London’s Climate Tech sector was worth £67.2bn in 2024/25, up from £52.8bn just five years earlier, according to a major new report from kMatrix and WPI Economics for the Greater London Authority and Central London Forward.
The study — the first in a three-year programme tracking the capital’s green economy through to 2027 — introduces “Climate Tech” as London’s new flagship definition for the sector, replacing the older Low Carbon Environmental Goods and Services (LCEGS) measure used since 2007.
The headline numbers are striking: the sector now supports 24,315 companies and 432,877 jobs across London, and is forecast to grow to £131.1bn within five years. London generates over a fifth of the UK’s entire Climate Tech sales and employment.
For West London specifically, the report’s regional breakdown — covering the West London Alliance boroughs of Barnet, Brent, Ealing, Hammersmith & Fulham, Harrow, Hillingdon and Hounslow — shows a sub-region punching solidly in third place among London’s four sub-regional partnerships. West London Alliance’s Climate Tech sales reached £7.2bn in 2024/25, generated by over 2,700 companies employing more than 51,500 people — a 22% rise in sales since 2019/20. The area also recorded £413m in Climate Tech exports, up 9.3% on 2022/23, with strengths in water treatment and distribution alongside renewables such as wind, geothermal and solar.
Looking ahead, the report’s employment modelling projects that Power, Circular Economy, Homes and Buildings, and Low Carbon Transport will be the biggest drivers of green jobs growth in West London by 2050, with Power alone expected to support around 49,500 jobs under a central growth scenario.
The findings underline a broader message from the report: London’s green economy is now firmly service-led, with 93% of Climate Tech sales coming from services rather than manufacturing — a shift that plays to West London’s strengths in professional and technical services as much as its industrial base.
The full report, “London’s Low Carbon, Green and Adaptive Markets: Update for Financial Year 2024/25,” was published by kMatrix and WPI Economics in June 2026.
