skills report: prospects for skills in the environment sector · • the current policy and...

of 74

Strengthening the Environment Sector (SES)

Skills Report:

Prospects for Skills in the Environment Sector

Peter K. McGregora, Richard D. Hoggettb, Ben C. Simpsonb, Jo Traill Thomsonc & Linn Raffertyd

December 2011

a Cornwall College, Newquay b Cornwall Development Company

c Green Projects South West d JTec Energy and Automation http://jtecservices.co.uk

SES Skills Report

of 74

1. EXECUTIVE SUMMARY

• The aim of this document is to inform the development of skills required by

businesses and organizations when the Strengthening the Environment Sector

(SES) project ends in 2012.

• The current policy and economic climate is characterized by considerable

change and uncertainty, making it is difficult to offer a clear analysis of

emerging skills needs and the provision to meet these needs.

• Uncertainty results from the increasingly mixed messages from government,

where clear statements of strategy (e.g. an appreciation of the underpinning role

of the environment for the economy and society) are at odds with specific

actions (e.g. downgrading individual competencies of workers in the low carbon

economy). While there is a government commitment to a green economy for

long term prosperity, recent government action suggests that the commitment

does not apply in the short to medium term.

• Other policy trends such as localism are clear but their implications for future

skills needs and provision are not.

• There would appear to be considerable opportunities through localism to allow

the development of provision better suited to Cornwall's needs than the

predominantly urban national model. This will require strong leadership from

within Cornwall including from Cornwall Council and the Cornwall &Isles of

Scilly Local Enterprise Partnership.

• Skills providers will have to incur significant risk to provide the skills sets

identified in this report in the prevailing climate of uncertainty.

• Headline trends and challenges for skills needs and their provision in the near

future in the environment sector are identified in five broad areas. They are

summarized in the table on the following page.

SES Skills Prospects

of 74

Headline Trends & Challenges Skills required Management of Natural Capital

An ecosystem services approach e.g. nitrate vulnerable zones, catchment sensitive farming, planning and development. Statutory bodies and local authority staff will need ecosystem services knowledge to appraise proposals, also skills sets to develop the new working pattern

+ Professional knowledge& understanding + Technical practitioners

Invasive non-native species + Technical practitioners Green infrastructure management + Professional knowledge &

understanding The Energy and Low Carbon Policy Context

Driven by global and EU issues, as much UK issues - renewable energy, GHG emission reduction targets, energy security and affordability

+ Analysts for improved understanding

Low carbon resource efficient economy, whilst maintaining prosperity &economic growth – potential doubling of demand for electricity within the heat and transport sectors

?

Decarbonisation of electricity generation, development of new nuclear, large scale renewable and CCS

+

Microgeneration– mainly heat pumps + Broader Policy Context

Bottom-up change, self-organisation (through Big Society and community ownership) and collaboration

Statutory bodies and local authority staff will need collaboration / brokering skills sets to develop the new working pattern

Businesses are likely to need staff able to interpret the green economy

Financial skills and understanding implications of low carbon and resource efficient business

Career changers – from public sector restructuring and low economic growth

?

Embedding sustainability skills into each worker will make delivery of green economy benefits more likely.

+

Aspects of the Green Deal in Cornwall

Loss of local authority expertise may compromise energy efficiency improvement programmes via HECA (Home Energy Conservation Act).

It may be possible, within Green Deal, to deliver economies of scale that could help to overcome poor uptake in rural areas via community engagement.

+

Business opportunities as a driver of skills uptake in any green economy expertise (e.g. air source heat pump installation) will suffer from concerns about lack of government commitment and stability of a platform for investment.

?

Lack of trust in Government schemes will be a particular factor affecting the number of DEAs coming forward to upskill to become Green Deal Advisors.

+

Energy: Demand Led Skills Context

Government policy on skills for a low carbon resource efficient economy is messy and inconsistent

?

Skills are viewed through individual policy areas (RHI, Green Deal, etc) there appears to be no coherent plan, although the direction of energy and low carbon policy provides some insight to where future skills provision will be needed.

+

Emerging skills needs included those for assessors for the Green Deal, as well as for installers and other players in the Green Deal Framework

+

The RHI will involve upskilling to deal with a range of technologies that are complex to design, integrate and install (compare to electricity microgeneration technologies).

++

clear skills gap around design skills for both the RHI and Green Deal

?

Within Cornwall, marine energy (seen as a key technology by Government) has the potential to support research, training and jobs, along the innovation chain

++

A major concern is DECC’s changing view around individual competencies and how they can be achieved. It would appear that standards are being significantly lowered and achievement routes will impact and undermine the QCS and NOS based training and those providing them

?

SES Skills Report

of 74

2. HEADLINE TRENDS AND CHALLENGES FOR SKILLS

The following trends and challenges for skills provision are derived from the material presented in sections 4-8:

Management of Natural Capital (section 4)

• An ecosystem services approach is the dominant approach to managing natural

capital in the manner needed to address the integrated approaches (e.g. nitrate

vulnerable zones, catchment sensitive farming) required by EU statute and to help

resolve land use conflicts.

• The successful adoption of an ecosystem services approach depends on it being

understood by a wide range of professionals and practitioners, including groups who

do not consider the environment to impact their job remit.

• It is unclear how the suggestions for dissemination of this knowledge and practice

will achieve the necessary breadth of coverage and depth of understanding.

• Invasive non-native species and green infrastructure management are emerging

issues with significant skills needs that have yet to be characterized or addressed.

The Energy and Low Carbon Policy Context (section 5)

• Energy and low carbon policy is complex and dynamic, and increasingly driven by

global and EU issues, as much UK issues.

• UK key drivers are renewable energy and Greenhouse Gas (GHG) emission

reduction targets, as well as wider goals for energy security and affordability.

• The key challenge is how to move towards a low carbon resource efficient economy,

whilst maintaining prosperity and economic growth.

• Improving energy efficiency is a key component to a low carbon future, but there is

no single solution to how energy is supplied, with decisions being more based on the

underlying political paradigm, rather than on available technologies or pathways.

• Within the UK, the preferred route is towards a more electric future, with a potential

doubling of demand for electricity within the heat and transport sectors.

• Meeting this demand and also meeting GHG emission reduction targets, will require

the almost complete decarbonisation of electricity generation, through the

development of new nuclear, large scale renewables and Carbon Capture and

Storage (CCS).


of 74

• This will maintain the centralised approach to energy supply and demand. An

approach that will support existing incumbents and the wider institutions and actors

within the energy system. Enabling policies increasingly support this vision, such as

market reform, less red-tape and simpler planning.

• Microgeneration also has role to play, but in terms of policy attention only heat

pumps clearly fit into the current national vision.

Broader Policy Context (section 6)

• The change of Government emphasis from partnership working to bottom-up

change and self-organisation (through Big Society and community ownership) is

clear, how this will be resourced and skills needs identified and met is not.

• Statutory bodies and local authority staff will need collaboration / brokering skills

sets to develop the new working pattern.

• Businesses likely to need to interpret the green economy, i.e. financial skills as well

as understanding implications of low carbon and resource efficient business.

• There will be skills demands from career changers as a result of public sector

restructuring coupled with low economic growth.

• Embedding sustainability skills sets into each worker will make delivery of green

economy benefits more likely.

Aspects of the Green Deal in Cornwall (section 7)

• Loss of local authority expertise as a result of the Comprehensive Spending Review

will compromise energy efficiency improvement programmes via the Home Energy

Conservation Act (HECA). As HECA has not been repealed (as originally proposed

in the Energy Bill) this may help avoid further loss of expertise.

• Rural areas present challenges to any supply chain, and this applies equally to

energy efficiency improvements. Rural areas have not benefited from CERT and

CESP schemes in proportion to their population size1 as suppliers largely operate in

conurbations to achieve economies of scale and short journey times and therefore

their carbon targets. It may be possible, within Green Deal, to deliver economies of

scale that could help to overcome these issues via community engagement.

1 DECC Oct 2011: Research Report, Evaluation of the delivery and uptake of the Carbon Emissions

Reduction Target http://www.decc.gov.uk/assets/decc/11/funding-support/3339-evaluation-of-the-delivery-and-uptake-of-the-carbo.pdf

SES Skills Report

of 74

• Perceived business opportunity as a driver of skills uptake in any green economy

expertise (e.g. air source heat pump installation) will suffer from concerns about

lack of government commitment and stability of a platform for investment. Business

confidence has suffered a severe knock from the recent FiT announcements.

• This reinforces previous concerns over the delayed introduction of the Renewable

Heat Incentive for business clients (the domestic scheme had already been delayed

from Spring 2011 to Autumn 2012).

• Lack of trust in Government schemes will be a particular factor affecting the

number of DEAs coming forward to upskill to become Green Deal Advisors. The

long time commitment required for training, coupled with lack of certainty about

how work will be obtained once qualified, and past experience with low work levels

for EPCs, is likely to deter DEA candidates unless a strong case can be made of the

benefits to early adopters. New entrants may not experience the same concerns

about lack of work opportunities, but for them, the extended time commitment for

training will be a deterrent.

Energy: Demand Led Skills Context (section 8)

• Government policy on skills for a low carbon resource efficient economy is messy

and inconsistent.

• Skills are viewed through individual policy areas (RHI, Green Deal, etc) and there

appears to be no coherent plan, although the direction of energy and low carbon

policy provides some insight to where future skills provision will be needed.

• Emerging skills needs included those for assessors for the Green Deal, as well as for

installers and other players within the Green Deal Framework.

• The RHI will involve upskilling to deal with a range of technologies that are

complex to design, integrate and install (compare to electricity microgeneration

technologies). This is particularly true for heat pumps.

• There is a clear skills gap around design skills for both the RHI and Green Deal.

• Within Cornwall, marine energy (seen as a key technology by Government) has the

potential to support on-going research, training and jobs, along the innovation chain.

• A major concern is DECC’s changing view around individual competencies and

how they can be achieved. It would appear that standards are being significantly

lowered and achievement routes will impact and undermine the QCF and NOS

based training and those providing them.


of 74

3. BACKGROUND

3.1. Aim

The aim of this document is to inform the development of skills required by businesses

and organizations when the Strengthening the Environment Sector (SES) project

activity ends in 2012. It is an examination of the prospects for skills development and a

legacy of the SES project rather than a yardstick against which to judge overall project

performance (this function was delivered by the SES Draft Skills Plan2). Consequently,

this report is an analysis of strategy and policy information relating to significant and

emerging skills needs and factors likely to affect the development of provision to meet

these needs.

3.1.1. Approach

The approach of identifying direction and speed of travel from an analysis of strategy

and policy information was a part of the SES Draft Skills Plan and to a large extent it

was successful (as discussed in the SES Interim Skills Plan3). An indication of the wider

success of this approach is that what is now referred to as the green economy (see

below) was highlighted as an important emerging aspect of environmental skills from

strategy and policy information by two previous reports4 that adopted this approach.

3.1.2. Caveat

In the last few months it has become apparent that there is a significant mismatch

between the Treasury and strategy and policy of several departments with environment

responsibilities within UK government (discussed in 3.3). This lack of coherence adds a

major caveat to the conclusions of this report – if government chooses to ignore the key

aspects of the environment that are agreed internationally and reflected in national

strategy and policy, then predictions for skills needs based on these aspects are unlikely

to be addressed by government actions.

2 McGregor et al. 2010 3 McGregor & Olosundé 2011 4 CRESTA 2008 Final Report; EK 2008. Environment Sector Workforce Development Plan

SES Skills Report

of 74

3.1.3. Contents

In this document, section 2 lists a number of headline trends and challenges that are

apparent from strategy and policy documents as well as government statements and

actions. It draws attention to the skills implications of these trends (but leaves detailed

justification and supporting evidence to sections 5-8). Section 3 sets out the aims of this

report and also briefly highlights three aspects of background - the scope of the

environment sector, the increasingly mismatched messages coming from government

and the Cornwall context. The bulk of this report is made up of five sections that

examine details of a number of areas (natural capital, energy, Green Deal and policy

context) that will have the largest effect on skills needs and development in the county.

All of these sections incorporate the views of experts (at county and national level) with

analysis of strategy and policy documents5. However, section 8 specifically captures

expert views for skills implications in energy. Appendix A lists documents referred to in

the text, with links to download sites (urls). Appendix B shows the underpinning role of

the environment.

3.2. The Environment Sector

There is no generally accepted definition of the environment sector6, largely because of

the underpinning, cross-cutting and pervasive nature of the environment in relation to

economy and society – a factor that is becoming more widely accepted7. A number of

phrases relating to the environment sector are in current use. We define the most

common (LCEGS, LCREE and Green Economy) in Box 3.1 and point out their

interrelationships as an aid to clarity in the rest of the report.

Apparently, the UK government is committed (but see 3.3) to a transition to a green

economy and have cited it as central to long term prosperity8. Therefore in this report

we will regard the green economy (which includes as subsets, LCEGS and LCREE, see

Box 3.1) as the baseline for consideration. We will also identify instances where the

green economy does not incorporate aspects of the environment in its widest sense that

5 Published up to Nov 30th 2011 6 because the scope is broadening to the extent that the term sector becomes meaningless 7 e.g. sustainable development has moved on from the “triple bottom line” (in which economy, society

and environment had equal status and interdependence) to nested dependencies reflecting the functional relationship - economy requires society and both require the environment (see detail in Appendix B).

8 HMG, 2011c Enabling the Transition to a Green Economy: Government and business working together.


of 74

are relevant for Cornwall. As pointed out in the SES Interim Skills Report9, identifying

skills required by a low carbon and resource efficient (green) economy and the

strategies to deliver them is currently a work in progress nationally and internationally.

Box 3.1. Terms relating to the environment “sector”

Three terms widely found in recent strategy documents are, in order of increasingly broad coverage, LCEGS, LCREE and Green Economy. Environment Sector is the least well defined term10, we will use it in this report to include the broadest aspect of the environment.

The low carbon environmental goods and services (LCEGS) sector11 developed from the environmental technologies sector12 with the inclusion of renewable energy and low carbon. It is most similar to the vertical, silo approach current at that time13.

The low carbon and resource efficient economy (LCREE) was most commonly referred to in the transition to a low carbon economy14 and recognized activities covering all sectors of the economy (with major cross-sector effort necessary to deliver the skills) including energy efficiency, full product life-cycle analysis, carbon auditing, carbon trading, resource efficiency and additional IT skills to deliver sophisticated resource management systems. The phrase low carbon and resource efficient economy (although the acronym LCREE is rare) regularly appears in Green Economy strategy documents.

The green economy includes, as well as LCREE (and therefore LCEGS), those sectors which positively invest in and rely on our natural capital (e.g. nature-based tourism / green tourism, contracted development work on nature reserves / green infrastructure and conservation work in agriculture). Recent reports emphasize the broad and inclusive nature of the green economy approach with statements such as “every job will be a green job”15 and “A green economy is not a sub-set of the economy at large – our whole economy needs to be green. A green economy will maximise value and growth across the whole economy, while managing natural assets sustainably.”16 The role of ecosystem services17 is incorporated as a key strand because The Economics of Ecosystems and Biodiversity (TEEB)18 and the National Ecosystem Assessment19 have generated a step change in our understanding of the importance of nature to humans through economies and well being. Nature supports and generates economic activity and provides resources to sustain health and well being, creates opportunities to learn and contributes to more sustainable communities.

9 see section 2.2 of McGregor & Olosundé, 2011 10 see http://www.environmentjob.co.uk/jobs/ for evidence of diverse jobs available in the sector 11 UK Low-Carbon Industry Strategy (HMG, 2009) 12 www.berr.gov.uk/files/file34694.pdf, see also section 4.2 CRESTA report 2008 13 As discussed in EK 2008. Environment Sector Workforce Development Plan 14 e.g. UK Low Carbon Transition Plan DECC, 2009a 15 CEDEFOP 2010 Skills for Green Jobs: Country Report, UK. Publications Office of the European

Union. 16 HMG 2011c Enabling the Transition to a Green Economy: Government and business working together. 17 incidental benefits provided by the environment (e.g. water purification, flood mitigation, pollination),

see also section 4.2 18 UNEP, EC, 2009. The Economics of Ecosystems and Biodiversity (TEEB) 19 Defra et al 2011 UK National Ecosystem Assessment. Understanding Nature’s Value to Society.

Synthesis of the Key Findings.

SES Skills Report

of 74

3.3 Mismatch of Government Strategy with Actions

In previous skills reports on the environment sector (including CRESTA and the SES

Interim Skills Plan) it was noted that the case was still being made to government and

business more generally that the natural environment is the context in which all human

economic and social activity takes place and therefore that it underpins sustainable

economic development. The underpinning role of the environment is the central theme

of recent green economy strategy documents internationally20 and in the UK21,

therefore the direction of travel of strategy seemed clear and supported by evidence

(section 2.2 SES Interim Skills Plan).

However, since the Prime Minister’s May 2010 statement that he wanted “the greenest

government ever”22, several commentators and organizations have catalogued the

growing gulf between this ambition and government action23. Examples affecting the

development of a low carbon economy include short notice review of large scale and

then domestic scale photovoltaic Feed in Tariffs (see 5.2.3c of this report),

postponement of carbon capture and storage (CCS), and delay to the renewable heat

incentive (RHI)24. These actions seem strikingly at odds with the foreword to Enabling

the Transition to a Green Economy25 published by the HM Government in August 2011

and signed by 3 cabinet ministers26 - for example, a “key element of [the Government’s

Plan for Growth] is continuing the transition to a green economy. There are strong

economic arguments for moving now …”.

This mismatch between the “greenest government ever” aspiration (and supporting

strategy documents) and government actions was graphically illustrated by the Autumn

statement of the Chancellor of the Exchequer. George Osborne made it clear that he

considers environmental protection legislation to be an impediment to economic

growth, referring to the Habitat Regulations as a “ridiculous cost on British business”27.

By contrast, a recent report has made it clear that the ability of the UK’s environment to 20 Europe 2020, Strategy for Sustainable Growth and Jobs, http://ec.europa.eu/europe2020/index_en.htm 21 BIS 2010. Meeting the Low Carbon Skills Challenge: a Consultation on Equipping People with the

Skills to Take Advantage of Opportunities in the Low Carbon and Resource Efficient Economy. 22 e.g. http://www.guardian.co.uk/environment/2010/may/14/cameron-wants-greenest-government-ever 23 Porrit, J. 20011. “The Greenest Government Ever” One year On.

http://www.foe.co.uk/resource/reports/greenest_gvt_ever.pdf 24 See also Platt, R. 30th Nov 2011 http://www.ippr.org/articles/56/8341/osborne-continues-to-place-uks-

leadership-on-climate-change-in-danger 25 HMG, 2011c Enabling the Transition to a Green Economy. 26 Caroline Spelman, Vince Cable and Chris Huhne 27 Hansard 29th Nov, Column 808 line 2 http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm111129/debtext/111129-0001.htm


of 74

provide essential ecosystem goods and services has decreased28 despite these

protections and evidence that businesses can profit from consideration of ecosystem

service protection29.

The implications for skills in the environment sector that follow from increasing

demotion of the environment by the Treasury are that skills provision must be similarly

demoted. An indication that this may be happening was also announced in the Autumn

statement - the employer ownership of skills funding30, in which the government will

route public investment in skills directly to employers. This would seem to be an

example of evidence being ignored when making policy because a market driven

approach has been identified by a number of studies31 as unlikely to deliver skills

necessary for an emerging green economy (and is implicit in the Skills for a Green

Economy32 report that seeks to help business articulate their needs).

As Cornwall has long recognized the fundamental importance of the environment to

society and economy in the county, it may prove that the localism agenda may be a way

that skills provision in the environment sector in the county can be assessed on the basis

of the evidence, much of which relates to positive economic outcomes.

3.4. Cornwall Context

Cornwall is different33 from the rest of the UK with respect to its isolated geographical

location, its settlement pattern34, and significantly higher proportion of small and

medium sized businesses (SMEs), many of which are micro- or lifestyle- businesses.

This distinctiveness means that it is generally poorly served by national models35 but

there is generally greater involvement with the environment by lifestyle businesses. The

developing emphasis on localism could provide then opportunity to provide skills needs

in a way that takes account of the county context (see section 6).

28 Defra et al (June 2011) UK National Ecosystem Assessment - Understanding nature’s value to society.

Synthesis of the Key Findings 29 World Business Council for Sustainable Development (WBCSD). (2011). Guide to Corporate

Ecosystem Valuation – a framework for improving corporate decision making. www.wbcsd.org/work-program/ecosystems/cev.aspx

30 Employers to bid in 2012 for share of £250m to purchase vocational training they identify as needed (Dean, A. & Evans, C. 2011)

31 e.g. Aldersgate Group, 2011, p. 23; see also section 2.2, SES Interim Skills Plan Report 32 BIS, DECC & DEFRA 2011. Skills for a green economy. A report on the evidence. 33 e.g. CRESTA project final report section 4.2.2 34 It does not fit the UK, urban centred model. Its pattern of sixteen towns and associated relatively long

travel times for the distances involved make within county centralized provision problematic. 35 An example of how the detail of specific green deal and PAS 2030 considerations are likely to play out

in a Cornish context is included as section 7

SES Skills Report

of 74

4. MANAGEMENT OF NATURAL CAPITAL

4.1. Overview

Natural capital, unlike economic and human capital, has no dedicated systems of

measurement, monitoring and reporting36. It is now widely recognized37 that standard

indicators of economic activity such as GDP and GVA do not value environmental

assets and therefore have limited utility as indicators of progress, development and

natural capital management. Green economy approaches38,39 incorporate environmental

and social assets in considerations of natural capital and are therefore more

comprehensive. However, it is currently unclear whether ecological economics40 or

environmental economics41 is the best approach and whether a combined approach is

possible42. Two aspects of management of the terrestrial and marine natural

environment that have emerged from previous SES skills reports (McGregor et al. 2010,

McGregor & Olosundé 2011) as challenges to the sector are ecosystem services (4.2 &

Box 4.1) and Invasive Non-Native Species (INNS, 4.3). Each presents somewhat

different skills challenges and have progressed to different extents since the SES project

began. For this reason they are treated separately below. However, it is important to

point out that the two are fundamentally linked via biodiversity; more biodiversity

provides more ecosystems services that are also more diverse, INNS reduce biodiversity

and therefore one of the costs associated with INNS is the reduction in ecosystem

services provided by an area dominated by INNS. A third aspect is skills needs related

to management of the green infrastructure.

4.2. Ecosystem Services

The SES Draft Skills Plan (McGregor et al. 2010) identified the valuation of ecosystem

services as one of four key emerging challenges to the sector which needed to be 36 The Economics of Ecosystems and Biodiversity (TEEB) (UNEP, EC, 2009) However, as noted later in

the text, the announcement of the establishment of the Natural Capital Committee reporting to the Economic Affairs Committee may redress this balance in the UK.

37 e.g. The Millenium Ecosystem Assessment (MA); The Economics of Ecosystems and Biodiversity (TEEB), UK National Ecosystem Assessment.

38 OECD (May 2011) Towards Green Growth – A Summary for Policy Makers. 39 UNEP (2011) - Towards a Green Economy: Pathways to Sustainable Development and Poverty

Eradication - A Synthesis for Policy Makers. 40 Ecological economics is characterized as tackling complex issues using more inclusive economics

approaches and novel contexts such as zero growth (Campiglio 2011). 41 Environmental economics is characterized as using a mainstream, reductionist economics approach to

connections between socio-economic systems and the environment within current economic paradigms such as continuous growth (Campiglio 2011)

42 See Campiglio, E. July 2011. Ecological v. Environmental Economics.


of 74

addressed during the SES project43. Several publications have since provided details of

valuation processes and outcomes, including the UK National Ecosystem Assessment44

in June 2011 and the biodiversity and ecosystem services strategy45 in August 2011.

The recent announcements of the Natural Capital Committee and the Ecosystems

Market Task Force are outcomes of commitments made in the Natural Environment

White Paper46 and appear to indicate development of an ecosystem services approach.

How effective these proposals will be may become clearer when the House of

Commons Environment, Food and Rural Affairs Committee (EFRA) report on six areas

of the Natural Environment White Paper. One of their areas of enquiry will deal with

how might the value of services provided by ecosystems to beneficiaries be translated

into spending that will enhance the natural environment47.

Skills have not been mentioned in publications on ecosystem services at national or

international level. However, the SES Interim Skills Report48 identified two clear

consequences for skills of adopting an ecosystem services approach to valuing /

managing the environment – ecosystem service valuation specialists and integrated

ecosystem management. A consequence of applying an ecosystem services approach to

marine environments is the need for marine habitat survey skills. All three seem likely

to be relevant for some years to come (see also section 6).

4.2.1. Ecosystem service valuation specialists

Adopting an ecosystem services approach implies a need for specialists capable of

applying ecosystem services valuation protocols. Although such specialists may be a

new type of economist49 or retrained agricultural economists, it is more likely that

recent graduates in ecology, biology, environmental science combined with economics

will fulfil this need. Such recent graduates will have the broader grasp of the

environment necessary to understand the integrated nature of ecosystem services. This

skills need is likely to be small in volume, but require a high level of skills (minimum,

graduate).

43 see McGregor et al. 2010: Executive Summary bullet point 6; App. III, 4.3 44 Defra et al (2011) UK National Ecosystem Assessment. Understanding Nature’s Value to Society.

Synthesis of the Key Findings. 45 Biodiversity 2020: A strategy for England’s wildlife and ecosystem services. Aug 2011 ?Defra 46 Defra 2011a. The Natural Choice: securing the value of nature. June 2011. 47 HMG 2011d Natural Environment White Paper Implementation Update. 13th Oct 2011 48 McGregor & Olosundé 2011 49 Likely to emerge from the interaction between ecological and environmental economics.

SES Skills Report

of 74

4.2.2. Integrated ecosystem management

The UK National Ecosystem Assessment specifically identifies the need for a “more

integrated, rather than conventional sectoral, approach to ecosystem management” (see

Box 4.1, key message 5). This is in close accord with the point made in the SES Interim

Skills Report that there is a skills need to introduce planners, producers and resource

managers to the opportunities and responsibilities of the ecosystem services approach

(see also 4.4 and section 6).

This skills need will be challenging to service because of the breadth of approach

required, but could be done through existing CPD routes. SES has successfully piloted

such an approach with Environment Agency staff; one outcome being wider

dissemination of key points and source material through their internal newsletter50.

The report (McGregor & Olosundé 2011) also highlighted the challenge of resource

managers from many areas currently considered to be unrelated being required to

communicate more effectively and work collaboratively because of the integrated nature

of an ecosystem services approach. An example of a successful collaboration is that

between upper catchment land managers and water companies, an approach adopted in

South West Water’s Upstream Thinking project51. Land managers are paid to manage in

a way that reduces downstream water treatment costs by the water company (e.g. by

limiting diffuse pollution). In this instance the economics of the project were clear even

without an explicit ecosystem services approach.

It is clear that several recent EU environmental directives require integrated ecosystem

management. For example, nitrate vulnerable zones, catchment sensitive farming,

marine management organizations and estuarine management require water, land and

marine management to be integrated. This emerging need for skills in an integrated

approach to water management cannot be fulfilled through apprenticeships such as the

Resource Management Apprenticeship, unless these were to be developed to

incorporate integrated working.

A possible step towards integration is the Ecosystems Knowledge Exchange Network

announced in October 201152. This aims to “help decision-makers, land/water

50 P.K. McGregor personal communication) 51 http://www.southwestwater.co.uk/upstreamthinking 52 HMG 2011d. Natural Environment White Paper Implementation Update. 13th Oct 2011


of 74

managers, local interest groups and researchers involved in a range of locally based

ecosystems projects to share learning and good practice in applying an ecosystems

approach.” The focus will be on achieving effective delivery and dissemination to

improve marine and land management decisions and delivery of socio-economic

benefits.

Box 4.1. Ecosystem services

“it is essential that we learn to take account of the full value of ecosystem services in our decision making” (from Foreword to UK National Ecosystem Assessment). Ecosystem services are the incidental benefits provided by the environment for humanity (e.g. water purification, flood mitigation, pollination) and we depend on them to produce food, regulate water supplies and climate, and break down waste products. A report on ecosystem services published in November 2009 (TEEB53 - The Economics of Ecosystems and Biodiversity) - catalogued the value of ecosystems and biodiversity to the economy, to society and to individuals. The report also demonstrates that the cost of sustaining biodiversity and ecosystem services is lower than the costs incurred if biodiversity and ecosystem services are allowed to further degrade. UK National Ecosystem Assessment (Defra et al 2011) lists 5 key messages: The natural world, its biodiversity and its constituent ecosystems are critically important to our well-being and economic prosperity, but are consistently undervalued in conventional economic analyses and decision making.

Ecosystems and ecosystem services, and the ways people benefit from them, have changed markedly in the past60 years, driven by changes in society.

The UK population will continue to grow, and its demands and expectations continue to evolve. This is likely to increase pressures on ecosystem services in a future where climate change will have an accelerating impact both here and in the world at large.

Actions taken and decisions made now will have consequences far into the future for ecosystems, ecosystem services and human well-being. It is important that these are understood, so that we can make the best possible choices, not just for society now but also for future generations.

A move to sustainable development will require an appropriate mixture of regulations, technology, financial investment and education, as well as changes in individual and societal behaviour and adoption of a more integrated, rather than conventional sectoral, approach to ecosystem management.

An overview of ecosystem service valuation was published in May 2011 by the Parliamentary Office of Science and Technology54.

53 The Economics of Ecosystems and Biodiversity (TEEB) (UNEP, EC, 2009) 54 POST (2011a) Ecosystem service valuation. POSTnote 378.

SES Skills Report

of 74

4.2.3. Marine habitat survey skills

It seems likely that the provisions of the Marine and Coastal Access Act55 will extend

the ecosystem services approach to the marine environment. The skills challenge will

result from the inherent difficulties of gathering basic survey and monitoring data on

marine habitats. This may generate a need for specialized marine environment surveyors

in the way that applying the approach to the terrestrial environment does not.

4.3. Invasive Non-Native Species (INNS)

These are species introduced (or otherwise spread) outside of their natural range that

threaten biological diversity or have other unforeseen impacts56. Examples in the UK

included rabbits, Japanese knotweed, Varroa mites, grey squirrels, signal crayfish and

rhododendron57. They are a costly and growing environmental issue locally, nationally

and internationally and represent the 2nd most significant cause of species extinction

worldwide after habitat loss58. The annual GB cost of INNS is £1.7 billion59 incurred

through a range of impacts including loss of crops and damage to buildings. In the UK

2/3rds of the cost is borne by agriculture and horticulture52. A priority action (3.12)

within England’s biodiversity strategy60 is to continue to implement the Invasive Non-

Native Species Framework Strategy for Great Britain. The annual European costs have

been estimated at €19.1 billion61 and an EU Non-Native Species Framework Strategy

(closely based on the GB strategy) is expected in 2013. The skills requirements for

INNS management range from identification and monitoring, through removal /

eradication and include significant biosecurity actions for many businesses not normally

considered as environmental (e.g. marina operators). A skills strategy and delivery plan

is being developed in the UK and will likely be announced to coincide with the release

of the EU strategy.

55 http://www.defra.gov.uk/environment/marine/mca/ 56 Defra 2008. Invasive Non-Native Species Framework Strategy for Great Britain. 57 In 2005 there were 2721 INNS in England, the majority are currently benign (Defra 2008) 58 IUCN, Declaration of Meze 2005 59 Williams et al (2010) The Economic Cost of Invasive Non-Native Species on Great Britain 60 Defra 2011b. Biodiversity 2020: A strategy for England’s wildlife and ecosystem services. Aug 2011 61 Institute for European Environmental Policy, 2009


of 74

4.4. Green infrastructure management

The economic and social returns62 from green infrastructure63 are becoming more

widely appreciated64. The skills needs65 that stem from this wider appreciation at local

authority and community level range can be developed from current land management

practice66 with the addition of an understanding of ecosystem services and INNS. This

is another aspect of the integrated nature of green economy jobs and skills developed in

section 6.

62 e.g. see van den Berg et al 2010 for beneficial health aspects of allotments 63 POST 2011b Landscapes of the Future. Postnote 308 June 2011 64 www.cabe.org.uk/urban-green-nation/facts 65 Baseline is provided by CABE’s 2009 Green space skills 2009. National employer survey findings. 66 e.g. Cabe 2010. Managing green spaces. Seven ingredients for success

SES Skills Report

of 74

5. ENERGY: THE MACRO CONTEXT

5.1. High level analysis of the direction of energy and low carbon policy

To understand the nature and direction of energy and low carbon policy, it is also

necessary to understand the nature of our energy systems, how they have developed and

what drivers are leading to change. This macro scope is based on a whole systems

approach across the energy supply chain to better understand what may happen at the

micro level, including for cross-cutting issues like skills needs.

Our energy systems are embedded within, and intrinsically linked to, much wider socio,

political, technical and economic boundaries, which themselves are constantly changing

(Scarse et al 2009). In addition, energy systems are increasingly global in their nature,

resulting in complex interrelations that impact policy development and action

internationally, regionally, including at an EU level, as well as at the national and local

level. Given that energy systems are both the primary cause of climate change and the

primary means for mitigating emissions, climate policy is energy policy, at least within

wealthy industrialised countries (Scarse et al 2009). This creates a significant challenge

for the UK and other OECD countries, as we have become ‘locked in’ to fossil-fuel

based energy and transport systems (Stagl 2009). Whilst these have proved to be very

stable and effective in enabling economic growth, they have also led to a range of

urgent global energy challenges, including climate change, fuel prices, resource

depletion and energy poverty (Lesage et al 2010). These have directly influenced policy

development, particularly over the last decade, as industrialised countries, including the

UK try to balance the not necessarily complementary challenges of reducing GHG

emissions, whilst trying to ensure energy security and affordability within a liberalised

energy market (Platchkov et al 2011). It is also increasingly recognised that affordable

energy and climate security, or rather the lack of it, will have serious social,

environmental and economic well-being implications (ESMW 2009).

The problem of how to move from a high carbon to a low carbon energy system, whilst

maintaining economic growth and prosperity is complicated by the dynamic and

interrelating nature of energy systems, that include issues that are technical and non-

technical, such as people, institutions, technologies, energy resources, regulations,

infrastructure, investment, skills, etc; as well as all the actors involved in each of these

areas. Part of the problem reflects that fact that these wider areas have evolved


of 74

alongside the systems that we now have in place, meaning ‘lock-in’ is not only about

the fuels we use, but the wider institutional regimes, which themselves can inhibit

policy action (Stagl 2009). The key challenge is therefore about being able to provide

the energy services we need (and want), at a price that we can afford, in monetary,

environmental and social justice terms.

The global nature of energy systems adds further complexity, as different countries have

different resources that they all use in different ways, whilst accessing local, regional

and international markets and supply chains to meet their own energy needs (Hoggett et

al 2011a). What happens in one country therefore affects others, with the recent

incidents at Fukushima (changing nuclear policy in many countries and having knock

on effects for resource use in relation to coal and gas) and the Libya uprising (impacting

global oil and gas prices), both demonstrating how interlinked our energy systems have

become. The changing nature of global governance is also having a significant impact

on energy and climate policy, Lesage et al (2010) suggest that there has always been a

state of flux around governance which can be characterised in three major shifts: firstly,

there was a dominance of the major international oil companies, which was then

followed by a growing dominance of energy producing countries (OPEC and more

recently GECF), which was then challenged by the neoliberalisation agenda in the

1980s that saw energy being liberalised, deregulated and privatised. Further change is

now underway, with the growth and volatility in energy prices, resulting in power and

influence moving away from the market and back to oil and gas producing states. There

are also clear changes in the global economy with the decline of traditional

powerhouses (US, Europe, Japan) to newer emerging economies (Brazil, Russia, India

and China), resulting in a much more multipolar world and an increasing geopolitical

element to energy and climate policy. On top of this, the global demand for energy

resources and technologies is increasing, the centres of supply and demand are changing

(IEA 2010), and this is having further impacts on price, technology development and

the availability of resources (ESMW 2009).

All of the above issues are closely intertwined, resulting in a hugely complex and

dynamic landscape for policy and action on energy, climate and low carbon, whilst

increasingly influencing the development of policy within the EU and the UK.

SES Skills Report

of 74

5.1.1. The EU policy context

It is only over the last decade that EU energy and carbon policy has started to become

increasingly coordinated (McGowan 2009). A key development was through the

integration of climate and energy policy in the Energy and Climate Package (CEC

2007), which put forward the 20-20-2067 by 2020 goals and targets for reducing GHG

emissions, increasing the uptake of renewable generation and improving energy

efficiency (as well as targets for biofuels). The policy was a response to many of the

issues highlighted above, as the EU began to recognise that rising energy prices and

growing import dependency would jeopardise both energy security and

competitiveness; whilst also recognising the need to cut emissions to mitigate climate

change; and the need for major investment in infrastructure (EUROPA 2011). Action on

energy and climate sits within the wider EU growth agenda - the Europe 2020 strategy,

which sets out the overarching approach for achieving a smart, sustainable and inclusive

economy to deliver high levels of employment, production and social cohesion. In

addition to the climate and energy goals, the Resource Efficiency Europe Flagship

Initiative also sits within the Europe 2020 strategy and focuses on the natural resources

underpinning the economy and quality of life, aiming to reduce emissions, improve

productivity, reduce costs and create economic opportunities and competitiveness (EC

2011a). These strategies have provided the long term framework for more recent

developments.

The actual policies set out by the EU for energy and low carbon sit across a wide range

of different strategies that use a variety of market mechanisms, including: market-based

tools (mainly taxes, subsidies and the EU ETS68); the development of energy

technologies (especially technologies for energy efficiency and renewable/low-carbon

energy); community financial instruments; and measures to reduce the EU’s

contribution to global warming and to guaranteeing energy supply (EU 2011b). As of

2011, there are approaching 400 different acts of relevant legislation in force,

introduced by a range of different institutions, including the European Commission

(Energy and Climate Action), the Council of the European Union (Transport,

Telecommunications and Energy) and the European Parliament (Committee on

Industry, Research and Energy) (EU 2011b). They include high level cross-cutting

issues like energy, climate, infrastructure, the energy market, energy security, research

67 20% increase in energy efficiency, 20% reduction of CO2 emissions, and 20% renewables 68 Emissions Trading Scheme


of 74

and innovation, and skills; as well sector specific initiatives such as energy efficiency,

renewables, nuclear power and CCS. The key drivers of EU energy policy are currently

energy security, sustainability and competitiveness, which include a range of high level

goals, strategies and targets in relation to:

• Energy efficiency (reducing emissions; improving energy security; improving

competitiveness; and keeping energy costs down);

• The free movement of energy (competitive & more reliable prices; consumer

choice; security of supply; and security for investors);

• Secure, safe and affordable energy (effective internal market; transmission and

storage; infrastructure; and affordability for consumers);

• A technological shift for decarbonisation (the Strategic Energy Technology (SET)

plan; development and demonstrations of technologies, including second-generation

biofuels, smart grids, smart cities and intelligent networks, CO2 capture and storage,

electricity storage and electro-mobility, next-generation nuclear and renewable

heating and cooling);

• Strong international partnership (climate security; energy security; competitiveness)

(EUROPA 2011).

5.1.2. The UK policy context

Much of the UK’s low carbon policy reflects what is happening at the EU and

international level, as well as dealing with specific issues that relate to the UK energy

system, such as: our growing import dependency on fossil fuels (the UK becoming a net

importer for the first time in 2004 (NS/DECC 2010)); the ageing nature of our

generation fleet (a quarter is expected to close by around 2020); the need for

unprecedented levels of investment in our energy infrastructure (around £200bn in the

next 10 to 15 years (Ofgem 2010) - generation and transmission/distribution); and rising

fuel prices impacting the economy and resulting in growing levels of fuel poverty.

Given that our energy system is also privatised, policy is generally limited to

setting/amending regulations and creating market based mechanisms to try and direct

the market in the right direction to deliver our targets and goals.

A new approach to energy policy, since privatisation, really only emerged in the last

decade, with the 2002 PIU report which put forward a new energy framework, which

was followed by an energy white paper in 2003, a review in 2006, with further white

SES Skills Report

of 74

papers in 2007, 2009 and 2011. Across these developments the central goals of reducing

GHG emissions, securing supply, and maintaining affordability have been fairly

consistent, along with a policy of achieving them through competitive markets (Hoggett

et al 2011a). However, in recent years there has been a realisation from Government

that they need to play a more strategic role that does not rely solely on a market based

approach (Woodman 2010). This is leading to new policy approaches, linked in part to a

subtle redefinition of the goals for UK energy and climate policy, which are now shaped

around four key priorities, which closely align to emerging policy developments,

including:

• saving energy with the Green Deal and support for vulnerable consumers (by

reducing energy use by households, businesses and the public sector, and protection

for the fuel poor);

• delivering energy security on the way to a low carbon energy future (by reforming

the energy market to ensure that the UK has a diverse, safe, secure and affordable

energy system and incentivising low carbon investment and deployment);

• driving ambitious action on climate change at home and abroad (by working for

international action to tackle climate change and working across government

departments to meet the UK carbon budgets efficiently and effectively);

• managing the UK’s energy legacy responsibly and cost-effectively (by ensuring

public safety and value for money in the way that nuclear, coal and other energy

liabilities are managed) (DECC 2011a).

These priorities now shape the direction of UK policy developments and they link to

some key legally binding targets. Firstly, the renewable target agreed as part of the EU’s

2020 energy package that requires the UK to increase the share of renewable energy

(across electricity, heat and transport) by 15% by 2020. Secondly, the UK’s own targets

for reducing GHG emissions by 80% by 2050 (against a 1990 baseline). The approach

for action on climate change is set out in the 2008 Climate Change Act, which also

includes a legal requirement to reduce emissions by at least 34% by 2020 (DECC

2011b). Advice on setting and meeting these targets are provided by the independent

Committee on Climate Change (CCC), through five yearly ‘carbon’ budgets, with the

CCC advising on how they can be technically and economically met. The carbon

budgets are set three budget periods ahead, so the UK has a clear outline of what needs

to be achieved in the next 15 years. The first three carbon budgets covering the period to

2022 were produced in 2008 (CCC 2008) and the CCC has also recently provided


of 74

advice on the fourth carbon budget to 2027 (CCC 2010). Key policy documents for

meeting the renewable and GHG emissions targets were the 2009 Low Carbon

Transition Plan (HMG 2009a) and Renewable Energy Strategy (HMG 2009b), although

a number of further policies have since been developed – see below.

In order to better understand the implications of meeting the targets and goals for energy

and climate policy 2050, a wide range of models have been developed, which are

increasingly influencing the direction of policy. Modelling has been carried out by a

range of organisations, including the CCC, DECC, UKERC and many large energy

consultancies (such as AEA, Redpoint, Element Energy and PÖYRY). Their purpose is

to explore different routes to achieve the targets by looking at the options across

different sectors of the economy, for example, key messages from the CCC modelling

suggests that action will be needed to increase energy efficiency, decarbonise power

generation and expand the use of electricity into heat and transport. DECC’s modelling

approach is set out in their 2050 Pathways Analysis reports (HMG 2010; HMG 2011a)

and from the various model runs they have carried out, they also see a similar route to

decarbonisation, with the Governments setting out their vision to 2050 being based on:

“....major changes in how we use and generate energy. Energy efficiency will have to

increase dramatically across all sectors. The oil and gas used to drive cars, heat

buildings and power industry will, in large part, need to be replaced by electricity,

sustainable bioenergy, or hydrogen. Electricity will need to be decarbonised through

renewable and nuclear power, and the use of carbon capture and storage (CCS). The

electricity grid will be larger and smarter at balancing demand and supply” (HMG

2011b:4)

There therefore appears to be some high level emerging consensus on how to achieve

the transition to low carbon, which some commentators now refer to as an ‘all-electric’

future (Speirs et al 2010). However, a wide range of alternative views for reaching the

2020 and 2050 targets also exist; such as modelling for the Energy Networks

Association (Redpoint 2010) which suggests a more cost effective route to meeting the

2050 targets would see a bigger role for gas. Research by Greenpeace (2010) sees a

much bigger role for renewables, the phasing out of coal and nuclear and a move

towards a decentralised energy system; and research by WWF (2011) which sets out a

route for a 100% renewable energy future.

SES Skills Report

of 74

What is apparent across all the different modelling is the need for much more action on

energy efficiency as well as a shared view that there is a great deal of uncertainty about

the future (Moore 2011). It is also recognised that options need to be kept sufficiently

open to avoid the lock-in to what could become an expensive or unsustainable system,

for example through lock-out of some technologies, or the development of assets which

become stranded because they are no longer required or suitable. Given the scale of

change needed, trying to take the right decisions now is complex, but if the opportunity

is missed or the wrong decisions are made it is possible that we could undermine the

possibility of having a sustainable energy system in 40 years time (Woodman &

Mitchell 2011). Ultimately energy supply and demand, and the infrastructure and

markets that link them, are all integral to the transition to low carbon. The rate and scale

of change that is required will have impacts right across the whole energy supply chain

and the whole innovation chain, from basic research through to deployment, including

the skills that will be needed to enable it to happen. Emerging policy developments are

increasingly setting the direction of travel.

5.2. Energy: Emerging Policies and Potential Impact on Skills Demand

There has been a raft of new policy developments and strategies with a potential to

influence future skills needs. Some of these are high level and will influence the

direction of energy and low carbon policy, as well as the way that the energy system

develops. Whilst some are more sector specific and have clearer links to potential skills

needs.

5.2.1. High level EU emerging policy developments

Recent EU policy developments are based around a series of new roadmaps that model

scenarios and policy needs to 2050. These build on the EU 2020 strategies and continue

to be based around the key themes of energy security, sustainability and

competitiveness. They aim to strengthen progress towards the 2020 targets, whilst

setting out sector specific goals and milestones to 2030, 2040 and 2050. The roadmaps

include a high level roadmap for a competitive low carbon economy and the ongoing

development of a number of sector specific roadmaps to provide more depth on the

relevant global and EU context, the dynamics within each sector and how these link to

decarbonisation and the wider objectives of the respective sector. To date a transport

roadmap and energy efficiency action plan have been produced, a roadmap on energy is


of 74

due before the end of the year and a roadmap to a resource efficient Europe that links to

other initiatives in respect to resource productivity and decoupling economic growth

from resource use is also planned (EC 2011a).

5.2.1a. Roadmap for moving to a competitive low carbon economy in 2050

The overarching low carbon economy roadmap suggests that a revolution is needed

across energy and other sectors (industry, transport, buildings, construction, and

agriculture). It uses modelling to look at the cost-effective options to enable emission

cuts of 40% by 2030, 60% by 2040 and 80% by 2050 (all against a 1990 base-line),

based largely on domestic action, with technologies that already exist or that are in

development. It suggests that current policies (i.e. the 20-20-20 goals) will result in a

20% fall in emissions, if they are fully implemented, but that further effort on energy

efficiency could result in emission reductions of 25% by 2020. Contributions from key

sectors and milestones for each are set out against a vision for moving to a low-energy,

low-carbon society, and the benefits that this will bring for the EU and Member States

in relation to society, the economy and the environment. These are discussed in respect

to:

• Europe’s key challenges and milestones to 2050;

• low carbon innovation by sector (a secure, competitive and fully decarbonised

power sector; sustainable mobility through fuel efficiency, electrification and getting

prices right; the built environment; industrial sectors; and raising land use

productivity sustainably);

• investing in a low carbon future (increasing capital investments; reducing energy

bills and fossil fuel dependency; and creating new jobs);

• international dimensions (EC 2011c).

In respect to jobs and skills needs, the roadmap anticipates that the move to a low

carbon economy will create new jobs in the short and medium-term, as well as there

being a longer-term expectation of job creation and preservation. To enable this, it is

recognised that the EU needs to be able to lead in the development of new low carbon

technologies, which will require increased education, training, R&D and

entrepreneurship, as well as a favourable economic framework for investment. This is

seen as important to enable the delivery of the milestones within the roadmap, cost-

effectively, as well as to maximise the benefits for EU manufacturing industries, with

SES Skills Report

of 74

the implementation of the Strategic Energy Technology Plan seen as being crucially

important in enabling this. By putting the right frameworks in place, industry should be

able to take advantage of new low carbon economic opportunities which will require an

increasingly skilled work force, particularly in the construction sectors, technical

professions and engineering and research; with these needs met through targeted

vocational training of the existing work force, by addressing emerging skills bottlenecks

and by fostering these skills in the education system. The Commission highlight they

are currently working to assess the employment effects of greening the economy and

they refer to the New Skills and Jobs Agenda.

5.2.1b. Transport 2050 Roadmap

This focuses on the creation of a Single European Transport Area to provide a

competitive and resource efficient transport system that is fully integrated to networks

within Member States. The aim is to change passenger and freight transport patterns, so

the sector is competitive, allows increased mobility, cuts CO2 emissions and breaks the

transport system's dependence on oil. The goal is to reduce transport emissions by 60%

by 2050 (compared to 1990) and to reduce final transport oil consumption by 70% by

2050, relative to business as usual. It also highlights the expected growth in electricity

demand for road and rail transport as well as a growing role for biofuels in those sectors

that are less able to use electricity (EC 2011a). The approach is described across several

action areas:

• a long-term vision (growing transport and supporting mobility whilst reducing

emissions; an efficient core network for multimodal intercity travel; a global level

playing field for long-distance travel and intercontinental freight; clean urban

transport and commuting; 10 goals and benchmarks for enabling this);

• the strategy (a single European Transport Area; innovation – technology and

behaviour; infrastructure, smart pricing and funding; external dimensions);

• a list of initiatives to enable delivery across each area of the above strategy (EC

2011d).

5.2.1c. Energy Efficiency Action Plan 2011

Not a roadmap, but an integral part of the delivery of the 2020 and 2050 goals, given the

central role reducing energy consumption plays in terms of cost-effectiveness,


of 74

increasing energy security and reducing emissions. The energy efficiency component of

the 20-20-20 goals was non-binding when introduced and the latest analysis by the

Commission suggests that on current progress only half of the 20% target will be

achieved. The new action plan seeks to address this by making the target compulsory, as

well as setting requirements for the refurbishment of public buildings, industrial

equipment, energy audits, the improvement of efficiencies for power and heat

generation, and the roll-out of smart power grids. It also seeks to integrate action on

energy efficiency with other cross-cutting issues in the Europe 2020 strategy and the

2050 roadmap work to ensure policy coherence, and to identify trade-offs/synergies (EC

2011e).

Training is highlighted as a key area within the Energy Efficiency Action Plan, with a

recognition that it is technically demanding to create energy efficient buildings. It

identifies that the transition to energy-efficient technologies will require new skills,

environment-conscious vocational education and training in construction and in many

other sectors; and that training and skills gaps exist for architects, engineers, auditors,

craftsmen, technicians and installers, particularly in respect to refurbishment. To

address this, the action plan highlighted the 'BUILD UP Skills: Sustainable Building

Workforce Initiative', which will support Member States to assess training needs for the

construction sector, develop strategies to meet them, and foster effective training

schemes. As well as working with Member States to adapt their professional and

university training curricula to reflect the new qualification needs (in line with the

European Qualification Framework).

5.2.1d. Energy 2050 Roadmap

The energy roadmap is still being finalised, following an earlier consultation in 2011

and is due to be adopted on 13/12/2011. The initial analysis for the Roadmap suggests

that only a 40% cut in emissions by 2050 will be achieved based on current trends and

policies. The roadmap seeks to address this by developing policies to reduce emissions

by 90% in the power sector, 80% in industry, 60% in transport and 90% in residential

and services by 2050. It will build on the 2020 strategy to try and create new

opportunities whist supporting the goals for energy security, sustainability, resource

availability, the economy and society. It also recognises that many energy system

developments will be best achieved on an EU-wide basis, encompassing both EU and

Member State action. This in turn will have implications for the effective development

SES Skills Report

of 74

of EU policy and coherence between members of the EU, given the importance of

regional and EU markets and policy frameworks. Some key themes have been

discussed in the state of play document for the roadmap:

• a market-based approach (it is hoped that developing a long-term strategy for energy

policy and regulation will trigger the market to invest in the capital-intensive, long-

lived investments that are needed);

• scenario analysis (to underpin the strategy, based on data from stakeholders, the IEA

and Member States, to set out possible routes to 2050);

• demand-side action (in addition to the actions within the Energy Efficiency Plan,

there is additional scope to 2050 for demand side action for decarbonisation,

including smart meters and grids, system changes to reward flexibility, leading to

new roles for consumers and local generators);

• infrastructure investments (including transmission within and between Member

States, smart grids, new decentralised supply, growing renewable generation, CCS

development and a changing power generation mix. As well as incentivising the

right investment through carbon pricing, whilst avoiding the risk of lock-in of

technologies and stranded assets by supporting the too-early deployment of

technologies that can be expensive and risky) (EC 2011a).

The amount, and rate of, change that is anticipated within the energy sector, is seen as

having a wide range of impacts, not only on the energy system, but also in respect to the

skills needed and the availability of human resources, which is linked back to the

European social dialogue and New Skills for New Jobs initiative, which seeks to

anticipate future skill needs in the transition to a low-carbon economy.

5.2.2. High level UK policy developments

5.2.2a. Carbon Plan

This sets out the plan to achieve decarbonisation within the framework of the UK’s

wider energy policy goals, based on action on energy efficiency, fuel switching,

decarbonising electricity, and investment in infrastructure. It includes sector plans to

address the wide range of uncertainties that exist in how the energy system will develop

to 2020 and 2030, covering:


of 74

• Low carbon buildings: energy efficiency (insulating all cavity walls & lofts where

practical; launching the Green Deal; considerably ramping up solid wall insulation);

low carbon heat (introducing the RHI to support action; ramping up in 2020s

towards electric heat and heat networks);

• Low carbon transport: more engine efficiencies; sustainable biofuels, electric and

hydrogen fuel switching, with a mass roll out during 2020s;

• Industry – increasing energy efficiency and using low carbon fuels, as well as

developing CCS;

• Electricity: meet a potential doubling of demand by 2050 through the increasing use

of electricity within heat, transport and industrial processes provided via low carbon

generation (renewables; new nuclear and CCS fossil fuel generators).

• Agriculture, land use and forestry – agriculture (better management practices and

independent review of options); waste (developing a zero waste economy and

creating a Waste Prevention Programme) (HMG 2011b).

The need for skills is referred to in several areas of the plan, although with minimal

detail. This is set out in respect of key policy developments, such as the Green Deal,

RHI and the reform of the electricity markets; as well as a number of sector-specific

areas, where skills needs, job opportunities and areas of economic advantage have been

identified:

• renewable energy – investing in industries that suit the UK’s resources and skills,

such as offshore wind and CCS;

• energy efficiency – an expectation that the supply chain and skills base will

develop, particularly for solid wall insulation;

• heat and cooling – the need for specialist skills and training for the widespread

deployment of heat pumps;

• nuclear power – Cogent’s labour intelligence work to help support the development

of a skilled nuclear workforce, with Government seeking to take action to address

skills gaps with the Nuclear Energy Skills Alliance (HMG 2011b).

5.2.2b. Electricity Market Reform (EMR)

In order to enable the development of a more electric future, significant reform of the

electricity market has been identified as a key issue, including the need to ensure

decarbonisation, energy security and affordability (HCECC 2011). At the same time it

SES Skills Report

of 74

must encourage sufficient investment to replace the planned closure of some generation

plant and upgrades to the UK’s wider energy infrastructure. The proposed approach to

achieve this was set out within an EMR consultation and the subsequent ‘Planning our

electric future: a White Paper for secure, affordable and low-carbon electricity’ in July

2011. Key elements of the proposed reform package include:

• a Carbon Price Floor: to put a fair price on carbon and therefore reduce investor

uncertainty and provide a stronger incentive to invest in low-carbon generation;

• introducing a Feed-in Tariff with Contracts for Difference: providing new long-term

contracts to provide a stable financial incentive for investment in all forms of low-

carbon electricity generation.

• an Emissions Performance Standard: to prevent new unabated coal plant being built,

whilst enabling short-term investment in gas; it is set at 450g CO2/kWh;

• a Capacity Mechanism – to encourage investment in generation to ensure that there

is sufficient capacity available on the system to meet demand at all times, including

demand response – essentially a security of supply measure (DECC 2011c).

Some elements of the EMR are still being finalised, but Government hopes to legislate

in May 2012, with the reforms being in place by early 2013, whilst also trying to ensure

that there are sufficient transitional arrangements to ensure investment continues to be

made whilst the new system is developed.

A range of differing views have been expressed around the EMR, in part reflecting the

magnitude of the reform package and the potential implications that it could have across

the economy, now and for years to come (HCECC 2011). During the consultation

process, concerns were raised over: the complexity of the EMR; its potential expense;

the failure to recognise the urgency of the transformation that needs to take place; the

risk that it would not do enough to attract the necessary investment in the time needed;

and the risk that it is missing the chance to put the UK at the forefront of innovation and

competition (HCECC 2011; Skea et al 2011). It has also been suggested that: the EMR

actually does little to fundamentally change the way that the electricity market currently

operates; that it continues the dominant policy focus on the supply side69; that it

continues to promote a large centralised energy system, over more decentralised

options; and that it is essentially a package designed around the needs of nuclear power

69 By seeking to ensure that there is sufficient capacity to meet demand, regardless of what the level of

demand is


of 74

and as such will continue to lock us into an unsustainable system70 (Woodman &

Mitchell 2011). It has also been suggested that whilst much of the ERM is about

reducing risk for investors to encourage investment, those risks still exist, but they are

just shifted to the government, and by extension to consumers; and that some elements

of the proposed reform may have unforeseen impacts, such as potentially undermining

the EU ETS (Platchkov et al 2011).

Although not specifically focussing on skills, the EMR could fundamentally change the

nature of the energy system and the technologies that come forward, particularly in

relation to large scale solutions, including offshore renewables, nuclear power and CCS

and this is leading to investment and policy focus on the skills need for large scale

generation.

5.2.2c. Annual Energy Statement (AES)

The AES provides a high level overview of progress on the commitments made by

DECC, whilst also being a platform for announcements. Within this year’s statement

DECC announced their intention to set up an Energy Efficiency Deployment Office,

which is likely to play a central coordinating role in driving energy efficiency

developments, including the Green Deal. They also announced that a Heat Strategy will

be delivered next year, which is likely to link to some of the final details of the RHI

(DECC 2011d).

5.2.2d. Fuel Poverty

The Government has a legal obligation in England and Wales to ‘eradicate’ fuel

poverty, ‘as far as reasonably practical’ by 201671, as well as a target to eliminate fuel

poverty in ‘vulnerable households’ in England by 201072. A range of initiatives were

developed on the back of these policies to tackle fuel poverty, particularly though

obligations on energy suppliers, as well as some from Government, such as the Home

Energy Efficiency Scheme (now Warm Front), winter fuel payments and the Decent

Homes Standard. Even with all this support, around one fifth of all UK households are

living in fuel poverty (Boardman 2010) and last year’s report from the Fuel Poverty

70 Given that that variable output of many renewable technologies do not work well with the fixed output

of nuclear, which could result in renewable being constrained off at times of low electricity demand on the network (Hoggett et al 2011a).

71 Set out in the Warm Homes and Energy Conservation Act 2000 72 Set out in the UK Fuel Poverty Strategy in 2001

SES Skills Report

of 74

Advisory Group stated that the last six years had been a devastating period for the fuel

poor, with the number rising to around 4.6 million in 2010, compared to 1.2 million in

2004; largely due to fuel price rises (FPAG 2010). As Boardman highlights, the 2010

target was unobtainable and there are growing concerns that the 2016 target will also be

missed. The latest estimate from DECC is that around 5.5 million UK households are in

fuel poverty73.

In the face of this evidence, the Government commissioned an independent review of

Fuel Poverty, appointing Professor John Hills in March 2011. An interim report was

produced in October 2011 and a subsequent consultation closed in November; with a

final report expected in early 2012. The Interim Report concluded that fuel poverty is a

distinct and serious problem, and at its core is an overlap between low incomes and high

costs. The review suggests that fuel poverty is a priority for a range of coinciding

concerns, including poverty alleviation, health and well-being, energy efficiency and

carbon saving. Whilst action on these is a priority, a key issue remains the effective

measurement of the problem and the review puts forward alternative ways to measure

fuel poverty, which the consultation sought views on (Hills 2011).

Fuel poverty is becoming a key driver for Government, linking to wider concerns over

rising energy costs and affordability. It remains to be seen how the Government will

respond to the final Hills Review, however, policy developments, including the EMR

and the recently Green Deal consultation increasingly consider energy costs. Action to

tackle fuel poverty is likely to see continued efforts to improve insulation and heating

systems for vulnerable customers, primarily through the new obligation on energy

companies, linking with the Green Deal delivery framework.

5.2.2e. Planning Reform

There has been a raft of changes and proposals for planning reform, based around

simplifying the system and giving more control back to the local level. At a macro scale

this is based around National Policy Statements (NPS) for energy infrastructure, the

purpose of which are to provided a framework against which proposals for major energy

projects are assessed and decided upon, based on a recognition that planning is a major

issue in the development process, that adds considerable investment risk for developers.

The new NPS seek to enable a rapid, predictable and accountable service and cover:

73 http://www.decc.gov.uk/en/content/cms/statistics/fuelpov_stats/fuelpov_stats.aspx


of 74

EN-1 Overarching Energy NPS; EN-2 Fossil Fuel Electricity Generating Infrastructure

NPS; EN-3 Renewable Energy Infrastructure NPS; EN-4 Gas Supply Infrastructure &

Gas and Oil Pipelines NPS; EN-5 Electricity Networks Infrastructure NPS; and En-6

Nuclear Power Generation (DECC 2011e). In addition the Localism Bill, which

received Royal Assent in November 2011, is based around a proposed shift of power

from central government back to individuals, communities and councils. It covers a

wide range of changes, including several reforms of planning, the abolition of regional

strategies and a number of new approaches for local working (DCLG 2011a). There

have also been recent amendments to permitted development rights, which allow minor

changes to properties without the need for planning permission. Several

microgeneration technologies already have these (outside of conservation areas, listed

buildings, etc), but the Government has just added roof mounted wind turbines and air

source heat pumps to the list of permitted development, with significant caveats74.

5.2.3. Sector specific policy developments

5.2.3a. Renewable Energy Roadmap

The Roadmap is the Government’s action plan for accelerating the deployment of

renewable energy across electricity, heat and transport to help meet the UK’s 2020

renewable energy target. Specifically, the roadmap identifies eight technologies that can

contribute to this target cost-effectively, or offer significant potential in moving towards

the 2050 targets, which include: on and offshore wind; marine energy; biomass (heat

and electricity); heat pumps (air and ground source); and renewable transport.

Combined, these technologies are expected to deliver 90% of the 2020 renewable target,

with the remainder expected to come from hydropower, PV and deep geothermal heat

and power (DECC 2011f).

The renewable energy roadmap makes limited reference to skills and training, although

the fact that it is based around eight key technologies that are seen as central to reaching

the near and long term UK targets, implies that there is an expectation for significant

growth in these technology sectors, which in turn will require a sufficient skills base

within these technologies, across the whole innovation chain from R&D&D75 (for

emerging technologies i.e. marine energy) through to the deployment, from

74 Not only have building mounted wind turbines been shown to be ineffective, there are also no models

with MCS approval, so none would be eligible for FiTs. 75 Research, development and demonstration.

SES Skills Report

of 74

manufacturing, through to installation and maintenance. The roadmap also contains

some cross-cutting actions of relevance, including ‘facilitating the development of

renewable supply chains’ and ‘encouraging innovation’. The Roadmap also includes,

for each technology a developer journey map for a deployment, setting out key

processes and potential bottlenecks for a range of different actors (such as developers,

consultants, manufacturers, etc), along the whole deployment chain. Cited examples in

relation to skills development and new employment opportunities within the Roadmap,

include construction, ports, biomass, heating, and manufacturing.

The one area where skills and training needs are discussed in more detail is in relation to

heating, including biomass, but in particular for heat pumps, with a suggestion that the

UK will need in the order of 8,000-10,000 heat pump installers by 2020, with the

appropriate skills to ensure high quality installations76, and for engineers (ground source

heat pumps drilling and bore hole work). To assist with this, the Government highlight

the work of Summit Skills in developing a National Occupational Standard (NOS) and

competence framework to encourage up-skilling more directly in the heat pump

industry, linking with previous analysis on Microgeneration within the SES Interim

Skills Plan (McGregor & Olosundé 2011), and the development of the Renewable Heat

Incentive (RHI).

5.2.3b. Renewable Heat Incentive (RHI)

The RHI is essentially the heat version of the FiT and was developed with an intial

budget of £860m. It aims to stimulate the uptake of renewable heat in the industrial,

commercial, public and domestic sectors, reflecting the fact that around half of the UK’s

carbon emissions are associated with the production of heat, with around 95% provided

by fossil fuels (DECC 2010). Government hopes to enable a step change in the use of

renewable heat technologies, taking them from a current deployment level of around

1.5% of heat demand to a level of 12% by 2020 (DECC 2011g), to both support the

UK’s renewable energy and GHG commitments.

The RHI will support the installation of equipment like heat pumps, biomass boilers and

solar thermal panels by providing a subsidy for 20 years for eligible technologies

(installed since 15/7/2009) with payments being made for each kWh of renewable heat

output (metered where possible, or deemed where not). The domestic side of the RHI is 76 Poor installations were recently flagged as major barrier to the potential role out of heat pumps (EST

2010; EE/NERA 2011).


of 74

due to start in late 2012, although some initial funding is available for households via

the Renewable Heat Premium Payment (RHPP), which could support up to 25,000

household installations (DECC 2010). The commercial support under the RHI was

launched in November 2011.

In their analysis for potential take-up under the RHI, DECC suggest that around

150,000 existing manufacturing, supply chain and installer jobs will be supported,

suggesting limited market expansion in the early phases. Many of these are also

expected to sit within smaller firms who carry out domestic and other small scale

installations, and the anticipation is that job creation opportunities will be developed as

the demand for renewable technologies increases (DECC 2011g). In the longer term,

subject to developments in the funding of the RHI77 and based on the projected role for

renewable heat within the carbon budgets, there is likely to be more significant growth

in jobs and therefore training needs in the installation and maintenance of renewable

heat technologies. For example, DECC highlight that the RHI, along with other policies,

could result in the creation of up to 500,000 jobs in the renewable industry as a whole

by the end of the decade (DECC 2011h).

Assessing the potential market for renewable heat uptake under the RHI is difficult,

given that it is effectively a new market mechanism, which the market will take time to

respond to, and consumers’ response will be interesting to follow, for example could

there be a heat equivalent of PV? The Government clearly see the RHI and RHPP as

mechanisms to stimulate demand for renewable heat technologies by lowering the

effective cost of technologies for those wishing to install and they anticipate that it will

also encourage additional training and R&D in the British renewable industry and

ultimately lead to the greater availability of skilled installers. Given the clear direction

of the UK’s emerging high level policies and modelling, there is a clear desire to see a

growing roll out of renewable heat across different sectors, particularly in respect to

heat pumps. Training and skills in this area, as highlighted in the renewable energy

roadmap above, is therefore likely to be a growth area.

As with the FiTs, the Government also make it clear that they expect the levels of

support to decrease over time as the costs of the equipment and installation reduce, how

77 Initial funding for the RHI came from general taxation and it is not yet clear how the scheme will be

funded in the future (it could get further Treasury support, it may be linked to customer bills, as with the FiT or it may be more closely tied to Green Deal finance).

SES Skills Report

of 74

quickly this may happen, in light of the changes that have happened for solar PV, is

likely to be of concern to those working within the sector.

It is also apparent that little work has so far been done with consumers around

renewable heat technologies. Whilst there are clear advantages of using renewable heat,

particularly within the off-gas sectors, there is very little evidence to suggest that those

with gas will be willing to switch to alternative forms of heat, although Government and

the CCC expected this to happen, particularly post 2030. It is also apparent that

renewable heat uptake faces a number of barriers that need to be overcome (Hoggett et

al 2011b). One issue is that options for renewable heat differ in lots of respects from

some other forms of microgeneration, such as PV, which can have a fit-and-forget

attitude, whereas heating systems are integral to peoples’ lives, are used on a daily basis

and are fundamental to comfort (EE/NERA 2011). Correctly sizing and integrating

renewable heat technologies is therefore complex and requires high levels of skills in

assessing options, taking account of the building’s characteristics, as well as the

occupant’s behaviour. These are likely to be new skills for many currently working

within the heating sector as well as the microgeneration sector, if the RHI leads to quick

market growth, creating the need for new and additional training in the future.

5.2.3c. Feed-in Tariff Changes

The Feed-in Tariff (FiT) was introduced to support electricity generation projects, up to

5MW in scale, across a range of technologies and have resulted in a rapid expansion of

jobs and associated training within the microgeneration sector. This is particularly the

case for the solar PV industry, with over 98% of the total installations taking place

(94,967 as of 31/10/2011) since the introduction of the FiT in April 2010 being for PV

(based on the FiT register, so not including incomplete projects) (Ofgem 2011). It is

suggested that since April 2010, the number of jobs in the UK solar industry has

increased by a factor of 10 to over 30,000 today, whilst the number of companies

operating in solar has risen from 350 to 4000 (FoE 2011). This growth has been driven

by the higher than expected uptake, reflecting the generous initial tariff levels for PV, as

well as falling costs, making the rate of return increasingly attractive for consumers.

The rate of uptake of PV has resulted in a number of changes and further proposed

changes from Government. There was a fast track review in early 2011 which resulted

in significant reductions in tariff bandings above 50kW in size (DECC 2011i),

essentially designed to stop solar farm scale developments. In October 2011 the


of 74

Government then announced a comprehensive review of the FiTs for PV, which closes

in December 2011, which is looking to reduce tariff levels for installations below

250kW in scale. Specifically the consultation is seeking views on: the proposed tariff

reductions; the application of these to all installations completed after the 12th

December 2011; a new multi-installation tariff rate; strengthening the link between FiTs

and energy efficiency requirements. Furthermore, another consultation is also expected

towards the end of 2011 on other aspects of the scheme, including tariffs for other

technologies and new cost control mechanisms (DECC 2011j).

Inevitably, there has been a strong reaction to the actual and proposed levels of cuts to

this support mechanism, not only from industry, where such quick changes can

significantly impact on business plans, financing and jobs within installation companies,

but also from local authorities and community groups who have been forced to abandon

or change their proposals. A significant campaign has been developed on the back of the

latest consultation, that has included an unsuccessful challenge within the House of

Commons (Hansard 2011), and the potential for two legal challenges that are calling for

a judicial review (Friends of the Earth and a coalition of solar companies – Our Solar

Future)78. There have also been calls for a policy change from a wider range of players,

including the CBI and a wide range of firms, housing associations and politicians

(Shankleman & Murray 2011). Whilst there is broad agreement that the falling PV costs

should lead to a tariff reduction, the speed of the proposed cut has caused significant

problems within the industry. There is also considerable concern in regard to some of

the possible future changes that are being proposed and how this may affect future

levels of uptake. Of these, it is the possibility that eligibility for the FiT could be tied to

bringing a home up to a rating of C through EPCs79. This would have a significant

impact on those areas of the country, including Cornwall, which have large numbers of

hard to treat properties, given the costs and difficulties of improving this type of stock.

Common views across the sector suggest that this will impact on projects, jobs and

training requirements, whilst creating uncertainty across the solar PV supply chain,

within investors and more widely within the microgeneration sector. A recent FoE

briefing suggests that the Government’s own impact assessment suggest that around

78 At the time of writing, the UK’s High Court has agreed to hear the applications from environmental

group Friends of the Earth and two solar companies, Solarcentury and HomeSun, to challenge the government’s proposed cut to solar FITs: http://www.energyefficiencynews.com/i/4702/

79 The alternative suggestion is that the owner of occupier of a building has to undertake all the measures that are identified on an EPC as potentially eligible for Green Deal finance.

SES Skills Report

of 74

half of the 27,000 jobs created in the solar industry in the last two years will go. A

survey by the Renewable Energy Association also suggests that over half of solar

companies anticipate laying off at least half their current staff and around a third are

concerned that their business may be forced to close altogether (FOE 2011).

It has been widely shown in other areas of energy policy, that there is a need to provide

long term, clear signals for policy, regulation and support to encourage investment to

come forward, particularly for those technologies that have higher market risks

associated with them, such as renewables (Mitchell 2008). This is an issue the

Government also recognise, discussing the need to encourage and enable investment in

both their EMR work and the Renewable Energy Roadmap (DECC 2011c; DECC

2011f). Arguably, based on what has happened in respect to funding for

microgeneration in the past, such as the Low Carbon Buildings Programme and now the

FiTs, when Government highlight the need for a stable investment environment they are

really talking about macro-scale technology pathways.

5.2.3d. Green Deal and Energy Company Obligation (ECO)

The fundamental objectives of the Green Deal and ECO are to increase energy

efficiency to reduce carbon emissions, reduce import dependency, limit the influence of

fuel price volatility and to help increase the affordability of energy, particularly for the

fuel poor. It is based on a new market led framework that seeks to enable a range of

companies and other organisations to offer consumers energy efficiency improvements

at no upfront cost and recoup this money through a charge on the energy bill for the

property. The ECO will link to the Green Deal and require energy companies to

facilitate the installation of energy efficiency measures, specifically within the domestic

sector where the Green Deal finance alone will be insufficient to meet the ‘golden rule’

i.e. ensuring that instalment payments for any measures do not exceed the projected

associated savings on an average bill, for the lifetime of the measure, over the whole

length of the financial agreement (including the cost of work, labour and finance

interest).

The ECO will contain a Carbon Saving target to support the costs of additional

measures to make the Green Deal work, such as in hard to treat properties. In addition,

it will include an Affordable Warmth obligation to focus on support for low income

households (based on some means tested benefits and including those who are also


of 74

vulnerable to detrimental health impacts from living in cold homes). Analysis of the

disproportional impact of ECO on the fuel poor is being considered (as the cost of

obligations on energy companies tend to just be passed through onto consumer bills), to

try and ensure that activity, particularly in relation to the Carbon Saving target, has a

limited impact on low income households.

To enable the implementation of the Green Deal and ECO there are a range of

legislative developments to provide consumer protection, including accreditation for the

impartial assessment process and the installation of reliable and high quality measures.

There is also an assumption that a more ‘whole-house’ approach will emerge through

the scheme, in which consumers are advised about renewable heat and electricity

generation options, alongside those for energy efficiency (DECC 2011k).

A full consultation on Green Deal and ECO policy details was launched in November

2011 and is due to close in January 2012. It was released with a range of supporting

documents (Impact Assessment, drafts of new statutory instruments, a code of practice,

energy company licence changes; as well as background information on consumer

insight research, non-domestic Green Deal analysis, modelling overviews, and

information for Local Authorities). The consultation builds on lots of work that has

already taken place with a range of relevant stakeholders from across the potential

supply chain.

The process chain the Green Deal is designed around gives flexibility for how the

scheme is delivered, so although some companies may choose to cover all the services,

smaller firms and specialists may just work in partnership with other providers to

deliver very specific elements of the Green Deal; potentially providing a wide range of

opportunities for businesses of all sizes to be involved. To oversee the possible range of

participants a new Green Deal oversight body is being developed, alongside an ECO

administrator (DECC or Ofgem). The Government also intends to produce a joint

industry and Government Green Deal and ECO Guide to support companies in gearing

up for delivery of Green Deal, including the latest information on market potential,

accessing finance, and the requirements for entering the Green Deal market. They are

SES Skills Report

of 74

also proposing to create an independent advice centre to provide advice on the Green

Deal and wider energy efficiency topics like the RHI and FiT.80

5.2.4. Wider Considerations

5.2.4a. Home Energy Certificates

Energy Performance Certificates (EPCs) were introduced in 2007 to meet the

requirements of the EU Directive on the energy performance of buildings. They grade

the energy and carbon performance of a building on a scale from A-G and have been

required for homes, commercial and public buildings, when sold, built, or rented since

October 2008. Following an evaluation of their effectiveness the Government has been

seeking to simplify the contents of the EPC and to make them an integral part of the

Green Deal.

The latest information from DCLG (2011b) sets out the changes that are being made to

EPCs for domestic buildings, as well as highlighting the additional training

requirements that will be introduced shortly for Domestic Energy Assessors. In respect

to the latter it is suggested that Domestic Energy Assessors will need to obtain a top-up

qualification in order to understand the EPC changes and the underlying RdSAP81

methodology as well as having an appreciation of the role of EPCs in the context of

wider Government policy for energy performance of buildings. The NOS for Domestic

Energy Assessors has recently been reviewed and a top-up unit has been developed by

Asset Skills, which will be available to existing assessors until October 2012. From then

on, a new stand alone qualification will be needed. This is expected to be ready from

January 2012, with training courses expected soon after.

5.2.4b. RCUK Energy Programme

The RCUK Energy Programme brings together engineers and scientists from many

areas to tackle the research challenges involved in creating new energy technologies and

understanding their social, economic and environmental implications. An international

review of UK energy research concluded last year that that a vision of the UK’s energy

future and energy technology roadmaps is missing and the RCUK have issued a call to 80 Such advice is already available via the EST network of advice centres, which used locally based

centres to provide locally relevant information. However, DECC have chosen to tender for a new service, which could result in the closure and loss of local advice skills and knowledge, including within Cornwall.

81 Reduced data Standard Assessment Procedure


of 74

appoint a Strategy Fellow for five years to help synthesise a roadmap of research, skills

and training across the entire energy landscape to meet the UK’s 2020 and 2050 climate

and energy targets.

The intention is that the Strategy Fellow will produce a fully integrated roadmap for UK

research that will be used to evaluate the medium and longer term energy research

portfolio. The post will entail the production, review and dissemination of an integrated

roadmap, including skills needs, building on and integrating existing roadmaps and

analyses, such as those from BIS, DECC, the Energy Research Partnership (ERP) and

the UKERC (RCUK 2011).

Whilst the work of the research councils tends to focus on the R&D, market push side

of the innovation chain, the implication from the RCUK brief is that a whole systems

approach for energy research and skills will be required, that will need to link to

DECC’s roadmaps and pathways analysis. This suggests that the production of this

meta-roadmap will need to look at technology, policy and skills needs right across the

innovation chain, including at the market pull, deployment end.

5.2.4c. Marine Renewables

Both SES Skills Plans (McGregor et al 2010; McGregor & Olosundé 2011) highlighted

a range of developments in relation to marine energy. In addition, the national Marine

Energy Programme was launched in 2011 to help put in place a coherent programme of

policies across Government, and to enable the marine sector to move from prototype

testing to commercial deployment: including through support for small scale arrays and

early commercial deployment; planning and consenting issues; and knowledge sharing

though a Marine Intelligence Network (DECC 2011l).

There have also been developments at the local level, linking to Wave Hub, PRiMaRE

and the wider network to create a marine energy park in the region. Most recently this

included the announcement of the pre-consented status for Fabtest, a new wave energy

test site in the Falmouth Bay, to provide developers with an opportunity to conduct sea

trials in moderate seas close to port facilities, almost as a pre-test site for Wave Hub. It

aims to provide ‘a fast, flexible low cost solution for the testing of wave energy

technologies, components, moorings and deployment procedures’. It links with the

research work of PRiMaRE and the emerging marine energy support industry including

A&P Group and Mojo Maritime in Cornwall (SWRDA 2011).

SES Skills Report

of 74

6. BROAD POLICY CONTEXT

6.1. Overview

In Cornwall, it is likely that the key policy trends setting the context for environment

sector skills needs and development will be localism82, the Natural Environment White

Paper83 and economic trends determining innovation-led growth.

Cornwall’s economy is rooted in its natural and historic environment. Therefore a local

investment model which harnesses the County’s own wealth for investment purposes

and supports innovation-led growth in the digital and low carbon economy, business

services, healthcare and the experience economy84 would secure resilience for local

areas. The Cornwall & Isles of Scilly Local Enterprise Partnership85 (LEP) economic

strategy is expected in spring 2012 and this will clarify the investment model to be

adopted in the short to medium term.

Following the Localism Bill there is also a move from partnership working and

engagement (e.g. in local strategic partnerships) to a more assertive notion of bottom-

up change and self-organisation (Big Society and community ownership). New local

delivery organizations are emerging as a response to these changes. These include the

developing Local Nature Partnership (LNP) which is expected to deliver their

environment aspirations through partnership working and collaboration86. While there

is some experience in this and examples of best practice more generally there is a lack

of capacity to establish and support these partnerships and information on how they will

operate.

It is useful to distinguish between policy led and market led skills needs –

• Policy led: skills the public sector and third sector need to stimulate and guide

the environment sector and green growth

82 Localism Act www.legislation.gov.uk/ukpga/2011/20/.../ukpga_20110020_en.pdf 83 Defra 2011a. The Natural Choice: securing the value of nature. June 2011. 84 The experience economy is described as the next economy following the agrarian economy, the

industrial economy, and the most recent service economy. Essentially businesses must orchestrate memorable events for their customers, and that memory itself becomes the product - the "experience". More advanced experience businesses can begin charging for the value of the "transformation" that an experience offers. The concept of the experience economy applies to many sectors including tourism, architecture, planning (Pine & Gilmore 2011).

85 http://www.cornwall-ios-lep.co.uk/ 86 http://www.defra.gov.uk/environment/natural/whitepaper/local-nature-partnerships/


of 74

• Market led: skills already in demand (or predicted for near future) to address the

current economic growth areas.

6.2. Policy led / Supply-side

Key drivers are: promoting green growth; leading the way / enabling workers and

communities to make the right decisions to support green growth; facilitating localism /

implementing the Natural Environment White Paper through public sector and

communities.

Investing in skills for the green economy will in time generate economic gains in terms

of increased resource productivity, reduction in waste and energy consumption and

avoidance of future costs of environmental degradation87. There is also the need for

agencies and Local Authorities (LA) to meet the needs of the new policy world – i.e.

adapting to localism and developing the partnerships / collaborative working required,

and taking on the ecosystems services approach to implement the Natural Environment

White Paper.

There is a need to professionally update agency88 & LA staff for decision-making in

this new policy world to (1) integrate ecosystems services into project appraisal in both

planning departments and agencies e.g. to be able to promote green infrastructure in all

projects where appropriate; (2) strengthening collaborative working skills to enable

work with other agencies and communities.

The following areas require skills development.

• The devolution of responsibility to local people requires capacity in

neighbourhoods to deal with planning & housing issues. Therefore, skilling up

communities to be able to write their own plans and work towards transitioning to a low

carbon society.

• Community Interest Company’s (CICs) and social enterprises are expected to

increase in numbers. These business managers will need good project design &

communications skills.

• Collaboration / brokering skills sets to develop collaborative working will be

required by a wide range of agency and LA staff and also the people working in LNP.

87 HMG 2011c. Enabling the Transition to a Green Economy 88 Statutory bodies such as Natural England and the Environment Agency

SES Skills Report

of 74

These skills will be required to talk to business, the LEP, government agencies and

communities. Without sizeable budgets, environment groups need to be able to engage

effectively with business and the LEP to influence them and integrate environment

objectives into business and development planning. Delivery of environmental

outcomes will depend heavily on environment workers in LA’s, LNPs, and

conservation NGOs being able to influence developments through engagement and

providing businesses information on the savings generated, productivity increases,

future returns on investment etc. There is an interface between the environment sector

and business world, and communities where partnerships could be forged but the skills

set needs strengthening.

• Technical skills in generating the evidence. The Environment Sustainability

Institute (University of Exeter, Tremough) has identified the need for research which

generates information about the green economy and the value of ecosystem services to

local economies. The water sector has begun to pay land owner’s to provide ecosystem

services associated with water quantity and quality89. Skills to generate values for other

services are scarce and need developing.

• Project appraisal. There is a need for more ecosystems services project

managers with technical skills in using toolkits to identify benefits, apply sustainability

appraisals, conceptual mapping and developing networks. Such skills can be applied in

project design or in assessing the public benefit value of services and use of these

values in public sector decision making. The West Country Rivers Trust work with the

Paid Ecosystems Services (PES) is a good example of this90. There are deficits in

project appraisal skills and skills for integrated approaches – e.g. water management

could be applied across many sectors or in a place-based approach. This can be done

through a mix of formal qualifications and short courses offering professional updating.

• Professional development within LAs to develop capacity for LA planners and

in economic development. Making baseline information and terminology of ecosystem

services accessible to LA staff so they can use it to assess planning applications and

economic development strategies. Skilling up these decision makers will be central to

implementing a green economy. If the public sector is able to lead the green economy

with a well-skilled workforce who understand how to make decisions that reflect the

value of the environment, the private sector will respond.

89 see Upstream Thinking project summary in Interim Skills Plan (McGregor & Olosundé 2011) 90 Martin Ross, South West Water, Lawrence Couldrick, WCRT pers.comm., see also

http://tamarconsulting.org/wrt/projects/wepes.htm


of 74

• Training in available decision-aids which would support LEPs and LAs in their

strategic planning and operationalize the ecosystems approach highlighted in the

Natural Environment White Paper. One such decision aid is currently being drafted

with LEPs and led by Natural England.

• LA & agency engagement skills to communicate the benefits of ecosystem

services and local economies; to strengthen understanding enabling communities to use

the information to develop their plans and decision-making. Skills are required for

public engagement and collaboration to help communities deliberate, express choices

based on values, preferences and wisdom, make decisions and learn scientific process

and technical knowledge.

The Localism Bill has devolved powers to councils and neighbourhoods giving local

communities more control over housing and planning decisions over flood alleviation,

green space planning, landscapes. The current interest in ecosystem services and the

benefits people receive from the natural environment is prompting public dialogue

about land use and the natural environment. Given that ecosystem services are

fundamental to society, the economy and human wellbeing, the need for enabling

effective public dialogue on these issues is high.

• The Health & Wellbeing agenda has a rapidly growing need for people trained

in community engagement to encourage identified groups in the community to become

more involved in their natural environment through a range of initiatives including

community supported agriculture, allotments and walking groups.

6.3. Market led / Demand-side

The key driver is private sector innovation to meet regulations / market demands and

save costs. The Cornwall & IoS LEP is a business-led organisation with a strong focus

on the private sector which is also seeking to shift power to the local community and

businesses. The LEP’s initial priorities are development of the transport strategy and

skills and education. The sectors which will be focussed on include manufacturing,

tourism, marine, renewable energy, retail and creative industries. There is a Learning &

Skills Group within the LEP which is seeking to ensure skills are demand-led rather

than ‘supplied’. Their Skills Plan is currently in development.

The following areas require skills development.

SES Skills Report

of 74

• There is an increasing demand from employers for people who can translate the

complexities of the green agenda. Businesses have a lot of environmental issues to deal

with, from climate change and availability of resources to operational compliance

issues and resource efficiency. All organisations need project management skills;

people who are capable of getting results with limited resources and who can

demonstrate how to make a practical difference quickly. The Institute of Environmental

Management & Assessment91 highlights the need for a wide range of flexible options

for professionals in environmental management to keep them well placed for

employment opportunities. Options range across the strategic leadership skills

identifying policy trends, visioning and influencing, through management skills which

help translate policy into operation and lead processes of change in management,

through specialist knowledge areas and operational skills which implement change.

• Skills demands from career changers. Public sector restructuring coupled with

continued economic pressures on many industries mean career change is high on the

agenda for a large proportion of UK workers. These people may be adapting within

their companies or looking for a change of company using existing skills (e.g. in

marketing or engineering) as a launch pad; therefore people with redundancy packages

are seeking training and to update skills or qualifications in low carbon or green

economy.

• Funds available for business managers to innovate and develop their skills set –

flexible grants to help business leaders adapt and respond to low carbon opportunities.

This may be done through business mentoring schemes offering transfer of skills from

one business leader to another to support innovation and development.

• Embedding sustainability into every worker’s tasks. This works particularly in

waste management and energy consumption and given that the benefits are becoming

better known there will be an increased demand. Rather than there being a

sustainability officer for a company, everyone who works there has to be trained.

Instead of having a skills set and knowledge base centralised in one individual, the

whole workforce are brought up to speed and share responsibility for delivery of

environment outputs.

• Integrated skills set (technical & financial) which can appraise a business given

the systems it operates and offer solutions (e.g. low carbon) assessed on their costs,

how the various options for change affect margins and how they affect the business

plan. 91 http://www.iema.net/


of 74

• Communicating the environment to businesses – what role the environment of

Cornwall plays in their business and how to strengthen links – whether through their

impacts resulting from production processes, product marketing & branding, visitor

experience.

6.4. Flexibility

Both policy and market led skills requirements need to be supplied flexibly. Providers

need to maintain the flexibility to respond to emerging markets and changes in demand

due to economic circumstances or policy (e.g. FiT changes). It will be important for

provision to be flexible, with the provision of online, distance learning, classroom-

based and blended learning options as well as developing training options based on

social media. Tailoring provision to the needs of a specific group based on locality or

theme is also important.

SES Skills Report

of 74

7. ASPECTS OF THE GREEN DEAL IN CORNWALL

7.1. Solid Wall Insulation and Fuel Poverty in the South West

Cornwall has high proportion of solid wall properties (35% of households in Cornwall

are solid wall properties. There are also a high number of properties of non standard

construction). Many of these homes are off the mains gas network (97,530 households

in Cornwall (43%) are not connected to mains gas and the proportion is even higher in

some rural areas)92.

The situation in other rural areas of the South West is similar. Homes with this

combination of issues are often described as ‘Hard to Treat’ because improving their

energy performance is particularly difficult or expensive. They are associated with fuel

poverty because solid wall homes have high wall U-values, leading to excessive heat

loss compared to more modern constructions. Being off the mains gas network means

that they cannot benefit from the installation of cheap, efficient modern gas boilers, and

generally are heated using more expensive fuel (e.g. LPG, electricity) or less efficient

heating systems (solid fuel, oil).

The South West has a higher than average amount of fuel poverty compared to the UK

average, as illustrated in this figure93:

92 Cornwall Council February 2011: Cost of living – Cornwall.

http://www.cornwall.gov.uk/idoc.ashx?docid=6add53cb-776c-48f5-9e44-d07732bfc53c&version=-1 93 Centre for Sustainable Energy 2003 Fuel Poverty Indicator – Fuel Poverty Mapping, http://www.fuelpovertyindicator.org.uk/newfpi.php?mopt=1&pid=fpi_areamap&step=2&region=1 (Maps

for the UK may be seen on this website)


of 74

Solid wall properties cannot benefit from cavity wall insulation, but may be treated by

applying solid wall insulation on either the internal or external face of external walls.

There is a significant skills gap in the UK workforce for the installation of solid wall

insulation, which is frequently addressed by using immigrant workers from the EU.

Research by ACE for Consumer Focus (the statutory consumer champion for England,

Wales, Scotland and (for postal consumers) Northern Ireland, formed by The

Consumers, Estate Agents and Redress (CEAR) Act 2007) states that a four-fold

increase in the number of professional installers is required in a very short timescale94.

7.2. Skills for Solid Wall application

The report published by the Energy Efficiency Partnership for Homes, Solid Wall

Insulation Supply Chain Review in May 2009, describes the supply chain for solid wall

insulation and gives data on numbers of installations and installation costs95. It describes

the skill levels for solid wall insulation as:

‘Installers of solid wall insulation can take several forms. Some products (notably

flexible thermal lining) can be installed by home owners as DIY jobs. At the other end

of the scale some products require specialist skills, notably spray applied polyurethane

insulation products and the external wall insulation process.’

As well as the specific skills for installing the insulation material, internal application of

solid wall insulation requires a multiplicity of tradespeople for ‘making good’

operations such as repositioning electrical fittings and decorative fixtures such as

skirting boards. External application requires higher skill levels than internal, and

although making good is less of an issue, scaffolding is normally required; this approach

is particularly applicable to the treatment of blocks of flats due to economies of scale.

It should be noted, however, that the two treatments (internal and external) affect the

property’s thermal mass in different ways, the impact of which on the savings made can

differ between occupancy patterns; and planning limitations are a particular problem for

94 Consumer Focus Nov 2011 Scaling the solid wall.

http://www.consumerfocus.org.uk/files/2011/11/scaling_the_solid_wall.pdf 95 Energy Efficiency Partnership for Homes (EEPH), May 2009 Solid Wall Insulation Supply Chain

Review May 2009 https://eeph.huddle.net/files/15116874/inbrowser/2009-05-

08%20External%20and%20Internal%20Wall%20Insulation%20Industry%20supply%20chain%20review.pdf

(Note that this resource is provided by the EEPH and requires a login, which is freely available on request)

SES Skills Report

of 74

external application, with inconsistent treatment between different planning

departments.

Solid wall insulation will be supported via the Energy Company Obligation (ECO),

which will replace the Carbon Emissions Reduction Target (CERT) and the Community

Energy Saving Programme (CESP) from late 2012, and a proportion of ECO spend will

be ring-fenced for solid wall properties. ACE’s research provides a useful discussion of

the barriers to the installation of solid wall insulation, and more discussion of the supply

chain may be found in the EEPH report (see previous references in this section).

7.3. Green Deal

The Energy Act96 (2011) includes provision for a new “Green Deal” which is intended

by UK Government to revolutionise the energy efficiency of British properties. In

essence the UK Government is establishing a framework to enable private firms to offer

consumers energy efficiency improvements to their homes, community spaces and

businesses at no upfront installation cost, and recoup payments through a charge in

instalments on the energy bill. Work on defining the Green Deal has continued

throughout 2011. A consultation setting out current thinking, has now been published,

and is open until 18 January 201297.

The roll out of the UK Government’s Green Deal policy will involve accreditation, by

the United Kingdom Accreditation Service (UKAS), of a number of certification bodies

who will quality assure the work of member companies/organisations. This will involve

those member companies demonstrating skills competence to achieve certification,

using National Occupational Standards where relevant.

Member organisations will be required to work to defined standards; in the case of

installation of measures, this will be PAS2030 (see below) and for those providing

advice to home owners and tenants, this will be DECC’s Specification for the provision

of Green Deal Advisor Services, currently in preparation internally at DECC98.

Certifying bodies for advisors will also be required to comply with specifications that

are now in preparation. All organisations working within Green Deal will be required to

comply with the Green Deal Code of Practice, a draft of which has been issued as part 96 DECC 2011m 97 DECC 2011k 98 personal communication, Jen Weedon, DECC


of 74

of the consultation99. This document sets out requirements for Green Deal Assessors

and Assessor Certification Bodies; Green Deal Providers; Green Deal Installers and

Installer Certification Bodies; and Green Deal Products and Systems.

7.4. PAS 2030 and requirements for installers

BSI is currently developing a new Publicly Available Specification (PAS) on Improving

the energy efficiency of existing buildings – Specification for installation process,

process management and service provision. PAS 2030 is intended for use by the

installers of energy efficiency improvement measures, particularly those being installed

under Green Deal, in compliance with the Energy Act 2011.

This PAS is relevant for skills as it will define the management of the installation

process, through defining the process for installation of each measure. This will range

from having available a location specific design specification for each measure to be

installed, through obtaining relevant information from the Green Deal Provider (GDP)

in order to support the effective installation of the measure(s) to the required standard,

to the provision of installation instructions to operatives.

Significantly, the draft PAS specifies requirements on Selection, training and work

assignment, and states: ‘The installer shall establish and operate procedures to: a)

determine the skills and competence levels required by operatives to undertake the

required installation tasks…. c) provide or arrange access to any training required’.

Further, the draft states that requirements relating to the employment and registration of

competent operatives will be set in the Green Deal Code of Practice, and that

certification assessments to cover the requirements of PAS 2030 will need to take

account of that Code.

For the South West of England, with its predominantly rural landscape and prevalence

of housing categorised as ‘Hard to Treat’, it is likely that the main skills gaps for

traditional (as opposed to renewable) energy efficiency measures will be in the

following areas covered by PAS 2030:

99 DECC 2011n

SES Skills Report

of 74

7.4.1. Insulation:

1. Heating System Insulation (pipes and cylinders) (some upskilling of existing loft

insulation/draught stripping installers is envisaged): NVQ Level 2 Certificate in

Insulation and Building Treatments (Loft Insulation) is currently referenced here.

2. Pitched Roof Insulation & Flat roof insulation (some upskilling of existing loft

insulation installers is envisaged)

3. Internal Wall Insulation and External Wall Insulation (some upskilling of existing

CWI operatives is envisaged, however, anticipated loss of profitability due to the

approaching end of CERT and CESP subsidies are expected to restrict employer

investment in the training needed to expand into these areas100).

In the case of items 2 & 3 above, the consultation on PAS 2030 offered two different

approaches to ensuring the competence of operatives. Of these, one included the option

to base competence assessment on System Supplier training and competence card,

whereas the other adopted a more formal approach, including Relevant QCF

qualifications/qualification units and on-site inspection of work, or membership of a

Building Regulations Competent Person Scheme and on-site inspection of work. Insight

into which option will be chosen is not anticipated before January 2012, but the choice

is likely to impact on the level of training required.

Research conducted by Pro Enviro for the Energy Efficiency Partnership for Homes in

April, 2010101 identified a number of skills gaps:

‘Application of existing skills to the use of new technologies and materials is

required. For solid wall insulation, general installation skills need to be taught so

manufacturers have confidence in the general ability of the insulation workforce

and do not feel they need to restrict the use of their products to those installers

who have undergone product specific training. In addition, development of

training, which is more practically based or delivered on a one-to-one basis, is

required to attract industry. Future skills training will need to revolve around

harder to treat properties and multi-skilling.’

100 See reference to Consumer Focus on p.50 101 Energy Efficiency Partnership for Homes (EEPH), April 2010: Household Energy Efficiency Skills

Review April 2010 http://jtecservices.co.uk/Documents/EEPHSkillsReview.pdf


of 74

It also describes a gap in installer provision, larger even than that suggested by

Consumer Focus, and a gap in training provision to fill those skills gaps:

‘It is estimated that there will need to be a tenfold increase in the number of

insulation installers (from 20,000 to 2,000,000) – the delivery capacity to

achieve this is definitely not in place.’

7.4.2. Building services:

1. Under-floor Heating (associated with low temperature heat sources, such as heat

pumps)

2. Flue-gas Recovery Devices

3. Biomass Boilers

4. Ground and Air Source Heat Pumps

SummitSkills National Occupational Standards for Mechanical Engineering Services

are currently referenced for the above four technologies.

Taking the provision of heating installation services as a whole, research conducted by

Pro Enviro for the Energy Efficiency Partnership for Homes (see above) identified a

number of skills gaps:

‘Heating – design skills are required. A wider awareness of other HEE (Home

Energy Efficiency) technologies and relevant issues, such as financing, is

required so installers can provide relevant advice which integrates with other

HEE technology requirements. Advanced level controls skills and knowledge

relating to wireless communications is needed. Energy efficiency training and

knowledge among installers needs to be more widespread (it is currently a

requirement for competent persons to achieve compliance with Building

Regulations but not all installers are certified competent).’

It also describes a gap in training provision to fill those skills gaps:

‘As the number of design courses available is limited, it is considered essential

that delivery capacity of these (or similar) is increased. There is insufficient

capacity in the training provider network in general for enhanced skills because

the demand has never been there. This may mean training of trainers is needed

which should involve practical elements such as secondments.’

SES Skills Report

of 74

Summit Skills has published a report102 which describes the challenges for this sector,

including

‘• a high number of companies are waiting for market stimulation before they

invest time and money in skills development and branching out into new

technologies.

• the current supply of training opportunities is inadequate, both in quantity and

in relation to formal qualifications and measurement against national standards.

• training in renewables remains largely the preserve of manufacturers. A

sudden increase in the use of environmental technologies will create a heavy

demand for training, which the supplier network will be unable to meet

• the proliferation of rogue trainers who take advantage of the lack of accredited

training must be considered.’

These factors are likely to affect all four building services areas identified above, to

varying degrees.

7.4.3 Light fittings and controls (mainly for non-domestic clients)

The consultation on PAS 2030 offered two different approaches to ensuring the

competence of operatives for lighting installations, in a similar fashion to those offered

for insulation installation. Again, insight into which option will be chosen is not

anticipated before January 2012, but the choice is likely to impact on the level of

training required

7.5. Provision of Green Deal advisor services

DECC intends that advice provision under Green Deal will be via two routes:

1) Remote (telephone) advice

2) Advice during a home visit

102 Summit Skills 2010: Strategy for environmental technologies in the Building Services engineering

sector, 2010-13 http://www.summitskills.org.uk/public/cms/File/Renewables/SummitSkills%20environmental%20strategy.pdf


of 74

Whilst the remote advice will be provided by an organisation which gains the work as a

result of a tendering process, DECC is looking for a market led approach to delivering

the home visit. This visit will include an assessment of the performance of the property

(home or business premises) and determination of the appropriate energy efficiency

measures for the property, using a mandatory methodology. Much of the process to be

adopted in delivering the visit is being prescribed103, via:

• Establishing new National Occupational Standards for Green Deal Advisors

• Requiring Advisors to be registered with a Certification Body

• Setting out a mandatory Specification for the provision of Green Deal Advisor

Services, which will apply to organisations delivering advice (applicable to all

providers, whether sole traders or large companies)

• Setting out mandatory Guidelines for certification bodies certifying Green Deal

Advisor Services, which will apply to Certification bodies, including the

requirement for such bodies to be accredited by UKAS.

Training against the NOS for Green Deal Advisors (GDAs) will require significant time

input by candidates, especially for new entrants. For example, for a Domestic GDA

(according to the current consultation on the Qualification Credit Framework (QCF)

Units) the total credit is 45, with GLH totalling 220 hours. This reduces significantly, to

Credit 25 and GLH 120 hours, for those already holding the Domestic Energy Assessor

qualification. This time commitment, coupled with lack of certainty about how work

will be obtained once qualified, is likely to deter candidates unless a strong case can be

made of the benefits to early adopters.

However, Consumer Focus104 is calling for provision of independent advice to help

customers choose between Green Deal Providers offering to install the energy

efficiency measures:

‘The broader advice process should be designed in a way that facilitates

consumers to shop around and compare prices. This will ensure the competitive

nature of GD provision. Consumers will also need advice to understand the pros

and cons of the GD financial package as well as energy services.’

103 personal communication, Jen Weedon, DECC 104 Consumer Focus Dec 2012: Green Deal: Independent Advice

http://www.consumerfocus.org.uk/files/2010/12/Independent-Green-Deal-advice-v1-0.pdf

SES Skills Report

of 74

If the market views Consumer Focus’ model for the independent advisor as desirable,

there may be the possibility to offer further training of Green Deal Advisors beyond the

standard set out in the NOS covering this role. Some of the Project Management

material, developed by Cornwall and Somerset Colleges during piloting of the Energy

Advice (Renewables) qualification, may be relevant here.


of 74

8. ENERGY: DEMAND-LED SKILLS SCOPE

8.1 Overview

In order to check and better understand the influence of national policy drivers for those

working within the energy and low carbon sectors, discussions were held with a number

of key individuals working at the national, regional and/or local level. This included

DECC, University of Exeter Energy Policy Group, Regen Southwest, ENACT Energy,

Microgeneration Ltd, Independent Energy, Community Energy Plus and Cornwall

College and Cornwall Sustainable Building Trust. Views were sought across a number

of themes:

• What are the key drivers impacting the direction of energy and low carbon policy

and/or their work?

• How are these impacting on current and future skills needs within their organisation

and the sector they work in?

• Are there any wider issues that need to be considered in respect to policy and skills?

8.2. Policy drivers

8.2.1. National Policy Perspectives

There were common views that the current main policy drivers include FiTs and

supplier obligations, which had shaped the direction of those working on the ground,

including their knowledge and skills; as well as the emerging policy drivers around the

RHI, Green Deal and ECO, the details of which are not yet finalised. All felt that these

policies would significantly impact on the work they are currently doing and that future

skills development would be necessary, both within their organisations and the wider

installation sectors for microgeneration and energy efficiency.

There was also some discussion in respect to the EMR, with a feeling that the impact of

this may trickle down into other energy and low carbon policies. Those with a more

national perspective felt the EMR, once implemented, would set the policy direction for

energy generation and transmission for many years to come, but it may make very little

fundamental change to the way that energy is currently traded. Rather it is much more

about the construction of a market to support large scale centralised generation, which

will continue to support large national companies and in respect to promoting low

SES Skills Report

of 74

carbon generation, will mainly support nuclear. As such, the EMR would act as a barrier

to the development of smaller scale, decentralised solutions, including the political

support for policy developments to support them.

Fuel poverty was another policy area that was flagged, linking closely to the way that

the Green Deal and ECO develop. Although it was felt that this was moving up the

political agenda with the Hills Review and the growing evidence of the increasing

severity of this problem, including for the first time from the NHS. Depending on how

the Government respond to the Hills Review, and the outcome of the Green Deal/ECO

consultation, fuel poverty could become a significant driver for insulation and

microgeneration in the future.

Green Deal and ECO (along with FiTs and RHI) are also seen as the key drivers for the

retro-fit market, although new build was also highlighted. The construction sector is

currently feeling the impacts of the depression; but key emerging drivers for new build

were mainly seen as being linked to developments within Building Regulations,

particularly for the planned improvements to energy and carbon within them. There was

less certainty about the role that the Code for Sustainable Homes would play in the

future, with a feeling this was starting to fall off the political landscape.

A final perspective that was widely shared is the way the Government designs,

implements and make changes to policy, particularly in respect to microgeneration. This

is discussed in more detail in terms of the FiT for solar PV below, but it was generally

perceived that a much more clear and transparent approach from Government is needed.

There have been numerous issues with support for microgeneration in the past, such as

the significant changes that took place to the Low Carbon Buildings Programme, which

resulted in a stop-start approach for consumers seeking support as well as for the

installers; and the eventual cutting of this support, before the RHI was in place, resulting

in big reductions in renewable heat work. Some felt the lessons from these policy

failures were not learnt by Government, in respect to the way the FiT for PV was

handled and there is concern about what may happen around the implementation of the

RHI and Green Deal. This not only impacts consumer confidence in taking up

measures, but also has significant impact on the work plans and budgets of SMEs

working in the sector and the supply chains that serve them. Many felt that policy was

so changeable that they were at the mercy of Government decisions, without any real

way to influence them.


of 74

Furthermore, it was felt that national policy developments often take no account of the

local situation, such as the nature of the building stock within Cornwall, which can limit

the potential impact of schemes funded through supplier obligations or the FiTs. Until

the Green Deal, ECO and RHI are finalised it is not clear how effective they may be in

terms of consumer uptake in areas of the country like Cornwall, that have high levels of

hard to treat homes. It is also apparent that the way that DECC are proposing to provide

impartial advice through the Green Deal, could lead to the loss of local advice and local

knowledge on housing types, infrastructure, local support organisations, etc, which can

make a significant difference to the impact of such schemes.

Some also felt that there is always a lag between policy implementation and skills

development, as it takes time for the market to respond to policy leads. Although some

more specialist skills will be needed, particularly for heat, much of the wider retro-fit

work may sit within the traditional building services sector and some felt these would

upscale when appropriate to do so. The real problem may actually be that demand, as a

result of the new policies, may not actually emerge and this won’t be known for some

time.

8.2.2. FiTs and PV review

Those working within the sector felt that the FiT had changed the PV market beyond

any recognition, in respect to both the expansion of existing installation companies and

the emergence of many others. On the whole the policy had been welcomed and it was

felt that it had helped to drive down prices, although price reductions were also due to

international drivers within the PV market. On a more negative note, it was apparent

that a number of bad practices had entered the market105 on the back of FiTs and it was

not clear if some of these might remain, even if some of the newer companies

disappeared as a result of the review.

In terms of the reviews for solar PV, the impact of these were predominantly negatively

viewed, not actually in relation to the tariff reduction which was felt to be appropriate,

but the method of implementation and the impact of this on installers’ and consumers’

confidence, examples included:

105 Such as, installers with little training, low quality work, fast installations, an abundance of non-

specialist firms and the development of complex financial packages with consumers could find misleading.

SES Skills Report

of 74

• anger from existing customers awaiting installation;

• the loss of both domestic and commercial customers where installations cannot

feasibly be completed in the available time;

• a significant strain on organisations to complete as many installs as possible before

the deadline – working long hours and weekends and having much more logistical

work to secure equipment. The additional costs associated with the extra work often

could not be passed on to customers, hitting the bottom line of installers;

• the possibility of redundancies within the installer network was suggested to be

high, particularly for those that had significantly expanded;

• this and the earlier fast-track review had also had an impact on larger scale projects

and rent-a-roof type schemes.

Further concerns were raised over the proposals set out within the current PV

consultation. Most notably, whilst all felt that it is sensible to link energy efficiency to

microgeneration support, the possibility that FiTs may only be available for households

with an EPC of C was felt a significant barrier to the future of the PV market in

Cornwall. This reflects the high numbers of solid wall properties and the number of

homes with EPCs near F and G, which are difficult and costly to take to a C band.

It was felt that there would be an inevitable drop in demand following the FiT

consultation, particularly from those that were aware of the original tariff levels.

However, in the longer term most were optimistic that work would recover to some

degree, particularly because the expected rate of return would still be good, based on

projected prices for panels.

8.2.3. RHI

The concept of the RHI was welcomed by those working on the ground and there was

an expectation that this would lead to new work, once the tariffs had been agreed and

publicised (for the domestic sector). As this is not due to happen until next year, most

felt it was too early to give a judgement on how effective or not the RHI might be.

Frustration with Government and the development process was expressed by some,

particularly the length of time since it was first announced and the current timescale for

its implementation. This gap had led to an apparent drop in demand for some heat

technologies, such as solar thermal, as consumers, that perhaps were considering

installations, appear to be waiting for the RHI to be implemented.


of 74

8.2.4. Green Deal

The Green Deal and ECO were seen as key developments within the low carbon sector

in Cornwall; although there were lots of uncertainties about the detail and question

marks over the nature of its framework in respect to the Golden Rule and how this may

relate to the local housing stock. It was recognised that details on how the ECO element

is finalised could be very important within the county. There were concerns over how

the Green Deal may finally link with the RHI and FiTs, in part again linking to how

central a driver the Golden Rule might be within securing Green Deal finance in relation

to microgeneration. There were also real concerns over several elements of the design of

Green Deal, with a perception that currently there are a number of issues that need to be

resolved, but an apparent lack of willingness from Government to do so. One of several

examples was around who liability will sit with and the potential impact this could have

on organisations and their credit ratings.

8.3. Skills perspectives

The emerging policies give some indication on the possible direction of future skills

needs. However as a starting point, the national picture in respect to the approach to

skills is worthy of comment. It is apparent that the loss of regional structures, like the

RDAs, had resulted in a loss of policy levers and market intelligence in relation to

skills; and that this has resulted in a change in the approach to skills from Government.

They now increasingly look to the work of the Sector Skills Councils to drive skills,

rather than there being a central push or strategy from Government. In respect to skills

analysis and what may be needed in the future, this is seen as a key challenge for

DECC. In simple terms it was suggested that Government have an idea of what they

want to do, but don’t know if the capacity to deliver it is there, such as understanding:

what the current levels of skills are; what might be needed; where gaps exist; how to

best address those gaps; and over what time period, given that skills needs will change

as policies roll out. This issue in part appears to reflect that skills now tend to sit within

individual policy areas, which have to consider what the possible level of demand as a

result of a policy may be and then consider how to try and encourage companies to

come forward.

There is some work being done on this through the newly formed Green Skills Alliance,

comprising of Asset Skills, Construction Skills and Summit Skills, who are considering

SES Skills Report

of 74

potential workforce needs for the Green Economy. This came out of the innovation

report on low carbon construction that was produced last year, which highlighted the

need for skills in relation to Green Deal and the Microgeneration Strategy. They are due

to report in spring 2012 and are considering:

• where are the skills in the construction sector at the moment;

• what future areas of demand may be – such as green deal and RHI;

• what are the specific skills needs for them, compared to what we have at the

moment;

• where are the gaps;

• when are the skills needed.

Given the national approach to skills, there was a feeling that there is an inevitable lag

between when policies are developed and the emergence of training and skills

qualifications and courses. Increasingly, it was also suggested that training development

needs to be fast paced, with details potentially having to be amended quickly on the

back of policy developments. Although policy changes, like the PV FiTs, which had

seen many new courses being provided, could lead to a much more cautious landscape

for future training provision developments.

There are also growing concerns regarding the future direction of national skills, in

respect to both microgeneration and energy efficiency. As highlighted in the SES

Interim Skills Plan (McGregor & Olosundé 2011) for the EU, and subsequently the UK,

the Microgeneration Strategy set out a requirement for the development of individual

competences in respect to environmental technologies, a process that would move

beyond the existing UK system based on the MCS accreditation process, essentially a

quality standard for installation companies rather than the individuals who may be

employed within it. This development in turn led to the creation of the National Skills

Academies, whose purpose was to deliver the new Qualifications and Credit Framework

(QCF), NOS based qualifications, written by the respective Sector Skills Councils. This

approach should lead to a common level of competence, which the whole installer

industry would need to up-skill to, ensuring everyone is operating at the same level of

competency, regardless of who provided the qualification. Recent developments now

suggest that DECC are reinterpreting this approach by suggesting that there may be

other ways of demonstrating individual competence. Although it is not clear what these

‘other’ ways may mean, it would appear that this could considerably weaken or


of 74

undermine the QCF, NOS based route to skills provision. It has not been possible to

find an official statement which describes this potential change, although it clearly fits

within the wider Government agenda for cutting red tape and reducing burden upon

businesses to encourage growth (whether sustainable or not).

Also from a national perspective, the policy drive is very much focussed on large scale,

centralised solutions and the skills needs within them, in terms of technologies, sectors

and markets. Although Government have recently shifted away from the rhetoric that

markets and competition can solve everything, some felt there had been little

fundamental change, i.e. both energy and carbon are still treated and traded as

commodities. There was speculation that the possible lack of a national skills strategy

for energy and low carbon activity is because there is an increasing assumption from

Government that the education sector and businesses will just deliver what is needed,

based on the policy lead. The UKCES106 research in 2010 on strategic skills needs also

mainly focussed on large scale technologies, although microgeneration was included in

less detail.

It is also apparent when looking at other countries, such as Germany, that they had a

clear industrial based strategy for renewables, driven by jobs and industry creation. By

contrast, the UK approach seems the reverse, with skills and jobs within energy and low

carbon being target led. The UK was once a world leader in wind power, but now we

are only leading in wind deployment (offshore) i.e. we are not manufacturing. Of the

emerging technology areas, it was felt by some that there is a real opportunity to take a

competitive lead in marine renewables; potentially leading to a range of opportunities

for research, engineering, manufacturing as well as training and jobs.

It was felt that for larger companies it is pretty much business as usual, with them

focussing on large scale infrastructure scale projects and as such they will continue to

position their companies around the areas of policy push; although, this does ultimately

lead to a downward pressure of the supply chain skills and training needs. For SMEs,

such as those installing measures for the domestic, commercial and public sectors, it

was recognised that there had been a significant period of expansion for many on the

back of FiTs, which was accompanied by a commitment and need to up skill their staff,

106 UKCES (2010) Strategic Skill Needs in the Low Carbon Energy Generation Sector

SES Skills Report

of 74

including within broader trade skills such as roofing, plumbing and electrics107; and

many felt this time last year that they would have had a need for ongoing investment in

skills and training. This need was now viewed differently, although it was generally

recognised that most businesses will need to continue skills development in respect to

emerging technologies and policy developments, such as the RHI and Green Deal,

although actual needs will not be clear until these policies get closer to implementation.

It was also recognised, at the SME level, that skills requirements and qualifications vary

between those working in the local energy and low carbon sector. This in part reflects

the way that different organisations operate, i.e. some are installing measures and

require the appropriate training and certification, whilst others work with existing

contractors, who are expected to have the necessary certification e.g. MCS, REAL and

their equivalents for insulation work. There are also differing levels of knowledge and

skills needs along the customer chain, from the early initial advice about what options

may be appropriate i.e. a good basic understanding of the different technologies and

their application; which becomes increasingly technical as surveys are done, options are

modelled, and installations happen.

8.4. Potential emerging skills needs

Most felt that emerging key skills needs would reflect the changing nature of policy

developments around microgeneration and energy efficiency, i.e. Green Deal and RHI.

FiTs were now seen as less of a current driver, reflecting the expectation that demand

would fall and the market, in the case of PV, is pretty much saturated – both in terms of

the number of installers and the availability of training.

8.4.1. RHI and Green Deal

Although some aspects of the skills needs are specific to these policies, there are also

several cross-overs. This will, to some degree, depend on how these two policies, as

well as the FiTs and ECO, all end up working together, but it is apparent that if the

Green Deal framework does become the main interface for consumers considering

energy efficiency and/or microgeneration that linking the different requirements, across

the development framework will be essential. In particular there is a need for a seamless

link between the advice, initial assessment, costing and installation work, all of which

107 It was highlighted that it would be useful if renewable training also included training on these

traditional skill sets.


of 74

will need to be of sufficient quality to enable effective delivery. It was felt that a

significant skilling up for the initial assessors would be required, in order for MCS

compliant quotations that customers can rely on to be produced, whilst also being of

sufficient detail for the installers to act upon. To enable this, it was felt assessors would

need a proper understanding of each MCS approved technology, as well as the design

options and collection of necessary data. This will necessitate high quality training and

qualifications, although at the time of writing the final NOS’s for the assessors are still

in development.

Whilst the final details of RHI for the domestic sector are yet to be announced, it was

felt that, depending on the tariff level, this could become a major driver for future work

and associated training needs. In particular, it was highlighted how much more

complicated installing renewable heat technologies are, both in comparison to

conventional sources of heating as well as microgeneration electricity technologies. It

was suggested that a more complex and complete range of skills would be needed, such

as carrying out heat loss calculations, correct system sizing, integration into current

systems, alongside traditional existing skills needs around heat flows, electricity use,

operation and management, CAD design, controls, etc. Many felt these sorts of skills

would be beyond many of the existing plumbing and heating contractors, potentially

opening up the need for additional training for these trades, as well as dedicated training

and qualifications for installers.

8.4.2. Design skills

Based on the points above, there could be a major provision gap in relation to design

skills, for renewable heating and whole house approaches. It was felt that nationally

Government and Sector Skills Councils were considerably underestimating the potential

challenge of skilling up workers for the emerging policy drivers, with a suggestion that

they view many of the solutions as requiring low skill levels though existing trades.

There is a perception that currently Government is totally failing to address the design

side issues, such as sizing, usage patterns, (i.e. social, fabric, service elements that all

need to be integrated, alongside financial modelling for the Green Deal). Even then, this

will require differing skills across different technology solutions. There are therefore a

whole range of different skills required to address the action within the built

environment. This was seen as a further opportunity for the education sector, to create

designed based training, possible even at levels 4 or 5. Ultimately, this will depend on

SES Skills Report

of 74

the final specifications and requirements for training and skills qualifications for

microgeneration and energy efficiency through the Green Deal and RHI, the outlook for

which may not be promising, if the Government is wavering on the means for

developing individual competencies.

8.4.3. Construction

In respect to retro-fit, the key points have been covered above. However, a need was

identified for new and better resources, tools and training in relation to issues like air

tightness, ventilation and heat recovery, which could also be an important issue within

Cornwall, if the Green Deal and ECO prove effective at enabling a mass roll out of solid

wall insulation. These skills also relate to new build, the nature of which is also

changing, with off-site pre-fabrication becoming increasingly dominant, requiring on-

site fabrication, creating a changing profile for skills needs. Whilst it was felt that some

aspects of fabrication were still relatively low-skilled, doing it correctly to ensure air

tightness and energy efficiency, etc, does require practice and training108.

8.4.4. Training provision

The potential shift in Government thinking around individual competency could have

serious implications for skills provision through the education sector. As previously

highlighted, the development of QCF and NOS based training offers a way to ensure

high quality and consistent skills within the microgeneration and energy efficiency

sectors. However, such courses are demanding and expensive, in comparison to many

industry based products. If DECC change their interpretation of what individual

competencies mean or their views on the most appropriate mechanisms for their

delivery, i.e. through the Skills Academy and Sector Skills Council route, it is likely

that some installers will seek the lowest cost option to meet the required standards. It

will also increasingly make it difficult for the education sector to justify the costs of

developing and running such training. The overall impact could be a considerable

dumbing down of key skills for a low carbon resource efficient economy.

108 This one of the areas that CSBT are seeking to address through their proposed Green Build Cornwall

Foundation.


of 74

8.5. Wider considerations

Wider skills both within organisations and in the sectors they work with were also

highlighted. This included the ongoing issues around planning and building control and

the differing views that officers take in respect to both energy efficiency and

microgeneration measures, which can impact installation work. It would be helpful if

suitable training was available for such officers and there was a requirement for them to

undertake it.

There was also a feeling from some that there would be value in looking at the

development of a Cornish Kite Mark for energy and low carbon skills, including

sustainable construction; to both reflect the unique nature of much of the housing stock

within Cornwall and the considerable knowledge and expertise that exists around it.

This could help give consumers confidence and help strengthen the sector more

generally.

Despite the evident ongoing lack of a coherent policy from Government in relation to

energy and low carbon skills, there are still positive developments in respect of the

development and role of the National Skills Academy’s, Sector Skills Councils and the

what way that the FE and HE sectors work with them and with businesses and

Government. This has lead to new high quality training provision, outside of the

previous private sector, manufacturer based training. There are installers that will

continue to seek the higher level of training, to developed skilled work teams that can

deliver high quality jobs, secure repeated business and ensure the safety of their staff.

SES Skills Report

of 74

APPENDIX A. DOCUMENTS CITED

Aldersgate Group 2009. Mind the Gap. Skills for the transition to a low carbon

economy. London. Aldersgate Ltd. http://www.aldersgategroup.org.uk/asset/download/112/mind_the_gap.pdf

Aldersgate Group 2011. Greening the Economy. A strategy for growth, jobs and success. London. Aldersgate Ltd.

http://www.aldersgategroup.org.uk/asset/download/111/greening_the_economy.pdf

BIS 2010. Meeting the low carbon skills challenge: a consultation on equipping people

with the skills to take advantage of opportunities in the low carbon and resource efficient economy.

http://www.bis.gov.uk/assets/biscore/corporate/docs/l/10-849-low-carbon-skills-consultation.pdf

BIS, DECC & DEFRA 2011. Skills for a green economy. A report on the evidence. http://www.bis.gov.uk/assets/biscore/further-education-skills/docs/s/11-1315-

skills-for-a-green-economy.pdf Boardman, B. 2010. Fixing Fuel Poverty – Challenges and Solutions. Earthscan.

London. http://www.eci.ox.ac.uk/people/downloads/boardman-fixinfuelpoverty.pdf CABE 2009. Green space skills 2009. National employer survey findings. http://www.cabe.org.uk/files/green-space-skills-2009.pdf CABE 2010. Managing green spaces. Seven ingredients for success http://www.cabe.org.uk/files/managing-green-spaces.pdf Campiglio, E. 2011. Ecological v. environmental economics. (nef website, accessed

15/7/11 http://www.neweconomics.org/publications/in-this-together?utm_source=nef+%28the+new+economics+foundation%29+List&utm_campaign=61809bb54c-nef-eletter-June&utm_medium=email

CCC 2010. The Fourth Carbon Budget. Reducing emissions through the 2020s. Committee on Climate Change. December 2010

http://downloads.theccc.org.uk.s3.amazonaws.com/4th%20Budget/CCC-4th-Budget-Book_plain_singles.pdf

CCC 2008. Building a low-carbon economy – the UK’s contribution to tackling climate change. Committee on Climate Change. December 2008.

http://www.theccc.org.uk/pdf/TSO-ClimateChange.pdf CEC 2007. An Energy Policy for Europe. COM2007) 1 final. Commission of the

European Communities. Brussels. January 2007. http://ec.europa.eu/energy/energy_policy/doc/01_energy_policy_for_europe_en.

pdf Cedefop 2010. Skills for Green Jobs. European Synthesis Report. Publications Office of

the European Union. http://www.cedefop.europa.eu/download-manager.aspx?id=16440&lang=en&type=publication

Cedefop 2010. Skills for Green Jobs: Country Report, UK. Publications Office of the European Union. http://www.ilo.org/wcmsp5/groups/public/@ed_emp/@ifp_skills/documents/publication/wcms_142471.pdf


of 74

DCLG 2011a. A Plain English Guide to the Localism Act. November 2011: http://www.communities.gov.uk/documents/localgovernment/pdf/1896534.pdf

DCLG 2011b. Information Update: improved and redesigned EPC and developing the skills for DEAs. Department for Communities and Local Government, 29 November 2011

Dean, A. & Evans, C. 2011. SLIM Comment The Chancellors Autumn Statement Sticking to Plan A? 30/11/2011

DECC 2011a. Our Goals and Commitments: http://www.decc.gov.uk/en/content/cms/about/our_goals/our_goals.aspx

DECC 2011b. Climate Change Act 2008. Department for Energy and Climate Change. Accessed November 2011: http://www.decc.gov.uk/en/content/cms/legislation/cc_act_08/cc_act_08.aspx

DECC 2011c. Planning our electric future: a White Paper for secure, affordable and low-carbon electricity. Department for Energy and Climate Change: http://www.official-documents.gov.uk/document/cm80/8099/8099.pdf

DECC 2011d. Annual Energy Statement: http://www.decc.gov.uk/en/content/cms/meeting_energy/aes/aes.aspx

DECC 2011e. National Policy Statements for energy infrastructure: http://www.decc.gov.uk/en/content/cms/meeting_energy/consents_planning/nps_en_infra/nps_en_infra.aspx

DECC 2011f. UK Renewable Energy Roadmap. Department for Energy and Climate Change. July 2011.

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/re_roadmap/re_roadmap.aspx

DECC 2011g. Renewable Heat Incentive – Final Impact Assessment. Department for Energy and Climate Change. March 2011.

DECC 2011h. Renewable Heat Incentive to open for applications. Press Release 25/11/2011. Department for Energy and Climate Change.

DECC 2011i. Feed-in Tariffs Scheme: Summary of Responses to the Fast-Track Consultation and Government Response. Department for Energy and Climate Change. June 2011.

DECC 2011j. Feed-in Tariffs Scheme: consultation on Comprehensive Review Phase 1 – tariffs for solar PV. Department for Energy and Climate Change. October 2011.

DECC 2011k. The Green Deal and Energy Company Obligation – consultation document. Department for Energy and Climate Change. November 2011. http://www.decc.gov.uk/media/viewfile.ashx?filetype=4&filepath=11/consultation/green-deal/3607-green-deal-energy-company-ob-cons.pdf

DECC 2011l. UK Marine Energy Programme. Department for Energy and Climate Change. http://www.decc.gov.uk/en/content/cms/meeting_energy/wave_tidal/uk_marine_ener/uk_marine_ener.aspx

DECC 2011m. The Green Deal. A summary of the Government’s proposals. http://www.decc.gov.uk/assets/decc/legislation/energybill/1010-green-deal-

summary-proposals.pdf DECC 2011n. Draft DECC Green Deal Code of Practice.

http://www.decc.gov.uk/media/viewfile.ashx?filetype=4&filepath=11/consultation/green-deal/3585-draft-green-deal-code-practice.pdf

Defra 2008. Invasive Non-Native Species Framework Strategy for Great Britain. https://secure.fera.defra.gov.uk/nonnativespecies/downloadDocument.cfm?id=99 Defra 2011a. The Natural Choice: securing the value of nature. June 2011.

SES Skills Report

of 74

http://www.archive.defra.gov.uk/environment/natural/documents/newp-white-paper-110607.pdf

Defra 2011b. Biodiversity 2020: A strategy for England’s wildlife and ecosystem services. Aug 2011.

http://www.defra.gov.uk/publications/files/pb13583-biodiversity-strategy-2020-110817.pdf

Defra et al 2011. UK National Ecosystem Assessment - Understanding nature’s value to society. Synthesis of the Key Findings

http://www.defra.gov.uk/environment/natural/uknea/ EC 2011a. Background Paper: Energy Roadmap 2050 – State of Play. European

Commission. May 2011 EC 2011b. European Energy Strategy. European Commission Energy. Accessed

November 2011: http://ec.europa.eu/energy/strategies/2006_2009_en.htm EC 2011c. Communication from the Commission: A Roadmap for moving to a

competitive low carbon economy in 2050. European Commission, March 2011: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0112:FIN:EN:PDF

EC 2011d. White Paper: Roadmap to a Single European Transport Area – towards a competitive and resource efficient transport system. European Commission. COM2011 144 final. March 2011. http://ec.europa.eu/transport/strategies/doc/2011_white_paper/white_paper_com2011_144_en.pdf

EC 2011e. Communication: Energy Efficient Plan 2011. COM 2011 109 final. European Commission: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0109:FIN:EN:PDF

EE/NERA 2011. Achieving deployment of renewable heat. Final report for the Committee on Climate Change. Element Energy and NERA Economic Consulting. April 2011.

EK 2008. Environment Sector Workforce Development Plan. Environment Kernow. http://www.environmentkernow.org.uk/text/wfd/environment_sector_workforce.pdf

EST 2010. Getting warmer: a field trial of heat pumps. Energy Saving Trust. September 2010.

ESMW 2009. Welcome to Energy Security in a Multipolar World – working together to improve energy security. Energy Security in a Multipolar World Research Cluster. Accessed November 2011: http://www.exeter.ac.uk/energysecurity/index.shtml

EUROPA 2011. Energy: Competitive, sustainable and secure energy. Accessed November 2011: http://europa.eu/pol/ener/index_en.htm

FPAG 2010. Fuel Poverty Advisory Group (for England) - Eighth Annual Report.

Department of Energy and Climate Change. July 2010 FoE 2011. Feed-in Tariff Review Briefing. November 2011

http://www.foe.co.uk/resource/briefings/solar_cuts_briefing.pdf Greenpeace International & European Renewable Energy Council (EREC). 2010.

Energy [r]evolution: a sustainable world energy Outlook. June 2010. Hansard 2011b. Solar Power (Feed-in Tariff) - 23 Nov 2011: Column 402. Hansard.

http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm111123/debtext/111123-0003.htm


of 74

HCECC 2011. Electricity Market Reform: Fourth Report of Session 2010-12 - Volume I.

House of Commons Energy and Climate Change Committee. http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenergy/742/742.pdf

Hills, J. 2011. Fuel Poverty: The problem and its measurement. CASE Report 69. October 2011.

HMG 2011a. 2050 Pathways Analysis - Response to the Call for Evidence. Part 1. URN 11D/0024. Department for Energy and Climate Change. March 2011

HMG 2011b. Carbon Plan. HM Government. December 2011: http://www.decc.gov.uk/assets/decc/What%20we%20do/A%20low%20carbon%20UK/1358-the-carbon-plan.pdf

HMG 2011c. Enabling the Transition to a Green Economy: Government and business working together. https://online.businesslink.gov.uk/Horizontal_Services_files/Enabling_the_transition_to_a_Green_Economy__Main_D.pdf

HMG 2011d. Natural Environment White Paper Implementation Update. HMG Oct 13th 2011 http://archive.defra.gov.uk/environment/natural/documents/newp-imp-update-111013.pdf

HMG 2010. 2050 Pathways Analysis. URN 10D/764. Department for Energy and Climate Change. July 2010

HMG 2009a. The UK Low Carbon Transition Plan: National Strategy for Climate and Energy. ID 6176880 07/09. London. July 2009

http://www.berr.gov.uk/files/file52002.pdf HMG 2009b. The UK Renewable Energy Strategy. Cm 7686. London. July 2009 Hoggett, R., Mitchell, C., Woodman, B. and Baker, P. 2011a. The Key Energy Policy

Issues for Energy Security in the UK. Report to Consumers’ Association by University of Exeter Energy Policy Group. May 2011.

Hoggett, R., Ward, J., and Mitchell, C. 2011b. Heat in Homes: customer choice on fuel and technologies. Study for Scotia Gas Networks by University of Exeter Energy Policy Group, July 2011.

IEA 2010. World Energy Outlook 2010. OECD/International Energy Agency. France. Lesage, D., Van de Graff, T. And Westphal, K. 2010 Global Energy Governance in a

Multipolar World. Asgate Publishing Limitd, Surrey. McGowan, F. 2009) International Regimes for Energy: Finding the Right Level for

Policy. In Scarse, I., and MacKerron G. (Eds.) 2009), Energy for the Future – A New Agenda, Palgrave Macmillan, Hampshire.

McGregor, P. and Olosundé, J. 2011. Skills Plan Interim Report. July 2011 McGregor, P., Simpson, B. and Goodall, L. 2010. Draft Skills Plan Outline. Feb 2010 Mitchell, C. 2008. The Political Economy of Sustainable Energy. Palgrave Macmillan.

Hampshire. Moore, S. 2011. Edited by Lees, S. 2020 Hindsight - Does the renewable energy target

help the UK decarbonise? Policy Exchange. NS/DECC 2010 Digest of United Kingdom Energy Statistics. National

Statistics/Department for Energy and Climate Change. London 2010. OECD 2011. Towards Green Growth – Executive summary. ISBN 978-92-64-094970

SES Skills Report

of 74

http://www.oecd.org/dataoecd/40/62/47984000.pdf OECD 2011. Towards Green Growth – A summary for policy makers.

http://www.oecd.org/dataoecd/32/49/48012345.pdf Ofgem 2011 e-serve: FIT Installations Statistical Report. Report run to end of Oct 2011:

https://www.renewablesandchp.ofgem.gov.uk/Public/ReportManager.aspx Ofgem 2010 Project Discovery: Energy Market Scenarios October 2009. Ref: 122/09.

Office of Gas and Electricity Markets. February 2010 Pine, J, and Gilmore, J.H, 2011. The Experience Economy. Updated Edition, Harvard

Business School Publishing, Harvard. Platchkov, L., Pollitt, M. and Shaorshadze, I. 2011. The implications of recent UK

energy policy for the consumer: A report for the Consumers’ Association. ESRC Electricity Policy Research Group. May 2011.

POST 2011a. Ecosystem service valuation. POSTNote 378 May 2011. http://www.parliament.uk/documents/post/postpn_378-Ecosystem-Service-

Valuation.pdf POST 2011b. Landscapes of the Future POSTnote 380 June 2011 www.parliament.uk/briefing-papers/POST-PN-380.pdf Redpoint 2010. Gas Future Scenarios Project – Final Report. A report on a study for the

Energy Networks Association Gas Future Group. Redpoint Energy Ltd. November 2010.

RCUK 2011. RCUK Energy Programme Energy Strategy Fellow. Expression of interest call. September 2011.

Scarse, I., Wang, T., MacKarron, G., McGowan, F. and Sorrell, S. 2009) Introduction:

Climate Policy is Energy Policy. In Ivan Scarse and Gordon MacKerron (Eds.) 2009), Energy for the Future – A New Agenda. Palgrave Macmillan, Hampshire.

Shankleman, J. and Murray, J. 2011 Green leaders urge Cameron to intervene in solar subsidy fiasco: http://www.businessgreen.com/bg/news/2122846/green-leaders-urge-cameron-intervene-solar-subsidy-fiasco

Skea, J., Hardy J., Gross, R., Mitchell, C., Baker, P., Eyre, N. and Ekins, P. 2011. Response to the 2011 DECC Electricity Market Reform. UKERC, March 2011.

Speirs J., Gross, R., Deshmukh, S., Hepronstall, P, Munuera, L., Leach, M. and Torriti, J. 2010. Heat delivery in a low carbon economy. Accessed November 2011: http://workspace.imperial.ac.uk/icept/Public/Speirs%20et%20al%20BIEE%20Paper%2031-08-10.pdf

Stagl, S. 2009. Foreword. In Ivan Scarse and Gordon MacKerron (Eds.) 2009), Energy for the Future – A New Agenda. Palgrave Macmillan, Hampshire.

SWRDA 2011 Falmouth Bay Test Site: http://www.wavehub.co.uk/information-for-developers/falmouth-bay-test-site-fabtest/

UKERC 2009) Energy 2050. UK Energy Research Centre.

http://www.ukerc.ac.uk/Downloads/PDF/U/UKERCEnergy2050/0906UKERC2050.pdf

UKCES 2010 Skills for Jobs: Today and Tomorrow (National Strategic Skills Audit). UK Commission for Employment and Skills. http://www.ukces.org.uk/assets/bispartners/ukces/docs/publications/national-strategic-skills-audit-for-england-2010-volume-1-key-findings.pdf

UNEP, EC, 2009. The Economics of Ecosystems and Biodiversity (TEEB) http://www.teebweb.org/ForPolicymakers/tabid/1019/language/en-US/Default.aspx


of 74

UNEP 2011 Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication - A Synthesis for Policy Makers. http://www.unep.org/greeneconomy/Portals/88/documents/ger/GER_synthesis_en.pdf

van den Berg, A.E., van Winsum-Westra, M., de Vries, S., & van Dillen, S.M.E. 2010.

Allotment gardening and health: a comparative survey among allotment gardeners and their neighbors without an allotment. Environmental Health 9, 74. http://www.ehjournal.net/content/9/1/74

World Business Council for Sustainable Development (WBCSD). 2011. Guide to

Corporate Ecosystem Valuation – a framework for improving corporate decision making. www.wbcsd.org/work-program/ecosystems/cev.aspx

Williams et al 2010. The Economic Cost of Invasive Non-Native Species on Great Britain. Defra, CABI

https://secure.fera.defra.gov.uk/nonnativespecies/downloadDocument.cfm?id=487

Woodman, B. 2010 Our future energy plans are at last coming of age. Parliamentary Brief Online. 16th March 2011. Accessed November 2011: http://www.parliamentarybrief.com/2010/01/our-future-energy-plans-are-at-last-coming-of-age

Woodman, B., and Mitchell, C. 2011 A Twenty Fifty Vision. The Times: Eureka. November 2011.

WWF 2011 The Energy Report. 100% renewable energy by 2050. In collaboration with ECOFYS & OMA.

SES Skills Report

of 74

APPENDIX B.

Representations of the environment in sustainable development

(adapted from the CRESTA report)

Although the triple bottom line

incorporates the interrelatedness of

environment, society and economy

(or Planet, People, Profit; see upper

right) it suggests that they enjoy

equal status, implying that they are

all equally interdependent.

However, the interdependence is

nested and is better illustrated as a

series of concentric rings (see bottom

right). This is because an economy

cannot exist without a society, and a

society cannot exist without an

environment. The reverse is not true.

Societies can (and do) exist without

economies and the environment can

exist without human society. Such a

nested interdependence concept

appears in discussions of sustainable

communities. (e.g.). A representation of nested interdependencies

www.sustainablemeasures.com/Sustainability/ABetterView.html

One version of the triple bottom line From www.greeninnovation.com.au/aboutGreenInnovation_sustainability.html