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Government action on green skills gap is ‘vital’, says Suez

A Suez report published today (25 November) has urged the government not to waste the progress industry has made on green skills and warned that without action, the UK will fall behind on its targets.

The report includes contributions from Skills Minister Jacqui Smith, former Minister and Net Zero Review author Chris Skidmore and the CBI.

In the report, Skills Minister Jacqui Smith recognised the importance of the waste and resources sector in underpinning the transition to net zero and closing the green skills gap, but warned the energy transition will pose a “critical challenge”.

CBI chief executive Rain Newton-Smith warned the industrial strategy “cannot be all things to all people” and must target the “areas with the highest growth potential”.

In an interview with the New Statesman, Suez’s chief sustainability and external affairs officer, Dr Adam Read MBE, cautioned that without urgent action the UK is at risk of falling behind on green skills targets. Read called the net zero transition “the biggest opportunity and greatest demand for new skills and changes in careers since the industrial revolution”.

It comes after the new government confirmed it will not reform the Green Jobs Delivery Group, which brought together ministers, industry experts including Read and educational institutions, to advise on green skills policy.

The Group’s final report was said to have beem delayed by the General Election in Summer 2024 and has yet to be published by Defra.

Suez’s report has called on the government to deliver targeted investment, long-term policy frameworks, and stronger collaboration with businesses and educational institutions to align the UK’s workforce with the demands of a sustainable future. 200,000 jobs will be needed by 2040 in the waste and resources sector to manage the net zero transition, according to the Chartered Institute for Wastes Management (CIWM).

Suez has called on the government to:

  • Align its green skills policy and Industrial Strategy closely, ensuring Skills England works closely with businesses to address key skills gaps.
  • Recognise the waste and resources sector as critical to underpinning the net zero transition.
  • Maintain a strategic focus on developing green skills to support high-growth sectors like renewable energy, low-carbon manufacturing, and the circular economy.
  • Invest in education, training and skills planning to ensure the UK has the workforce required to achieve its net zero and clean power missions.
  • Ensure Skills England improves coordination between government, industry, and local communities to deliver green infrastructure projects and sustainable innovation.

Writing in the report Baroness Jacqui Smith, skills minister, said:  “The green revolution is reshaping entire industries, creating new jobs and transforming existing ones. It’s not just about clean energy – green skills will be vital across sectors like transport, waste management and restoring the natural environment.

“Our Clean Energy Superpower Mission represents a critical challenge. Achieving net zero by 2050 and clean power by 2030 will depend on growing and upskilling in sectors like energy, transport and natural resources.

“The transition to a greener economy is more than a policy shift – it’s about securing the future of jobs, industries and climate. Green skills will play a central role in this journey, and with the right skills in place, the UK will be ready to take advantage of the opportunities ahead.”

Read added: “Our industry has done the hard thinking on green skills. We know what skills will be required to reach net zero and what reforms the current system needs to get there. Now comes the hard part – making it happen.

“We’re pleased to see the skills minister recognise the essential role that waste management will play in the transition to a sustainable economy, and hear the government commit to reform skills provision. However, it’s vital that they don’t waste the good progress industry has made to date and heeds business’ feedback on the Apprenticeship Levy.

“The UK’s skills and industrial policies must work hand-in-hand, ensuring businesses have the right incentives to invest in training for the future and in the areas that will underpin a sustainable, resource-efficient economy.”

Newton-Smith said: “To be most effective, the industrial strategy has to be targeted at areas with the highest growth potential. It cannot be all things to all people. Businesses are ready to lead the way in driving investment and creating jobs, but we need clear, coordinated policies – like green tax incentives and infrastructure planning – to unlock private capital and accelerate the net zero transition. With the right partnership between government and industry, the UK can compete globally and thrive in the green economy.”

Shaun Spiers, executive director of Green Alliance, commented:  “It’s great to read a report that pulls together the need for decarbonisation, serious investment in skills and a move towards a circular economy. Too often these things are considered in isolation and too often the circular economy is, at best, an afterthought. Minimising waste and increasing reuse is key to a truly sustainable future, and the government’s green skills agenda will need to support the circular economy.”

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