4. Statement by the Minister for Economy: Net-zero Skills Strategy

Part of the debate – in the Senedd at 3:12 pm on 28 February 2023.

Alert me about debates like this

Photo of Vaughan Gething Vaughan Gething Labour 3:12, 28 February 2023

Diolch, Dirprwy Lywydd. I'm pleased to publish the net-zero skills action plan today. The plan is an important first step in understanding the role of skills in making a just transition to net zero. Our net-zero ambitions include a better, fairer and greener future for us all. Skills are a key enabler to deliver on these ambitions, to ensure the transition is fair and that the most vulnerable in society are not unfairly burdened with the costs of change.

The challenge to meet our net-zero commitment is huge, and our future skills needs will require a collaborative approach across the whole economy. In shaping the plan, we have worked cross-Government, with external stakeholders and key partners to gain a picture of the net-zero skills landscape against the eight emission sectors set out in Net Zero Wales. This plan is the start of a journey. We do not pretend to have all the answers yet. The plan prioritises seven key areas and contains 36 actions. It sets out this Government’s commitment to support the just transition to net zero through a more co-ordinated approach.

Understanding the current skills position and future skills needs for each emission sector in Wales is mixed. Some sectors are further ahead in their direction of travel than others, and there is a level of confusion in some sectors on how net zero will impact the future needs of their workforce. As we transition to a net-zero economy, the skills needs will evolve and become clearer. However, in the meantime, uncertainty will mean the picture will not be static and we recognise that further work is needed to understand the changing skills landscape.

So, we'll start by looking at the skills landscape in more granular detail. l'll undertake a public consultation on the sector-specific skills requirements. This will set out our current understanding of the skills position for each sector, what skills are needed in the short, medium and long term, and how to achieve this with continued partnership work. The outcome of the consultation will support the development of a skills road map for each emission sector, which will support the development and investment of skills in the future. 

Our engagement with stakeholders has suggested that there is a level of confusion and a lack of understanding amongst some businesses, employees and school leavers about what is meant by green or net-zero jobs and the skills required. We need to build a shared understanding of net-zero skills across Wales. We have, to date, interpreted net-zero skills broadly as the skills needed to support each sector on their path to net zero across the whole economy. As a result, all jobs have the potential to make a contribution to help meet our net-zero commitment. There is a strong and urgent need to narrow the definition and to gain a common understanding of the jobs and skills required with a clear flow of information between Government, public and private sectors and employees on the skills needed. We will use the outcome of the Office for National Statistics’ consultation and their upcoming definition of a 'green job' to help inform the definition for Wales.

We need to grow a skilled and diverse workforce and create quality jobs to meet our net-zero commitments in what is a rapidly changing economy. The skills challenges of our workforce are very real now. We need to respond to the growing demand from different sectors for more people to have net-zero skills. Without taking further actions our own net-zero commitments will not be achieved. Supporting people to upskill in existing sectors and to use their existing skills and qualifications will be key to help transition within sectors.

That is why we have invested an additional £10 million in personal learning accounts this year to help upskill employed individuals to help meet our skills gaps, to help secure their own futures. Within this, an extra £1.5 million has been allocated to the green personal learning account pilot that I launched in October. This will provide a total investment of £3.5 million this year to directly support skills in the construction, energy, manufacturing and engineering sectors. 

However, it is clear that we are not starting from scratch. There are many successes across Wales, some of which are contained within the plan as examples. These show the positive impacts and benefits that can be made by delivering change and investing in skills. Working with industry bodies and key partners, we will continue to explore opportunities for new and innovative approaches to grow our future workforce.

We recognise that we need to strengthen the skills system to meet the rapidly growing skills demand from across all sectors. Collaboration between further and higher education, apprenticeships, wider learning provision, trade unions and industry will help us provide the right offer and progression for learners in a more co-ordinated way.

As we know, apprenticeships raise skills levels, help to drive greater productivity, and create more resilient communities. We are exploring options on how the apprenticeship frameworks can further meet our net-zero commitments, but building on these strong foundations, we will look to strengthen the offer of short courses to supplement and enhance net-zero skills for young apprentices in new and emerging technologies and techniques with our personal learning accounts. 

We recognise that we need to promote opportunities for early years and young people to realise their potential. Our children and young people are obviously a key part of the future workforce, and we must motivate, engage and equip them to effectively understand their career opportunities in the changing world of work. The new Curriculum for Wales roll-out is a great opportunity to align our priorities. This plan sets out actions to work with partners to promote engagement to build confidence and knowledge of the world of work.

We know that we can’t tackle the challenge alone, so cross-Government and partnership working will be the cornerstone of our approach. As we move into the implementation phase, we will continue that partnership approach across the whole economy, looking to draw on the strength provided by our social partnership way of working. Delivering a just transition should mean that no-one is left behind, so we would encourage individuals to be part of the conversation, to promote a positive culture that champions fairness and equality in the way that we drive change forward.

Our long-term plan remains to deliver a fairer, stronger, greener Wales for all of us, and invest in the skills to do so. I look forward to working with Members across the Chamber to deliver on this net-zero skills action plan, and of course businesses, trade unions and other partners outside of this Chamber.