Developing a workforce for the green transition

A Westminster debate unpacked the challenges and opportunities in filling the skills gaps to secure a green transition.

Sarah Mukherjee, CEO of the Institute of Environmental Management and Assessment (IEMA), set the context for the transition saying, 'If you look at [the UK’s] greenhouse gases and the reduction that we’ve made…it is significant. The Prime Minister has also announced a target of an 81% reduction in greenhouse gases in the not-too-distant future.'

However, one of the major issues highlighted early on at the Westminster Employment Forum event on ‘Next steps for developing green skills and employment opportunities in England’ was the skills gap in delivering this transition. Speakers particularly noted shortfalls in the construction, energy and home-heating sectors. 

The Construction Skills Network Industry Outlook 2023-2027 states an extra 225,000 construction workers may be needed by 2027. 

Meanwhile, around 270,000 workers in the UK oil and gas sector can transfer their skills towards delivering net-zero. However, around 20% are expected to retire by 2030, leaving only 216,000 transferable workers to help plug the 400,000 jobs needed across areas such as nuclear, hydrogen and renewables. The pending shortfall is outlined in an IEMA report, UK facing green skills gap of 200,000 workers.

Similarly, there were approximately 3,000 skilled heat pump engineers in the UK in 2022. However, to hit the last government’s heat pump installation target, around 27,000 engineers would be needed by 2028, according to a report from heat pump installers Enula on How is the heat pump skills gap affecting the UK Government’s sustainability aims?

Matthew Adams, Transport Policy Manager at the Renewable Energy Association, acknowledged that the scale of ambition for heat pump installation alone is going 'to require a lot of technical expertise', with competition for these skills between initiatives. 

He reflected, 'There’s only about 270,000 people with electro-technical skills in the UK, and so if they’re being pulled in all sorts of directions, the number of people actually capable of doing either one of those things is going to be quite limited.'

Dr Marie-Laure Hicks, Head of Policy at the Aldersgate Group, says, 'A lack of both technical and soft skills really cuts across the economy and is undermining business productivity, innovation and growth, but more importantly, the transition towards a net-zero economy.' This was a thematic concern underlining the debate.

Hugo Jones, Deputy Director for Green Growth at the UK Department for Energy Security and Net Zero, recognised that, even with pre-existing 2035 targets, the demand for workers is expected to increase rapidly. 'To take one example, we think that demand for skilled workers in offshore wind is expected to broadly triple out to 2030, to over 100,000 full time equivalent.'

A holistic approach 

In July 2024, the new Labour Government launched Skills England, to meet the skills needs of the next decade. It will bring together central and local government, businesses, training providers, and unions across all regions, providing strategic oversight of the post-16 skills system aligned to the government’s Industrial Strategy.  

Lewis Cooper, Director of Public Affairs and Campaigns at the Association of Colleges, explained, 'The idea of Skills England is that it will have that clear intelligence about future skills needs for England and will play a role in coordinating across government with providers, and in raising the red flag if things aren’t being delivered on.'

Adams noted the plethora of qualifications out there and sees Skills England as an opportunity to develop joined-up thinking between different providers 'to make it easier for engineers and electricians to navigate the landscape'.

Mandy Crawford-Lee, Chief Executive of the University Vocational Awards Council, wants to see a greater focus on young people and a more interventionist approach to apprenticeship skills training with replacement of the Apprenticeship Levy with the Growth and Skills Levy.

She reflected, 'The indications are that actually government want to focus on functional skills and foundation style apprenticeships', she elaborates, not the programmes that necessarily lead to full occupational competence.

However, Mukherjee pointed to huge scepticism. 'There’s a political strand in this country, where people think that net-zero is going to make them poorer and colder.

 '[That people are] turning their backs on their colleagues in oil and gas. They’re seen as traitors to that...sector.' She feels not enough attention is paid to 'How we listen with respect to people that we want to [build our skills]'. 

Stephen Barrett, Director of Membership and Strategic Engagement at Energy and Utility Skills, extended the point saying that the oil and gas sector is safety oriented, and training should not be diluted to ensure standards are maintained in the transition.

Barrett said he is 'massively up for standardisation'. Although this is with an awareness of needing flexibility at the local level to deliver standardised qualifications and apprenticeship standards frameworks. 'The job doesn’t change when we move into a different region or a place.'

Barrett also hopes to review the entry level into programmes to re-engage those who did not obtain five GCSE passes.

Diverse thought

The issue of changing the perception of ‘green skills’ was central to discussion. Steve Coulter, Head of Economy at think-tank Green Alliance, encapsulated the concerns. 

'You ask your average young person what a green job is, they think it’s litter picking, which is not very enticing. 

They don’t realise that most green jobs are actually highly skilled jobs in white-collar professions.'

Whereas Jones stressed, 'Obviously, a really important part of the growth mission is ensuring that good jobs are available across the country. The Office for Clean Energy Jobs has been set up to provide a clear route for engagement with industry, with experts and trade unions on skills and workforce policy within the sector.

'Our initial analysis suggests that actually these jobs have higher salaries than advertised across the UK'. 

Mukherjee argued the international aspect of the challenge. 'All the risks in 10 years’ time are global.' All the COP29 policies are not 'going to happen unless we’ve got someone skilled behind it, and that stretches to every skill, every job, every occupation and every bit of the economy, without exception'. 

Maria Gonella, Managing Partner at Quantum Group, added, 'The opportunity and challenge for the green transition is a chance to drive economic growth and create millions of jobs, but only if we address the workforce skills gap. And consider these facts, global job postings for green roles are growing twice as fast as the talent pool. Sixty per cent of workers will need upskilling to transition into these jobs, yet many employers struggle to provide effective training.'

Jurga McCluskey, a Partner at Deloitte, shared insights from a paper the company co-published with the International Organization of Employers on Green Borders, Climate Change and Business Mobility. 

On one hand, businesses face climate impacts, globally affecting supply chains and business operations. On the other, a lack of green credentials could be hampering talent attraction and retention as younger generations are drawn to companies deemed environmentally responsible.

Yet these challenges also present opportunities for businesses, he argued. Firstly, investing in green technologies and upskilling workforces provides a competitive edge. Secondly, enhanced resilience, adapting to climate change through measures – like sustainable supply chains and disaster preparedness – safeguards business continuity. Thirdly, demonstrating a genuine commitment to sustainability attracts talent and fosters a more engaged workforce. 

He presents an 'agile' immigration system as the answer, believing the UK must streamline visa processes for skilled workers in green sectors, attracting global talent. 

Secondly, targeted skills development, investing in education and training programmes – particularly in collaboration with businesses – is crucial. This includes reskilling workers from declining industries for a just transition. Lastly, he presented the need for targeted financial assistance to help SMEs adapt to climate-resilient practices. 

This is an area he feels the UK could lead in but, to do so, businesses must proactively invest in green skills, implement sustainable practices and collaborate with government. 

Barrett cautioned, 'We need to consider that we’re heavily dependent on a migrant workforce. That’s not going away…We also need to be training our own people as well.'

Mukerjee referenced work ongoing to recognise sustainability as a profession, which she thinks is a 'game changer'.

Sarah Kostense-Winterton, Chair of the Energy Efficiency Infrastructure Group, felt looking at skills on a local level is 'vital' and will connect businesses with entry-level and other skilled people. 'We feel that’s probably the best way to be doing it, because obviously these jobs are across the country.'

Mukherjee spoke of a 'critical shortage of people of colour, people from all sorts of communities…a possibly critical failure of ours'.

Barrett added about diversity, 'Certainly the numbers are heading in the right direction, but that dial is shifting very, very slowly'.

Coulter highlighted the statistical gap, saying, 'Women account for just 16% of professional jobs in the power sector. Ninety-seven per cent of professionals working in green sectors are white. So, there’s a big diversity problem.'

Likewise, Jones was concerned about 'not fully utilising the talent and ambitions of the workforce'. He cited 16-17% of the engineering workforce is female, and only 7% of the offshore-wind workforce comes from non-white backgrounds.

Crawford-Lee also noted there are 'a million young people aged up to 24 who are not in employment [or] educational training,' and expressed the desire for a strategy for social mobility and diversity.

The 2024 Get Britain working white paper sets out reforms to the employment system, with a youth guarantee to encourage all 18-21-year-olds to be either learning or working.

Lifelong learning

Barrett says organisations they work with are looking at a completely different approach, which doesn’t ask for qualifications up-front, but looks to upskill people once they are in the workplace.

He continued, 'We can also provide a single source of industry-agreed information to aid career progression, so giving people an idea about where they’ve got to do to get those roles. We can also inform awarding organisations of how they need to flex their current delivery mechanism and also the skills system, to give them information on what they should be developing their offer into.'

Crawford-Lee mentioned the introduction of the Lifelong Learning Entitlement (LLE). From September 2026, learners will be able to apply for LLE funding for courses and modules starting from January 2027 onwards.

The LLE will allow people to develop new skills and gain qualifications at a time that is right for them.

Sally Lane, Head of People Development at E.ON Energy, asserted the need to remove barriers through the career cycle. She believes a culture of lifelong learning within an organisation will have a wider positive impact. 

Bill Esterson MP, Chair of the Energy Security and Net-Zero Committee, stresses, 'We’ve got to sell the benefits more widely, and then people will want to work in the sector.

 'And we’re going to need to look at much more generous support, to support people to retrain and re-skill…we’re going to need much more investment too from employers.'

Training a generation

Cooper noted the challenge colleges face after 14 years of austerity, with 16-19-year-old funding down 25% from 2010-22, and adult education funding halved, thus directly impeding their ability to deliver on skills needs. He warns, 'We’re in the really ridiculous situation where colleges are turning away learners each year.'

He argued competition between providers also impedes coordination across curriculum development, employer engagement and pathways. 

Crawford-Lee added, 'There has been a failure by successive governments to consider high-level skills and the role of universities in the development and delivery of skills policy.'

Coulter concurred that there was too much focus on the Russell Group of universities and academic study delivered far from home, so 'you accumulate a lot of debt'. He thinks this needs to change.

Hicks also highlighted that investment in training and development in recent years is 'much less than OECD counterparts, and it’s fallen by 28% in real terms since 2005, so there’s a clear issue and a clear need for action here and for policy intervention'.

Hopefully, this is where the new Skills England body comes in.  

Adam Read FIMMM, Chief Sustainability and External Affairs Officer for SUEZ Recycling and Recovery UK, certainly wants to open people’s eyes to the opportunities in his sector and share his passion. 'Upskilling, re-skilling and attractiveness of the sector is key. Our sectors are all in competition, so we must be collaborative about understanding the transition and skills that we all need and want.

'It can’t all be big business.' There is also the need to work out how the Apprenticeship Levy, or a Skills Levy of tomorrow, is going to work better, targeting courses for the right people, to make changes. 'We’ve got a once-in-a-generation opportunity.'

Gonella was impassioned in her assertion that 'Education is the one thing you can give to someone, be it a child or an adult. It’s something that can never be taken away from them. It is the catalyst for change, fostering independence and providing the tools needed to build a meaningful career'.