» Turning Policy into Practice Andrew Raingold, Executive Director.

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Turning Policy into Practice Andrew Raingold, Executive Director

Aldersgate Group » 2

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Other members include peers and MPs from all major parties

Introduction to Aldersgate Group


Challenging green targets »

• 80% CO2 reductions by 2050

• 50% CO2 reductions by 2025

• 15% energy from renewables

• Smart meters in every home by 2020

• Zero carbon homes by 2016

• A zero-waste economy


GHG Emissions: 1990-2009»


UK set to miss its carbon budgets »


UK renewables »


Opportunities in green sectors »

UK sector currently:

• £112 billion

• 900,000+ jobs

• £10.8 billion exports

Projection for 2015:

• £140 billion

• 400,000 new jobs?


UN Greening the Economy »


Employment in the energy sector»


Skills gaps – major barrier to progress»

• One in three firms in environmental sector hampered by a shortage of skilled staff

• Latent demand for green skills – needs are not being clearly articulated by employers

• High proportion of workforce in 2020 already in work & ageing workforce (retire 10 – 15 years)


Skill challenges »

• Core skills – green sectors

(70,000 engineers in offshore wind by 2020? 9,000 graduates + 4,500 skilled trades in nuclear?)

• Enhanced skills – majority of jobs not entirely new in content (e.g. electricians fitting solar panels)

• Generic skills - communication, leadership and management skills to drive culture change

• EU systemic weaknesses in its skills base (management and technology) greater concern than ‘new’ skills


Upskilling »

Occupation Upskilling New occupation Construction worker

Knowledge of energy systems and data analysis

Energy auditor

Product design and services

Integrating environmental criteria and lifecycle analysis

Ecodesigner

Engineer in energy sector

Installation and maintenance of low-carbon technologies

Smart-energy expert

Commodity trader/Broker

Practical skills on functioning of carbon market

Carbon trader/Broker


Generic Skills »

Level Required skills Senior Management / Directors

The ability to inspire change and consistently work towards a longer term vision

Middle Managers Sufficient knowledge and translate into effective business strategies

Customer Facing Staff Effective and persuasive communication


Government: Skills for Sustainable Growth »

“Our objective is to deliver a skills system driven from the bottom up, able to respond to the needs of individuals, communities and an increasingly dynamic economy.”

• 75,000 more apprenticeships by 2015

• Level 2 (GCSE equivalent) and 3 training for 16 – 24 year olds

• Basic skills courses

• £50 million growth fund to support employer-led initiatives


The required policy response »

1. Strategic intervention

2. Investment in training

3. Institutional reform

4. Drive demand

5. Just transition


1. Strategic Intervention »

• Support for skills and training matches the focus and ambition of its strategies for promoting investment in green innovation and infrastructure

• In some areas significant investment in skills delivery will be needed to match scale of action required (e.g. Green Deal)

• Regional approach – e.g. wave hub in SW and low-carbon vehicles in NE


2. Investment in training»

• Core skills – building capacity and working with the private sector to fund training centres, financial incentives for STEM learning & promote green careers

• Upskilling – funding must match the real life needs of businesses and their employees (such as shorter top-up courses and add-on modules to apprenticeships)

• Generic skills – an appropriate level of training (H&S) and influence home behaviour


3. Institutional reform»

• Skills delivery system is employer led

• Assumes employers are in the best position to identify training needs and to anticipate future demand

• 25 Sector Skills Councils covering 90% of workforce – cross cutting issues?

• Leadership role – UK CES?

• Government drive and ownership


4. Drive demand»

• Environment is market failure – effective overall policy framework

• Demonstrate best practice in private sector – e.g. eco-driving leading to 10% efficiency & sustainability training within the company:

o Toolkits & programmes o Engagement (network of

champions)o Incentives and KPIs

• Public procurement - £175 annual spend & developing skills


5. Just transition »

• A coherent approach to economic displacement

• Jobs will have to move from carbon-dependent sectors to low-carbon sectors

• Job losses are not inevitable but the requirement for companies to be less carbon intensive is

• Links can be drawn between different sectors or regions e.g. the Lindoe Shipyard in Denmark

• Gov must assess the likely impact of decarbonisation on existing industries and jobs

• Communications – motivate and inspire


Jaguar Land Rover»

• Automotive sector highest private R&D in Europe

• Desiging cars for 2015 with 7 year life spans

• 17,000 direct employees + 9,000 in dealerships

• Training required for new lightweight technologies and fuel-efficient systems

• 1,000 new engineers (this year and next year)

• Collaboration with 4 universities: Cranfield, Warwick, Loughborough & Coventry

• Modular masters programme


Microsoft »

Role of IT in climate mitigation – 15% by 2020

Three major challenges:

1.Lack of agility: the skills system is still based around central decisions of what skills will be required and providers are then commissioned;

2.Keeping software developers up to speed will require changing the curriculum in formal education – and this is cumbersome;

3.More focus on continued professional development.


BT – building generic skills »

• Part of an ongoing programme to realise commercial opportunities (such as new products and solutions) within the low carbon economy.

• Skills framework provides sustainability training to marketing, product, sales and legal staff.

• Flexible: generally modular, online and short in length, ensuring that it can be undertaken conveniently and when required.

• Targeted: specific professional groups and parts of the business (such as a marketing manager with a consumer base).


“Skills for a Green Economy” Initiative »

• BIS, DECC and Defra initiative to supplement the national skills strategy.

• Will examine:o Skills needso Major bottlenecks o Need of additional policy (given scale and speed of the challenge)

• Pan-economy approach, not just looking at core skills but demand in greening sectors (such as land, food and farming) and enabling sectors (such as ICT)

• Focus on generic skills

• Roadmap for a Green Economy or standalone document


Apprentices for a green economy»

“It is happening”:

• 100 young people are taking part in the community apprenticeship scheme run by the National Skills Academy for Nuclear;

• EDF Energy took on 80 apprentices last year;

• British Gas are looking for 500 new engineer apprentices this year;

• A modern apprenticeship in wind turbine operation and maintenance is making sure we have the skills in this fast moving industry.


Green Deal»

• Current employment in sector is 27,000

• 100,000 new jobs by 2015 and 250,000 new jobs by 2030?

• Funding for 1000 “Green Deal Apprentices”

• SSC to design new apprenticeships

• New standards for green deal installers

• Concessions on the Green Deal installer registration fees for those organisations which take on young people

• Policy certainty the key driver (e.g. HIPs – 4,700 inspectors in training)


Conclusion »

• Challenging targets, poor implementation

• Uncertainty over “greenest Government ever”

• Significant opportunity for UK – assets and expertise

• Skills gap a major barrier to progress and gov intervention required

• Leadership (government, business, trade unions)

» Turning Policy into Practice Andrew Raingold, Executive Director.

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