Skills for the low carbon economy


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The importance of creating a market ready labour force with the green skills to support economic reform, the establishment of new high growth industry sectors & regional economic renewal

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Skills for the low carbon economy

  1. 1. Skills for the Low Carbon Economy: from green -collar jobs to green-industry employment hubs Robert Nicholls Director Innovation & Organisational Adaptation Carbon TRAINING International Pty Ltd
  2. 2. Skills for the Low Carbon Economy: from green-collar jobs to green-industry employment hubs The importance of creating a market ready labour force with the green skills to support economic reform, the establishment of new high growth industry sectors & regional economic renewal grant Vision. provide Voice. give Support. New Horizons Hilton Hotel Sydney 26th-28th August 2009 inspire Vision. promote Voice. provide Support. New Horizons Hilton Hotel Sydney 26th-28th August 2009
  3. 3. A snapshot of the low carbon economy <ul><li>Transformed industry & business (less energy & emissions intensive) </li></ul><ul><li>Creation of sustainable industry sectors </li></ul><ul><li>Modified work practices & job functions </li></ul><ul><li>Labour market environmentally responsive </li></ul><ul><li>Energy intensive industries clustered around renewable hotspots </li></ul><ul><li>New regions of competitive advantage </li></ul><ul><li>What characteristics will be instrumental in defining economic success under the new paradigm? </li></ul>
  4. 4. Climate Change policy & new legislation is driving economic transformation <ul><li>NGERS – legislation for the mandatory reporting of energy consumption & GHG emissions </li></ul><ul><li>Emissions Trading Scheme (CPRS) designed to establish a market driven price for carbon </li></ul><ul><li>Renewable Energy – targets have been implemented with legislation that mandates 20% of Australia’s energy be obtained from renewable sources e.g. solar, wind, geothermal, hydro, wave by 2020 </li></ul><ul><li>Energy Efficiency – move to national standards for buildings, electrical goods, machinery, plant equipment & whitegoods </li></ul><ul><li>Sequestration Technologies – CCS, bio-sequestration & establishment of R&D institutes (GCCSI) </li></ul><ul><li>Latest developments: </li></ul><ul><li>Start of Emissions Trading Scheme (CPRS) to be delayed by 12 months – from 2010 to 2011 </li></ul><ul><li>Original CPRS Bill defeated in Senate but planned to be re-introduced into parliament Nov09. Amendments likely – framework the same </li></ul><ul><li>COAG has agreed to the creation and adoption of national energy efficiency standards supported by a national strategy </li></ul><ul><li>Renewable Energy Target (RET) Legislation passed on Thursday 20 August 2009 (project investment trigger = new jobs) </li></ul>The first three will have a direct impact on the performance of business while the other two will have feed through effects - all will create new jobs & employment opportunities
  5. 5. ..this is further supported by an economic recovery that is supporting clean industry & green jobs <ul><li>Economic recovery is being low carbon lead </li></ul><ul><li>Stimulus packages targeting energy efficiency (insulation package) </li></ul><ul><li>Infrastructure programs – energy, transport, smart-grids </li></ul><ul><li>Investment community is adopting more rigorous techniques to assess the viability & sustainability of business – paradigm shift in investor decision making (Responsible Investing) </li></ul><ul><li>Job creation programs are targeting green employment – and not just in Aust (we are in a global race) </li></ul>
  6. 6. A green skills lead labour market transformation is acknowledged as being critical to our economic prosperity & support of future jobs We must also be able to ensure that Australia’s economy is ready to compete in a global carbon future. This needs to include sustainable jobs in energy intensive, trade-exposed industries (EITE) and grab hold of opportunities to grow green jobs . Sharan Burrow – ACTU President (5 September 2008) Responding to climate change will require a fundamental shift in Australia’s approach to management and workforce skills . Heather Ridout, Chief Executive AIG (November 2008) … achieving the transition to a low carbon sustainable economy will require a massive mobilisation of skills and training – both to equip new workers and to enable appropriate changes in practices by the three million workers already employed CSIRO for the Dusseldorp Skills Forum (June 2008)
  7. 7. What are Green Skills <ul><li>Skills that support environmental sustainability & better environmental outcomes </li></ul><ul><li>Skills that enable organisations to address changed operating environments & compliance frameworks </li></ul><ul><li>Skills that support improved business practices through the elimination of waste & inefficiency </li></ul><ul><li>Creating natural & synthetic conditions that protects & preserves business continuity </li></ul>
  8. 8. Why will Green Skills become so important <ul><li>Support Australia’s structural economic reform </li></ul><ul><li>New jobs will emerge requiring a combination of traditional & new workplace competencies </li></ul><ul><li>Enable traditional vocations & job functions to transition </li></ul><ul><li>The emergence of new compliance structures – calculating, managing, reporting – ‘Green-tape’ </li></ul><ul><li>Transforming business practices will depend on them </li></ul>
  9. 9. How will the employment landscape look as the low carbon economic transformation takes hold A labour force transformation on the back of traditional industry reform & growth of green industry
  10. 10. Impact to Employment under a 60% emissions reduction target by 2050 Source: CSIRO, Growing the Green Collar Economy (2008) “ The real challenge will lie in providing appropriate skills to these new workers while also supporting the re-skilling of the 2.9 million workers who are currently employed in these high impact sectors”
  11. 11. Traditional Employment Sectors are forecast to grow strongly Change in Employment in High Material Flow sectors (000’s) Source: CSIRO, Growing the Green Collar Economy (2008)
  12. 12. Which industry segments will support green collar jobs Source: ACTU, Green Gold Rush Report (2008)
  13. 13. Where will the Green collar jobs be created Source: ACTU, Green Gold Rush Report (2008) Employment Projections across Six selected Industries
  14. 14. How are Green Collar jobs defined? <ul><li>At its broadest level green collar jobs are those that contribute to better environmental outcomes or increased sustainability </li></ul><ul><li>Green-collar jobs range from low-skill, entry-level positions to high-skill, higher-paid jobs, and include opportunities for advancement in both skills and wages. </li></ul>
  15. 15. Are all Green Collar Jobs the same? Source: ACF, Green Jobs Fact Sheet 2008 (adapted) A Carbon Emissions Officer who is responsible for coordinating a departments emissions data for compliance reporting Public transport and clean car design, construction, manufacture and operation A chef who chooses locally grown, environmentally-friendly produce Green Professionals in auditing, accrediting, accounting, legal, finance, broking and trading A building cleaner who uses environmentally friendly products, reduces waste & facilitates energy conservation Green Building - design, construction & retro-fitting Mining & waste facility workers who mitigate carbon emissions & support land rehabilitate projects Sustainable, water-smart farming and forestry practices e.g. bio-sequestration Office managers who help reduce energy waste & implement energy efficiency programs Water saving and recycling & Energy Efficiency – Green Plumbers and Green Electricians Purchasing officers who implement a sustainable / carbon neutral purchasing policy Clean Technology, CCS & Renewable energy- R&D, manufacturing, distribution, installation Light Green Deep Green
  16. 16. How will Green Skills be embedded <ul><li>Targeted, relevant, timely re-skilling, cross-skilling & up-skilling training programs </li></ul><ul><li>A collaborative & coordinated approach across the entire education & VET sectors, supported by ISC’s </li></ul><ul><li>Government support through labour market programs </li></ul><ul><li>Competency-based training programs for the workplace </li></ul><ul><li>Leveraging apprenticeship & traineeship programs </li></ul>
  17. 17. Who will be the green collar job beneficiaries <ul><li>Opportunities will not be limited to a select few </li></ul><ul><li>No employee group will be unaffected </li></ul><ul><li>Disadvantaged & Indigenous groups </li></ul><ul><li>Grooming for green collar jobs needs to start early – in the school system, within trade colleges, VET system & in universities (must be integrated) </li></ul><ul><li>The current labour market must be re-skilled, cross-skilled & up-skilled in new work practices </li></ul>
  18. 18. Regional Economic Success <ul><li>Those that embrace the structural reform will become attractive centres for new industry establishment </li></ul><ul><li>Natural endowments will play a major contribution </li></ul><ul><li>The skills of the local labour market will be very important, building up workforce capacity will be key for attracting new enterprise </li></ul><ul><li>Government & institutional support will be essential </li></ul><ul><li>Some groundwork has already been started e.g. the CSIRO’s Sustainable Communities Initiative </li></ul>
  19. 19. New Low Carbon Economic Centres <ul><li>Regional renewal & regeneration </li></ul><ul><li>The role of enabling and supporting industry will be critical for the renewable energy industry </li></ul><ul><li>Next generation energy will be generated primarily in regional areas – new communities will emerge </li></ul><ul><li>The infrastructure will need to be well supported by local industry as well as the local labour market </li></ul>
  20. 20. Green Employment Hubs RC2 RC1 RC = Regional Centre RC3
  21. 21. Employment Service Providers to play an important role <ul><li>Industry & Business depends on the ESP’s to assist them find ways to address emerging skills challenges </li></ul><ul><li>ESP’s are integral to the local community & able to help shape labour market outcomes </li></ul><ul><li>Government is establishing green collar jobs programs as well as directing training assistance for green skills </li></ul><ul><li>JSA’s level of influence across the job market is significant – established systems, processes, tools to help mobilise suitable green collar job ready candidates & find suitable positions to candidates looking to establish a green collar vocation </li></ul>
  22. 22. What policies & initiatives are needed to facilitate a green skilled workforce <ul><li>Establish a national action plan for green skills development. </li></ul><ul><li>Lift the level of public funding in green skills education and training to target this under-resourced area </li></ul><ul><li>Promote awareness raising and education on resource efficiency and pollution reduction to drive wholesale adoption of new practices and accelerate demand for green products and services. </li></ul><ul><li>Leverage existing labour market programs such as the PPP </li></ul><ul><li>Create a coordinated program of engagement & support across all labour market, skills creation & training stakeholders </li></ul><ul><li>Facilitate broad community engagement & support </li></ul>
  23. 23. Q&A [email_address] Thank you
  24. 24. About the Presenter <ul><li>Rob is Carbon Training International’s Director of Innovation & Organisational Adaptation & is CTI’s Managing Director </li></ul><ul><li>Rob works with industry, business, local government & community groups to help them identify & understand the risks & opportunities associated with the low carbon economy, the strategies for responding and their capacity building needs </li></ul><ul><li>Rob is involved with delivering CTI’s facilitated workshop programs on developing and implementing an organisational carbon management response plan (CMRP) </li></ul><ul><li>Rob is a market economist, an experienced business strategist & operational improvement specialist with diverse industry experience gained from working both in Australia & overseas over the past 13 years </li></ul>