Briefing on NatureScot report on Green Recovery and nature-based sectors MAIN POINTS A. NatureScot – formerly Scottish Natural Heritage – has produced a report on the role of the nature-based economy in supporting a Green Recovery focusing on jobs and skills. The nature-based sector is defined as Nature-based activities, such as nature-based solutions, land use, marine management & fisheries, green finance, urban green infrastructure, as well as sectors highly dependent on natural capital, such as tourism and food and drink (“nature dependent sectors). The increase in skilled jobs needed to meet long-term Scottish climate and biodiversity targets is seen as a big opportunity for the Scottish Wellbeing economy. B. It estimates that there are 195,000 jobs in the nature-based sector in Scotland – 7.5% of all jobs – though they consider this an underestimate due to the difficulty in using current industrial classifications for this purpose. Over the 2015-2019 period, nature-based jobs grew at more than 5 times the rate of all jobs in Scotland and accounted for one third of all job growth in Scotland in this period. C. Significant further growth in nature-based jobs is anticipated, on the back of expansion in activities required to meet Scotland’s net-zero targets. Plans and proposals for a five-fold increase in peatland restoration, near doubling of tree planting and additional investment in the Woodland Carbon Code, along with other mechanisms for carbon off-setting all point to an expansion of employment. Some sectors, while welcoming an expansion of nature-based activities, caution that there is a potential time lag to allow for increased workforce capacity and upskilling. Nature-based job roles are just emerging in some activities e.g. urban green infrastructure and so-called green finance but are expected to develop quickly as demand for these roles grow. Plans for skills development should recognise the regional variation in potential employment and help ensure that a highly skilled local workforce is able to reap the benefit of nature-based jobs. D. The report highlights a number of areas: - a. The need for a secure policy framework to encourage investment in capacity and skills and the benefits of multi-year funding in supporting strategic decision making. b. A strategic approach to skills planning across and between sectors, allied with good connections between local labour markets and training providers is essential in addressing nature-based sector skills shortages. c. The sectors domination by small and micro-businesses creates challenges in relation to the cost and availability of training. d. Tackling the lack of awareness amongst potential workers of the range of jobs available across the sector and the need for better progression pathways and encouraging of more diversity in the workforce. e. The increasing need for multi-disciplinary and transferable skills. f. Around Modern Apprenticeships, efforts to increase the uptake in the sector will require innovation around supervisory support and administration, in delivery – through more online delivery – and more shared schemes and group training. 2 Central Research Unit SUMMARY 1. NatureScot – formerly Scottish Natural Heritage – has produced a report on the role of the nature-based economy in supporting a Green Recovery, focusing on jobs and skills. The nature-based sector is defined as Nature-based activities, such as nature-based solutions, land use, marine management & fisheries, green finance, urban green infrastructure, as well as sectors highly dependent on natural capital, such as tourism and food and drink (“nature dependent sectors). The increase in skilled jobs needed to meet long-term Scottish climate and biodiversity targets is seen as a big opportunity for the Scottish Wellbeing economy. 2. The report provides an evidence base and short initial assessment of future employment opportunities related to nature-based jobs and the skills required to do them. In line with Just Transition principles, this assessment also identifies equalities issues to be addressed in supporting a more inclusive and diverse workforce across Scotland, with participation and progression in the labour market for all regardless of gender, age, race or disability. 3. It estimates that there are 195,000 jobs in the nature-based sector in Scotland – 7.5% of all jobs – though they consider this an underestimate due to the difficulty in using current industrial classifications for this purpose. Over the 2015-2019 period, nature-based jobs grew at more than 5 times the rate of all jobs in Scotland and accounted for one third of all job growth in Scotland in this period. 4. Significant further growth in nature-based jobs is anticipated, on the back of expansion in activities required to meet Scotland’s net-zero targets. Plans and proposals for a five-fold increase in peatland restoration, near doubling of tree planting and additional investment in the Woodland Carbon Code, along with other mechanisms for carbon off-setting all point to an expansion of employment. Some sectors, while welcoming an expansion of nature-based activities, caution that there is a potential time lag to allow for increased workforce capacity and upskilling. Nature-based job roles are just emerging in some activities e.g. urban green infrastructure and so-called green finance but are expected to develop quickly as demand for these roles grow. Plans for skills development should recognise the regional variation in potential employment and help ensure that a highly skilled local workforce is able to reap the benefit of nature-based jobs. 5. They have identified a series of challenges and opportunities for the nature-based economy: - a. The need for a secure policy framework to encourage investment in capacity and skills and enable it to be more strategic in its recruitment, development and progression of staff. The annual nature of government spending also acts as a constraint. b. Challenges in recruiting to skilled operational posts. Operational skills are often recruited locally or engaged through sub-contracting arrangements and the nature and size of these businesses can mean that supporting work-based learning may be challenging. A strategic approach to skills planning across and between sectors, allied with good connections between local labour markets and training providers is essential in addressing these skills shortages. c. Many businesses in nature-based sectors are small and micro enterprises, with seasonally changing labour demands and where costs and availability of training can be challenging, but there are examples of good practice and these need to be shared more. Consideration should be given to workforce-sharing initiatives, which allow smaller employers to share the costs of training and upskilling and help to create viable, year- round jobs, making the potential of losing skilled workers to other sectors less likely. The increase in blended learning, combining digital and practical delivery of formal skills training, which has taken place during the pandemic, should be maintained by providers. Accrediting skills gained through volunteering would benefit both individuals and businesses seeking qualified staff with practical experience. d. Increasing awareness of nature-based sectors and range of jobs available and a need for better progression pathways to encourage more diverse workforces. Central Research Unit 3 e. For Modern Apprenticeships, increasing the uptake in the sector will require innovation around supervisory support and administration, in delivery – through more online delivery – and more shared schemes and group training. f. The increasing need for multi-disciplinary and transferable skills. As sectors innovate, a broad range of transferable skills in the workforce will be essential to allow movement between existing and emerging nature-based jobs. 6. In terms of their more detailed sector findings, the main ones of relevance to South Lanarkshire are: - a. Planning The existing planning framework is not a barrier to the use of natural capital in development plans but Scottish Planning Framework NPF4 will explicitly address meeting biodiversity and low carbon targets to 2050. Adoption of biodiversity net gain approaches into applications in advance of them being required suggests that the sector can be encouraged to put forward proposals in advance of regulation. Skills Development Scotland is to produce a report on Planning Skills shortly. There are some concerns that the skills in Planning Authorities necessary to judge natural capital activities have been eroded through austerity. b. Peatland restoration The new Programme for Government has set a target of 20,000 hectares of peatland restoration. In 2019-20, Peatland Action restored 4,000 ha. Significant increases in activity will take time to resource 10-25% increase in first year but a five-fold increase may take 3-5 years to secure. Securing sites to restore can take considerable time to negotiate with landowners to secure agreement to restore and clarify expected impact on local ecology, water quality and grazing. A range of skills issues have been identified – project management, appropriate graduates – but also issues with work experience – competition from forestry and civil engineering for certain skills and challenges in supervising and administering Modern Apprenticeships. c. Woodland Restoration The expectation is that woodland restoration will increase in scale through greater public sector interest in funding ‘public good’ and some signs that corporate sector are keen to invest. The Programme for Government’s expansion of Woodland Carbon Code will add to this interest, but it is difficult to estimate likely scale of expansion over the next 3-5 years. The expectation is that activity will increase, and this will require additional employment. Woodland restoration has been a charitable/ publicly funded activity and so can suffer from short-term funding problems. The skills required of their staff also overlap. Operational skills are relatively straightforward silvicultural skills. However, there is a clear overlap in some of these functions with forestry operations who reportedly pay higher rates.