The full workforce opportunities that could result from the UK’s net zero transition will only be realised with stronger policies to harness the potential and manage the risks.
In a new briefing, the Climate Change Committee (CCC) finds that the majority of UK workers will see no major impacts from the transition.
Around 250,000 jobs have already been created in the transition, but the full workforce opportunities will only be realised with stronger policies, while a “hands-off” approach to the net zero workforce from government will not work, highlighted the CCC.
The largest changes are in sectors with a core role in the delivery of net zero – only a fifth of the current total workforce.
Less than 1% of UK workers are in high-emitting sectors that are likely to phase down over the transition. This includes oil and gas, where extraction must decline.
A key finding is that government intervention is not necessary in every sector of the economy.
Clear policy direction for each sector is important however, combined with a responsive education and skill system.
Options for developing the net zero workforce are not being considered systematically across government.
Strong, targeted support is needed in the Government’s forthcoming “Net Zero and Nature Workforce Action Plan”.
The briefing found that net zero offers the potential for significant net employment creation in the UK, with estimates of between 135,000 and 725,000 new jobs in low-carbon sectors in sectors such as buildings retrofit, renewable energy generation and electric vehicles.
But growth of jobs is not guaranteed and will require active reskilling and upskilling of the workforce in key areas, with the need for government support, stated the CCC.
Chairman of the CCC Lord Deben said: “The UK has committed to net zero. The only question is whether the government intends to get there in a way that benefits workers or leaves them behind.
“This is a unique moment to tailor our approach to skills and jobs, in the certainty of achieving the legal goal.”
The introduction of the United States’ Inflation Reduction Act and the EU’s proposed Green Deal Industrial Plan have increased the risk to competitiveness of the UK in some key areas of the net zero transition.
Manufacturing priorities like electric vehicles and battery production face competitive pressure from new green subsidies for inland manufacturing in the United States and European Union.
The UK must defend its competitive advantage in sectors like hydrogen and carbon capture in the face of these new international pressures, found the CCC.