Stephen Boyd, Assistant Secretary, Scottish Trades Union Congress

Content

Opportunities STUC aspirations Policy context Progress to date Barriers Conclusions

Opportunities

Scotland possesses: 25% of Europe’s onshore and

offshore resource 25% of Europe’s tidal resource 10% of Europe’s wave resources Biomass, hydrogen Massive potential for deployment of

emerging carbon capture and storage technology in North Sea

STUC aspirations

A growing renewables sector should: Create quality, sustainable employment …particularly in fragile remote

economies Reinvigorate Scottish manufacturing Use existing skills base effectively Develop advantage in skills of the future Contribute to climate change targets

Policy Context

Economic and social policy Scottish and UK Government energy

policy Climate Change (Scotland) Bill

Economic and Social PolicyScot Govt Economic Strategy Targets To match GDP growth rate of small independent EU

countries by 2017 To raise Scotland’s GDP growth to the UK level by

2017

The ‘golden rules’ Solidarity: to increase proportion of income earned

by the lowest 3 income deciles as a group by 2017 Cohesion: to narrow the gap in (labour market)

participation between Scotland’s best and worst performing regions by 2017

Sustainability: to reduce emissions by 80% by 2050

Energy Policy

UK target 20% of electricity supply from

renewable energy from 2020

Scottish targets 31% of electricity supply by 2011 50% of electricity supply by 2020 16,000 jobs in renewables by 2020

Climate Change (Scotland) Bill Stage 3 debate taking place today Interim target of 42% reduction in

greenhouse gases by 2020 80% reduction in greenhouse gases

by 2050

Progress to date 1

3000 jobs Total renewables capacity installed,

consented or under construction is 5.5 GW – more than 31% of gross energy consumption

Whitelees – biggest onshore windfarm in Europe heading towards completion

Clyde – consent granted for 200 turbine onshore windfarm; guarantee of at least £200m of contracts for Scottish firms

Progress to date 2

European Marine Energy Centre (EMEC) test facility established in Orkney

Scottish marine energy developers recognised as world leaders

Sites identified and leasing programmes underway for tidal and offshore wind developments

Saltire Prize

Barriers 1

Infrastructure – massive investment required to upgrade grid network and connect projects in remote areas

Regulatory framework – working against achievement of renewables targets and rural job creation

Capital – ongoing failure to provide patient, committed finance to growing, innovative firms

Barriers 2

Absence of feed-in tariff – stifling progress on microgeneration

Skills – emerging constraints Planning - under resourced Local

Authority Planning Departments Natura 2000 – ‘absolutist’ approach

to implementation of Birds and habitats Directives

Nimby-ism

Conclusions

Employment dividend to date is insufficient to justify extravagant political rhetoric

Development must deliver quality jobs to Scotland’s fragile remote economies

Market fundamentalism continues to slow progress

Direct state role in resolving barriers is justified and indeed essential

sboyd@stuc.org.uk