Unjust transition looms: How Scotland is falling behind in energy revolution as China steals a march
UK energy policy was once admired around the world, but other countries are speeding up the pace of their transitions to renewables
Scotland is perhaps one of the most blessed places in the world when it comes to energy.
The discovery of North Sea oil in the 1960s provided a massive economic boost to the country in the shape of the profits made, the jobs created and the tax revenues raised. It is worth billions to the UK Treasury, with the Office for Budget Responsibility estimating that oil and gas revenues will be some £2.7 billion in this financial year.
Furthermore, Atlantic gales means Scotland is one of the best places in Europe to harness wind energy, not to mention the powerful sea currents in places like the Pentland Firth.
These new opportunities led many to be optimistic that the gradual decline of the North Sea basin could be offset by the rise of the renewables industry which, it was hoped, would provide a so-called “Just Transition” for those people losing their jobs.
READ MORE: How Scotland can still be engine room of UK economy despite decline of North Sea oil and gas – Energy UK
Multiple warnings
Instead of a coal-mining-style collapse, people skilled in marine engineering could find new work in companies building giant offshore turbines, with Scotland not only servicing demand around its own shores but across the world.
However, in recent years, multiple warnings have been sounded about the slow pace of growth in renewables not keeping up with the rate of decline in oil and gas. And if those skilled marine engineers are forced to move abroad for work, Scotland could find itself with the worst of both worlds: a collapsed oil industry and a shortage of expertise to make the wind energy dream come true.
READ MORE: Warning North Sea poised to miss out on 23,000 jobs as 110 firms demand windfall tax reforms
Now Dr Angela Wilkinson, chief executive of the World Energy Council, has warned that the UK’s transition is at risk of lagging behind other countries as politicians and the industry argue over the future of oil and gas.
She said “the pace of energy transitions globally is being accelerated” in places like China, Japan and other countries in Southeast Asia and the Middle East. “People used to talk with great admiration of UK energy policy. I don't hear that so much these days...”
With Scotland’s economic future at stake, we cannot afford to fall behind.
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