POLICY BRIEF: Understanding jobs demand and displacement outcomes of decarbonising UK industry clusters

Summary

Authors:

Christian Calvillo
Antonios Katris
Hannah Corbett
Julia Race
Karen Turner

University of Strathclyde

Understanding jobs demand and displacement outcomes of decarbonising UK industry clusters

February 2024

The decarbonisation of UK industrial clusters through CCUS networks can support jobs and wider economic value across multiple sectors. However, worker and skills shortages pose challenges across the UK clusters, impacting the deliverability of CCUS projects as well as wider economy outcomes. This research focuses on these challenges and highlights four key messages crucial for both CO2 Transport and Storage (T&S) sector stakeholders and policymakers:

1. Temporary job spikes in construction during CCUS investment and development phases need to be considered in planning.

2. Addressing workforce and skills shortages can mitigate job displacement and maximise economy-wide benefits of establishing a new CO2 T&S sector.

3. Simultaneous introduction of regional subsections of CO2 T&S sector may exacerbate resource competition across all sectors, limiting wider economy gains.

4. Consistent assessments of employment requirements and economic impacts across clusters are necessary to address labour shortages and potential negative economic outcomes..

This project was funded by IDRIC (under EPSRC award number: EP/V027050/1). The views and opinions expressed are those of the author(s) only and do not necessarily reflect those of IDRIC. Neither IDRIC nor EPSRC can be held responsible for them.