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Last edited 16 Sep 2021
Net zero and green jobs
James Diggle, the Confederation of British Industry's Head of Energy and Climate Change, discusses the opportunity to deliver a green recovery from the COVID-19 pandemic that can help deliver net zero emissions goals for the country.
Since the outbreak of the COVID-19 pandemic, the idea of creating a green recovery has quickly taken hold. While we continue to face the challenges of this unpredictable time - and the resurgence of the virus - many continue to look for potential upsides, including the chance to respond to the climate crisis.
The phrase ‘Build Back Better’ has been coined not just by the Confederation of British Industry (CBI), but Prime Minister Boris Johnson and the US Presidential candidate Joe Biden have also used the phrase. This need for renewal comes at a time when a range of technology and infrastructure solutions are giving us the tools we need to change. The challenge for us all is whether we can maximise the opportunities at hand and pivot to a better future.
The emissions reductions brought about by national lockdowns are a stark reminder of the global decarbonisation challenge ahead, which we want to achieve while maintaining growth and economic opportunity. Meanwhile, the prospect of an elongated economic downturn has sparked concern about a prioritisation away from cutting emissions and restoring the environment.
But critically, dramatic falls in renewable energy costs, a surge of new electric vehicle models and developments in carbon capture and hydrogen technologies are just some of the changes since the last economic crash of 2008/09. So too are the impacts of climate change, which have become more and more pronounced over the last decade.
The need to act, and the opportunities to do it, have never been clearer. Since the start of 2020 we have seen fundamental shifts in work, travel and the level of government intervention in our lives - trends which have been identified as part of ICE’s COVID-19 work. Many of these changes, and the lessons learned, can also help with our efforts to cut emissions.
A major concern is that the health crisis will lead to a jobs crisis. So we have asked the question about whether accelerating the infrastructure requirements of our net zero target, from wind farms to household retrofits, can help tackle falling employment.
We believe the answer is yes. HM Treasury is of the same opinion, and responded to the CBI’s call for a focus on enabling energy efficiency improvements in UK homes, businesses and public sector buildings with £3bn of government money to further this aim.
But we need to do much more to achieve net zero, and the infrastructure requirements are significant. The CBI’s Green Recovery Roadmap, published in September 2020, highlighted some of the priority areas for action. Much has been made of progress in decarbonising the electricity sector, but far more renewable and nuclear output must be built, alongside developing storage and flexibility in the market.
We have entered a critical decade for delivering a low-carbon power system. It is a priority shared by the ICE’s 2020 State of the Nation policy report, which focused on the infrastructure requirements of meeting net zero.
We have targeted development of Carbon Capture, Utilisation and Storage (CCUS) technology and a hydrogen economy as priorities for government action through financial support where needed, and the creation of business models and clear policy frameworks. Building out our electric vehicle (EV) infrastructure must also be prioritised if we are to deliver the ramp up in EV sales predicted for this decade. Continued improvements must be made to energy efficiency and the development of low-carbon heat solutions in new build and existing properties.
Over the coming months, we are promised multiple strategies and policy proposals from the Government, including the Energy White Paper and National Infrastructure Strategy. Strategies targeting heat and buildings, industrial decarbonisation, low-carbon transport and a hydrogen economy are also in the pipeline. Recently announced is a comprehensive net zero strategy that will be published ahead of COP26.
So we enter a critical period for delivery of the strategies that will help facilitate the private sector investment required to meet our net zero goals. This period coincides with the requirement for sustainable employment in the wake of the pandemic, so it is vital that these strategies - and action from business - help meet both priorities, delivering low-carbon jobs across the country.
This article originally appeared on the ICE News and Insights portion of the ICE website under the title, 'Delivering net-zero can create much needed green jobs throughout the UK'. It was written by James Diggle, Head of Energy and Climate Change, CBI and published on 20 October 2020.
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