U.K. energy workforce will need 400,000 workers to reach net-zero emissions by 2050

building the net zero workforceThe U.K. has a target of net-zero emissions by 2050. A new report,  Building the Net Zero Workforce , forecasts the likely employment and skills impacts of that goal for the energy industry, assuming that it will require a 50% increase in low carbon electricity generation; installation of low carbon heating systems in approximately 2.8 million homes; installation of  60,000 charging points to power 11 million electric vehicles (EVs); and development of  carbon capture usage and storage technology as well as hydrogen networks  – all by 2030. 

To accomplish all this, the report projects that the energy industry will need to recruit for 400,000 jobs between 2020 and 2050 – 260,000 in new roles, and 140,000 to replace those who will be leaving in what is an anticipated retirement crunch. The report forecasts both time dimensions and regional needs, concluding that jobs will be available in all regions of  the U.K. and for a diverse range of skills, “from scientists and engineers, to communications professionals and data specialists.”  More specifically,  “The roles included in this analysis are those involved in the operation, generation, transmission, distribution and retail of energy in the UK, as well as those in the supply chain related to building, upgrading, maintaining or operating infrastructure required to reach net zero.”

The report emphasizes the role of young people and a need to encourage women in STEM professions.  In general, there is a need for training and re-training for the emerging technologies such as AI. The report notes, without details, that : “ By investing in retention and retraining, and working collaboratively with government and unions, the sector can help ensure a fair energy transition, one in which workers of all ages and backgrounds and from every community in the UK can play their part.”

The report was written by an independent research company, Development Economics, under a commission by National Grid, a U.K. organization which owns and operates electricity transmission in parts of the U.K., and invests £7.5 million per year in training.

Recommendations for Canada’s high growth industries, including natural resources and clean technology

Innovation report 2018On September 25, the federal Ministry of Innovation, Science and Economic Development released a report:  The Innovation and Competitiveness Imperative: Seizing Opportunities for Growth,  with over-arching “signature” proposals in the consolidated report, and specific proposals in individual reports by six “high-growth potential” sectors: advanced manufacturing  , agri-food , clean technology , digital industries,  health and biosciences  , and resources of the future  .  These six groups had been identified by the Advisory Council for Economic Growth  , a body which has issued many of its own reports, including the 2017 reports,  The Path to Prosperity   and Learning Nation: Equipping Canada’s workforce with skills for the future   .

In this latest series of reports, the identified Sector groups were led by  “Economic Strategy Tables— which the government characterizes as “a new model for industry-government collaboration”.   Each “Table” consisted of a  Chair,  and approximately 15 industry experts, with consultants McKinsey & Company providing “fact-based research and analysis”.  The reports are unmistakably written by management/industry authors (replete with many references to “agility”,  “own the podium” and “sandboxes”). A deeper dive into two of the sector reports reveals very substantial recommendations, with common themes of best practice examples from other countries, Canada’s international competitiveness, Indigenous relationships, and  attention to workforce issues of skills gaps and diversity.

The Clean Technology Economic Table Report  proposes: “the ambitious, export-focused target of clean technology becoming one of Canada’s top five exporting industries, nearly tripling the sector’s current value for exports to $20 billion annually by 2025” –  a growth rate  of 11.4% per year on average.  The report makes recommendations under six categories, including financing, engagement  with Indigenous communities in partnership and co-development of clean technology initiatives, increased government procurement, regulation, and workforce issues. Greatest attention is given to the regulatory environment, with proposals for a “Regulatory Sandbox for Water Regulation” and a “Regulatory Sandbox for air quality and methane emissions regulation”.    “Ultimately, we will need as much innovation in our public policy tools as there is in technology to ensure progress on critical economic and environmental objectives.”  Regarding  workforce issues, the report recognizes that Clean Technology will compete for Scientific, Technology,  Engineering and Math ( STEM) skills, but highlights a particular shortage of soft skills required for entrepreneurship, business development, finance, advocacy, risk management and forecasting. It calls  for “work-integrated learning programs”, and better labour market data collection and dissemination. Without ever using the term “Just Transition”, it does call for “Opening streams of these programs for workers to re-skill”, and “Adding new eligibility criteria for these programs to promote an inclusive and diverse workforce”.

resources of the future coverThe  “Resources of the future” Table Report  examines the mining, forestry and energy industries; the tone is set in the introductory remarks which state: “While resource companies are committed to the highest environmental and safety performance, they are burdened with an inefficient and complex regulatory system that adds cost, delays projects and is not conducive to innovation.” Recommendations are set out in five thematic sections, including “agile regulations, strategic infrastructure, innovation for competitiveness, indigenous people and communities, and attracting and re-skilling talent.

The report notes the established issues of an aging and gender-biased workforce in natural resources and identifies automation and digital skills as a neglected and misunderstood  issue in the industry.  It proposes a “Resources Skills Council” which, notably,  would include labour unions, along with all levels of government, industry associations, universities and polytechnics.

British Columbia Liquified Natural Gas Strategy: Workforce Estimates Released, but Question Keep Coming

A report released on July 23 by the government of British Columbia estimates that 60,000 workers will be needed to build five LNG plants and pipelines throughout 2016 and 2017, with a further 75,000 permanent skilled workers needed once the projects are operational. The B.C. Natural Gas Workforce Strategy and Action Plan is based on information from the LNG Employment Impact Review, conducted for the government by consultants Grant Thornton. However, on August 1, the Environmental Law Centre at the University of Victoria sent a 63-page letter to the federal and provincial Ministers of the Environment, stating, “On behalf of Northwest Institute for Bioregional Research, we hereby request that you direct that a Strategic Economic and Environmental Assessment be conducted of proposed massive new LNG developments in British Columbia.” The economic questions from the Environmental Law Centre do not specifically relate to workforce impact, but rather to the costs to the taxpayer and the consumer, especially in light of the volatility of the high Asian price for natural gas. The letter also raises the issues of the GHG emissions associated with LNG production, along with other environmental concerns.

LINKS

LNG Workforce Strategy and Action Plan full report is at: http://www.rtobc.com/Assets/RTO+Assets/About+RTO/BC+NG+Strategy+2013JUL.pdf (the government press release is available at: http://www.newsroom.gov.bc.ca/2013/07/action-plan-released-for-bcs-lng-sector.html).

Grant Thornton Employment Impact Review is at:

Letter from the Environmental Law Centre, requesting a Strategic Economic and Environmental Assessment of LNG developments in B.C. is available at: http://www.elc.uvic.ca/documents/2013Aug1-Aglukkaq-Polak-Letter-ELC2013-02-01.pdf