Ambition to build back better and greener

As the C o v i d -1 9 pandemic drains confidence from the e c o n o m y, plans to “build back better” are landing thick and fast.

With predictions that joblessness is set to soar despite a £400 billion barrage of economic support from the UK and Scottish governments, the need to focus on developing the skills required for jobs that will exist after the pandemic are considered essential to any prospects for economic recovery.

In Scotland, focus is on a Scottish Government pledge to invest £100 million in a “green jobs” fund over five years.

Details on how the green jobs will be achieved are being awaited, but half of the fund will be distributed to Scottish Enterprise – along with Highlands and

Islands Enterprise and economic development agency South of Scotland Enterprise.

The agencies in turn will allocate the cash to firms that offer “sustainable and/or low-carbon” goods and services and that will use the money to develop, grow and create jobs.

The other half will be aimed at helping firms in a range of sectors, from manufacturing, tech and “land-based organisations” to “take advantage” of any low-carbon energy investment and “boosting green employment”.

More immediate funds for retraining and upskilling include £25m for a “national transition” training fund aimed at people over the age of 25.

The first tranche of this has been allocated to Skills Development Scotland to support 6,000 people who have lost or will lose their jobs over winter. Overall, this fund is expected to support 10,000 jobs.

Earlier this year, trade body Oil and Gas UK warned the sector alone would shed 30,000 jobs.

And although the oil and gas industry wasn’t specifically mentioned by the Scottish Government in regards to green jobs and the transition scheme, trade body Scottish Renewables hailed the transition fund as a conduit to support oil and gas professionals into the renewable energy sector.

However, it would also enable the retraining of “tradespeople and public servants” to acquire the skills to join the renewable energy industry as well as low-carbon heating schemes.

Claire Mack, chief executive of Scottish Renewables, said: “The Renewables Transition Training Fund can support oil and gas professionals, supply chain businesses, tradesmen and public servants to acquire sustainable skills both for the domestic industry and for export around the world.”

As the urgency for jobs and skills development grows, offshore wind is the closest renewable energy industry where oil and gas skills are considered most easily transferred.

However, the freezing out of Scottish supply chain firms such as BiFab from SSE’s £5.7bn Seagreen offshore wind farm has raised fears that ambitions for Scottish employment and training opportunities won’t be realised expands.

Industry players point to the vast growth of offshore wind on the near horizon, including 14GW of wind projects either in planning or already consented.

Scotwind, the next leasing round of seabed to the energy industry by the Crown Estate, is expected to attract investment of £8bn.

Mack said: “The key to unlocking green jobs in Scotland is a clear pipeline of projects that enables companies to have the confidence to invest in transitioning their businesses to the renewables sector.

“Establishing this pipeline requires regular leasing rounds and regular CfD auctions to ensure that a steady stream of as the industry projects is coming forward in Scottish waters.”

Nine key areas have been identified that present the greatest opportunities for oil and gas firms to diversify into offshore wind.

These are project management, array cables, substation structures, turbine foundations, secondary steelwork, cable installation, installation equipment, installation support, and maintenance and inspection services.

Across the wider renewable energy pantheon, there are a number of carbon capture and utilisation and storage projects as well as potential “green” and “blue” hydrogen producing schemes awaiting a jigsaw of announcements from governments to get the green light.

Claire Mack, chief executive of Scottish Renewables, says firms need to have the confidence to invest in transitioning their businesses to the renewables sector.