UK risks missing out on thousands of green jobs, report warns

Chance to create up to 70,000 jobs in offshore wind industry may be squandered without government action, says IPPR study

Press Association
guardian.co.uk, Tuesday 14 April 2009 12.34 BST

The UK risks missing out on tens of thousands of jobs in the offshore wind industry unless the government gives greater support to the sector, a report warned today.
The study by the Institute for Public Policy Research (IPPR) said the UK must rapidly expand its offshore wind capacity or it would fail to meet the legally binding target of sourcing 15% of energy from renewables by 2020.
With wind expected to meet the lion's share of that target, there is an opportunity to create up to 70,000 long-term jobs in the industry in parts of the country where they are most needed, the report said.
But unless the government acts to remove barriers to investment, provide additional focused support to the industry and build up the skills base, the UK will miss out on green jobs.
While the UK already has the biggest offshore wind capacity in the world, just 700 people are currently employed in the sector and most of the parts for the wind farms are manufactured overseas.
The IPPR report said the government needed to be more proactive in establishing certainty in the domestic offshore wind market to encourage investment.
Measures that should be considered include updating the grid infrastructure, with the government underwriting investment if needed, and targeting support to companies that manufacture parts such as cabling, turbines, installation vessels and foundations to unblock bottlenecks in the supply chain.
Financial support schemes such as the renewables obligation and feed-in tariffs must be monitored to make sure they help deliver expansion of the sector, the report urged.
The government must also embark on an offshore wind investment programme which would include focused packages of grants and research and development incentives, a near-shore testing facility for technology and underwriting of borrowing to ensure short-term guarantees for lending.
In addition, a strategic approach to improving skills in the sector is needed, by encouraging more youngsters to study subjects such as science, engineering and maths, helping to forge links between universities and industry and providing incentives for people going into low-carbon jobs.
Matthew Lockwood, senior research fellow for IPPR, said: "Offshore wind has great potential for UK jobs but we risk being blown off course.
"The government's pledge to achieve ambitious renewable targets by 2020 shows it is serious about its potential but we need to follow through with concrete policies to create greater certainty for industry, maximise the potential for the UK economy and realise our environmental goals."
The TUC's general secretary, Brendan Barber, said: "The offshore wind industry could create tens of thousands of good, green jobs in the UK but the recession has shaken the industry's confidence and exposed the need for government support for green infrastructure investment."
He said an offshore wind investment programme had to be matched by developing appropriate skills in the workforce.
And Greenpeace executive director John Sauven said: "Gordon Brown personally pledged that the UK would meet its legally binding EU renewable energy target for 2020 but we're already going to miss the targets for 2010.
"If these targets are going to mean anything then offshore wind needs an urgent boost in the budget.
"Mr Brown must remove the barriers preventing renewable energy development such as planning delays, and a lack of skills, grid connections and UK supply chain."
Energy minister Mike O'Brien told a recent meeting at the Renewable Energy Association that the government had changed planning laws and increased support for renewables, and was working with National Grid and Ofgem to ensure sufficient access to the grid.
"However, we are fully aware of the investment challenges facing some parts of the industry," he said.
"As part of the work we are doing across government on the low carbon industrial strategy, we are looking at the impact of the downturn and what we can do to alleviate it."