The UK transition to net zero by 2050 could add a quarter of million new jobs to the economy, a new report from Rathbone Greenbank Investments has shown, but a ‘just transition’ of roles must be a target as other jobs are lost.
The report, entitled Financing a Just Transition: Putting people and communities at the heart of sustainable investment showed that by 2025 the shift to a new zero carbon economy could result in the creation of 15,900 new jobs, rising to 120,100 by 2030 and 236,000 by 2050.
Greenbank said driving this overall net change are over 574,000 new jobs set to be created by new and expanding green sectors by 2050, including 254,000 jobs in low carbon electricity and energy, with 167,000 in the development and operation of transport infrastructure and low carbon vehicles.
Other growth sectors include energy efficiency, which is projected to create 99,900 new jobs and professional services linked to the low carbon economy which is set to add a further 53,800 new jobs.
However, the report also found that 338,000 jobs in greenhouse gas intensive industries are set to be lost over the next three decades as a direct result of transitioning to net zero. Leading the charge will be the distribution of fossil fuels with 97,000 fewer jobs.
Greenbank said different areas will experience job gains and losses on a different scale, with Wales, London and Scotland predicted to experience a net decline of jobs by 2025. By 2030, however, all regions of the UK can expect to see a positive net change in job growth, including Wales, London and Scotland.
In response to the shifting dynamics, Greenbank said the investment community must make the just transition central to all investment strategies; allocate capital to communities most in need; use investor action to challenge companies on their just transition strategy; and bolster due diligence into fast-growing sectors. In addition, the sector should continue to monitor and reassess the transition.
John David, head of Rathbone Greenbank Investments, said: “There has never been a more pressing time to adapt our economy to a low carbon future. As well as being vital to building a more sustainable future for us all, the transition to net zero offers the prospect of bolstering the UK jobs landscape.
“However, with around 7 million direct jobs found in UK industries that account for a high proportion of greenhouse gas emissions, we cannot ignore the social impact of the transition, which is why we have commissioned this new research.”
Kate Elliot, head of Ethical, Sustainable and Impact Research at Rathbone Greenbank Investments, commented: “If we are to achieve a ‘just transition’ to net zero in the UK, we must prioritise long-term social inclusion and resilience, through education, reskilling and retraining for workers, otherwise we risk an incomplete strategy.
“Unsurprisingly, this is especially vital in the areas of the UK that are most reliant on greenhouse gas intensive industries, so that as we decarbonise the economy, this does not come at a human cost.
“As investors, we can translate these just transition ambitions into action. Through collective action, we have a critical role to play in securing a more sustainable future for both people and planet.”
