UK lacks skills for low carbon transition
Aldersgate Group Report: UK Lacks Skills to Make Low Carbon TransitionGroup calls for increased investment to accelerate training
Report states all major environment policies need corresponding skills
strategy to succeed
The UK does not have the necessary skills to make the transition to a
low-carbon economy at the pace required to meet mandatory targets - or
the training arrangements in place to fill the gap.
This is one of the key findings of a new report from the Aldersgate
Group, a strategic coalition of businesses, NGOs, think tanks and
individuals, who believe that high environmental standards are essential
for future economic growth and competitiveness.
The report, 'Mind the Gap - Skills for the transition to a low carbon
economy', which was launched at the House of Commons on Thursday 19th
November, finds that, despite the UK's commitment to a rapid transition
to a low-carbon, resource efficient economy, the Government's skills
strategy is inadequate to meet these needs. It is now imperative that
ambition and delivery are accelerated.
John Edmonds, Former President of the TUC and Aldersgate Group Project
Chair for the report said: "The skills gap in the UK economy is well
documented, with one in three firms already hampered by a shortage of
skilled staff, from those needed to install new technology to scientists
and engineers. Investment in low-carbon skills is vital if the UK is to
build a more resilient and sustainable economy. In the next two years a
commitment to green training will accelerate the growth of new jobs and
help us out of recession. It is encouraging to hear both main parties
now talk of their commitment to a 'green revolution'. Our report will
help them identify the key issues and barriers that such a commitment
must address."
The skills shortage comes at a time when demand for engineers for major
infrastructure projects is increasing as the UK attempts to address
expansion in offshore and onshore wind, carbon capture and storage,
nuclear power, flood defences, high speed rail and upgrading the water
infrastructure.
Two of the Government's most recent high profile energy announcements,
over nuclear power and carbon capture and storage (CCS), have been made
at the same time that roughly 30% of British Energy's workforce is due
for retirement within ten years creating significant loss of expertise,
and with the UK having seen no investment in new coal-fired power for a
generation. In the short term the nuclear industry capacity gap will be
filled by importing skills from countries such as France, while jobs in
CCS are more likely to go to competitors in China and the US.
"Many of the required skills identified in the report are not unique to
a low carbon economy - it is a shortage of precisely these skills that
has held back the UK economy for decades. In this respect, re-skilling
for a low carbon economy involves a policy of no regrets. The UK needs
to fix these skill shortage problems in order to prosper in the modern
world." Edmonds added.
The report highlights that the most significant driver for low carbon
skills is a robust industrial policy that encourages investment in low
carbon technology and resource efficiency. Germany has shown how an
active industrial and skills policy can help stimulate widespread
economic growth and job creation. Responsibility for progress must be
shared between government, businesses, trade unions, professional bodies
and the workforce.
A major recommendation of the report is that all major environmental
policies - such as increased subsidies for offshore wind or the CRC
Energy Efficiency Scheme - should be accompanied with a corresponding
skills strategy to drive investment in new capacity and supporting
infrastructure in order to succeed. The Government cannot rely on the
market to respond to low carbon targets at the required scale and
urgency.
This principle of complementary policies should be driven by the
Department for Business, Innovation and Skills with a high degree of
transparency, accountability and engagement with business, trade unions,
professional bodies and the general public.
In addition the report states that the Government should:
- Provide sufficient investment for training: to develop core technical
skills in targeted areas and also to transform existing skills. The aim
should be to enhance existing skills wherever possible rather than
create new skills.
- Make training institutions fit for purpose: The skills delivery system
is ill equipped to identify and respond to the skill needs of the low
carbon transition. This needs to be tuned to future jobs skills needs
and the Government must provide more strategic leadership and
responsibility for delivery across all sectors.
- Drive demand for environmental skills: the Government should mobilise
business engagement by providing initial funding programmes that can
help alter long-term business practices and support in-house training
programmes. More effective sustainable public procurement skills and
policies must also be developed.
- Reform its communication strategy: the current Government
classification for a 'green job' is ill defined and will become
increasingly irrelevant as the low-carbon transformation develops. The
Government should also engage with the UK workforce with more practical
information.
Peter Young, Chairman of the Aldersgate Group, said: "This report shows
that our training institutions must be able to look beyond our current
industrial and business structures and plan for the skill requirements
of the future. Most of our recommendations are aimed at Government
because business members said they needed certainty from Government if
they are to invest. They want to see more evidence of whole Government
action joining up capacity building, skills and regulatory policies to
make the commitments and pace of change to a low carbon economy credible
to business."
"If the UK is going to compete with the likes of Germany in global low
carbon markets, a key component must be to build skills across the
economy and proactively transfer skills from high carbon sectors where
jobs will be lost. At stake are the jobs, competitiveness and prosperity
of the future."
