Labour market and other wider economy challenges in decarbonising the UK’s industry clusters (LAB CLUSTER)

IDRIC Project MIP 9.7

University of Strathclyde Centre for Energy Policy

Background

Through its Industrial Decarbonisation Strategy  UK Government has committed to scale deployment of solutions such as Carbon Capture, Utilisation and Storage (CCUS) to decarbonise the UK’s industry clusters and to meet mid-century Net Zero ambitions. Understanding how these can be delivered in economically and politically feasible ways will be critical to the success of decarbonisation efforts and the realisation of wider economy benefits.

The LAB-CLUSTER project will provide crucial new analytical insight and evidence for those working to decarbonise the UK’s industry clusters on how persisting labour market supply constraints and other cost pressures (e.g., continuing energy price volatility) may impact decarbonisation project delivery and sectoral/wider economy outcomes.

Professor Karen Turner

Professor Karen Turner

Principal Investigator
Professor Karen Turner, Director, Centre for Energy Policy, University of Strathclyde

Project Team

Centre for Energy Policy, University of Strathclyde:

Dr Julia Race, Reader
Dr Antonios Katris, Research Fellow
Dr Christian Calvillo
Dr Abdoul Karim Zanhouo, Research Associate
Hannah Corbett, Knowledge Exchange Fellow

Aim

To provide original insight and much needed evidence-based clarity on how and to what extent supply constraints in the UK and regional labour markets, interacting with other prevailing economic conditions, may affect the delivery and operation of decarbonisation projects in and across the UK’s regional industry clusters.

More Detail

Through economy-wide scenario simulations, our research will:

  • Explore the labour market drivers and implications of the deployment and operation of CCUS projects within and across the UK’s industry clusters. We will further develop understanding of how supply constraints and competition in industry, regional and national labour markets may influence the costs of delivering and operating CCUS systems and the industries decarbonising via CCUS. Linked to this, our analysis will bring insight on the determination of employment and wages associated with delivering CCUS services, set in the context of potential labour migration/displacement that the operation of UK CCUS may trigger.
  • Focus on the regional economy impacts associated with the relocation of workers and potential displacement of employment across clusters and industry. This will involve innovative development of economy-wide databases and modelling for the UK through informed regional disaggregation of key national activities.
  • Examine how external and/or domestically induced energy price shocks may influence the potential sectoral, regional and economy-wide outcomes associated with the operation of CCUS activity in UK industry clusters. This will be achieved through gradually building in dynamic changes in conditions into scenario simulations. The work involves building on our body of previous/current research that focusses on using our (peer reviewed) economy-wide computable general equilibrium (CGE) modelling framework to simulate the UK-wide impacts of introducing CCUS (where our work began in 2015 and has had evidenced 4* REF impact with BEIS).

Meet the Team

Dr Julia Race

Dr Julia Race

Dr Julia Race

University of Strathclyde

Dr Antonios Katris

Dr Antonios Katris,

Dr Antonios Katris

University of Strathclyde

Dr Christian Calvillo

Dr Christian Calvillo

Dr Christian Calvillo

University of Strathclyde

Dr Abdoul Karim Zanhouo

Dr Abdoul Karim Zanhouo

Dr Abdoul Karim Zanhouo

University of Strathclyde

Hannah Corbett

Hannah Corbett

Hannah Corbett

University of Strathclyde

Dr Julia Race

Dr Julia Race

Dr Julia Race

University of Strathclyde

Dr Antonios Katris

Dr Antonios Katris,

Dr Antonios Katris

University of Strathclyde

Dr Christian Calvillo

Dr Christian Calvillo

Dr Christian Calvillo

University of Strathclyde

Dr Abdoul Karim Zanhouo

Dr Abdoul Karim Zanhouo

Dr Abdoul Karim Zanhouo

University of Strathclyde

Hannah Corbett

Hannah Corbett

Hannah Corbett

University of Strathclyde

Case Study

We will focus on the development and deployment of CCUS projects as an example of large-scale decarbonisation activity, one that lies at the heart of the UK Government’s industrial decarbonisation strategy and action to date. However, generic learnings will emerge for other decarbonisation activities that are likely to involve infrastructure development and deployment at scale, triggering dynamic and competing resource demands, all of which may have implications for the extent to which UK competitive advantage can be bolstered and value created as the economy transitions.

Planned Outputs

  • Targeted research and policy briefs
  • Journal papers
  • Workshops
  • Participation in external events and conferences (including IDRIC conference)
  • Blogs and opinion pieces
  • Consultation responses