2014 Tender Reference: TEN331 EVIDENCE BASE LOW CARBON ENVIRONMENTAL GOODS & SERVICES A Skills Action Plan for the Low Carbon Environmental Goods and Services Sector May 2014 Community Energy Plus 3-4 East Pool Tolvaddon Energy Park Camborne TR14 0HX Tel: 01209 614975 Web: www.cep.org.uk Study Authors: Dr Tim Jones (Chief Executive, Community Energy Plus), Dionne Jones (Funding and Development Manager, Community Energy Plus), Nicola McCheyne (Delivery Manager, Community Energy Plus), Ian Smith (CEP Associate/IS Consultancy), Nigel Tremlett (CEP Associate/Transform Research), Lucy Cornes (Communications Assistant, Community Energy Plus), Anthony Weight (CEP Associate). With the assistance of the Community Energy Plus team Published: March 2014 Produced for the Cornwall Development Company, Tender Reference TEN331 Lead contact for Cornwall Development Company: Nich Thomas, Business Skills Lead. Lead contact for Community Energy Plus: Dionne Jones, [email protected], 01209 614975 1 Community Energy Plus A Skills Action Plan for the Low Carbon Environmental Goods and Services Sector May 2014 CONTENTS 1. Executive Summary ................................................................................................................................ 11 2. Evidence Base Report A – LCEGS Sector Overview .................................................................................. 34 2.2.1. Defining the Low Carbon Environmental Goods and Services Sector ............................................ 35 2.2.2. Background and History .................................................................................................................. 38 2.2.3. Strategic Landscape and Policy Drivers .......................................................................................... 76 2.2.4. Policy Contrasts in other EU Regions .............................................................................................. 90 2.3.1. Current and Potential GVA Value ................................................................................................... 94 2.3.2. Current and Potential Employment ................................................................................................ 98 2.3.3. Investment Required .................................................................................................................... 100 2.4.1. Cornwall’s Unique Selling Points (USP) ......................................................................................... 104 2.4.2. Sales and Growth in the Global and UK Market ........................................................................... 106 2.4.3. Local Enterprise Partnership Collaboration .................................................................................. 114 2.4.4. Market Distortion ......................................................................................................................... 117 2.4.5. SMART Specialisation .................................................................................................................... 124 2.4.6. Routes to Market .......................................................................................................................... 127 2.4.7. Barriers to Entry into the market .................................................................................................. 132 2.4.8. Consumer Benefits ........................................................................................................................ 133 2.5.1. Business Analysis For Cornwall and Isles of Scilly ......................................................................... 137 2.5.2. National and International Comparisons ...................................................................................... 143 2.5.3. Clustering and Collaboration ........................................................................................................ 150 2.5.4. The Role of Accreditation Schemes .............................................................................................. 153 2.5.5. The No Subsidy Scenario ............................................................................................................... 155 2.5.6. Affordability to Consumers and Businesses.................................................................................. 160 2 Community Energy Plus A Skills Action Plan for the Low Carbon Environmental Goods and Services Sector May 2014 2.5.7. Investment Funding ...................................................................................................................... 162 3. Evidence Base Report B – Sector Skills Requirements .......................................................................... 172 3.1.1. Demographics in Cornwall and the Isles of Scilly .......................................................................... 173 3.1.2. UK Employment Patterns to 2020 ................................................................................................ 176 3.1.3. Employment Patterns in C&IoS LCEGS .......................................................................................... 178 3.1.4. Types of Employment in the Sector .............................................................................................. 179 3.2.1. Sub-Sector Skills Analysis .............................................................................................................. 184 3.2.2. Demand Led (bottom-up) Skills Requirements ............................................................................. 186 3.2.3. Policy Led (top-down) Skills Requirements and Future Skills Needs ............................................ 199 3.2.4. Local Context: Cornwall and Isles of Scilly LEP .............................................................................. 206 3.2.5. Skills Level Analysis and Transferability ........................................................................................ 208 3.3.1. Training ......................................................................................................................................... 212 3.3.2. Employers Views on Skills Provision ............................................................................................. 214 3.3.3. Public Sector Support, Skills and Growth ...................................................................................... 215 3.3.4. Accreditation and Industry Standards .......................................................................................... 218 3.3.5. Other Skills Needs ......................................................................................................................... 219 3.5.1. Employment Route Maps ............................................................................................................. 224 3.5.2. Reasons for Working in the Sector ............................................................................................... 227 3.5.3. Apprenticeships ............................................................................................................................ 228 3.5.4. Graduate Placements ................................................................................................................... 230 3.5.5. Vocational and Academic routes .................................................................................................. 232 4. Bibliography ......................................................................................................................................... 236 5. Appendices .......................................................................................................................................... 242 3 Community Energy Plus A Skills Action Plan for the Low Carbon Environmental Goods and Services Sector May 2014 5.1.1. Priority Sub Sectors ....................................................................................................................... 242 5.1.2. Cornwall Priority Sub Sectors, from full BIS data .......................................................................... 245 5.1.3. Full BIS data for Level 2 sub-sectors ............................................................................................. 246 5.1.4. Background & History ................................................................................................................... 248 5.1.5. Policy Drivers ................................................................................................................................ 276 5.1.6. Collaboration Responses .............................................................................................................. 278 5.1.7. SMART Specialisation .................................................................................................................... 278 5.1.8. Consumer Benefits ........................................................................................................................ 280 5.1.9. Clustering and Collaboration ........................................................................................................ 284 5.1.10. Affordability to Consumers and Businesses ............................................................................. 288 5.2.1. Employment Patterns ................................................................................................................... 296 5.2.2. Market Topic Guide .....................................................................................................................