Written evidence submitted by the Carbon Capture and Storage Association (WFP0054)
The Carbon Capture and Storage Association (CCSA) is pleased to provide a response to the ESNZ Committee Inquiry into Workforce planning to deliver clean, secure energy. The CCSA brings together a wide range of specialist companies across the spectrum of Carbon Capture, Utilisation and Storage (CCUS) technology, as well as a variety of support services to the energy sector. The CCSA exists to represent the interests of its members in promoting the business of CCUS and to assist policy developments in the UK, EU and internationally to support the commercial deployment of CCUS.
- Does the Government have an appropriate understanding of the skill needs to deliver the Clean Energy Mission by 2030 as well as decarbonise homes and businesses?
1.1. The Climate Change Committee (CCC) and International Panel on Climate Change classify CCUS as a critical technology to achieve global net zero ambitions[1],[2]. As carbon capture technology can be applied to a variety of CO2 emissions sources, including industry and energy generation, it can make a significant contribution towards the UK’s legally established net zero goals.
1.2. CCUS, when applied to the power sector, provides flexible dispatchable energy to make up the shortfall when renewable generation is low; enhancing energy security, reducing overall emissions, and offering cost savings.
1.2.1. In its Clean Power 2030 advice to Government[3], the National Energy System Operator noted the need for up to 2.7GW of power CCS and hydrogen to power capacity, and up to 4.0GW of Biomass/BECCS capacity, by 2030 to deliver a clean power system. The plan also states that these dispatchable low-carbon technologies “add significant value to the system”, with even relatively small levels of operational capacity materially reducing the overall challenge for the rest of the clean power programme.
1.2.2. The Government has since set a target of delivering 2.0-7.0GW of Low Carbon Dispatchable Power capacity, to achieve a clean power system by 2030[4].
1.3. The production of low-carbon electricity or CCS-enabled (blue) hydrogen can also provide sufficient volumes of low-carbon energy to enable activities such as manufacturing, heat and transport to switch away from direct fossil fuel use.
1.4. As CCUS is an essential component in delivering the Governments Clean Power Mission, the skills and jobs that underpin this sectors deployment are essential to the future of the UK economy.
1.5. There exists a significant amount of data concerning the skills and workforce required for the clean energy transition.
1.5.1. The Energy Skills Intelligence Hub[5] and ECITB’s Labour Forecasting Tool[6] showcase the demand and variety of different skills/jobs that will be needed for the future energy sector and the engineering and construction workforce respectively.
1.5.2. The Government recently published an assessment of the clean energy skills challenge in support of the Clean Power 2030 Action Plan[7]. This report included granular detail of workforce and skills requirements and occupational heat maps for priority clean energy sectors.
1.5.3. For the CCUS sector specifically, direct workforce [asset owners and tier 1 supply chain, for transport and storage (T&S) only] could peak at approximately 2,500-3,000 roles, in the period to 2030, based on four T&S projects in development. Factoring in 20-30% of direct labour being associated with T&S activities, direct roles within the wider CCS sector (including deeper supply chain jobs and associated cluster projects), could peak as high as ~15,000 direct roles by 2030[8]. Granular detail concerning the levels of demand, and perceived difficulty to recruit are noted in figure 1/2.
1.5.4. The National Grid have estimated that the net zero energy workforce will need to recruit 400,000 new people by 2050 (260,000 being new roles, and 140,000 being existing workforce replacements)[9].
1.5.5. For the offshore energy sector, direct and indirect employment will reportedly need to increase from approximately 150,000 in 2022 to 350,000 by 2050[10]. Moreover, modelling suggests over 100,000 existing offshore energy workers could transition to new energy opportunities by 2030[11]. The development of CCUS infrastructure is therefore a significant opportunity to transition the existing skillsets and industrial base of the North Sea[12],[13].
1.6. Despite this knowledge however, there are still gaps which need addressing.
1.1.1. At the national level, a lack of a standardised methodology for job forecasting in the CCUS sector[14], with inconsistent models and unclear definitions, risks miscalculating the number of skilled workers needed.
1.1.2. 
Further action is needed to establish industry and workforce standards, as many roles, will be first-of-a-kind, including process engineering and health and safety workers for onshore CCUS operations.
1.1.2.1. Cogent Skills are currently undertaking work to identity National Occupational Standards for CCUS, which should help to begin to address areas where there are gaps in existing standards, and where new standards need to be developed.
1.1.3. Further granular analysis concerning the levels of demand, and perceived difficulty to recruit could also be carried out into the CCUS power sector specifically.
1.1.3.1. EU Skills are currently undertaking a similar methodology to that of the CCS Task and Finish Group report[15], specifically for the CCUS power sector.
1.1.4. Finally, there is a need to deliver more placed-based and regionally nuanced data, aligned to project deployment timelines, in order to make sure that the right skilled individuals are available in sufficient numbers in the right places and at the right times.
1.2. While some skills and workforce requirements have sufficient supply, or their perceived difficulty to recruit is low (see figure 2), the growth of the CCUS sector and other clean energy sectors will require an increasingly large and diverse workforce.
1.3. Through collaborative action across all stakeholders, strategic direction from Government, and a significant increase in the availability of training opportunities and funding, the skills system can rise to the challenge.
- To what extent can the Clean Energy Mission and the retrofitting of homes and businesses be carried out by the existing workforce and to what extent will it require new entrants to the workforce?
2.1. It is clear the UK does not currently have the workforce needed to meet the Clean Energy Mission, and a concerted focus on new entrants and retraining of existing employees to meet demand is needed. Reasons for this shortfall include:
2.1.1. The simultaneous development of large infrastructure projects across sectors is creating competition for a limited workforce. This may lead to project delays and resource strain due to skills bottlenecks.
2.1.2. The nascent nature of the UK CCUS industry has resulted in limited awareness of job opportunities, from foundational education and beyond.
2.1.3. Workforce mobility is hindered by limited cross-industry skills transfer, geographical constraints, unclear career pathways, and a shortage of local skilled workers. The CCSA acknowledges the Energy Skills Passport as a key tool for facilitating workforce transition between sectors (see question 5 response), however, additional measures are needed to help address mobility barriers.
2.1.4. An ageing workforce and barriers for new entrant graduates. In engineering construction alone, nearly 40% of the workforce is over the age of 50 and only 5% are under the age of 25[16].
2.1.5. An ageing workforce of trainers, and challenges in retention of these workers. Without knowledge transfer from retiring professionals and younger individuals being enticed by offers from industry, the shortage of skilled workers will continue.
2.1.6. The current workforce lacks diversity, and EDI challenges hinder progress towards inclusion, limiting the talent pool for skilled workers and reducing opportunities to attract more people into training positions. For instance, current EDI data, though limited, shows that 86.2% of the engineering construction workforce identify as men[17]. Greater representation is essential for individuals to see relatable role models and envision clear career pathways.
2.2. Resolving current workforce issues is only part of the solution, as new entrants face barriers as well.
2.2.1. There is limited or unclear progression and career advancement opportunities for nascent sectors such as CCUS. Moreover, low public awareness of clean energy industries is reducing their appeal as career pathways.
2.2.2. Training provision is insufficient in certain areas, particularly T-levels. This is accompanied by a decline in the uptake of earth science degrees and master’s programmes which are essential for aspects of CCUS deployment, most notably the transport and storage of CO2.
2.2.3. A lack of consistent, comparable data across industries limits the ability to support future workforce growth with strategic, evidence-based insights.
2.3. To address the skilled workforce shortage, the government must act in a number of areas, focusing on offering incentives, enhancing job security, and facilitating transitions from related industries in order to address challenges. Achieving this will require strategic collaboration, clear direction, and a significant expansion of training opportunities. Government needs to:
2.3.1. Develop a coordinating body to oversee cross-sector skill development and strengthen cross-sectoral mechanisms with the goal of creating a workforce delivery plan. It is essential that this national body collaborates with devolved nations, local authorities and training providers, employers and stakeholders to build local workforces.
2.3.2. Review the timelines of planned UK infrastructure projects and identify ways to prevent skills bottlenecks, including adopting a regional approach to address local challenges.
2.3.3. Implement national recruitment measures that are targeted at the local level. Targeting young and diverse demographics is crucial for attracting a strong pool of workers to support clean energy sector projects.
2.3.4. Review and improve contract terms and wages for current trainers/educators to ensure competitiveness and enhance “train the trainer” opportunities.
2.3.5. Target funding beyond training to address non-training costs, which can be a significant barrier for small employers.
2.3.6. Expand new entry pathways into the clean energy sector, for instance by clarifying career progression and encouraging a greater uptake of workers into related professions.
2.3.7. Implement greater awareness and visibility of long-term career pathways during early education to support clearer progression into related professions, including through reforms to the national curriculum.
2.3.8. Reform the Apprenticeship levy (see question 3 for further details).
2.3.9. Design policy incentives to encourage employers with limited resources or reluctance to take on apprentices.
2.3.10. Review provisions across all areas, particularly T-Levels and apprenticeships, to identify gaps and ensure suitable training provision is available near clean energy sector projects.
- How might the Government ensure that the job market in clean energy roles is sustainable enough to incentivise private sector investment in training for 2030 and beyond?
3.1. In order to incentivise employer investment in training, there first and foremost needs to be a sector to employ those trained individuals. For CCUS, the Government therefore needs to provide greater project certainty for all cluster/projects currently in the cluster sequencing programme and other cluster/projects which can deploy on similar time frames[18],[19]. Furthermore, Government must continue to progress the CCUS Vision workstreams[20] and other critical policy areas[21] to facilitate a move towards a self-sustaining CCUS industry by 2035.
3.2. Uncertainty continues to surround the CCUS sector, with companies hesitant to invest in training before projects reach Financial Investment Decisions. Similarly, workers are uncertain about the attractiveness of these roles without clear job security, including specific contract terms, or long-term career progression.
3.3. Critically however, businesses have a key role to play in encouraging the development of skills, both as the ultimate ‘consumer’ of skilled individuals, but also as a direct funder and designer of skills provision to ensure that the skills being developed will result in higher employability in the workforce. Employers need to play a leading role in skills development; with Government enabling them to do so by encouraging greater collaboration between businesses and the workforce in regions, sectors, and across supply chains.
3.4. To incentivise private sector investment, the Government needs to provide further initial support in skills development and establish a robust investment framework for employers.
3.4.1. As noted in Baroness Taylor’s Response to the Parliamentary Inquiry into Skills for the Future[22], the UK appears to have lost its advantage as a nationwide culture of employer-led training. The benefits of employer investment in training therefore need to be conveyed by Government and Skills England, and further funding allocated to incentivise training.
3.4.2. Apprenticeship offerings must be reformed, while maintaining their promotion as the primary route into industry. The Apprenticeship Levy needs reform due to underutilisation in its current devolved form and should be adapted into a more responsive ‘Growth and Skills Levy’, though further design details on this proposed levy are needed. This could be achieved by:
3.4.2.1. Streamlining administrative procedures, as the resource burden of the process itself is often a significant barrier for SMEs to take on apprentices.
3.4.2.2. The current levy structure limits how much can be gifted through the supply chain, despite this being where a significant proportion of job creation will happen. Creating more flexibility to allow levy gifting, especially to the supply chain is essential.
3.4.2.3. Widening the ability to use the levy beyond full end-to-end qualifications and supporting top-up training would support the wider skills agenda to develop the current workforce and ensure they are equipped with the skills for the future.
3.4.2.4. Enabling the levy to be used to fund costs currently not permitted, including an element of salary cost for time spent out of work on training, could be considered.
3.4.3. The current training incentive system requires exploration of more flexible, resource-efficient options. Fiscal incentives could be granted to companies for hiring more graduates or creating opportunities for young workers.
3.4.4. To support reskilling (particularly with a lens on social mobility and broader diversity) additional funding mechanisms should be accessible for businesses and sectors which require more substantial volumes of reskilling, for instance in support of reskilling for ‘green jobs’.
3.4.5. An alternative to this is for government to focus on place-based investment, particularly with a view to improve the current training facilities; to ensure that they provide on-site accommodation, catering and so on to enhance the overall support structure, for example in industrial clusters. There is already a relatively strong base of training facilities cemented in the UK on which to build upon; however, in order to satisfy the demand, the level of provision needs greater focus and targeted investment.
3.4.6. Further details of changes Government could consider can be found from various published resources[23],[24],[25].
- How can the new Office for Clean Energy jobs contribute to workforce planning in the energy sector?
4.1. The CSSA believes there is still some ambiguity surrounding the remit of the Office for Clean Energy Jobs (OCEJ).
4.1.1. Overlapping workstream and confusion over authority and leadership may arise between the OCEJ, Skills England, and other Government departments such as DfE, DWP and DBT.
4.2. A single office within DESNZ could help to resolve national workforce planning issues by gathering targeted insights and recommendations to identify and address flaws within the clean power sector. This coordinating body could:
4.2.1. Identify workforce ‘bottlenecks’ for simultaneous clean energy infrastructure projects and help address them by providing policy levers and targeted support for upskilling, reskilling, training and transitioning of the existing workforce.
4.2.2. Actively promote clean energy job opportunities to expand the workforce, particularly through targeted recruitment measures.
4.2.3. Maximise new entrants into the clean energy workforce by committing to funding, including apprenticeships and transition training programmes.
4.3. The OECJ also needs to take a more regional approach to ensure focused workforce planning within the clean energy sector. Regions or clusters with the highest demand for and supply of skilled workers should be identified, and targeted measures implemented to bridge any gaps effectively.
4.3.1. Developing local workforces, including around CCUS clusters, is crucial to reduce geographical barriers and minimising excessive travel requirements.
4.3.2. Regions with a limited skilled workforce should be assessed to determine if there are adequate educational pathways and opportunities (e.g., apprenticeships) to attract new workers.
4.3.2.1. National data for the academic year 2023/24 shows an increase of 339,850 apprenticeship starts (up 0.7% from 2022/2023) [26]. However, in the Yorkshire and the Humber region, apprenticeship starts declined by 610 (down 1.59%), demonstrating that national statistics do not capture regional variations and emphasising the need for regional approaches.
- What more can the Department for Energy Security and Net Zero do to ensure the workforce is in place to deliver the Clean Energy Mission and accelerate the retrofitting of homes and businesses?
5.1. While DESNZ can implement various measures, the most crucial action is to help to provide demand certainty, enabling employers to invest in the workforce of the future.
5.1.1. This strategic imperative, coupled with increased awareness of skills shortages and funding opportunities available, will ultimately help to provide confidence in the geographic spread and makeup of jobs demand. In turn, this can enable more efficient collaboration between employers, education providers, and sectors to respond in a manner which meets the urgency of the challenges, while maximising the potential opportunity for the UK.
The CatchUK training facility in the Humber region stands as an archetype for industry/training provider collaboration, designed with the intent of scaling provision for a variety of new entrants to industry through routes which include: apprenticeships, ECITB scholarships, adult reskilling, ex-forces upskilling, unemployed introduction programmes and ex-offender reintroduction programmes. With greater strategic direction from Government, and funding/targeted support where necessary, more of these training collaborations (or “net zero skills academies”) can develop across the UK.
5.2. One of DESNZs main objectives is to raise public awareness of the Clean Energy Mission and shift perceptions of the net zero transition to help bridge the current skills gap.
5.2.1. The current energy sector workforce may underestimate their ability to contribute to the clean energy transition, as public perception often limits these roles to ‘renewable energy jobs’. In reality, workers from various roles not traditionally seen as ‘clean energy jobs’ are essential for the transition (figure 2).
5.2.2. Clearer communication pathways are needed to ensure workers are aware of transition opportunities into clean energy roles. The improvement of communication pathways can be achieved by targeted public awareness and recruitment initiatives, collaboration with industry bodies and third sector organisations, and the development of platforms/portals to provide information on career pathways.
5.3. The CCSA welcomes the progress of the Energy Skills Passport[27]. The Passport stands as a useful pilot initiative which the CCSA now advocates for its implementation in additional sectors including CCUS and hydrogen. There is a huge opportunity to transition workers to clean energy industries[28],[29] and a skills passport would help enable this further.
5.3.1. To support short-term roles, such as those during construction phases, a system like the Energy Skills Passport could facilitate the smooth transition of workers between projects, enabling them to move from offshore wind to CCUS construction, for example.
5.4. DESNZ should collaborate with other governmental departments to review the timelines of planned UK infrastructure projects, and form ideas as to how to help provide the required skills for these projects.
January 2025
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