Drop in decarbonisation investment from East Midlands firms but Nature-based Solutions take-up increases

Credit: EMC

Nearly 4% fewer businesses in the region are investing in decarbonisation, 6% fewer are accessing support, the number of firms deriving sales from green goods and services (GGSs) has fallen 9% but more are engaging in nature-based solutions.

Findings from 2026 joint research published by East Midlands Chamber and the University of Derby present a mixed picture.

The 2026 results were revealed in ‘Green Growth Trends in the East Midlands’ which has reported levels of awareness and engagement with green growth, decarbonisation and the uptake of Nature-based Solutions (NBS) across the region for the last 11 years.

Headlines from Green Growth Trends in the East Midlands 2026:

A third of large businesses showed green growth as part their strategy, with 20% of medium-sized businesses doing the same, 19% of small businesses and 17% of micro-businesses.

There was a 4% drop in the number of businesses that invested in decarbonisation, to 45% from 49%, the number of firms that accessed relevant support fell by 6%, but there was a 9% lift (to 43%) in the uptake of nature-baseds solutions.

Elsewhere, more than a third of businesses reported difficulty identifying collaborative opportunities for green growth, and there was a 3% drop (to 43%) in the number of businesses that derived sales from supplying green goods and services.

East Midlands Chamber Director of External Affairs Richard Blackmore said: “With the immense cost pressure on business at the moment, firms must assess the extent to which they can affordably prioritise decarbonisation while being profitable so Green Growth approach is going to look different from one business to another.

“What is clear is that having a strategy for some kind for Green Growth is not a ‘yes-no’, not a ‘nice to have’ or something to overlook – it must be tailored to operational business needs. For larger businesses to be leading decarbonisation investment, as shown in the findings of the 2026 report, is not really surprising when the level of resources available to smaller sized businesses may be more limited.

“The direction of travel we’ve seen across the 11 years the Chamber and the University of Derby have produced the Green Growth Trends report has been encouraging generally. Across that time, the findings have shown increasing commitment from East Midlands firms toward reaching sustainability goals, ahead of the slight drop seen in the 2026 data, which suggests tough trading conditions are now causing hesitancy.

“Ultimately business will always need to strike the right balance to ensure financial performance is protected when determining the approach taken to sustainability.”

University of Derby Associate Professor of Strategy and Sustainability Dr Polina Baranova said: “There are two major parameters within Green Growth – first, trading on green market niches, which we know is down, so businesses are selling fewer green goods. Secondly, businesses are reducing their involvement in decarbonisation, so they do not invest as much as they would like to. We’ve also seen decline in collaborative activities across the region.

“The positive is that businesses are becoming more aware about supporting nature and engaging more with Nature-based Solutions. In terms of green skills, we know the top five – energy efficiency, resource efficiency, business strategy, digital and waste management – have been consistent over the last three years, which should inspire providers of green skills in the region to hone into the area and provide something for businesses to take off the shelf.

“We hope the Green Growth Trends report makes a real difference because you see the picture over time. It’s not isolated and you look at businesses and understand where they’re at. It’s insightful for policymakers to see what the business community is telling us and hopefully informs evidence-based decision making.”