MPs warn failure to bridge green skills gap will dynamite low carbon economy

Low carbon businesses face a looming "skills gap" that threatens to delay the UK's transition to a low carbon economy, according to a major report released today by the Environmental Audit Committee of MPs.

The report predicts that hundreds of thousands of green jobs could be created over the next few decades, establishing the UK as a world leader in the growing global market for low carbon technologies that is already estimated to be worth £3tn worldwide. But it warned that, without adequate investment in the development of a green skills base, the UK could quickly be overtaken by international competitors.

The cross party committee said that, while the government's Low Carbon Transition Plan set out how it aims to decarbonise the economy, there was widespread evidence from businesses that the strategy does not provide sufficient attention to skills development.

According to evidence presented to the Committee, one in three firms operating in the low carbon sector is facing a skills gap, with key sectors such as nuclear, green construction and wind energy experiencing particular difficulties filling vacancies.

The report identifies offshore wind as an area in which the UK could dominate a fast expanding global market, but warns that without a co-ordinated effort to train specialist offshore engineers, possibly by retraining those with existing expertise in the offshore oil and gas industry, the opportunity could be lost.

Tim Yeo MP, chairman of the Environmental Audit Committee, said that the government missed a big opportunity to kick start a green-industrial revolution with its £3bn fiscal stimulus.

"Germany, the US, Japan and China have invested billions in their low-carbon industries. But only one sixth of the UK's government's fiscal stimulus package was devoted to green industry," he said.

The committee advised that the government should forge new research partnerships with trade unions, employers and regional development agencies to better understand the skills needed in a low carbon economy. It added that a new green skills body should be launched to oversee training programmes and skills initiatives in key areas.

The committee also calls on the government to launch a 'quick win' street-by-street programme of energy saving measures for households that will boost employment and help UK firms.

Peter Young, chairman of the Aldersgate Group green business think tank, echoed the committee's calls for an increased focus on the development of green skills.

"The Committee's report reflects our own recent analysis that this represents a major barrier for the government to meet its low carbon targets," he said.

"The UK must urgently develop the skills base across the economy to ensure it can compete with the likes of Germany and the US in key low carbon markets."