Climate Emergency Skills Action Plan 2020-2025 Key Issues And Priority Actions Ministerial Foreword

When we first announced that we would transition to net zero is ensuring that everyone specific technical skills that may be needed to develop a Climate Emergency Skills Action can benefit from the opportunities and no one achieve a just transition, but also the higher- Plan last year, we were directly responding to is left behind. This is what we mean by a ‘Just order and general skills that will be required. Scotland’s declaration of a Climate Emergency Transition’. This approach also recognises that The Climate Emergency Skills Action Plan and our increased legislative targets to meet we can only achieve this transformation if we sets out a clear direction for the reorientation net zero emissions by 2045. This transition will all work together and everyone is enabled to of our skills system, and signals the role that transform our economy and society, including play their part. Ensuring people have the skills businesses, communities and individuals the kinds of jobs we do and skills we need to engage and succeed in Scotland’s green across Scotland will play in achieving this. to thrive in a net zero economy. Now, facing recovery from COVID-19 and transition to net As a Government we have set out a series of rising unemployment following the economic zero is at the heart of this Climate Emergency ambitious decarbonisation targets and policies downturn from COVID-19, this focus on Skills Action Plan. to support action towards these targets, and supporting people into good, fair, green jobs is The skills system has a key role to play this plan forms a key part of our plans to more important than ever. in responding to changing demand and achieving them. Enhancing access to skills training is critical supporting individuals, in all communities, to for successful decarbonisation and will help access emerging opportunities. We recognise create new, high-quality green jobs, enhanced that any labour market disruption must be regional growth, and improved access to mitigated by investment in skills to support growing ‘green markets’ across the globe for people to move into sustainable jobs in the Scotland’s diverse businesses. Key to our net zero economy. This includes not only the

Roseanna Cunningham Cabinet Secretary for Environment, Climate Change and Land Reform

Jamie Hepburn Minister for Business, Fair Work and Skills Chair’s Foreword By Frank Mitchell Chair, Skills Development Scotland and Chief Executive, SP Energy Networks

As its effects become increasingly evident transition that allows us to grasp the this task, as climate change is a cross-cutting in the world around us, climate change has opportunities open to us and overcome the issue requiring consideration within all become one of the defining issues in recent challenges that exist. strategic decision-making. The skills system times. Over the next two decades the core must play its part managing the transition so It has moved up the agenda politically, competences of a wide range of jobs need it can quickly enable more individuals and socially, culturally and economically, with to be made more directly relevant to the businesses to prosper in a shifting economy. Green Recovery and the transition to a net needs of a low carbon economy, and with The development of this Action Plan has been zero economy being a central theme in the the majority of the 2045 workforce already supported by a wide range of individuals Programme for Government. in employment, the primary challenge for and organisations who helped identify and This builds on legislation passed last year Scotland is about iterative change. prioritise the key actions which will address setting the target of reducing Scotland’s net That means updating and refocusing these skills challenges and opportunities. emission of all greenhouse gases to zero people’s skills so they can contribute to rising It draws on the existing evidence base to set by 2045 at the latest. Energy transition and productivity and help Scottish firms capture a out the nature and scale of the long-term skills the decarbonisation of transport have been share of growing international markets. challenge presented by a move to net zero in targeted as areas of opportunity and growth, While the climate emergency is in itself a the context of a just transition, and identifies and in November 2021 the eyes of the world defining challenge, we must acknowledge it immediate actions to support the development will fall on Scotland as Glasgow hosts the 26th is happening while employment and skills are of the skills needed to meet the climate UN Climate Change Conference. being reshaped by digitalisation, automation change challenge, particularly in relation to For many years this has been central to and the response to COVID-19. sectors identified as key to the transition to my work as chief executive of SP Energy These disruptive forces complicate public net zero. Networks, with the surge in demand for policy responses, but they also offer a In addition, it identifies longer-term actions renewable energy needing to be met not only window in which we can improve the skills of that will allow the skills system to respond by changes in infrastructure, but changes in people in declining or vulnerable sectors of more effectively and sets out a route map that our skills base as well. employment. will allow for the Climate Emergency Skills This is why I am acutely aware that Scotland’s Meaningful collaboration is required across Action Plan to function as a responsive and climate emergency response with a skills many agencies and partners to face up to evolving document. Contents

Executive Summary 5

Chapter 1: Building a Climate Emergency Skills Action Plan for Scotland 8

Chapter 2: Supporting Net Zero: The Contribution of Skills 12

Chapter 3: Opportunities and Skills Implications 20

Chapter 4: Priority Areas for Skills Action to Support the Transition to Net Zero 34

Chapter 5: Delivering the Climate Emergency Skills Action Plan 54

Glossary 56 Executive Summary

1. At a time when Scotland is focusing on 4. Green jobs include those in renewable 6. Technical skills will be key, but soft skills its response to COVID-19, facing the energy, the circular economy and zero will also play an important role in driving challenges of Brexit and adjusting to waste, and the nature based sector behavioural change, communicating to increasing digitalisation, the Climate with wider ‘green skills’ sitting on a businesses, communities, and individuals Emergency remains the single biggest spectrum ranging from highly specific the ethics and urgency of these changes long-term challenge. requirements in sectors directly supporting and ultimately the benefits of the transition 2. Reaching the target of zero greenhouse the transition to net zero such as energy, to net zero. gas (GHG) emissions by 2045, with a transport, construction, agriculture, and 7. The skills system has a key role to play 75% reduction by 2030, will require manufacturing, through to more generic in responding to changing demand and transformational change across the requirements across all sectors to thrive in supporting individuals, in all communities, economy and society, and will provide a net zero economy. to access emerging opportunities. significant opportunities for: 5. Green jobs can be categorised as: We recognise that any labour market disruption must be mitigated by investment • developing new, quality green jobs • new and emerging jobs that relate in skills to support people to move into directly to the transition to net zero • embedding green and circular economy sustainable jobs in the net zero economy. e.g. hydrogen cell technicians, carbon skills This includes not only the specific technical monitoring technicians, and urban skills that may be needed to achieve a just • increasing access to growing global miners green markets for Scottish businesses transition, but also the higher-order and • jobs affected by the transition to net general skills that will be required. • stimulating regional growth zero that will need enhanced skills 8. The CESAP has been developed through or competencies e.g. architects and • providing enhanced access to nature engagement with Industry Leadership environmental consultants and the environment. Groups and an Expert Group comprising 3. The economic downturn and consequent • existing jobs that will be needed in Skills Development Scotland, the Scottish unemployment brought about by COVID-19 greater numbers as the result of the Funding Council, Zero Waste Scotland, has provided an opportunity for a green transition to net zero e.g. insulation the Scottish Cities Alliance, NatureScot, recovery, with Scotland’s strategic installers, energy assessors and Scottish Government’s Domestic Climate response to recovery and renewal designers and multiskilled on-site Change and Skills Divisions, Highlands reinforcing the need for a focus on jobs operatives. and Islands Enterprise, Scottish Enterprise, and skills. South of Scotland Enterprise, the University of Edinburgh and the University of Strathclyde.

5 9. Potential opportunities for jobs growth and 10. Building on the analysis of the evidence 11. The CESAP sets out a clear direction skills implication were identified across base and the skills implications for each for the changes needed in the skills five broad areas of economic activity that of these, six priority areas for action were system, and signals the role that industry, will make a significant contribution to agreed, each with a skills focus. communities and individuals across net zero transition. These areas reflect • Priority 1: Supporting a green labour Scotland will play in achieving this. The national priorities and investment within market recovery from COVID-19 focus is on the key actions needed over the Scottish Government’s Programme for the next five years to 2025, with an update Government to reduce energy demand • Priority 2: Building better understanding of the plan by the end of 2023. and greenhouse gas emissions and adapt and evidence of future skills needs to • The transition to net zero will take place to climate change: support Scotland’s transition to net zero over the next 25 years, but there is also a • Energy transition (including oil and • Priority 3: Developing the future compelling need to act now. The CESAP gas, on and offshore wind, hydrogen, workforce for the transition to net zero focuses on both immediate action as well electricity, carbon capture and storage) • Priority 4: Driving awareness and action as the longer-term systemic change that • Construction (including the retrofitting to support reskilling and upskilling for the will need to take place by 2045. Building of housing and non-residential transition to net zero on the lessons of the National Transition properties) Training Fund established in response to • Priority 5: Ensuring fairness and inclusion COVID, we will establish a Green Jobs • Transport (including road transport, in the skills system as part of a just Workforce Academy. The Academy will railways, domestic aviation, shipping transition to net zero support existing employees, and those and aircraft support vehicles) • Priority 6: Taking a collaborative who are facing redundancy, to assess their • Manufacturing (with a focus on approach to ensure a skills system existing skills and undertake the necessary engineering) responsive to changing demands. upskilling and reskilling they need to secure green job opportunities as they • Agriculture and land use management emerge. (including forestry).

6 • The scale and pace of change needed • Key to our transition to net zero is a ‘Just 12. The CESAP focuses on immediate actions across all sectors will demand a significant Transition’ that ensures that everyone to support the development of the sklls realignment of our investment in benefits from new opportunities. It will be needed to meet the climate change education, training and work-based important to mitigate potential risks and challenge and longer term actions that will learning towards green jobs. Skills provide targeted support to communities allow the skills system to respond more Development Scotland and the Scottish and parts of the population who are most effectively for the Climate Emergency Skills Funding Council, through their joint likely to lose out from structural changes Action Plan to function as a responsive Skills Alignment Team, will ensure that in employment. This will be particularly and evolving document. our annual investment in skills through important in areas where jobs are 13. The actions have significant implications work-based learning, further and higher declining, and where there are growing for employers, individuals and skill education and upskilling and reskilling levels of insecure work. Our investment in providers to support the transition to net is fully aligned behind our economic the Green Jobs Workforce Academy will, zero. This will be a significant and long- ambitions for a net-zero transition. We will alongside targeted activity to address term challenge and will require agility from also establish a Green Jobs Skills Hub labour market inequalities, play a key role the skills system to respond to the change that will cascade intelligence into the in supporting a Just Transition. and disruption throughout Scotland’s skills system on the numbers and types • The skills investment required to support transition to a net zero economy. of green jobs that will be needed over the the transition to net zero will be driven next 25 years. by the wider change and investment • The transition to net zero will require that will take place in the economy. The behaviour change by both employers and stimulation of that demand will be driven individuals. The CESAP takes a broader by employers, by National and Local view than traditional approaches to skills Government and by Enterprise agencies. investment planning and considers the The CESAP complements the demand wider educational changes that will need created in the Programme for Government to take place across society and the public, 2020/21 and Climate Change Update Plan. private and third sectors. The Green We will establish a Climate Emergency Jobs Skills Hub will play a central role in Economic & Investment Leadership raising awareness amongst employers Group to provide leadership, oversight and individuals of the need for behaviour and to drive the alignment of skills change, and support them to take action investment with our national economic to drive behaviour change and develop the ambition. leadership and management skills that will be required for a net zero future.

7 1: Building a Climate Emergency Skills Action Plan for Scotland

Background quality green jobs, embedding green and circular skills, increasing access to Scotland has taken a leading role growing global green markets for Scottish internationally in recognising and responding businesses, stimulating regional growth and to the climate emergency. It was among providing enhanced access to nature and the first governments to declare a climate the environment. However, there are also emergency in April 2019 and subsequently risks that some people and places could be increased the legislative ambition to reach left behind unless steps are taken to mitigate zero greenhouse gas (GHG) emissions by this. The Scottish Government is committed 1 2045 and 75 per cent reduction by 2030 . to ensuring a ‘Just Transition’ which means It was among the first governments to set working together to involve people in decision out a Circular Economy Strategy in 2016, making about the move to net zero and recognising the role that resource use has ensuring everyone can access the benefits on climate change. Four fifths of Scotland’s whilst being protected from the risks. carbon footprint is caused by the consumption of goods, services and materials2. With the Developing a skilled, flexible, and adaptable successful decarbonisation of the electricity workforce will be central to a successful grid, decarbonising the material elements transition and this was recognised in the of the economy has become increasingly Future Skills Action Plan published in 2019. important to mitigate the effects of climate This will enable people to access the job change. Scotland’s policy goals and specific opportunities that will be created through the targets have been set out in the 2018 Climate investment needed for a net zero economy Change Plan (CCP) and the 2020 CCP update including in renewable energy, retrofitting published alongside this Climate Emergency buildings, enhancing our environment and Skills Action Plan (CESAP). the promotion and embedding of the circular economy. Recognising the importance of skills Reaching these targets will require a and training to support people into green transformation across the economy and jobs, the Programme for Government 2019-20 society. This transformation will provide set out plans to develop a CESAP to support opportunities for the development of new, Scotland’s just transition to net zero GHG by 2045.

1 Scottish Government (2020) Climate Change Policy: Emissions Reduction 2 Zero Waste Scotland (2020) Carbon Metric Summary Report 2017-18

8 9 A Green Recovery As the energy supply gets greener as part of Scotland’s Energy Strategy7, its proportion of Building on the recommendations of the Scotland’s carbon footprint diminishes. As a Advisory Group on Economic Recovery result, Scotland’s consumption of goods and and the Enterprise and Skills Strategic services now accounts for approximately 80 Group Sub Group, the Scottish Government per cent of the national carbon footprint (half has committed to a green recovery from of which is embedded in imported goods COVID-19 to create a fairer, greener and more and services). Decarbonising the material 3 prosperous country . This approach seeks elements of Scotland’s economy is therefore to create a more sustainable economy in increasingly important to meet the Paris the longer term with greater resilience in the Climate Agreement target8. There is now face of future shocks whilst conserving and broad consensus that widespread adoption of 4 growing natural assets . Unlike traditional circular principles is essential to this, therefore fiscal stimuli, a green recovery package has a progress needs to be accelerated across all focus on infrastructure projects which include other sectors in order to maintain progress the development of net zero buildings, energy towards the 2045 and deliver transformative storage, clean and circular industry, transport change. and greenhouse gas removal, alongside nature-based solutions5. Evidence suggests A green recovery also provides an opportunity that this type of investment can have a greater for Scotland’s businesses and people to economic impact in terms of jobs and growth become global leaders in a net zero transition compared to ‘grey’ stimulus measures6. This and to export their knowledge and skills is made possible by significant growth in the across the world. The Climate Emergency production of green goods and services which Response Group (CERG) has published a generates additional jobs, and upskilling range of policy recommendations to help workers to move them from high polluting inform Scotland’s green recovery, based on industries to ‘green’ jobs within a low carbon ‘benefit to the economy, climate, and wider 9 economy. well-being’ .

3 Scottish Government (2020) Economic Recovery Implementation Plan 5 University of Oxford (2020) Building Back Better: Green COVID-19 Recovery Packages Will Boost 7 Scottish Government (2017) Scotland’s Energy Strategy 4 COP26 Universities Network briefing (2020) A Net-Zero Emissions Economic Recovery Economic Growth and Stop Climate Change; IPPR (2020) Faster, Further, Fairer: Putting People 8 United Nations Climate Change (2018) The Paris Agreement at the Heart of Tackling the Climate and Nature Emergency from COVID-19 9 Climate Emergency Response Group (2020) Eight Policy Packages for Scotland’s 6 European Commission (2014) Assessing the Implications of Climate Change Adaptation on Green Recovery Employment in the EU; OECD (2013) Greener Skills and Jobs for a Low-Carbon Future 9 A Just Transition Any approach to redeployment of workers Concerted efforts are required to ensure that A green recovery can play an important role from declining industries and sectors the transition to net zero is just and inclusive, in delivering a ‘just transition’ to a net zero must consider regional and local contexts. reducing existing inequalities rather than economy. The COVID-19 crisis has highlighted Alongside this, fair work has been identified exacerbating them. the need to prepare for the transition to net as a key component of the Scottish zero to mitigate the risk of exacerbating Government’s Economic and Labour Market inequalities through abrupt or unmanaged strategies. Ensuring that jobs are fulfilling, structural shifts to the economy. With a remit secure and well-paid is critical to inclusive to ‘advise on a net zero economy that is fair growth across Scotland and redressing for all’, the Just Transition Commission (JTC) systemic labour market inequalities. published an Interim Report in February 10 Access to jobs and training associated with 2020 . The Commission developed a range delivery of the net zero targets will likely of ‘immediate action’ recommendations remain skewed towards certain socio- for the Scottish Government as part of a 11 economic groups, unless this issue is green recovery report . The Commission proactively addressed. Critical sectors of the has stressed the need for the Scottish economy such as construction, manufacturing, Government to take immediate, decisive, and and agriculture are male dominated, with sustained action to reduce our emissions underrepresentation of women and ethnic while also addressing existing inequalities minorities. Additionally, those in lower skilled, in work, housing, and transport. A key low income or unstable employment are less recommendation from the Commission’s likely to have the funding, information or green recovery report is the need to align the flexibility to take advantage of new training skills system to support net zero jobs. opportunities. Rurality, and large variations It will be important to mitigate potential risks in labour market outcomes between regions and provide targeted support to communities across Scotland are also long-running and parts of the population who are most challenges. While there has been significant likely to lose out from structural changes in progress in improving the attainment of employment. This will be particularly important qualifications across Scotland, regional in areas where jobs are declining, and where disparities in qualifications and skills levels there are growing levels of insecure work. persist.

10 Scottish Government (2020) Just Transition Commission Interim Report 11 Scottish Government (2020) Just Transition Commission: Advice on a Green Recovery

10 11 Wider Challenges consequence, irrespective of whether there • The demographic challenge, alongside is a deal at the end of the transition period. migration flows, is the principal influence The transition to a net zero economy in Scotland Although difficult to quantify, there is also a on the supply of people to the labour by 2045 presents a significant challenge concern that Scotland’s and the UK’s effective market. The ageing of Scotland’s but cannot be viewed in isolation. There are labour supply will be significantly reduced as population projected for the next 20 years several other challenges which will also impact large numbers of EU workers return home or and beyond raises challenges in terms of significantly on employment and skills demand move to other EU countries. skills supply and the size of the working and supply in Scotland in the immediate and • Digitalisation with the growing importance age population. longer term. of data and digital innovations for Scotland’s • The drive towards a net zero economy, • COVID-19 poses a major challenge for economy and labour market is increasingly Brexit, and COVID-19 all generate economic policy makers in Scotland bringing about major changes in the potentially seismic shifts in employment and across the world. There are difficult nature of employment and the demand for across sectors, whilst at the same time trade-offs between managing the health skills required to make Scotland a more each of these challenges also demands emergency, the impact on the economy, the competitive economy. Digitalisation is also a an appropriate skills response. This, education of young people and the long- key enabler of the circular economy, bringing in turn, may have an impact on how term consequences for individuals’ mental new market opportunities to Scotland. The easy or otherwise it will be to address and physical wellbeing. The course of the three inter-related developments which the skills challenges and maximise pandemic remains uncertain, but measures to together can be categorised as digitalisation the opportunities brought about by a control the spread of the virus have already and each with the potential for impact are: transition to net zero. These challenges impacted heavily on many of Scotland’s • Automation where machines or electronic are highly interdependent, ensuring a just sectors and may have a lasting effect on processes carry a range of functions, transition to net zero means addressing both work and skills provision. Although often repetitive in nature, previously or quality of work, questions of fairness and support has been available through the currently performed by workers. Three in inclusion, and inequalities in the system. UK Government’s Job Retention Scheme ten current jobs in Scotland involve tasks The CESAP needs to be developed and the pandemic has significantly increased that are at high risk from automation12. implemented with full awareness of these unemployment across the economy, and broader challenges, the approaches • Artificial intelligence (AI) where the more acutely for certain demographic groups in place to mitigate them, and their processes previously impossible without including disabled people, ethnic minorities, interactions. By recognising these the application of human intellect that can women and young people. interdependencies, the CESAP will lay the now be carried out by computers • Brexit has most independent commentators foundations for effective skills planning for projecting a significant reduction in the • Machine learning where computers the transition to net zero. size of the UK and Scottish economies as a ‘learn’ how to do tasks more effectively through the processing of large volumes

12 Fraser of Allander (2019) Scotland in 2050: Realising our Global Potential of relevant data.

11 2. Supporting Net Zero: The Contribution of Skills

The Rationale for a Climate Emergency Skills Action Plan To meet Scotland’s net zero targets in a just transition, there is a need to adapt to the changing demand for skills, not just in sectors with a critical contribution to make to net zero, e.g. energy transition or construction, but across the whole economy. This requires both a skills system and a labour market which are more agile, proactive, responsive and resilient than ever before. The structure of the labour market and skills demand will undoubtedly be affected by this transition. Demand will likely increase the availability of quality green jobs in sectors including construction, energy, and manufacturing. However, in some industries, for example, oil and gas extraction there will be new jobs, displaced jobs, and job losses driven by both changing demand and the impact of regulation intended to reduce GHGs. The Scottish Programme for Government made a commitment to the development and publication of a CESAP ‘providing a framework for the skills investment needed to meet the climate change challenge and successfully support Scotland’s Figure 2.1 Route to 2045: Supporting the Green Economy and a transition to a low carbon economy in a just and inclusive manner’. This underpins the Scottish Transition to Net Zero Government’s policy directive to drive demand through investment in a range of measures to support the green economy and a transition to net zero, as set out in Figure 2.1.

12 13 As part of the transition to net zero, the skills Whilst the extent of change largely depends system has a key role to play in understanding on the structure of the economy and national changing demands, tailoring the supply of policy context and response, the appetite skills to meet growing demand, mitigating of individuals to support the transition will risks as they arise, and supporting individuals also be important. Positive indicators from to secure emerging opportunities. The oil and gas suggest that more than three anticipated disruption to labour markets can quarters of workers are said to be ‘positive be mitigated by investment in skills to support about retraining’ into the renewable energy people to move into sustainable, resilient jobs industry as part of the net zero transition15. To in the net zero economy. An adaptive skills implement a just transition, it will be important system is vital to maintaining the productive to position skills to form part of a systematic performance of economies and, through response to changing economic conditions, retraining people at risk of loss of livelihoods, preparing workers for new and adapted ensuring a just and inclusive transition. job roles, embedding circular thinking and mindset across disciplines, while retaining To different extents, the transition to net skills and expertise in regional labour markets. zero will have implications for jobs at all skill levels and across all occupational groups13. Analysis of demand highlights the differential impacts across occupations, with a majority of skill demand being limited to adaptations in existing skillsets rather than uniquely new skill areas. However, across the economy, around one in five jobs in Scotland may be affected positively or negatively by a transition to net zero emissions, with one in ten jobs necessitating re-skilling14.

13 ILO (2019) ILO Skills for Employment Policy Brief. Skills for a Greener Future: Challenges and 15 Scottish Renewables (2020) GVA and Jobs Created by Deployment of Renewable Electricity Enabling Factors to Achieve a Just Transition Projects in Scotland 14 Cambridge Policy Consultants (2020) Evidence base for a Climate Emergency Skills Action Plan (Final Report) 13 Understanding Green Jobs zero such as energy, transport, construction, • existing jobs that will be needed in and Skills agriculture, and manufacturing, through to greater numbers as the result of the more generic requirements across all sectors transition to net zero e.g. insulation Whilst challenges remain in quantifying the to thrive in a net zero economy, in various installers, energy assessors and designers number of green jobs in the economy, there occupations such as lawyers, accountants, and multiskilled on-site operatives. is no doubt of their significant and growing programme managers, financers, teachers In line with the commitment by the Scottish contribution. The ONS’s Low Carbon and 17. While technical skills will be key, and trainers Government to net zero by 2045, ultimately Renewable Energy Economy (LCREE) dataset soft skills will also play an important role in the vast majority of jobs and skills should be estimates that as of 2018, there were 23,100 driving behavioural change, communicating ‘green’ to recognise individual responsibility to employees (Full-Time Equivalents, FTE) in to businesses, communities, and individuals curtail environmental damage and to thrive as the Low Carbon and Renewable Energy the ethics and urgency of these changes and 16 an integral part of a net zero economy. Economy in Scotland; this constitutes 10 ultimately the benefits of the transition to net per cent of the total UK workforce (224,800 zero. These categories provide a useful framework employees). Since 2014, the number of for the CESAP to identify tangible and Three categories of green jobs have been employees in Scotland has been broadly level targeted actions to address the net zero skills identified, providing a framework against compared to a decrease of five percent (11,100 challenge whilst also aiding understanding which to gauge likely skills demand and employees) at the UK level. of the market demand for green jobs and develop and focus interventions when the the skills needed to meet this challenge. There is no single agreed definition of ‘net CESAP moves to its implementation phase18. This will, in turn, boost our understanding zero skills’, ‘green skills’ or ‘climate emergency These are: skills’ with the terms often being used of the transition to net zero pathways being interchangeably. There is a recognition that • new and emerging jobs that relate directly supported by policy and economic action green jobs include renewable energy, circular to the transition to net zero e.g. hydrogen (for example, the Scottish Government’s CCP economy and zero waste, and renewable cell technicians, carbon monitoring update), particularly in sectors identified as energy and the nature based sector with technicians and urban miners key to the transition to net zero including wider ‘green skills’ sitting on a spectrum • jobs affected by the transition to net agriculture and land use, construction, energy ranging from highly specific requirements in zero that will need enhanced skills transition, manufacturing, and transport. sectors directly supporting the transition to net or competencies e.g. architects and environmental consultants

16 Defined by the ONS as: offshore wind, onshore wind, solar photovoltaic, hydropower, other 17 Cambridge Policy Consultants (2020) Evidence base for a Climate Emergency Skills Action Plan 18 This categorisation draws upon a range of sources: renewable electricity, bioenergy, alternative fuels, renewable heat, renewable combined heat (Final Report) OECD/Cedefop (2014) Greener Skills and Jobs and power, energy-efficient lighting, energy-efficient products, energy monitoring, saving or control systems, low carbon financial and advisory services, low-emission vehicles and Sofroniou, N. and Anderson, P. (2020) The Green Factor: Unpacking Green Job Growth infrastructure, carbon capture and storage, nuclear power, fuel cells and energy storage Dierdorff, E; Norton, J ; Drewes, D; Kroustalis, C; Rivken, D; Lewis, P. (2009). Greening of the systems. World of Work: Implications for O*NET®-SOC and New and Emerging Occupations 14 15 Transition to Net Zero: Underpinning • The CESAP evidence report demonstrated by embedding life-long learning, human Skills the increasing demand for higher level capabilities, problem solving capabilities, data skills across a number of sectors key adaptability and resilience19. They can be The demand for specific technical skills will to the realisation of a net zero economy. grouped into the three broad categories grow across certain sectors and occupations Digital skills are emerging as potentially of self-management (focusing, integrity, as part of the transition to net zero. However, important in several of these sectors, adapting, initiative), social intelligence there is also a range of cross-cutting, higher- but they are already very important (communicating, feeling, collaborating, order skills which will be in demand across for a range of other sectors, including leading) and innovation (curiosity, creativity, the whole of the economy to support this financial services and manufacturing. In sense-making, critical thinking). Meta-skills transition and as part of a future thriving net the implementation of a CESAP, as well have a number of potential benefits for the zero economy, for example, digital and data as the need for these skills to be clearly transition to net zero: skills and meta-skills. specified so that appropriate provision can • Decarbonising the material elements be put in place or planned, close attention – encouraging high performing of Scotland’s economy is becoming needs to be paid to skills development workplaces that aid a strong recovery increasingly important and there is broad outside sectors key to the transition to – developing capability to respond to, consensus that widespread adoption net zero. Looking to the future, the jobs and become catalysts for, change of circular principles is essential to this that are expected to be in high demand and must include a focus on embedding include data science, data analytics, – working collaboratively to build on circular skills and the ‘greening’ of jobs, artificial intelligence and cyber security, green opportunities particularly in those sectors critical hence not only are digital skills important – developing innovative thinking for to delivering transformative change. in the context of achieving net zero, but pursuit of new green solutions and Extensive technical skills are required digital will be a necessary aspect of future- develop growth mindset to drive circular economy approaches, proofing the labour market. – creating a resilient workforce such as systems thinking, eco-design, • Meta-skills are timeless, higher order product management, material science skills that support the development of – aiding in shifting mindsets towards and digital as well as the meta-skills of additional skills and promote success in circular thinking. self-management, social intelligence and whatever context the future brings. These innovation. skills help learners embrace the inevitable changes to industry, job roles and society,

19 Skills Development Scotland (2018) Skills 4.0: A Skills Model to Drive Scotland’s Future, Centre for Work-based Learning in Scotland

15 Education and Skills Provision demands with educational provision; one A Just Approach to Net Zero that maximises the opportunities for reducing Universities and colleges, along with skills inequalities and increases accessibility to Chapter 1 emphasised the centrality of a just providers, local authorities, and the third education. transition to Scottish Government’s vision of sector play a central role in providing the a future net zero economy. This transition training, skills and innovation needed by Agile and responsive work-based learning provides an opportunity to address both employers across Scotland. The magnitude (WBL) including Foundation, Modern, and environmental and socio-economic issues, and rate of change now required across Graduate Apprenticeships will also support and the development and implementation all sectors of the economy to achieve net these ambitions. The transition to net zero of the CESAP follows this principle. The zero demands a significant realignment and will require good quality, flexible, and importance of a just approach can be ramping up of ‘green’ skills and education accessible WBL which equips individuals with considered in terms of both the people and provision. Assessment of gaps and in-demand green skills, provides them with places who will be affected by the jobs and development of net zero-aligned curricula effective learning pathways into green jobs, skills implications of the transition. must be done in close and coordinated and creates an increasingly productive and collaboration with employers, industry bodies, resilient workforce. A Focus on People unions and government agencies. The work In addition to direct skills and education of the Joint Skills Alignment Team across provision, our universities and colleges play With a marked shift in our economy towards SDS and SFC will have a critical role to play a lead role in the research and innovation net zero, there is an opportunity to narrow to ensure alignment of the skills system with that will underpin the net zero transition. The labour market inequalities. The CESAP these green economic ambitions. roles of the Energy Skills Partnership (ESP) in should contribute towards addressing these engaging with the college sector to establish inequalities by recognising the distinct barriers Crucial will be ensuring that the diverse a responsive, flexible approach to emerging faced by certain groups, and by supporting fair timelines of green job creation and skills priorities, and of the Scottish Funding Council access to skills, training, and jobs flowing from demands across the economy are matched (SFC) in supporting the Innovation Centres the transition. The following section considers with those of skills and education provision, programme which aims to enhance innovation the barriers faced by these groups, defined by taking account of institutional capacities, and entrepreneurship across Scotland, are age, disability, ethnicity and gender. However, the build and roll-out times for new courses, both key in this regard. Ultimately, building it is also important to recognise the interlinked and other competing demands (such as capacity in both further education (FE) and nature of these barriers, whereby a person’s maintaining core education delivery under higher education (HE) across Scotland to age and ethnicity, for instance, combine to COVID-19 restrictions). Equally important will enhance the generation of new net zero- make barriers to fair access even greater. If be the use of a place-based lens for more aligned technologies, businesses and these considerations are not made, it is likely effective matching of local and regional knowledge exchange represents a powerful that such barriers and subsequent inequalities lever for realising a green economic recovery. will merely be reproduced in a future net zero economy.

16 17 Age JTC recommends, any job guarantee scheme Disability ‘should provide meaningful work that gives Although more than half of 18 to 34-year olds valuable experience’ to young people22. Any Disabled people have a disproportionately want a career which protects the environment, challenges are likely to be exacerbated by lower level of representation in the workplace, four of the five broad areas identified as key the widespread disruption that young people and often face significant issues within the to a transition to net zero have workforces have experienced to their education due to workplace such as poor promotion prospects, with higher proportions of older workers COVID-19, with many making the transition lack of support, and poor working conditions. 20 than Scotland’s national average . Many of to employment at a time of heightened They are also more likely to be in part-time, the pathways into energy and manufacturing economic instability. Without appropriate transient, and/or low-paid employment. require qualifications that are a challenge for support to overcome these challenges, young Alongside this, research suggests that disabled some young people, while action is required to people could face sustained barriers to ‘good’ people are “disproportionately affected by 24 change young people’s perceptions of sectors employment opportunities in a future net zero climate change impacts” . COVID-19 has also 21 like agriculture and construction . economy23. had a profound, and often disproportionate impact, with an increased likelihood of death Improving sector attractiveness across the An ageing workforce in Scotland raises the or ill health, higher numbers shielding and green economy should aid informed decision- possibility of discrimination, with older workers being unable to work, challenges in accessing making at key junctures in a young person’s less likely to be supported through upskilling exercise and socialising, interrupted health care, career development. It is crucial to ensure that and reskilling opportunities compared to and the exacerbation of existing health issues25. young people have the appropriate guidance younger colleagues, for instance. Investing in The transition to a net zero economy offers and support to access skills and training the skills of older workers and implementing opportunities to address labour market barriers opportunities and, subsequently, have access more flexible, inclusive workplace practices faced by disabled people and maximise the to the quality green jobs flowing from the that promote intergenerational working would opportunities to capitalise on the strengths and transition to net zero. Developing the Young help retain experience in the workforce. This skills they can bring to Scotland’s workforce. Workforce (DYW) groups have an important approach would benefit younger entrants into Building upon the increase in flexible home role to play here in supporting young people, these sectors through additional mentoring working which has occurred in response to and work experience opportunities and and upskilling support as well as contributing to COVID-19 would not only be expected to Foundation Apprenticeships will also be key addressing the key issue of Scotland’s labour reduce emissions from unnecessary travel, but in this regard. Additional support through the supply. with the right support and equipment it could Young Person’s Job Guarantee, which includes help many disabled people gain and sustain the UK Government’s Kickstart programme, employment. The Scottish Government’s Fairer has been recently introduced. However, as the

20 Cambridge Policy Consultants (2020) Evidence base for a Climate Emergency Skills Action Plan 22 Scottish Government (2020) Just Transition Commission: Advice for the Green Recovery 24 ILO (2019) Policy Brief: Persons with disabilities in a just transition to a low-carbon economy (Final Report) 23 Scottish Government (2020) Just Transition Commission: Advice for the Green Recovery 25 SCOPE (2020). Press release, Disabled people’s COVID-19 death rate as much as 11 times higher 21 Green Jobs for Youth: Boosting Decent Jobs for Youth, Greening the Economy than non-disabled people

17 Scotland Employment Action Plan26 sets out from structural change in employment. The people, and seeks to ensure that there is ‘equal, how barriers to employment which disabled CESAP will take a proactive approach to help fair and proportionate access to employment people face will be addressed, and how the meet the needs of growing sectors alongside and representation at all levels, grades and employment gap will be reduced (by at least measures to redeploy workers from declining occupation types in Scotland’s workforce’ for half) by 2038 and the transition to net zero sectors. Opportunities for retraining through a the BAME population29. These ambitions also presents opportunities to put this into practice. National Transition Training Fund (NTTF) should apply to the transition to net zero, with the be identified for displaced workers from carbon CESAP playing an important role in ensuring Displaced Workers intensive industries, while Partnership Action fair access to and progression as part of the In areas of substantial labour market change for Continuing Employment (PACE) will also labour market opportunities flowing from driven by the transition to net zero, some play a key role in support to individuals and the transition. Addressing representation of jobs are expected to grow while others businesses. ethnic minority individuals in industries such as energy and manufacturing not only forms part are expected to decline. There is a need Ethnic Minority Individuals to manage this transition for workers who of a just approach but would also broaden the are displaced, mitigating risks and enabling There is very little evidence to date on the labour supply into these sectors in the face of access to opportunities. There are some clear impact of a transition to net zero on those anticipated increases in demand. opportunities for redeployment of labour, with from Black, Asian, and Minority Ethnic (BAME) only minor upskilling or reskilling necessary. backgrounds. However, BAME individuals are Gender For instance, with falling employment levels underrepresented in four of the five sectors key Women are more likely to have lost their job in oil and gas, the energy sector has been to Scotland’s transition to a net zero economy. or had their hours cut due to the COVID-19 redeploying available skills in renewable energy Additionally, Scottish Government’s Expert pandemic than men, but the new jobs created and the core competencies and experience in Reference Group on COVID-19 and Ethnicity by a green recovery package are likely to be large scale infrastructure schemes and in safety has found that people from ethnic minority disproportionately based in male-dominated critical environments allow a relatively smooth groups have been disproportionately impacted industries, such as construction (85 per cent 27. However, transfer to renewable energy by COVID-19, with their concentration in low- men) and manufacturing (71 per cent men)30. redeployment will not be as straightforward paid work, or work that cannot be done from Many women face additional barriers to for all displaced workers. It is important to home, resulting in higher exposures to both accessing training opportunities as a result 28 provide targeted support to these individuals, health and employment risks . Scotland’s of inflexible working patterns, childcare the communities in which these declining Race Equality Framework and Action Plan responsibilities and their concentration in industries are based, and the sections of the highlights the labour market, workplace, and low-paid and part-time work31. population most likely to face new challenges income inequalities faced by ethnic minority

26 Scottish Government (2018) Fairer Scotland Employment Action Plan 28 Public Health England (2020) Beyond the Data: Understanding the Impact of COVID-19 on 30 CEP (2020) A CEP COVID-19 Analysis - Jobs for a Strong and Sustainable Recovery from COVID-19, 27 Energy and Utilities Skills Partnership (2017) Many Skills One Vision: Energy and Utilities BAME Groups, Scottish Government (2020) Expert Reference Group On COVID-19 And Ethnicity: Close the Gap (2020) Disproportionate Disruption: The Impact of COVID-19 on Women’s Labour Workforce Renewal and Skills Strategy: 2020 Initial Advice & Recommendations On Systemic Issues Market Equality, NOMIS Official Labour Market Statistics (2020) Workforce Jobs by Industry 29 Scottish Government (2017) A Fairer Scotland for All: Race Equality Action Plan and (June 2020) Highlight Report 2017-2021 31 House of Commons (2016) Women and Equalities Committee Gender Pay Gap 18 18 19 Without concerted efforts to support more Scotland’s cities are aiming to be agents of restoration. These skillsets place the rural women into areas key to a net zero economy change in delivering the transition to net zero. economy in a strong position to support this by encouraging employers to change their Achieving net zero by 2045 will require major transition and capitalise on the opportunities it recruitment and employment practices, as well investment in supporting the industries of a presents. as implement flexible working arrangements,, net zero future, such as renewable energy, to Yet the economies of cities, town and rural the transition may reinforce or even exacerbate grow and develop at a city level. It will also areas are intrinsically linked. Cities will continue labour market gender inequalities. However, require initiatives to develop supply chains to provide jobs, particularly high-skilled ones, to the transition also provides a prime opportunity in a ‘circular economy’ focused upon more town residents. Cities will also rely on their rural to address occupational segregation and, in local production, low waste and recycling. neighbours for access to labour and to house the process, narrow the gender pay gap. In line Connectivity – between but especially essential related low carbon economic activities with the Scottish Government’s Gender Pay within cities – will also have to change. and industries. Rural economies, on the other Gap Action Plan, the CESAP actions need to The comprehensive programme of activity hand, will in part rely on cities to provide the take account of the gender dimension to the identified by the Scottish Cities Alliance training and talent needed to take up the new transition, identifying and implementing tangible (SCA) in its Transition to Net Zero Action Plan, low carbon jobs established in more rural action to support women into the green jobs demonstrates the key contribution to be made areas. Both local and city region approaches which will be central to a future net zero by Scotland’s cities over the short, medium will therefore be critical to upskill and reskill the 32 economy . and longer term to the net zero agenda and workforce to benefit from the transition to net in turn, the requirements of cities for skills zero. A Focus on Place development and re-training. Moreover, A place-based approach is crucial to the several cities have indicated that they wish to Meaningful engagement with Highlands and effective development and implementation go further and achieve net zero ‘well before’ Islands Enterprise (HIE) and South of Scotland of the CESAP. The distinct characteristics of 204533. Enterprise (SOSE), the SCA, Scottish Enterprise local and regional economies mean that the (SE), Zero Waste Scotland and the Circular Scotland’s rural economy, on the other hand, transition to net zero will bring different local Economy Skills and Education Hub (CESEH) is uniquely well placed to take advantage of a opportunities and challenges, and therefore as well as other regional partners such as net zero transition due to its natural resources, variations in demand and supply of skills. colleges and local authorities, will be key to supply chain expertise, physical infrastructure, Consequently, a ‘one-size-fits-all’ approach for continuous understanding of the distinctly local and early track record in the energy transition. skills development will not work. opportunities and challenges that a net zero Many of the skillsets central to the net zero transition brings. transition already exist in the rural economy, for instance land management and peatland

32 NOMIS Official Labour Market Statistics (2020) Annual Population Survey (Regional): Ethnicity by Industry (June 2020) 33 For example, Edinburgh has set its target to 2030. See Edinburgh City Council (2020) Our Climate Target: Net Zero by 2030 19 3: Opportunities and Skills Implications

Identifying Areas of Opportunity Although set out as distinct areas, there is Sector-based Opportunities and significant cross-over in terms of activity, Building on the CESAP evidence base34 and Skills Implications in a Net Zero occupations and skillsets e.g. where reducing Transition broadly aligned to Scottish Government’s environmental impact in one sector relies on 35 Climate Change Plan , this chapter focuses the action of another and where there may on five broad areas of economic activity Energy Transition (Including oil and be significant movement of skilled workers gas, on and offshore wind, electricity, that can make a significant contribution to between sectors. achieving net zero transition, and also offer hydrogen and carbon capture and potential opportunities for jobs growth in the Whilst there is still much to be done in terms storage) short term. These five areas reflect national of tightening up definitions of the jobs that The energy sector in Scotland is a major priorities and investment, within the Scottish are central to the transition to net zero and employer and source of economic output. In Programme for Government, to reduce energy sectors in which they sit, it is possible to 2019, the sector had an estimated 74,600 jobs demand and GHG emissions and adapt to highlight several areas of opportunity being and generated over £8 billion GVA. Forecasts climate change and include: created and the likely skills implications that for the sector suggest continued falling flow from it. Focusing on these opportunities employment levels of 11 per cent between • energy transition (including oil and gas, on will ensure that Scotland has the people 2019 – 2029 (approx. 8,000 jobs), but rising and offshore wind, hydrogen, electricity, necessary to take advantage of new and productivity of 27 per cent over the same carbon capture and storage) emerging jobs, jobs affected by the transition, period36. The National Grid also estimates that • construction (including the retrofitting of and existing jobs needed in greater numbers the energy transition will drive the need for housing and non-residential properties) to support the transition. These opportunities almost 50,000 jobs in Scotland by 205037. • transport (including road transport, and skills implications are explored by broad railways, domestic aviation, shipping and area of activity, alongside a recognition of the Energy transition involves a shift from a aircraft support vehicles) importance of place in delivering net zero. reliance on fossil fuels for power and heat to • manufacturing (with a focus on The opportunities and skills implications set renewable and zero emissions energy sources engineering) out have been built up from analysis of the including solar, wind, hydrogen, hydro and research evidence base, consultations with wave power. It also includes efforts to reduce • agriculture and land use management expert stakeholders and engagement with and conserve energy use, through the design, (including forestry). industry skills groups. construction and retrofitting of buildings to minimise energy demand and waste. The transition to net zero will require an estimated four-fold increase in the levels of renewable energy deployed38.

34 Cambridge Policy Consultants (2020) Evidence base for a Climate Emergency Skills Action Plan 36 SDS (2019) Sector Skills Assessments – Energy. Note these figures underestimate the sector 37 National Grid (2020) Building the Net Zero Energy Workforce (Final Report) which is difficult to quantify using standard datasets which continue to rely largely on 38 Committee on Climate Change (2019) Net Zero Technical Report 35 Scottish Government (2020) Update to the Climate Change Plan 2018-2032 Standard Industrial Classification codes, which has no separate category for Renewables. The classification only covers direct employment so does not consider the wider supply chain (e.g. wind turbine manufacture). 20 21 The energy sector is at the forefront of ambitions but to create and protect jobs and and gas business into wider energy and other the shift to a net zero economy and there support sustainable economic recovery and sectors and significant growth in renewables. are significant opportunities for technical growth. Some of this Hydrogen production Most new roles in the sector will build on innovations that enable the decarbonisation, will be underpinned by Carbon Capture and existing skillsets from oil and gas, industrial at scale, of high emitting sectors39. Over the Storage and relies upon advancement in this research, manufacturing, and civil engineering. last decade there has been a major shift in complementary technology. the consumption of electricity in Scotland, with 76 per cent of electricity consumption Meanwhile, as oil and gas production in in 2018 coming from renewable sources40. the United Kingdom Continental Shelf This has contributed to displacing fossil fuels (UKCS) is expected to decline, coupled with and in turn reduced emissions by some 12.9 technological advancements, it is anticipated million tonnes of CO2 in 2018. The Scottish there will be fewer workers required offshore, Government’s Energy Strategy, due to be therefore workers with transferable skills updated in Spring 2021, has the development will be available to transition to other energy of smart, innovative local energy systems as a industries42. It is worth noting that even in the priority and there are a number of projects for most rapid transition scenario, oil and gas will integrated energy systems being considered still provide 45% of global energy needs in through the Low Carbon Infrastructure 2040 and that a thriving UK supply chain will Transition Programme41. The oil and gas be crucial in ensuring net-zero ambitions are industry is a significant component of our achieved. The electricity grid infrastructure economy and part of our energy mix, with investment, which will be required to transmit Scotland’s Energy Strategy already identifying the additional renewable power will also a crucial role for the sector in the energy offer employment opportunities. Growing transition that is required to move to an investment and innovation in the energy economy and society that generates net zero sector is expected to result in increased greenhouse gas emissions. demand for labour and skills, with rising pressure for adapted and new skills at all The production of sustainable hydrogen for levels. While the sector’s overall share of use in homes and industry – as well as for Scotland’s total employment is set to decline export – presents a major opportunity for slightly in the next decade, there will be Scotland. not only to support our net-zero accelerated diversification of traditional oil

39 Scottish Government (2018) Climate Change Plan; Committee on Climate Change (2019) 42 The Oil & Gas Technology Centre (2020) Closing the Gap: Technology for a Net Zero North Sea Net Zero: The UK’s Contribution to Stopping Global Warming 40 See: https://www.scottishrenewables.com/our-industry/statistics 41 Scottish Government (2020) Low Carbon Infrastructure Transition Programme 21 Skills Implications • Short, flexible, training interventions • Reskilling in relatively low numbers and transition training will aid the should meet demand for carbon storage • There is a need to better understand redeployment of these workers particularly technicians, fuel cell technicians, and and quantify the demand for skills to in areas such as infrastructure installation hydrogen production researchers in line support the transition to net zero in the and servicing. with use of hydrogen and CCUS. This is energy transition, particularly in relation due to the transferability of core skills from to timelines and timing for transferability • Vital to renewable energy are core extractive, energy, and chemical sectors of skills. Sectoral research is already competencies and experience in large into these emerging areas of activity45. underway, for example through the Energy scale infrastructure schemes and in safety • Implications of a significant increase Skills Alliance and the Scottish Offshore critical environments, plus specific skills in in the use of hydrogen and CCUS Wind Energy Council’s Skills Group, but gas engineering and operations and power are still unclear, but stakeholders understanding the timing of demand grid management43. in areas such as hydrogen and carbon expect heightened demand for labour capture, utilisation, and storage (CCUS) will • Reframing of skills and work practices and technical skills in the collection, be crucial to mitigate risks of a time lag on to contribute to the decarbonisation treatment, transport and storage of waste demand for skills and those who become efforts of oil and gas sector, as well as to gas, and a need for repurposing oil and displaced from the sector. the renewables sector44. This reframing gas platforms and engineering of pipelines. • The transferability of skills across will also be required for technical and • Discussions with stakeholders indicate a occupations and industries provides higher-level occupations including growing demand across the sector for a strong foundation for employees to instrumentation and control, design, data and digital skills, as well as specific transition from high to low carbon energy chemical, commissioning, civil and demand for data scientists and analysts. production. The re-deployment, and electrical engineering, as well as initiatives to support recruitment and retention of where necessary re-training, of oil and gas • Stakeholders perceive the need to better apprentices and graduates. workers will be key to service replacement educate and communicate the wider demand over the next decade and to meet opportunities that the energy transition the labour and skills needs of a growing can bring to the existing workforce. renewables sector.

43 Energy and Utilities Skills Partnership (2017) Many Skills One Vision 44 Oil and Gas Authority (OGA). (2020) OGA unveils strategy to support net zero 45 Carbon Capture and Storage Association (2014) The economic benefits of carbon capture and storage in UK 22 Construction (including retrofitting Scotland will need to deliver at least 28,000 heating systems. Decarbonising heating of housing and non-residential new homes per year to 203549. involves improvements to thermal efficiency, properties) By 2030, we need to see a reduction in for example improved insulation and the use of low carbon heating sources such as heat The construction sector is a large employer emissions from housing of around 70 per pumps and heat networks. New technologies in Scotland, with 233,800 jobs in 2019 and an cent and from non-domestic buildings of and approaches will continue to involve as economic output of £11.1 billion GVA. Although around 60 per cent compared to today. This options are explored and developed, for the sector has experienced a recent fall in will require significant improvement in the example role of hydrogen in heating is being employment levels as a result of the COVID energy efficiency of Scotland’s building stock, explored. Adapting to innovation will be pandemic and faces further uncertainty in as well as rapid and accelerating roll out of central to the sector and will also drive the the short-term, forecasts suggest growth zero emissions heating technologies (such as need for focused upskilling. of around 10 per cent to 256,600 jobs by heat pumps, heat networks and potentially 2029 and a rise in output to £12.9 billion46. hydrogen). While these targets provide many The construction sector is also Scotland’s opportunities, there remains a significant biggest user of natural resources, consuming challenge given the age, building type and approximately half of all resources used materials used, particularly in cities, that annually, with construction and demolition can be difficult and expensive to improve. work also responsible for nearly half of all Switching to more responsible consumption Scotland’s waste annually47. through adopting more circular ways of building will significantly reduce Scotland’s Improving the energy efficiency of residential emissions from the use of resources and the and non-residential buildings is essential to waste of materials. There are also similar realising the net zero target and Scotland opportunities and challenges in relation to has set out ambitious targets to improve, heating systems, with investment in heat design, build and retrofit residential and networks, hydrogen demonstration, and mass commercial buildings48. Transforming how deployment of heat pumps. we heat our buildings and make them more energy efficient, both new and existing, will To achieve our buildings decarbonisation be essential moving forward. With population targets, the sector needs to adapt building growth and increasing numbers of single design, construction methods and materials person households, it is estimated that for new and existing buildings, improve thermal efficiency and move to zero emissions

46 SDS (2019) Sector Skills Assessment: Construction 48 Scottish Government (2017) Energy Strategy – Scotland’s Energy Efficiency Programme (SEEP). 47 Scottish Environment Protection Agency (2020). Waste from all sources: summary document 49 Scottish Parliament (2019) New Housing and Future Construction Skills. and commentary text

23 Skills Implications professional, technical and craft roles, • There is an ageing workforce with a third as well as data and smart systems skills of construction workers aged 50+, and an • Meeting Climate Emergency targets for delivering energy management in estimated 50,000 construction workers require radical change and transformation buildings services. retiring by 2029. at pace. There is need to address calls for a ‘step-change’ from the Climate Change • Upskilling of existing roles and adaption The sector faces labour shortages with an Committee (CCC) in the development of of training will be needed across new estimated need for 79,100 construction low carbon skills in construction50. build and retrofit to embed best practice workers by 2029. For many of these roles the • There is an anticipated increased and ensure performance gaps are main entry route is through apprenticeships, demand for professional level skills for addressed. some of which take four years. Sufficient jobs in planning, design, surveying and employment opportunities are essential to management and the deployment of • Growing demand for a wide range of support this entry route. These shortages will nature-based solutions. Digital Construction skills including likely be exacerbated by Brexit through a increased adoption of Building combination of sector growth and the return • Embedding of the Energy Efficiency Information Modelling (BIM) systems. migration of EU workers. Skills Matrix that sets out requirements for installers, designers and retrofit • Leadership skills to support cultural coordinators that links with MCS, PAS 2030 change and change management as new and PAS 2035 standards. The college technologies, behaviours and systems will network is currently developing additional need embedded. provision to meet anticipated demand for upskilling. • There is a need to demonstrate competence and recognise adaptability • There will be a requirement for the and transferability of skills across the development of specialist knowledge sector, for instance through a ‘skills and skills round retrofit, zero emissions passport’ scheme51. heating systems and heat networks for

50 Committee on Climate Change (2019) UK housing: Fit for the future?; National Federation of Builders (2019) Transforming Construction for a Low Carbon Future 51 ECITB (2020) Skills Transferability Report

24 Manufacturing (with a focus on The drive towards net zero coincides engineering) with longer-term structural changes in manufacturing that have resulted in falling Manufacturing largely sits within the employment levels but rises in productivity engineering sector in Scotland, which is a and demand for higher-level skills. The major employer and a key stakeholder in introduction of automated manufacturing delivering the net zero target. Engineering processes aligns with the use of technology accounts for 159,100 jobs, an economic output to reduce emissions, waste, and the of £9.8 billion and is an important contributor management of energy use. to international trade52. The engineering sector is expected to make a significant contribution towards the transition to net zero, with the Scottish Government planning a fall of 21 per cent in industrial emissions between 2018 and 203253.

Change for the sector will come with the introduction of technological innovations that reduce waste and improve the capture of emissions, and through lowering energy loss in manufacturing processes. As countries across the world begin to institute more stringent legislative requirements to encourage the consumption of low-carbon goods and to improve the management of resources, opportunities for Scottish manufacturing lie in both the design and production of goods for the environmental market and responding to the wider consumer demands for such products in Scotland and abroad.

52 SDS (2019) Sector Skills Assessment – Engineering 53 Scottish Government (2018) Climate Change Plan: Third Report on Proposals and Policies 2018 – 32

25 Skills Implications • However, upskilling initiatives must be accessible to SMEs, who make up 97 • Rising demand for intermediate per cent of manufacturing businesses in and higher-level skills, managerial, Scotland. professional, and technical roles, associated with a focus on energy • Sustainable engineering and efficiency and low carbon. manufacturing processes should be embedded as a core skillset in further • Data and digital skills to become central and higher education engineering to more automated manufacturing curriculums and Scottish Apprenticeships processes, requiring work-based upskilling to instil the fundamental principles of and reskilling of the existing workforce. sustainability in entrants to the sector and • Increased need for design, analytical communicate its importance to the future and technical skills in new manufacturing net zero economy. processes (eco-design) and • The National Manufacturing Institute remanufacturing processes to support Scotland (NMIS) will support businesses to the circular economy, as well as quality define their skills needs and support the controllers, with an emphasis on transition to net zero, as well as providing dismantling products, testing component training and professional development parts and restoring products to a ‘good- courses to help both managers and as-new’ status. technical staff to understand the • Resilience and adaptability in the face implications and applications of advanced of technological change will be crucial manufacturing. A Manufacturing Skills for manufacturing to make the most of Academy will be established to develop opportunities flowing from the net zero a catalogue of advanced manufacturing transition. Upskilling will be key, with modules. This will support skills most of the core skillsets required for the development and help drive efficiency transition already present in the workforce. and productivity across manufacturing and other industrial sectors54.

54 NIMS (2020) Continuous Professional Development

26 27 Transport (including road transport, With significant opportunity for technical railways, domestic aviation, shipping innovation, design of low carbon transport and aircraft support vehicles) products and an international market for knowledge and expertise, decarbonising The transport sector employs around 109,000 transport has the potential to contribute people. Over the last decade, employment substantially to economic growth especially levels in transport have risen marginally in the areas of batteries, hydrogen for in tandem with a movement towards low transport and zero emissions rail. With emission vehicles as part of the commitment these opportunities come a range of skills to reducing environmental impact55. implications for transport as part of the transition to net zero. Transport is the highest emitter of GHG, responsible for approximately 28 per cent of UK GHG emissions in 201856. Figures indicate that emissions from Heavy Duty Vehicles (HDV) are set to rise over the coming years57. The Scottish Government has prioritised reducing the environmental impact of transport, setting a target to lower emissions by 37 per cent in the sector between 2018 and 203258. Ambitions for transport, such as those to replace petrol and diesel vehicles with electric vehicles, rely on a large-scale change in the behaviours of businesses and households and major investment in infrastructure. Similarly, there are also ambitions to decarbonise passenger railways and domestic flights, and to develop and use renewable fuel for ferries and shipping59.

55 ONS (2018) Business Register and Employment Survey 58 Scottish Government (2018) Climate Change Plan: Third Report on Proposals and 56 BEIS (2020) 2018 UK Greenhouse Gas Emissions Policies 2018 – 32 57 Scottish Government (2020) National Transport Strategy 59 Scottish Government (2020) National Transport Strategy 27 Skills Implications • Railway electrification and the • Supporting ultra-low emission vehicles introduction of new technologies will (ULEV) uptake may require over stimulate demand in both professional 65,000 people to undertake training and technical roles including electrical in maintenance, installation and sales, engineers, hybrid technology engineers, as well as the emergency and roadside sensor technicians and rail technicians assistance, and repair of vehicles and with expertise in signalling and control network points in order to provide systems. full coverage of skills needed for the • Investment in eco-driving skills has the expansion of hybrid and electric vehicle potential to save £300 million in fuel use and their networks in Scotland60. costs and 3 million tonnes of emissions 61 • This will drive demand for short training over a 5-year period across the UK . courses to reskill electricians and • Stakeholders view that sector mechanics. attractiveness must be improved for • A key requirement of efforts to reduce young and new entrants, so enhancing emissions from HDVs is to baseline the careers information and providing clearer skills in Scotland required to transition pathways into careers in sustainable 62 from traditional fossil-fuel based engines transport are key challenges . to low carbon HDVs. The baselining exercise will inform our understanding of the extent to which Scotland has, or is developing, the skills necessary to support the transition to low carbon HDVs.

60 Optimat (2020) Ultra-Low Emission Vehicle Skills Baselining Study. Report for Transport 62 DoT (2016) Transport Infrastructure Skills Strategy Scotland and Skills Development Scotland 61 UK Government (2010) Department of Energy and Climate Change: Meeting the Low Carbon Skills Challenge 28 29 Agriculture and Land Use creation to 18,000 hectares a year by 2024 These opportunities as part of the transition, and to restore 250,000 hectares of degraded however, also provide challenges around Agriculture and land use make a dual 65 contribution to the net zero target. The peatlands by 2030 . Across the land use the management of livestock and boosting sector, awareness of the importance of the renewable energy production and use, sector has the opportunity to reduce GHG 67 emissions from agriculture, while also climate emergency to agriculture and land including bioenergy . increasing the levels of carbon dioxide bring management is growing. The establishment absorbed through peatland restoration. Sector of an independent inquiry of farming and measures can help to enhance and protect climate change, known as Farming for 1.5 biodiversity, as well as contributing towards degree (jointly set up by the NFUS and flood mitigation and climate adaptation. Nourish Scotland), as well as the Advisory Agriculture and land use are therefore vitally Panel to drive the National Farmers’ Union important to Scotland’s net zero targets. (NFU) response, demonstrates commitment Taking a broader sector definition of food and to being an industry leader in tackling climate drink that includes crop and animal production change. This will support NFU Scotland in and fishing with value chain manufacture of its work to ensure that Scottish agriculture food and beverages, the sector employed can remain vibrant, profitable and productive an estimated 94,800 in 2019 and generates while delivering benefits for the climate and economic output of £5.9 billion (GVA)63. The biodiversity. sector is forecast to experience falling levels These targets underline the need for a of employment, some 5 per cent (4,600 jobs) transformation in agricultural and land use by 2029, but rising levels of productivity of 17 practices, which the CCC estimates needs per cent over the same period. a fifth of UK agricultural land to shift to Scotland’s agricultural and related land use alternative uses that support emissions represent the second largest source of net reduction, including low carbon farming emissions after transport, although forestry opportunities in schools, afforestation, biomass production and peatland makes a net contribution to reducing carbon 66 emissions64. The Climate Change Plan restoration . The generation of green energy update sets a target of 24 per cent emissions to replace fossil fuels, potentially producing reduction from agriculture over 2020-2032 additional energy for sale back into the grid, and sets a target to increase annual woodland creates additional income avenues for farms.

63 SDS (2019) Sector Skills Assessment – Food and Drink 65 Scottish Government (2020) - Climate Change Plan: Update 67 National Farmers Union (2019) Achieving Net Zero: Farming’s 2040 Goal 64 Scottish Government (2019) Scottish Greenhouse Gas Emissions 2017 66 Committee on Climate Change (2019) Net Zero: The UK’s Contribution to Stopping Global Warming 29 Skills Implications • Stakeholder engagements indicate • Changing demand and an ageing that upskilling and reskilling the workforce heighten the need to refresh • Structural change is being driven by the workforce to address the challenges and careers information and pathways pursuit of sustainable agricultural practices opportunities presented regionally by into the sector which reflect both future and rising levels of manufacturing the transition to net zero will be critical, technical requirements and the scope technology introduced into food which is a challenge in a sector that for the sector to contribute significantly 68 production . This change is reflected in that is predominantly made up of micro- towards addressing climate change. This demand for higher-level skills in business businesses. is particularly important in the context of and commercial management to respond a sector with fewer formal qualification 69 to changing markets , as well as in • An ageing and heavily male-dominated pathways and upskilling opportunities. current skills shortages of engineers, workforce in agriculture and land use food scientists/technologists and, at an requires the replacement of retiring intermediate level, dairy farmers. older workers alongside increasing the attractiveness of the sector to a broader • Managing change to low carbon and demographic, with some 45.1 per cent regenerative farming will require of workers in agriculture and fishing over important management and technical the age of 50 years – significantly higher competences. Farmers and agricultural than the average for all of Scotland (33 per managers need the skills to undertake cent). or commission technical tasks required to reduce emissions. This will create • Raising Awareness of GHG emissions and additional demand at intermediate the skills required for their reduction is level requiring updated level 3 and 4 vitally important to ensure a sector wide qualifications. contribution to the net-zero target. Such a ‘culture change’ in Scottish agriculture • Precision farming aligned to changes will form part of a ‘transformation pathway’ in equipment and machinery will see an through which the sector can support increasing demand for digital skills and the transition to net zero, as outlined by ongoing professional development. the independent inquiry on farming and climate change in Scotland70.

68 SDS (2019) Sector Skills Assessment – Food and Drink 69 Scottish Government (2018) A Future for Scottish Agriculture 70 Independent Inquiry on Farming and Climate Change in Scotland (2020) Farming for 1.5: A Transformation Pathway 30 31 Place-based Opportunities, • Advice for businesses and households • Scotland’s urban areas have an enviable Challenges and Skills in a Net Zero to improve resource efficiency, reduce skills base, trusted institutions, strong Transition energy costs and develop more infrastructure, and an increasing sense sustainable business practices - whilst of ‘place’ in which it is attractive to live A focus on place will be important to perhaps a more indirect approach - will, in. The majority of Scotland’s universities supporting a just transition to a net zero over time, help to deliver the step-change and colleges are in urban settings, economy for all of Scotland’s communities. in behaviours that are required. especially in cities and are the major Each city, town and rural area faces a range source of graduates with the potential to • The most significant challenge in of different skills challenges and has a contribute significantly to the transition terms of tackling transport emissions different combination of assets with which to to net zero if they can be retained by the comes from the most urbanised areas, respond to the opportunities presented by mix of employment, social and leisure with the Scottish Government Climate the transition to net zero. This underlines the opportunities on offer. Emergency Response Group (CERG) clear benefit in strengthening linkages and asking each of Scotland’s city centres to networks across Scotland to allow for the • This will be particularly important because be vehicle emission free by 2030. The sharing of learning and best practice across Scotland’s cities are not immune from the work of organisations including the SCA, businesses, individuals, and place-based implications of Brexit. Net migration to Scotland’s Towns Partnership (STP), and Scotland has meant an inflow of skills and organisations. Scotland’s Regeneration Forum (SURF) working age migrants in Scottish cities in Urban Areas mean that Scotland’s urban areas are recent years. well-positioned to mitigate challenges and • The majority of Scotland’s GHG emissions capitalise upon opportunities stemming come from our urban local authorities from the net-zero transition. The SCA has where most people, housing, transport set out key developments required to and vehicles, and business facilities are support the transition to net zero, including located71. For urban areas, the transition growth in low-carbon heating, non- to net zero presents a combination of domestic energy efficiency and low carbon opportunities and challenges, particularly power generation in city assets, transport, in relation to addressing the issues of and waste. These align closely to the transport, the built environment, the CESAP and will help to deliver a cohesive generation and distribution of power and place-based approach. the disposal of waste.

71 UK Government (2020) UK local authority and regional carbon dioxide emissions national statistics: 2005 to 2018

31 Rural Areas shore renewables, food and drink • Whilst rural areas provide a smaller volume • The rural economy is poised to play an through an increased demand for local of graduates than their urban counterparts, important role in the transition to net zero. food, eco-tourism, nature based solutions rural universities and colleges across to flood risk and coastal management, rural Scotland have a central role to play • In rural areas of Scotland, recent years low carbon transport driven by innovative in their localities and many producing have seen a significant diversification local solutions and construction through graduates with a range of specialist of the ‘rural economy’, building on zero carbon construction projects and skills to support the transition to net zero traditional land-based sectors to the installation of renewable energy and that will enable individuals to secure encompass a broader range of activity, insulation products. emerging opportunities, for example, in including tourism, food and drink, the environmental management. creative industries, aquaculture and • There will also be opportunities flowing marine, and importantly, energy and from biomass and biofuels usage, renewables. The Skills Action Plan for from improved woodland creation Rural Scotland72 sets out the key issues and management, encouraging the and priority actions to ensure that development of renewable energy and employers have access to the skilled developing the supporting infrastructure to workforce that they need and that facilitate this. individuals can maximise the opportunities • Emerging research commissioned by in their locality. NatureScot highlights challenges around • Scotland’s rural areas help counter skills development across various land- national GHG emissions and can make a based sectors; recruitment difficulties significant impact through the planting faced within forestry, challenges of trees, peatland restoration, and the associated with a declining working age generation and adoption of renewable population in areas where nature-based energy. jobs offer significant opportunities and a reliance upon migrant labour likely to be • There are also likely to be opportunities adversely impacted by both COVID-19 and in rural areas in terms of agricultural a post-Brexit UK immigration system. diversification, the expansion of on and off-

72 SDS (2019). Skills Action Plan for Rural Scotland

32 33 Shaping Skills Priorities Chapter 3 has laid the foundations for This chapter has presented the unique action and work is already underway across contexts of the sectors which are key to Scotland’s sectors and regions to mitigate supporting the transition to a net zero the challenges and capitalise upon the economy and the distinct, but frequently opportunities presented here. Chapter 4 overlapping, opportunities and challenges. identifies the priority areas for skills actions, setting out some of the current activity This analysis provides useful insight, but associated with a transition to net zero and collaborative and sustained action is required highlighting the areas for future focus. to further understand the skills needed to support Scotland’s transition to net zero. This provides a basis on which to take immediate action to support the development of our current and future workforces, and this greater understanding will sustain targeted, evidence- based programmes and interventions in the months and years to come. While many will benefit from the transition, there is a need to manage the transition for those workers and communities likely to face challenges to accessing the opportunities. It is more important than ever that Scotland’s skills system is agile and responsive to changes in demand flowing from the ongoing transition to net zero. Collaboration with partners from across the enterprise and skills system will ensure that we can efficiently and effectively respond to the needs of businesses, individuals, and communities across Scotland.

33 4: Priority Areas for Skills Action to Support the Transition to Net Zero

Identifying Areas of Opportunity • The scale and pace of change needed • Key to our transition to net zero is a ‘Just Developing Scotland’s skills base and across all sectors will demand a significant Transition’ that ensures that everyone capitalising on the job opportunities realignment of our investment in benefits from new opportunities. It will be flowing from the transition to net zero for education, training and work-based important to mitigate potential risks and all of Scotland’s individuals, employers and learning towards green jobs. We will provide targeted support to communities communities will be key to achieving a just commission SDS and SFC, through their and parts of the population who are most transition. The CESAP focuses specifically joint Skills Alignment Team, to ensure that likely to lose out from structural changes on skills related activity that will need to that our annual investment in skills through in employment. This will be particularly be undertaken by individuals, employers, work-based learning, further and higher important in areas where jobs are education and the skills system to maximise education and upskilling and reskilling declining, and where there are growing the benefits from the transition to net-zero. is fully aligned behind our economic levels of insecure work. Our investment in Development of the plan has been mindful of ambitions for a net-zero transition. We will the Green Jobs Workforce Academy will, the following: also establish a Green Jobs Skills Hub alongside targeted activity to address that will cascade intelligence into the labour market inequalities, play a key role • The transition to net zero will take place skills system on the numbers and types in supporting a Just Transition. over the next 25 years, but there is also a of green jobs that will be needed over the • The skills investment required to support compelling need to act now. The CESAP next 25 years. focuses on both immediate action as well the transition to net zero will be driven as the longer-term systemic change that • The transition to net zero will require by the wider change and investment will need to take place by 2045. Building behaviour change by both employers and that will take place in the economy. on the lessons of the National Transition individuals. The CESAP takes a broader The stimulation of that demand will be Training Fund established in response to view than traditional approaches to skills driven by employers, by National and COVID, we will establish a Green Jobs investment planning and considers the Local Government and by the Enterprise Workforce Academy. The Academy will wider educational changes that will need agencies. The CESAP complements the support existing employees, and those to take place across society and the public, demand created in the Programme for who are facing redundancy, to assess their private and third sectors. The Green Government 2020/21 and Climate Change existing skills and undertake the necessary Jobs Skills Hub will play a central role in Update Plan. We will establish a Climate upskilling and reskilling they need to raising awareness amongst employers Emergency Economic & Investment secure green job opportunities as they and individuals of the need for behaviour Leadership Group to provide leadership, emerge. change, and support them to take action oversight & drive the alignment of skills to drive behaviour change and develop the investment with our national economic leadership and management skills that will ambition. be required for a net zero future.

34 35 Analysis of the evidence base and the skills Priority Area 1: Supporting a This priority area identifies the collective implications for each of the sectors key to the green labour market recovery from action that will be taken to support a green transition to net zero, set out in Chapter 3 of COVID-19 labour market recovery and capitalise on this this report, and work with the CESAP Expert demand, including: Group, has identified six priority areas for The Programme for Government 2020/21, action, each with a skills focus: delivered in the context of COVID-19, set out • targeted investment to support the a ‘national mission to help create new jobs, creation of jobs in sectors central to the 1. Supporting a green labour market good jobs and green jobs’ to set Scotland transition to net zero recovery from COVID-19 on the pathway to a green recovery. This • providing support to those facing 2. Building better understanding and was supported by a significant programme redundancy in sectors facing job losses evidence of future skills needs to support of investment to drive demand in key net Scotland’s transition to net zero zero markets that can create and sustain • ensuring there are collective regional green jobs, and many sectors are developing responses to the labour market challenges 3. Developing the future workforce for the recovery plans with clear links to a green – and opportunities – as a result of the transition to net zero recovery, for example, the Manufacturing COVID-19 pandemic. 4. Driving awareness and action to support Recovery Plan. reskilling and upskilling for the transition to net zero The impact of the pandemic has played out differently across different regions and 5. Ensuring fairness and inclusion in the a place-based response will be critical to skills system as part of a just transition to prevent spatial inequality from deepening. net zero Targeted support will also be required for 6. Taking a collaborative approach to ensure different groups within the labour market a skills system responsive to changing including workers that that have been made demands. redundant, workers at risk of losing their jobs, workers that need upskilling in their current organisation, workers in low skilled, low paid jobs, new labour market entrants and the unemployed who are seeking work.

35 Priority Area 1: Supporting a green labour market recovery from COVID-19

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Target investment to Programme for Government set out £1.6 billion The Climate Change Plan Update sets out a route Scottish Government Immediate/Ongoing support the creation of jobs capital investment over the next Parliament to drive map to meet the climate change targets over the in sectors central to the demand in key net zero markets such as buildings, coming decade. This will drive the timing of further (Enterprise Agencies, transition to net zero transport, natural environment and industry opportunities for green job development Industry, Skills, Standards and Qualification Bodies, Funding also included £100 million Green Jobs Fund This includes further investments from the Low Carbon Colleges, Local Authorities, to help businesses create new, green jobs Fund for transformational net zero projects over the next Third Sector, Zero Waste five years Scotland, NatureScot) Access to these good, green jobs will be supported by recovery skills programmes including the National The Scottish Government will also publish a Capital Transition Training Fund, Young Person’s Guarantee, Investment Plan next year focussed on mobilising more Fair Start Scotland and No One Left Behind capital investment in Scotland as well as delivering the Inward Investment Plan’s focus on attracting investment into the energy transition and low carbon transportation amongst other areas of Scotland’s strengths

Provide support to those Supporting workers facing the prospect of Enhance the PACE offering with digital upskilling to help SDS, PACE Groups, Local Immediate/Ongoing facing redundancy and displacement through access to impartial PACE minimise displacement of workers, building on existing Authorities displacement advisers who can help them recognise their skills and resources to develop data and digital skills modules redeployment options which can be integrated into existing skills support

Safeguard apprentices against displacement through Continue to support apprentices through Adopt SDS, Local Authorities Immediate/Ongoing the Young Persons Guarantee, which includes the an Apprentice and local authorities to allow them Adopt an Apprentice programme and local partner to complete their apprenticeship and consider support, helping Modern and Graduate Apprentices opportunities to transition into green jobs who are facing redundancy get back into work

The Apprentice Transition Plan helps redundant apprentices to complete their apprenticeship, gain certification and identify any training needs to allow them to continue their career journey

36 37 Priority Area 1: Supporting a green labour market recovery from COVID-19

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Ensure collective regional Undertaken a programme of collaborative work Work with partners across Regional Economic Part- SDS, SFC, Regional Colleges, Immediate/Ongoing responses to support the with colleges to develop a coherent skills response nerships to support regional opportunities to address Local Authorities (and their green recovery to COVID-19, including the identification of a green recovery from a skills perspective, e.g. Halo local partners including the opportunities for a green recovery in their regions Kilmarnock third sector), and Regional Economic Partnerships

The Scottish Cities Alliance partners have recently To support the delivery of priority activity in the Scottish Cities Alliance Immediate/Ongoing approved a Transition to Net Zero Carbon Action Plan. Transition to Net Zero Carbon Action Plan the Scottish partners/national agencies The Action Plan was co-designed by the 7 Scottish cities will work closely with the Scottish Government cities, Scottish Government and national agencies and national agencies over the next period to develop an and sets out how they will work collaboratively to investment and funding strategy which underpins the ensure the Scottish cities cumulatively play their part Action Plan in meeting the 2045 carbon reduction targets whilst maximising economic and well-being outcomes across the cities

37 This priority area identifies the key actions Priority Area 2: Building better which will ensure that current and future skills understanding and evidence of future investment in support of net zero is strongly skills needs to support Scotland’s evidence based, including: transition to net zero • strengthening the evidence base on cur- The transition to a net zero economy will have rent and future demand for skills for net fundamental implications for skills demand zero over the next 25 years and it will be essential • clearly articulating emerging skills needs to to have a robust and trusted evidence base on the skills system through the creation of a which to guide future action and to ensure the Green Jobs Skills Hub skills system across Scotland can respond to changing demand. • understanding current skills provision to support the transition to net zero across SDS and SFC already work closely with education, training and work-based learn- industry and employer bodies to gather a wide ing range of evidence on skills needs and future • understanding the supply of people with labour market demand, as well as gathering skills to support the transition to net zero. data on skills provision and outcomes.

To ensure that the skills system responds in an effective and timely way to the opportunities presented by net zero, greater collaboration and information sharing will be key.

38 39 Priority Area 2: Building better understanding and evidence of future skills needs to support Scotland’s transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Strengthening the evidence The Evidence Base for a CESAP73 sets out broad skills Ongoing research and analysis to keep pace in a fast- SDS From April 2021 base on the current and demand across the sectors critical to a net-zero moving operating environment including future demand for skills to transition, whilst highlighting the challenges of support the transition to net definitions and the need for a just transition • a six monthly Labour Market and Skills Assessment zero to support the transition to net zero A portfolio of evidence base work is currently • better understanding of the financial investment in underway to better understand the nature and scale net zero economic activity, the financial investment of wider interrelated skills challenges and serve as in green skills and its return in terms of new jobs preparation for more specific propositions for delivery including: • High level skills provision mapping • Research on the role of meta skills in shaping a green recovery • Focussed research on digital and data skills • Focussed research on construction

Communicating and The Circular Economy Skills and Education Establish a Green Jobs Skills Hub to provide leadership, SDS, Zero Waste Scotland June 2021 articulating evidence on Hub influences the skills policy agenda, to influence and guidance in developing the required changing skills requirements provide thought leadership and opportunities knowledge, skills, standards, behaviours, attitudes and to employers, skills providers for collaboration around CE skills, learning and education to support the transition to net zero by and educational institutions education and to provide tangible resources to enable • articulating to training and education providers the Scotland to maximise the opportunities presented by evidence and research base that should inform skills the transition towards a Circular Economy and education requirements • providing a consistent and collaborative approach to implementing skills change nationally across existing platforms and linking to wider initiatives, • demonstrating and stimulating demand for the required skills through business service delivery

Developed a working definition of green jobs as a Use the established classification of green jobs SDS Spring 2021 framework to understand employer skills demands to estimate the number and change over time by in terms of occupation to support the transition to net zero and (Strathclyde University. • new and emerging jobs that relate directly to the assess against identified sectoral opportunities in across Institute of Employment transition to net zero Scotland and its regions 74 University of Warwick) • jobs affected by the transition to net zero that will need enhanced skills or competencies • existing jobs that will be needed in greater numbers as the result of the transition to net zero

73 Cambridge Policy Consultants (2020) Evidence base for a Climate Emergency Skills Action Plan (Final Report) 74 Dierdorff, E; Norton, J ; Drewes, D; Kroustalis, C; Rivken, D; Lewis, P. (2009). Greening of the World of Work: Implications for O*NET®-SOC and New and Emerging Occupations 39 Priority Area 2: Building better understanding and evidence of future skills needs to support Scotland’s transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Understanding current skills Initial mapping of skills provision across colleges, Undertake gap analysis to identify and agree areas SDS, SFC March 2022 provision to support the universities and Scottish apprenticeships underway for better alignment to opportunities to support both transition to net zero due to report January 2021 education and work-based learning (Industry/Sector Skills Groups, Regional Colleges)

Understanding current Drawn on the Sector Skills Investment Plans and Develop a cross-sectoral approach to skills planning as SDS Immediate/Ongoing supply of people and skills Action Plans across sectors central to net-zero number of sectors in the drive to net-zero (and beyond) available to support the transition (oil and gas, energy, food and drink, are seeking the same skills set increasing competition transition to net zero engineering, construction and forestry) and engaged for the supply of skilled labour with existing sector skills groups to inform the CESAP Gather data disaggregated by age, disability, ethnicity, (Industry/Sector Skills Immediate/Ongoing and gender for all programmes developed as part of the Groups, Sector bodies) action plan to ensure effective evaluation of outcomes for these respective groups

Drawn on wider sectoral and sub-sectoral research Industry/Sector Skills Immediate/Ongoing including: Groups

• Transport Scotland project to baseline the skills requirement for decarbonisation of the supply and operation of zero emission vehicles. • the skills planning work of the Scottish Offshore Wind Energy Council (SOWEC) Skills Group • work around Peatland Restoration

40 41 Priority Area 3: Developing the future This priority area sets out the collective action workforce for the transition to net to be taken to align provision behind the zero needs of the net zero transition and develop the future pipeline of talent to support the Ensuring the supply of a skilled workforce to transition to net zero. This involves a range deliver the transition to net zero and support a of activity that should create greater agility thriving net zero economy in future will need and flexibility in the skills system to respond to be a whole system effort, involving work- to opportunities in Scotland’s sectors and based learning, further and higher education regions as they emerge, including: and research and innovation. It will require action from national agencies, colleges and • the establishment of a Green Jobs universities, private and third sector skills Workforce Academy providers and employer and professional • commissioning the Joint Skills Alignment bodies. Team of SDS/SFC to ensure alignment with the green economic ambitions set out in the CESAP • developing new work-based learning pathways to capitalise on net-zero opportunities and maximising the uptake of apprenticeships in green jobs • aligning education and training opportunities in schools, colleges and universities to net-zero opportunities and maximising their uptake • building capacity for research and innovation to support the transition to net zero.

41 Priority Area 3: Developing the future workforce for the transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Establishing a Green Jobs Delivering NTTF, ITA, FWDF to support immediate Design and delivery of a national, long term programme SDS September 2021 Workforce Academy retraining so people can access green jobs as part of to support the retraining and upskilling needed for the a green recovery transition to net zero with a focus on: • Green Integrated Careers and Skills Assessments Learning from these programmes to develop the enabling individuals to draw on digital and evidence base of what’s needed in the longer term appropriate face-to-face support. This will help them to support the scale and breadth of retraining and to understand their individual technical and meta reskilling across the workforce for the net zero skills and access appropriate skills pathways and economy (this will also be informed by Green Jobs relevant green opportunities Skills Hub) • access to short, sharp industry certified course provision aligned to economic investment • the development of a Skills Wallet providing access to targeted funding to individuals not in employment, those in low paid or insecure jobs and those in higher level jobs with the potential to progress. This will support skills development and progression to meet the demands of green jobs in line with opportunities as they come on stream

Develop targeted and co-designed upskilling and SDS Immediate/Ongoing reskilling measures informed by evidence on the pre- (Equalities Organisations, existing barriers to training and development faced employers) by BAME communities, disabled workers, women, and young people

Ensuring that the annual SDS and the SFC are working on a programme of The Joint Skills Alignment Team across SDS/SFC SDS, SFC Immediate/Ongoing skills investment in skills alignment to match skills provision with the commissioned to ensure alignment with the green apprenticeships, FE/HE; needs of learners, employers, and industry to drive economic ambitions as set out in the CESAP upskilling and reskilling is sustainable and inclusive growth fully aligned to opportunities to support the transition to net zero

42 43 Priority Area 3: Developing the future workforce for the transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Aligning the work-based New pathways to support entrants into their sectors, Support further development of Foundation and SDS From March 2022 (re- learning opportunities and amending existing frameworks: Graduate Apprenticeships to respond to industry (Industry/Sector Skills contracting for 2021/22 available to support the • pilot Foundation Apprenticeship (FA) in demand in new areas, e.g. environmental construction Groups, SQA, Zero Waste complete) transition to net zero Digital Manufacturing and carbon management Scotland and Industry) • Energy Skills Alliance developing an “All Energy” Apprenticeship Explore the development of innovative pathways to SDS From April 2021 • Lantra Scotland currently exploring the support those wanting to secure ‘green’ careers, e.g.: opportunities for land-based businesses • assess the potential for the roll out of Fast Track work to become more involved with Foundation readiness courses to support the development of Apprenticeships skills needed for the transition to net zero • pilot and evaluate new models of apprenticeship delivery in sectors central to the transition to net zero taking into consideration the barriers to participation identified by SMEs and microbusinesses

Work is already underway to update National Embed green skills into apprenticeship frameworks SDS Immediate/Ongoing Occupational Standards (NOS) and apprenticeship where it is relevant to the function of the role via (Industry/Sector Skills frameworks central to the supporting the transition to Technical Expert Groups’ design and review processes Groups, SQA) Skills, include mandatory net zero elements Standards and Qualification Ensure that all new frameworks of relevance include Bodies NatureScot NOS managing agent, SDS, works with the three mandatory elements to support the transition to net devolved administrations on a list of priorities. zero

Aligning the education Significant work has been undertaken in schools to Climate education and an understanding of natural Education Scotland, Keep Immediate/Ongoing and training opportunities deliver climate education capital needs to form an integral part of all education Scotland Beautiful, Scottish in schools, to support the and skills training and work-based learning through Forum on Natural Capital, transition to net zero Promotion of programmes such as Young Enterprise continued commitment to outdoor learning as a key Zero Waste Scotland, Scotland’s Circular Economy Challenge, and Primary part of Learning for Sustainability Regional Colleges and Engineers STATWARS® Climate Change Challenge Universities to strengthen Learning for Sustainability, this has Draw on evidence from evaluation and regional activity enabled school pupils from all backgrounds to to identify and share effective good practice in relation develop skills in a real-life context, giving them an to Learning for Sustainability introduction to, and understanding of, business, design and technology relevant to green jobs and the Explore the wider roll-out to schools of the Climate circular economy Solutions Accelerator Certificate, a one module overview of the Climate Solutions Certificate Utilising Developing the Young Workforce Regional Groups and School Co-ordinators to embed green Ensure that natural capital and circular economy skills in schools. considerations are recognised as core skills across all disciplines

43 Priority Area 3: Developing the future workforce for the transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Aligning the education and Use of Regional Outcome Agreements, shaped by All FHEIs (Further & Higher Education Institutions) in SFC (Regional Colleges and Immediate/Ongoing training opportunities in labour market intelligence, to ensure cohesive and Scotland to review existing provision and its alignment Universities) colleges and universities to coherent provision which meets national, regional with the net zero transition, and then develop a 10-year support the transition to net and local learner and employer needs strategy for addressing gaps in existing provision and zero to provide dynamic alignment with changing skills and jobs needs in space and time

Number of examples of the development of Co-design and development of a Construction Retrofit Zero Waste Scotland Autumn 2021 courses to respond to industry need, e.g., Hydrogen national training programme Awareness and Electric Vehicle Maintenance and Repair (ESP) and circular construction materials

A number of colleges are being supported through Develop a ‘Green Internship Scheme’ to upskill young Zero Waste Scotland Autumn 2021 Scottish Power Energy Network’s Green Energy workforce on circular economy and net zero whilst Fund and ESP, to develop specialised renewables supporting employment opportunities Ayrshire College, Borders Immediate/Ongoing and energy efficiency training centre to support the College, Dumfries & development of green provision and train the future Galloway College, Edinburgh workforce in renewables, energy efficiency and College, Fife College, Forth emerging technologies in collaboration with industry Valley College, Glasgow Kelvin College, South Lanarkshire College, West College Scotland and West Lothian College

44 45 Priority Area 3: Developing the future workforce for the transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Maximise the uptake of all Promotion of opportunities flowing from the Continue to promote and develop multiple accessible pathways into SDS, Skills Providers, Immediate/ skills pathways relevant to transition to net zero through high quality careers sectors key to the transition to net zero (including energy transition, Regional Colleges and Ongoing supporting the transition information, advice and guidance construction, transport, manufacturing & agriculture and land use Universities to net zero across training, management) through work-based learning, FE and HE education and work-based SDS, SFC From April 2021 learning Promoting apprenticeship pathways to all employers Increase reach and uptake of work-based learning and (Industry/Sector Skills in the green economy by showing the relevance and apprenticeship opportunities (Foundation, Modern and Graduate Groups, Developing credibility of apprenticeships, as well as underlining Apprenticeships) relevant to a transition to net zero through Young Workforce) the idea that it is within employers’ responsibilities to awareness raising support youth employment Approaches to maximise the opportunities from energy transition including: • Michelin Skills Innovation Park (MSIP) Advanced MSIP, Dundee & Angus From early 2021 Skills Academy to develop the workforce of the College future, through a permanent Skills Academy to embrace future technology, advanced engineering, SDS, North East of From early 2021 AI and Low carbon transport specialisms Scotland College, • Energy Transition Zone (ETZ) Aberdeen-Skills and Aberdeen City Council, Jobs Plan established to support energy transition Robert Gordon across sectors, and as part of the proposed ETZ University, University activities of Aberdeen, and • consider scope and plans to develop an online Opportunity North East Skills Academy to support the development of future Construction Skills (included in Construction Sector Construction ILG Skills From 2022 COVID-19 Recovery Plan) Group

Build capacity for Research Through the SFC’s Outcomes and Impacts Framework Invest in a broad range of research capacity, developing our SFC Immediate/ and Innovation to support universities are guided to focus their knowledge partnership with the challenge funding of UKRI in order to build Ongoing the transition to net zero exchange and innovation activities to support multi-disciplinary responses to social, technological and regulatory economic recovery, including a green recovery. The challenges of net zero Innovation Centres and Interface are already working collaboratively to prepare for COP26 and beyond Evolve the relationships between businesses, universities and SFC Immediate/ bringing together a wide range of technological, colleges to help academic teams form and align to the short, Ongoing social and cultural solutions to make a successful medium and long-term challenges of a just transition transition to net-zero Support the talent pipeline of future academic and industrial SFC Immediate/ researchers. Explore the role of pooled graduate schools and the Ongoing demand-led industrial doctorates facilitated by Innovation Centres

Incentivise the creation of net zero focussed spin-out companies SFC Immediate/ taking research IP to the market, building on the momentum of the Ongoing enterprise and net zero education growing in the curriculum

45 This priority area sets out the collective Priority Area 4: Driving awareness action required to support greater awareness, and action to support reskilling and reskilling and training as part of the transition upskilling for the transition to net to net zero including: zero • supporting individuals to make informed The transition to net zero will require career choices in relation to net-zero significant action from industry, individuals and opportunities and developing a Green wider society to upskill and reskill. Some jobs Careers and Skills Assessment Tool will require specific upskilling or retraining to • raising awareness amongst employer move to sustainable, green jobs while all jobs and individuals of the need for behaviour will require higher levels of environmental change, and changes to workplace awareness as well as adjustments to reduce practices emissions, recycle waste materials, and sustainably source products. • taking action to support behaviour change across public and private sectors that can drive demand for new skills • support the development of leadership and management skills that will be required for a net zero future.

46 47 Priority Area 4: Driving awareness and action to support reskilling and upskilling for the transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Enable individuals and Enabling learners and workers to make informed Develop a Green Careers and Skills Assessment Tool as SDS From July 2021 their influencers to make choices about learning and career options in the part of the Green Jobs Workforce Academy to enable informed career choices to future net zero economy through SDS’s all-age, everyone to recognise and articulate their existing core support the transition to net impartial and independent career information, advice skills, understand how these skills relate to green jobs zero and guidance (CIAG) service in a future net zero economy, and explore and navigate routes careers in this area

Develop a package of case-study based marketing Implementation Steering From September 2021 and communication materials tailored to career Group opportunities emerging from the transition to net zero (SDS, Industry Skills Groups, Zero Waste Scotland, NatureScot SDS, Skills Standards and Qualification Bodies, Employer Organisations

Build on LMI and evidence base to further enhance the SDS From April 2021 knowledge of CIAG staff on opportunities across the economy which support the transition to net zero

Ensure that CESAP supports the implementation of SDS From July 2021 the Fairer Scotland Employment Action Plan through targeted promotion of green careers and designing training opportunities which are accessible to disabled people

Raise awareness amongst Bespoke circular economy business support has Undertake Circular Economy Skills audits in supported Zero Waste Scotland, SDS From April 2021 employers of all sizes of the generated learning on the capacity and capability of businesses to understand the business’s learning (CESEH) need to change behaviours businesses to deliver circular economy innovations journey, and the challenges and opportunities and workplace practices to presented contribute to the transition Training developed by Keep Scotland Beautiful to net zero and of the options has helped organisations to better understand the Examine potential for upscaling to national approach Keep Scotland Beautiful Immediate/Ongoing available for training in climate emergency and respond to the risks and (SE, HIE, SOSE, SDS, Sector climate literacy and green opportunities it presents Skills Bodies, Zero Waste skills and training Scotland, Scottish Forum on Developed multi-disciplinary training on natural Natural Capital) capital approaches NatureScot Immediate/Ongoing

47 Priority Area 4: Driving awareness and action to support reskilling and upskilling for the transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

The actions of employers Potential for Scotland’s public sector to be world leading Implementation Steering From Spring 2021 across private, public and in the transition to net zero and develop net zero plans Group third sectors can drive across their operations and supply chains. This will (All public sector agencies) significant behaviour change involve: in the workplace, leading to • building internal capacity across public the demand for new skills sector entities • transforming the current and future workforces to develop green skills and awareness to deliver on these plans • capacity building for effective procurement

Build a ‘Toolkit’ to help small/micro businesses develop Skills for Farming Group 2021-2022 the skills and knowledge they need to adapt to the (SDS, NFUS) demands of the transition to net zero. Develop and pilot for use in agriculture but with the potential to roll out to other sectors

Support the development of Energy Transition Leadership programme Building on the current development of post-grad online Industry, ECITB, SFC From Summer 2021 leadership and management leadership programme aimed at experienced graduate skills required for a net zero Digital and online executive education programmes and apprentice engineers to provide leadership skills future such as the Climate Solutions Certificate, developed and techno-economic understanding of new and by the Universities of Edinburgh and Stirling, Royal emerging low carbon energy. Designed to retain talent Scottish Geographical Society and Jump Digital, and upskill in technical and project management aimed at Graduates, Supervisors, Managers and leadership to support energy transition Leaders is currently being piloted across public and private sector Develop existing leadership training and peer-to-peer SE, Member organisations From Spring 2021 learning in rural sectors (e.g. SE Rural Leadership Programme) to include skills for transition to net zero and role of the sector in helping to achieve it

48 49 Priority Area 5: Ensuring fairness and Supporting and enabling communities inclusion in the skills system as part to participate in the transition will help of a just transition to net zero them benefit from the opportunities while also building societal engagement on the The transition to net zero will bring significant challenges the net zero transition will bring. disruption to the economy and to jobs, and if This priority area sets out the actions to not mitigated, has the potential to dilute fair ensure that the skills system makes a central work practices and widen existing inequalities. contribution to a Just Transition by ensuring Scotland is putting Fair Work at the centre of fairness and inclusion are at the heart of the our economic recovery and embedding the good, green jobs agenda, including: principle dimensions of Fair Work (respect, opportunity, security, fulfilment and effective • Embedding the dimensions of Fair Work in voice) into our just transition to net zero to sectors that make a significant contribution support sustainable economic growth and to net zero good jobs, whilst ensuring no one is left • using the opportunities presented by net- behind. Trade Unions will play a critical role zero to address disadvantage in protecting and enhancing workers’ rights throughout the transition to net zero and play • providing support for young people to a key role in the just transition. capitalise on net zero opportunities.

49 Priority Area 5: Ensuring fairness and inclusion in the skills system as part of a just transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Embed the dimensions An important theme within Scotland’s curriculum is Continue to collaborate and support key influencers to SG Immediate/Ongoing of Fair Work including Learning for Sustainability – an approach to life and promote understanding of the barriers to employment (Enterprise Agencies, workforce engagement learning which enables learners, educators, schools faced by underrepresented groups, and advocate for Education Scotland, in sectors which make a and their wider communities to build a socially just, inclusive workplace practices in target sectors, including Equalities organisations, significant contribution to sustainable and equitable society flexible working, mentoring, and support for those with Employers) net zero caring responsibilities

Striving to meet targets for equal representation Co-create and implement solutions to support SDS From April 2021 across apprenticeship frameworks, helping workplace progression for underrepresented groups individuals access apprenticeships and supporting through targeted mentoring and networking in the net employers to develop inclusive approaches to zero frameworks recruitment and sustainable growth. First produced in 2015, the SDS Apprenticeships Equality Action Plan sets out the approach by SDS to working with partners to increase the diversity of apprenticeship uptake.

Working with partners to instil the principles of Commission further user research and surveys in order SDS Immediate/Ongoing inclusion, diversity, and equality in all SDS work- to develop content and user journeys tailored to needs, based learning programmes utilising emerging digital services to allow individuals to explore and navigate to routes to net zero jobs Build on successful examples such as the Women in Agriculture Task Force to ensure that training is Trade Unions will play a critical role in promoting Trade Unions Immediate/Ongoing focused on the training needs of underrepresented worker’s rights, and effective voice, and fair access to groups reskilling and upskilling opportunities throughout the transition to net zero and play a key role in the Just Transition Commission

Increase understanding of the opportunities for career Industry/Sector Skills Immediate/Ongoing progression in key sectors, to increase the attractiveness Groups, Regional Colleges, and appeal of work in those sectors and work to remove Employer Bodies, and any barriers faced by underrepresented groups Industry

50 51 Priority Area 5: Ensuring fairness and inclusion in the skills system as part of a just transition to net zero

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Build on the opportunities Equality Impact Assessments ensure that policies Maximise the opportunities flowing from City and Regional Economic Immediate/Ongoing provided by the transition and skills interventions do not discriminate and, Regional Growth Deals (including Community Wealth Partnerships, SDS, Enterprise to net zero to address where possible, promote equality of opportunity Building), Regional Economic Partnership and Regional Agencies and Local disadvantage across groups Land Use partnerships Authorities and communities Ensure that any training that is being delivered in relation to CESAP is also available in rural areas and for rural audiences

Make both tackling occupational segregation and accessibility for rural communities’ core aims of skills and training programmes and making the most of the potential for digital delivery to help maximise accessibility

Provide support for young The Young Person’s Guarantee will ensure that every Within the end-to-end review of the career service, seek SG, Young Person’s Immediate/Ongoing people to maximise their young person aged between 16-24 in Scotland can to identify how better to support young people, parents, Guarantee Implementation opportunities for success access support to secure: families, carers and key influencers, as the economy Group which includes LA, through work, education or • Fair employment, including work experience shifts towards net zero SDS as well as partners training • Further or higher education from the public sector, third • Pathway Apprenticeships, an apprenticeship or sector, and private sector other training programme • Formal volunteering or supported activity Build on approaches to accrediting experience and skills Awarding Bodies, Skills, Spring 2021 programme gained through volunteering Standards and Qualification Bodies, Scottish Environment LINK, The Conservation Volunteers

51 Priority Area 6: Taking a collaborative approach to ensure a skills system responsive to changing demands The transition to net zero will require co- ordinated action and investment across employers, the skills system, local and national Government and its agencies. This priority area sets out the key actions for a collaborative approach that enables employers and individuals to maximise the opportunities flowing from the transition to net zero as they emerge, supported by a skills system responsive to changing demands, including: • Establishing a Climate Emergency Economic and Investment Leadership Group to provide leadership, oversight & drive for the national economic ambition supported by an Implementation Steering Group of industry experts and skills partners • Creating an agile and responsive skills system through Skills Alignment

52 53 Priority Area 6: Taking a collaborative approach to ensure a skills system responsive to changing demands

Skills Action Areas Current activity Future focus Lead (and partners) Timescale

Multi-agency and industry Intensive collaborative action to develop the CESAP Establish a Climate Emergency Economic and SDS/SG Immediate/Ongoing collaboration around skills setting out the priority areas for action in sectors Investment Leadership Group to provide leadership, issues to support the central to transition to net zero oversight and drive for the national economic ambition. transition to net zero The ILG would report on progress with the implementation of the CESAP to progress to this group

Establish an Implementation Steering Group (ISG) of SDS (SG, SFC, SE, HIE, From January 2021 industry experts and skills partners to facilitate delivery SOSE, Education Scotland, of the CESAP STF, Skills, Standards and Qualification Bodies Scotland, Zero Waste Scotland , NatureScot)

Establish a dynamic, dedicated Green Jobs & Skills SDS From April 2021 Team to support the implementation of the CESAP and produce labour market intelligence on future green jobs requirements

Shape a skills system that SDS and the SFC are working on a programme of The Joint Skills Alignment Team across SDS/SFC SDS, SFC Immediate/Ongoing is much more responsive, skills alignment to match skills provision with the commissioned to ensure alignment with the green more innovative, and more needs of learners, employers, and industry to drive economic ambitions as set out in the CESAP collaborative to cater for the sustainable and inclusive growth degree, complexity and pace of change coming in the wider economy and labour market

53 5: Delivering the Climate Emergency Skills Action Plan

The CESAP sets out a wide range of actions environment, economy and the emergence of A key early task for the Implementation Group with significant implications for employers, new technologies. The CESAP will be updated will be to develop a detailed implementation individuals and skills providers to support the by the end of 2023, taking into account any plan for the period through to 2023. The transition to net zero. This will be a significant changes in the wider economic environment purpose of the Implementation Group will be and long-term challenge and will require and setting out a further set of short, medium to act as the focal point for the delivery of the agility from the skills system to respond to the and long-term activities. actions in the CESAP. The Implementation change and disruption throughout Scotland’s Group will develop a clear Monitoring transition to a net zero economy. An ongoing Implementation and governance of and Evaluation Framework to ensure that commitment from the Scottish Government the plan the progress of the actions in this plan is and its agencies, stakeholders and employers The development of the Plan has been monitored. will be vital to affect both the behaviour guided by an Expert Group comprising The Implementation Group will seek guidance and system changes that are required for Skills Development Scotland, the Scottish from, and report on progress, to a new successful delivery as well as a commitment Funding Council, Zero Waste Scotland, Climate Emergency Economic & Investment to continued iteration and development of the the Scottish Cities Alliance, NatureScot, Leadership Group to provide leadership, CESAP in future. Scottish Government’s Domestic Climate oversight & drive the alignment of skills Timescale for CESAP Change and Skills Divisions, Highlands and investment with our national economic Islands Enterprise, Scottish Enterprise, South ambition. The membership will be based The net-zero transition will require long term of Scotland Enterprise, the University of around the existing Scottish Energy Advisory commitment and action over the next 25 Edinburgh and the University of Strathclyde. Board, supplemented by representation from years. This CESAP focusses on the collective the Scottish Government’s wider network action that needs to be undertaken from 2020 This group will form the basis of a CESAP of Industry Advisory Boards. This direct through to 2025, with a particular focus on the Implementation Steering Group that will be engagement with employers, to both shape period to 2023 as part of a green recovery extended to industry, employers and trade and be involved in the delivery of the plan, from COVID-19. unions who are central to delivering the net- zero transition, along with colleges and skills will be central to its success and the group While there is clear early action that needs to providers and other partners with a sectoral will also feed into the Scottish Government to be addressed, it is also clear that this CESAP focus including Transport Scotland, SEPA and ensure continued alignment with Scotland’s will need to be agile and responsive. Lantra Scotland. The Implementation Group Climate Change Strategy and delivery of a just The skills action plan will be a living will have an independent Chair appointed by transition to a net zero economy. document, that adapts both its focus and its the Scottish Government. timing in response to changes in the policy

54 55 Resourcing the plan Similarly, the transition of the workforce to the net zero economy in coming decades The transition to a net zero economy will and implementation of the CESAP will require involve considerable investment from the alignment and reorientation of educational private sector, government and its agencies and skills support. Currently, the Scottish to mitigate and adapt to the effects of climate Government commits £1.8 billion per annum change and to support business growth, drive in support of work-based learning, further the creation of new technologies, support the and higher education and research and transition of the workforce and to capitalise innovation through SFC and SDS. Both on emerging opportunities. The Scottish agencies, through their Joint Skills Alignment Government has made significant spending Team, will have a critical role to ensure that commitments for net zero initiatives. The our annual investment in skills through work- 2020–21 Budget brought the overall low based learning, further and higher education carbon capital spend to £1.8 billion on an and upskilling and reskilling is fully aligned annual basis, while the 2020-21 Programme behind our economic ambitions for a net-zero for Government and the draft Infrastructure transition. Our labour market response to Investment Plan committed additional capital COVID-19 has also seen significant additional investment to support the green recovery over resources committed to upskilling and the life of the next Parliament. Further details reskilling through the Transition Training Fund of this investment are set out in the Climate and the Flexible Workforce Development Change Update that is being published Fund. This commitment to upskilling and alongside this CESAP. reskilling will be maintained through the establishment of the Green Jobs Workforce Academy.

55 Glossary

AI Artificial Intelligence FA Foundation Apprenticeship MCS Microgeneration Certification Scheme BAME Black, Asian, and Minority Ethnic FE Further Education MSIP Michelin Skills Innovation Park BIM Building Information Modelling FHEIs Further and Higher Education Institutions MtCO2e Metric Tonnes of Carbon CCC Climate Change Committee Dioxide Equivalent FWDF Flexible Workforce CCP Climate Change Plan Development Fund MyWoW My World of Work CCUS Carbon capture, utilisation, GA Graduate Apprenticeship NFUS National Farmers Union Scotland and storage GHG Greenhouse Gas NMIS National Manufacturing CERG Climate Emergency Institute Scotland Response Group GVA Gross Value Added NOS National Occupational Standards CESAP Climate Emergency Skills HDV Heavy Duty Vehicles Action Plan NTTF National Transition Training Fund HE Higher Education CESEH Circular Economy Skills and ONS Office for National Statistics Education Hub HIE Highlands and Islands Enterprise PACE Partnership Action for CIAG Careers Information, Advice, ILG Industry Leadership Group Continuing Employment and Guidance ITA Individual Training Account PAS Publicly Available Specifications COP26 26th Conference of the Parties, United Nations Climate JTC Just Transition Commission PfG Programme for Government Change Conference LCREE Low Carbon and Renewable SCA Scottish Cities Alliance ESP Energy Skills Partnership Energy Economy dataset SDS Skills Development Scotland ETZ Energy Transition Zone LMI Labour Market Intelligence SE Scottish Enterprise MA Modern Apprenticeship SEAB Scottish Energy Advisory Board

56 57 SEPA Scottish Environmental Protection Agency SFC Scottish Funding Council SG Scottish Government SME Small and Medium-sized Enterprise SOSE South of Scotland Enterprise SQA Scottish Qualifications Authority STF Scottish Training Federation STP Scotland’s Towns Partnership SURF Scotland’s Regeneration Forum

UKCS United Kingdom Continental Shelf UKRI United Kingdom Research and Innovation ULEV Ultra Low Emission Vehicle WBL Work-Based Learning

57 @skillsdevscot @scotgov

Skills Development Scotland The Scottish Government

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