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.

European and U.S. studies discuss training needs for green and greenable jobs

The 2019 edition of the European Commission’s flagship analytical report Employment and Social Developments in Europe (ESDE) was released in July, dedicated to the theme of sustainability.  On September 10, the European Trade Union Institute hosted a conference to discuss Chapter 5 of that report, titled “Towards a greener future: employment and social impacts of climate change policies”. The chapter, downloadable from this link , focuses on three aspects of environmental and social sustainability in the EU: 1. the definitions and discussion framework of green jobs and occupations in the EU economy;  2. the key findings of recent studies of the expected impacts on employment, skills, income and task structures of jobs in a clean transition;  and 3. energy poverty and the link between climate action, air pollution and human health.  In general, the chapter states that the transition to a climate-neutral economy is expected to provide additional jobs in growing, green(ing) sectors both in industry and services, including construction, waste management and sustainable finance, but will require significant reskilling and labour reallocation across sectors and occupations, with careful and early policy intervention required to ensure success.  Opinions from the ETUI discussants  is summarized here , including the view that the chapter may underestimate the costs of transition.

Training for “greenable jobs”

Chapter 5 of the EU report states that “Analysis of task content also shows that green jobs vary in ‘greenness’, with very few jobs only consisting of green tasks, suggesting that the term ‘green’ should be considered a continuum rather than a binary characteristic. While it is easier to transition to indirectly green rather than directly green jobs, greening is likely to involve transitions on a similar scale and scope of existing job transitions. Non-green jobs generally appear to differ from their green counterparts in only a few skill-specific aspects, suggesting that most re-training can happen on-the-job.”

Appendix 1  of Chapter 5 (p. 36) highlights four recent studies on the “greenness of jobs” with one North American study: Bowen et al.   “Characterising  green employment: The impacts of ‘greening’ on workforce composition” which appeared in Energy Economics in May 2018.  Using the U.S. O*NET database and its definition of green jobs, the paper estimates that “19.4% of U.S. workers could currently be part of the green economy in a broad sense, although a large proportion of green employment would be ‘indirectly’ green, comprising existing jobs that are expected to be in high demand due to greening, but do not require significant changes in tasks, skills, or knowledge.”

insulalater2-365x365O*NET describes itself as   “the primary source of occupational information” for the United States, part of the U.S. Department of Labor/Employment and Training Administration.  O*NET  counts any occupation that will be affected by greening as a greenable job, and defines three subcategories, according to the effect that greening will have on the tasks, skills, and knowledge required for the job –  namely changing skill green occupations (e.g. construction workers and farmers); higher demand green occupations (e.g. bus and train drivers and renewable energy engineers); and new green occupations (e.g. energy and sustainability auditors and sustainable finance managers).

 

 

Coal transition funds announced for Alberta and Saskatchewan communities

On June 28, the federal government announced funding of $4,489,100 through the Canada Coal Transition Initiative.  Details of the funded projects – four in Alberta and five in Saskatchewan –  are listed in the Backgrounder . The Saskatchewan projects include establishing a solar installation training program in Estevan; development of business retention and expansion plans for Weyburn, Estevan, Moose Jaw and Coronach; and an economic and employment impact analysis with a regional strategic economic mitigation plan to support the Coronach & Region Coal Transition Initiatives. The Canada Coal Transition Initiative is a $35 million, five-year strategic fund to support skills development and economic diversification activities for workers and communities impacted by the government’s February 2018 decision to phase out traditional coal-fired electricity generation by 2030.

Since the June 28 announcements, brief reactions  have appeared: “Federal government gives $1.2M to Sask. groups to phase out coal” at CBC Saskatchewan; “Feds announce funding for coal energy transition in Saskatchewan, Alberta”which quotes a United Mineworkers spokesperson and the official province of Saskatchewan response;  “Leduc, Parkland counties among recipients of federal coal transition handout” in the Edmonton Journal, and  “Edmonton-area counties get help from Ottawa for coal transition” at CBC Edmonton.

The June 28 funding press release also  states:

In response to the Task Force on Just Transition for Canadian Coal Power Workers and Communities, the Government of Canada intends to:

Create worker transition centres (funded through Budget 2018);

Explore new ways to protect wages and pensions; and

Create a $150 million infrastructure fund, beginning 2020-21, for impacted communities, administered by Western Economic Diversification Canada and the Atlantic Canada Opportunities Agency.

Boundary Dam facility estevan

Boundary Dam facility in Estevan -photo by Don Healy / Regina Leader-Post) 

How the coal transition is impacting the communities across Canada is evident from the What we heard from Canadian coal power workers and communities report which accompanied the release of the Final Report of the Task Force on Just Transition for Canadian Coal Power Workers and Communities in January 2019.  Climate Justice Saskatoon has also published the results of its interviews with people in Estevan and Coronach in its Bridging the Gap project.   Articles have also appeared: “Estevan, Sask. preparing for coal phase-out putting hundreds of jobs at risk”  at Global News (May 2019)  is a profile of the community;  “Saskatchewan reaches agreement with Ottawa to cut power-generation emissions”(January 2019) outlines the agreement reached between the federal and provincial government, allowing  Boundary Dam Three near Estevan to continue beyond 2030, thanks to its nearly $1.5 billion Carbon Capture and Storage  retrofit.

The clean economy workforce in the U.S. and proposals to make it more inclusive

brookingsclean-energy-jobs_wages Figure2-finalAdvancing inclusion through clean energy jobs  is a report  released  by the Brookings Institution in April 2019,  with a goal to determine “ the degree to which the clean energy economy provides labor market opportunities for historically disadvantaged groups, with a particular focus on equity”.  It examines a range of occupations, not just the traditionally-identified “green jobs”,  identifying approximately 320 unique occupations in three major industrial sectors: clean energy production, energy efficiency, and environmental management.  The report includes detailed discussion of its methodology and data sources, and emphasizes the size of the clean energy economy and its potential to make an impact on the equity of the U.S. labour market.

Some highlights about the “nature” and “ quality” of clean energy economy jobs:

  • Workers in clean energy earn higher and more equitable wages when compared to all workers nationally. Mean hourly wages exceed national averages by 8 to 19 percent.
  • Roughly 50 percent of workers in the clean energy economy have a high school diploma yet earn higher wages than similarly-educated peers in other industries – for example, plumbers, electricians, and carpenters.
  • Some occupations within the clean energy production and energy efficiency sectors require greater scientific knowledge and technical skills than the average American job.
  • The clean energy economy workforce is older, dominated by male workers, and lacks racial diversity when compared to all occupations nationally. Fewer than 20 percent of workers in the clean energy production and energy efficiency sectors are women, while black workers fill less than ten percent of these sector’s jobs.

In the accompanying press release , first author Mark Muro states: “Clean energy occupations are varied, accessible to workers without a bachelor’s degree, and good paying, but they are not yet as inclusive as they should be. To deliver on the sectors’ full promise for economic inclusion, more work needs to be done in front-line communities to ensure under-represented communities and women are more widely included.”  The report concludes with  proposals directed at state and local policy makers, education and training sector leaders, and community organizations.  Broadly, the policy proposals include: “modernizing and emphasizing energy science curricula, improving the alignment of education and training offerings, and reaching underrepresented workers and students.”

GM Oshawa investment will save 300 jobs; Toyota announces new production in Cambridge

GM May 2019On May 8, General Motors Canada and Unifor held a joint press conference and  issued a statement  announcing that GM will invest $170 million to save approximately 300 of the 2,600 union jobs at the Oshawa Ontario manufacturing facility, slated for closure by the end of 2019 as part of  the North American restructuring announced in November 2018.

After a vigorous and high profile union campaign against the closure, an “Oshawa Transformation Agreement” has been reached, including:

  • A $170 million investment by GM to convert the plant from vehicle assembly to stamping, related sub-assembly, and “other miscellaneous activities for GM and other auto industry customers.”
  • Part of the Oshawa Plant property will be converted into a test track for autonomous and advanced technology vehicles, to  support GM Canada’s existing  Canadian Technical Centre , in particular its Oshawa and Markham campuses where the company  develops software and hardware for Autonomous Vehicle Systems, Embedded Controls, Active Safety Systems and Infotainment.
  • The company will also donate the three-acre Fenelon Park and the 87-acre McLaughlin Bay wildlife preserve to the City of Oshawa “for the permanent benefit of all its citizens.”

But what about the workers?

A separate Jobs Transition Backgrounder states:

  • GM Canada will offer special relocations to Oshawa employees for jobs at the St. Catharines propulsion plant or the Woodstock Distribution Centre;
  • GM will offer enhanced retirement packages to retirement-eligible Oshawa Assembly employees “including vouchers toward the purchase of new GM vehicles, a benefit that will support both retiring employees and GM dealerships in Durham Region and surrounding areas.”
  • In June 2019, GM Canada, Unifor and the Ontario government will open a Jobs Action Centre in Oshawa, offering  personalized transition counselling, a skills / jobs matching database and “other supports.” Durham College, the local community college,  will support the Job Action Centre with a dedicated jobs portal and several job fairs planned for 2019.
  • Durham College, Centennial College, and Trent University Durham will offer training tailored to regional and GTA-based partner employers.
  • “GM Canada will offer training support for qualified Oshawa Assembly hourly employees.” (no further details stated in the public release).

Unifor Local 222 , which represents the workers at the Oshawa plant, have called a meeting on May 9 to inform the membership about the resolution of their grievance against the company, which sought to increase incentives and severance packages.

In better news for Ontario’s auto industry:   Starting in 2022, Toyota will begin to produce the luxury  Lexus NX at its Cambridge plant, in both gasoline and hybrid versions . ( Cambridge currently produces of the mid-size luxury Lexus RX and RX hybrid). According to a report in the  Hamilton Spectator : “Prime Minister Justin Trudeau, Deputy Ontario Premier Christine Elliott, and a host of local mayors and dignitaries were at the Fountain Street facility Monday afternoon to announce the plant had secured the right to make the company’s Lexus NX gas and hybrid compact SUVs starting in 2022. The news came almost a year after the federal government partnered with the province — at the time led by Kathleen Wynne and the Liberals — to each invest $110 million in the company as part of an overall investment of $1.4 billion by Toyota.”