The Press and Journal (Inverness, Highlands, and Islands)
‘It is vital shift to renewables benefits local communities’
Energy transition and low carbon are frequently in headlines around the world these days as concern grows about the health of the planet.
There is no question carbon-dioxide emissions from fossil fuels continue to play a significant role in global warming.
But there are fears that tens of thousands of jobs dependent on the UK oil and gas industry are at risk if politicians at Holyrood and Westminster botch energy transition plans.
And time is running out to get sustainable-energy plans for the future up and running before the earth suffers more damage.
Earlier this month a leading scientist warned climate change could move into uncharted territory if temperatures don’t fall by the end of the year.
We recently experienced the warmest March on record – extending the run of monthly temperature records to 10 in a row.
This has fuelled concerns the world could be tipping into a new phase of even-faster climate change.
“By the end of the summer, if we’re still looking at recordbreaking temperatures in the North Atlantic or elsewhere, then we really have moved into uncharted territory,” said Gavin Schmidt, director of Nasa’s Goddard Institute for Space Studies.
The burning of fossil fuels for energy began around the industrial revolution more than 400 years ago.
Last month the earth was 1.68C warmer than “pre-industrial” times – before humans started burning large amounts of fossil fuels.
Many governments are taking urgent steps to tackle the rise in temperatures.
They are trying to make a transition from fossil fuels to sustainable energy to limit climate change, but the price will be massive – likely too costly for many countries to bear.
The SNP and Labour have already made cuts to some of their spending plans.
In 2021 the Scottish Government announced a 10-year, £500 million Just Transition Fund for the north-east and Moray – areas with a high dependency on the oil and gas industry.
The fund was allocated £20m in 2022-23, its first year of operation, rising to £50m in 2023-24.
However, the Scottish budget for 2024-25 cut the amount it will receive in that period to £12m.
A report last month said assurance about future sustainability and purpose of the Just Transition Fund is needed.
The Scottish Parliament’s economy and fair work committee published a study looking at the support and incentives for people, communities and businesses.
The report called for the government to set out how it will support community capacity building, engagement and representation to build trust in the just transition agenda.
MSPs on the committee said it was extremely difficult for public sector and community groups to access the fund.
They believed there is scope for better alignment of the fund with regional and national strategies and policies to ensure funding is coherent.
Committee convener Claire Baker said: “The north-east and Moray is home to Scotland’s oil and gas production.
“It is vital the shift away from fossil fuels to renewables happens in a way that benefits local communities, businesses and jobs. This is a just transition.
“Whilst there is clear ambition from the Scottish Government to support the transition, with a 75% budget decrease in the allocation for the Just Transition Fund this year, it is less clear to the committee how the necessary support will be funded and how communities will be able to stay actively involved.”
The MSP added: “Scotland needs more investment in its current and future workforce.
“Whilst we acknowledge the financial pressures, we must know how the Scottish Government intends to support jobs and build skills for the energy transition.”
A government spokesperson said: “The Scottish Government is working to deliver a just transition that will help us meet our climate targets, while supporting good, green jobs for our highly skilled workforce.
“As part of this we are committing £4.7 billion in 2024-25 alone to support the delivery of our climate-change goals.
“This is despite UK Government cuts to our capital budget.”
But the head of Scotland’s largest trades union body said earlier this month the SNP had a “mountain to climb” if it wants to meet bold
By end of summer, if we are still breaking records, we are in uncharted territory
promises on north-east energy jobs.
Scottish Trades Union Congress generalsecretary Roz Foyer highlighted “deep concern” among workers.
The government promised a just transition towards renewables, with the goal of protecting jobs and the economy.
But Ms Foyer claimed Scotland was in danger of turning into a “poor relation” of the rest of the UK on green jobs.
She added: “There is a lot of the right talk, but when you look at outcomes we are left with a very deep level of concern about jobs in the energy sector.
“There’s a lot of investment going on, but at the moment it seems to be benefiting business.
We’re not seeing the jobs on the ground in Scotland.”
Ms Foyer insisted new jobs in the clean energy sector must be “highquality”, replicating the oil and gas sector now.
She added: “My biggest message to governments is if you want to know what a just transition looks like, listen to the workers in that industry.”
The union boss also said it was “disappointing” Labour changed its mind over a £28bn-a-year green jobs scheme.
Labour revealed in February it had cut its green investment plans by half, confirming the biggest and most controversial U-turn of Sir Keir Starmer’s leadership.
Sir Keir and shadow chancellor Rachel Reeves said they would slash the green prosperity plan from £28bn a year to under £15bn. And only a third will be new money.
It prompted an angry response from environmental groups, unions and some in the energy sector.
Labour announced the £28bn spending plan in 2021, with Ms Reeves pledging to be the UK’s “first green chancellor”.
She said at the time the money would be spent on battery manufacturing, hydrogen power, offshore wind, tree planting, flood defences and home insulation.
But the party came under increasing attack over the proposals, as Sir Keir and Ms Reeves struggled to explain how they could stick to the spending commitment and keep a separate promise to cut government debt levels.
Labour was also in the news recently for its North Sea plans.
Just two months ago energy experts warned the party’s proposed offshore tax increases would place up to 100,000 jobs at risk.
Sir Keir hopes to raise an extra £10.8bn from the UK’s oil and gas industry by increasing and extending the controversial windfall tax, raising cash for Labour’s green prosperity plan.
However, bombshell analysis released by investment bank Stifel estimated the UK would lose £20bn in tax revenues, with up to 100,000 direct and indirect jobs at risk.
Aberdeen and Grampian Chamber of Commerce described Labour’s plans as a “betrayal” of northeast companies and people which “cannot be allowed to go ahead”.
Labour has also proposed extending the windfall tax until 2029 and, if it wins the next general election, will increase the levy on profits made by oil and gas producers to 78%.
The party also plans to slash investment allowances and ban the issuing of new North Sea drilling licences.
Chris Wheaton warned: “We estimate the UK will lose £20bn in tax revenues, with maybe 100,000 jobs at risk.”
The industry also faces a £40bn plunge in investment between now and 2030, he said.