security and cleaner air.’
Photo by Olga Nayda
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