Climate change action that puts people first

Climate change and the need to transition to cleaner forms of energy is a global issue. It’s the right thing to do, both from a humanitarian and a sustainable economic perspective.

And there lies the challenge for Scotland. The oil and gas industry including its supply chain employs more than 100,000 people in Scotland (39% of UK oil and gas industry). Jobs in the industry are interesting and well-paid and continue to be important for Scotland.

However, as we reduce our dependency on fossil fuels and shift to alternatives such as offshore wind, hydrogen and more, how do we ensure those people that are currently working in oil and gas are not left behind?

There is a precedent here. In the 1980s, the British coal industry went into decline with the loss of thousands of jobs. This resulted in huge social and economic scarring in communities across the UK. In many cases, the impact is still being felt today.

We do not want to repeat this mistake with the oil and gas industry. We want to ensure we’re supporting the transition of people to new, fulfilling jobs into industries of the future.

Importantly, between 7000 and 45,000 jobs could be associated with combined carbon capture utilisation and storage (CCUS) by 2030. This is backed up by figures from the UK’s Hydrogen Taskforce opens in a new window that suggest that hydrogen production could generate £18 billion and support more than 75,000 jobs in the UK over the next 15 years.

The Scottish Government's Just Transition Commission opens in a new window  has published a report committing to working with industry to:

• Pursue an orderly, managed transition to net zero that creates benefits and opportunities for people across Scotland
• Equip people with the skills and education they need to benefit from the transition  
• Empower and invigorate our communities and strengthen local economies  
• Share benefits widely and ensure burdens are distributed based on ability to pay 

Michelin Scotland Innovation Parc opens in a new window is one example of an area dedicated to generating economic growth in Scotland that supports a fair and just transition to a net zero economy. This prime site offers opportunities for investors and businesses in sustainable mobility, clean transport, and low carbon energy.

How long will the transition take?

There is a difficult truth around the reality that we will need oil and gas for some time. But the reality is that the need for it will not disappear overnight. In fact, all predictions say that oil and gas is still going to be needed for the next 30 to 40 years. This is because there are many products, such as plastics and chemicals, where oil is the feedstock for production.

The term 'net zero’ means achieving a balance between the carbon released into the atmosphere, and the carbon removed from it. To reach net zero, the emissions from homes, transport, agriculture, and industry will need to be cut. In other words, these sectors will have to reduce the amount of carbon they put into the atmosphere. So, what we will see is a focus on reducing carbon emissions from industry. Industry has already committed to some significant targets in relation to reducing emissions and I'll touch on this later in the article.

But in some areas, like aviation, it will be too complex or expensive to cut emissions altogether. These ‘residual’ emissions will need to be removed from the atmosphere: either by changing how we use our land so it can absorb more carbon dioxide, or by being extracted directly through carbon capture, utilisation and storage (CCUS) technologies, or even by other technologies not yet invented.