Five reasons why MPs should back the 'green jobs' amendment

The amendment would provide the certainty for which the energy industry is calling and keep the UK on track to meet its legally binding carbon targets at the lowest cost.

The government’s Energy Bill receives its third reading in the Commons today. MPs will vote on whether a ‘green jobs’ amendment - proposed by Conservative select committee chair Tim Yeo and Labour backbencher Barry Gardiner - should be added to the bill. This would introduce a target to cut the carbon intensity of Britain’s power sector by 2030 to 50g CO2 / KWh to keep the UK on track to achieve its legally binding targets at the lowest cost and provide the certainty for which the energy industry is calling.

Here are five facts about the green jobs amendment.

1. The green jobs amendment will save every household £958 to £1,724 under ‘central’ assumptions made by the Committee on Climate Change. This could rise to £3,831 if gas and carbon prices were higher than expected.

The recent CCC report ‘Next steps on Electricity Market Reform’ says:

“These measures [ie the 50g target and related policies] would support investment in a portfolio of low-carbon technologies through the 2020s, which the report indicates would result in cost savings of £25-45 billion, in present value terms under central case assumptions about gas and carbon prices, rising to over £100 billion with high gas and carbon prices.” (p.9)

Since there were 26.4m households in the UK in 2011 according to the Census, this means that each household would save £958 to £1,724. With high gas and carbon prices this could rise to £3,831.

2. The green jobs amendment will provide certainty for the renewable energy sector resulting in an increase in offshore wind capacity by 2030 from 16GW in DECC’s central scenario to 26GW in the CCC’s central scenario – up 63%.

DECC’s ‘2012 emissions and energy projections’ set out a central scenario for total capacity in every year to 2030 on the basis of carbon intensity falling to 100g CO2 / KWh. A freedom of information request revealed that this included 16 GW of total offshore wind capacity by 2030. CCC’s report (Figure 1.6b) showed that a 50g CO2 / KWh target would deliver 26 GW of offshore wind in three of their four scenarios.

3. The green jobs amendment would result in between 20,000 and 48,000 domestic jobs in the offshore wind industry.

IPPR is currently undertaking a research project examining the supply chain for offshore wind. Our literature review examined 10 scenarios in four different studies by the Carbon Trust, Bain and company, Cambridge Econometrics and the CEBR of the job creating potential of the offshore wind sector. On average, these studies showed that above 20 GW of wind capacity there are around 2,000 jobs per GW as the domestic supply chain expands. The additional 10 GW of capacity would therefore generate at least 20,000 jobs.

In their ambitious renewables scenario, the CCC (Figure 1.6b) predicts that a 50g CO2 / KWh target would deliver 40 GW of offshore wind capacity. This would create 24 GW of additional capacity above DECC’s central scenario of 16 GW, and generate at least 48,000 new jobs.

4. The amendment has overwhelming support from business, charities and trade associations.

Over 50 companies, charities and trade associations including Cisco, the Church of Scotland, the National Farmers Union and the TUC have reissued their call for MPs to back the target. The list of organisations that have spoken out in favour of the target numbers well over 100. Meanwhile businessman Lord Alan Sugar wrote in yesterday’s Financial Times that the green jobs amendment “could provide greater stability to the supply chain, cheaper prices for the consumer and much needed jobs to the country.”

5. If they vote against the green jobs amendment, the Lib Dems will be breaking another of their own promises.

At the 2012 Lib Dem conference, Danny Alexander proposed a motion favouring a 2030 decarbonisation target. Alexander kicked off the conference by criticising Tory attacks on green policies in a front-page interview with the Guardian. The vote was passed ‘overwhelmingly’ and a number of Lib Dem MPs posed for photos showing they backed green jobs.

The Lib Dems have already broken promises on VAT and tuition fees this Parliament. Will they let green jobs become a third?

The turbine sails of the Scout Moor Wind Farm in the South Pennines. Photograph: Getty Images.

Will Straw is Director of Britain Stronger In Europe, the cross-party campaign to keep Britain in the European Union. 

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com