Government unveils plans for one million green manufacturing jobs

The government today launched a strategy aimed at helping UK manufacturers take advantage of the low-carbon economy, committing £150m in funding support as part of an initiative designed to result in the creation of one million new " green-collar jobs".

The money will help create a new manufacturing technology centre in Coventry, as well as contribute to the funding of two new Whitehall departments to promote low-carbon energy production.

"I want the UK to be at the forefront of opportunities opened up by the move towards a low-carbon economy," said business secretary John Hutton. "With the right support in place, we can grow our nuclear and renewables industries to become world-leaders in green technologies, supporting hundreds of thousands of "green-collar jobs"."

The Coventry centre will have industrial scale pre-production and demonstration facilities, which the government hopes will lead to £130 million of investment in applied research and its exploitation over the next 10 years. It will join a similar centre in Yorkshire, and another being built in Glasgow.

The Office of Nuclear Development, set up in June, will also work with industry partners to develop the nuclear supply chain and secure a sizable chunk of the estimated £20bn that will be invested globally in nuclear power in the coming years for UK manufacturers.

A similar Office of Renewable Development is to be established to help UK companies secure contracts for the burgeoning renewables sector.

"We want to support innovation in UK manufacturing by maintaining a world-class research and development infrastructure, through intelligent use of government procurement and regulation to stimulate markets and the growth of innovative business, and to build world-class skills," said skills secretary John Denham.

In addition to the new departments and research centres, the scheme aims to increase the total number of manufacturing apprenticeships by more than 10 per cent.

The Institution of Mechanical Engineers welcomed the announcement, but warned that for the strategy to be successful, education and training of engineers must improve dramatically. "With the average age of an engineer circa 58, we are looking at an ever-ageing population with most retired – unless we do something now," said a spokesman, adding that without a significant influx of younger workers the growth of clean-tech manufacturers was likely to be hampered.

Business lobby group the CBI also welcomed the strategy, but warned that it would have to be backed up by a public sector procurement strategy.

"Determining how UK manufacturing can best take advantage of the challenges and opportunities of the 21st century was a much-needed exercise," said CBI chief economic adviser, Ian McCafferty. "But to achieve success the government will also need to put in place a coherent procurement strategy that enables industry to invest with confidence for the long term."

Earlier this year, the government set out a wide-reaching sustainable procurement strategy, but a number of studies by parliamentary committees have found that up to now many public sector bodies have largely failed to use their procurement power to demand greener products.