UK Energy Transition Can Create More New Jobs than Lost: Study

The move to net zero emissions has the potential to create more jobs than will be lost but will require active intervention by the government, according to a recent report by the UK’s Climate Change Committee (CCC).

Between 135,000 and 725,000 net new jobs could be created by 2030, the report said. These new jobs would be found in low-carbon sectors such as buildings retrofit, renewable energy generation, and the manufacture of electric vehicles, the CCC said, adding that the transition is “an opportunity for growth in high-quality jobs, distributing opportunities across UK regions”.

The transition to net zero emissions will “transform the economy” but “the majority of workers will not see major impacts”, the CCC said in the report. The agency said that only around one-fifth of workers will experience the “largest impacts”, clarifying that these were the ones who have a “core role in delivering Net Zero, often in the next decade”.

The risks during the transition, unique to each sector, include an inadequate supply of skilled workers and potentially disruptive impacts on some communities, the CCC said.

The CCC expects “relatively few” roles to be removed or redirected to new ones—0.3 percent of workers are in sectors expected to be phased out and around seven percent of workers are in sectors expected to redirect products and services. Most of these workers are in the fossil fuel sector, where changes in employment are expected to be gradual if “adequately planned for”, according to the report. However, there is a risk of “disruptive” localized impacts, and the CCC identified Scotland as a site where the jobs are mostly concentrated.

In particular, the CCC identified oil and gas workers as part of those expected to transition to new roles, as they had “sought-after skills” in carbon capture and storage (CCS), as well as hydrogen, according to the report.

The CCC expects transition impacts to be distributed differently across sociodemographic groups. The report said that the transition was a good opportunity to increase diversity in the energy supply and construction industries, which have “historically had an under-representation of women or ethnic minorities”. However, older workers who have been particularly represented in oil and gas, as well as farming, “may need tailored support to transition to alternative low-carbon sectors”, the report said.

The CCC concluded that the UK government should “identify when and where workforce-targeted interventions might be needed”.

Meanwhile, in the UK’s oil and gas sector, where employment is concentrated in a few large businesses, “the responsibility and cost of retraining can generally be taken on by these businesses with some government support and monitoring of progress”, the CCC said.

The report added that the UK may be “missing out on opportunities to capture low-carbon market shares domestically by not supporting the skills that could help attract investment” into the country.

The report specified the EV and battery manufacturing sectors, where the USA and the European Union are putting consumer subsidies for inland manufacturing into place. On the other hand, in sectors such as hydrogen and CCS, the UK “currently benefits from a competitive advantage supported by a pool of skilled workers from the oil and gas industry”, the report said.

“This is a unique moment to tailor our approach to skills and jobs, in the certainty of achieving the legal goal. A Net Zero workforce means secure employment for the future”, CCC Chairman Lord Deben said.

According to its website, the CCC is an independent, statutory body established under the Climate Change Act 2008 of the UK. Its purpose is to “advise the UK and devolved governments on emissions targets and to report to Parliament on progress made in reducing greenhouse gas emissions and preparing for and adapting to the impacts of climate change”, according to the website.

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