Government urged to align green skills and industrial strategy to meet net zero goals

A new report examining the green skills gap has urged the Government to take immediate action to align its skills and industrial strategies, warning that the UK risks missing its net zero targets without coordinated intervention to develop the workforce needed for a circular economy.

The report, commissioned by SUEZ recycling and recovery UK, brings together insights from key figures including Skills Minister Jacqui Smith, former energy minister Chris Skidmore, and CBI Chief Executive Rain Newton-Smith, highlighting the critical role of the waste and resources sector in underpinning the transition to net zero.

Research cited in the report indicates that 200,000 jobs will be needed across the resource and waste sector by 2040 to manage the net zero transition. Currently, there is an approximate deficit of 70,000 workers needed to close the UK's green skills gap, while 75 per cent of UK students and graduates report feeling uninformed about green careers. The sector particularly struggles to attract young talent, with only five per cent of current staff in the resource and waste management sector aged 16-24.

Policy gaps and missed opportunities

The report identifies several critical policy failures threatening progress. Most notably, the Government's recent decision to scrap the Green Jobs Delivery Group - which brought together ministers, industry experts, and educational institutions - has created a significant gap in strategic oversight. The group's final report remains unpublished following delays from the Summer 2024 General Election, leaving key recommendations unimplemented.

Dr Adam Read MBE, Chief Sustainability and External Affairs Officer at SUEZ recycling and recovery UK, described this as "the biggest opportunity and greatest demand for new skills and changes in careers since the Industrial Revolution." He warned that without quick action, the UK risks falling behind on its targets, emphasising that "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."

Economic implications and opportunities

Former minister Chris Skidmore's analysis in the report reveals significant economic opportunities being missed. His research indicates that improving waste measures and resource efficiency could increase GDP by 0.9 per cent by 2035 and create an additional 450,000 jobs. The report's analysis shows that reducing waste exports, which currently account for 61 per cent of plastic waste, could deliver multiple environmental and economic benefits. The changes could reduce CO2 emissions by 16 million tonnes while adding £8bn in GVA to the UK economy and creating 60,000 new jobs.

These opportunities extend well beyond traditional waste management. Skills Minister Jacqui Smith emphasised that green skills will be vital across multiple sectors, including transport and natural environment restoration. The Department for Energy Security and Net Zero estimates that reinforcing the electricity grid alone could create up to 130,000 jobs by 2050.

CBI Chief Executive Rain Newton-Smith highlighted the need for targeted investment and policy coordination, emphasizing that industrial strategy must focus on areas with the highest growth potential rather than trying to be all things to all people. The report reveals encouraging signs for workforce development, with 86 per cent of graduates prioritising companies with positive environmental impact when seeking jobs. However, this potential can only be realised with proper government support and coordinated action.

Comprehensive action needed

The report calls for wide-ranging government intervention to address the skills gap. At the strategic level, this means better coordination between green skills policy and the Government’s Industrial Strategy, while recognizing the waste and resources sector as critical infrastructure for achieving net zero. It advocates that the government must also integrate circular economy principles into broader economic planning.

Education and training require significant attention, with increased investment needed in skills development programs and better promotion of green career pathways to young people. The report emphasizes the importance of supporting workers transitioning from traditional industries through comprehensive retraining programs.

The policy framework requires careful consideration too. Beyond maintaining strategic focus on developing green skills for high-growth sectors, the government needs to reform the Growth and Skills Levy to better support green skills development. This must be accompanied by improved coordination between central government, devolved administrations, and local authorities.

On the ground, implementation requires development of regional skills hubs that align with local industrial needs. The government must support innovation in reprocessing and recycling technologies while investing in training facilities and apprenticeship programs that will create the workforce of tomorrow.

Implementation challenges

Several significant barriers stand in the way. Policy responsibility remains fragmented across different government departments, while coordination between skills providers and industry needs improvement. The report identifies insufficient funding for training and infrastructure as a major obstacle, alongside inadequate data collection on skills gaps and future requirements.

Success will require unprecedented collaboration between government, industry, and educational institutions. Commenting on the report, Shaun Spiers, Executive Director of Green Alliance, noted: "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."