Source · Select Committees · Scottish Affairs Committee
Recommendation 2
2
Acknowledged
Mismanged energy transition risks severe harm to UK economy, jobs, and Scottish communities.
Conclusion
Such an approach is the minimum necessary for a smooth transition of workers, and to avoid the risk of harming UK tax revenues, economic activity, and employment in many Scottish communities, where the effects of the transition will be disproportionately felt. The loss of jobs abroad has detrimental impacts to the UK. This represents not only the loss of world- renowned skills and expertise in the energy sector, but also a significant hit to regional economies, population dynamics, demographics and communities. (Conclusion, Paragraph 53)
Government Response Summary
The government states its commitment to achieving a fair and inclusive transition, outlining various existing strategies, plans, and investments like the Clean Power Action Plan, Clean Energy Industries Sector Plan, and UK Export Finance support. These initiatives aim to ensure a smooth transition for workers and regional economies.
Government Response
Acknowledged
HM Government
Acknowledged
The government is committed to achieving a fair and inclusive transition. Managing our existing fields for their lifespan will support a smoother transition and retain the skilled workforce we need in the UK as we ramp up cleaner technologies. In addition to record levels of investment, the government is bringing about policy clarity and consistency through key strategies such as the Clean Power 2030 Action Plan, the Clean Energy Industries Sector Plan and the Centralised Strategic Networks Plan. The Clean Energy Map is a live tool that plots a range of active clean energy projects supported by the government since July 2024, to showcase the jobs and investment benefits of the Clean Energy Superpower Mission across the UK. The North Sea Future Plan made a commitment for the government and the NSTA to work with industry and other organisations to develop a ‘basin-wide plan’ that will improve the visibility of the project pipeline across sectors in the North Sea. The workforce is at the heart of our approach, which is why the government has taken active steps in ensuring all workers are able to benefit from the transition. The government will work with industry and trade unions to support workers to secure good jobs, through a package of measures including the North Sea Jobs Service. This will be a world-leading national programme offering end-to-end career transition support for oil and gas workers looking to move into secure jobs in growing industries. It will be the most comprehensive national programme to do this and will set a new global standard for a fair transition for oil and gas workers. The North Sea Jobs Service will be tailored to workers’ individual needs, for example by helping applicants assess their existing skills and experience, identify target career pathways and potential vacancies, and understand whether any training is required The export opportunities provided by the North Sea industries are immense and the government is committed to supporting SMEs to be able to take advantage of them and highlight the UK as a leader in the energy transition. UK Export Finance (UKEF) has up to £80 billion of finance capacity available to support UK exporters, including in our growth-driving sectors and is aiming to support £10 billion of clean growth finance between 2024 and 2029. To provide practical advice and support for businesses wanting to access an expansion into new markets, through DBT, the government provides a range of export support services. The UK will continue to work closely with our international partners, such as through the North Seas Energy Cooperation – continuing to unlock opportunities and growth potential for UK businesses.