Wales Can Capitalise on Green Skills Opportunities in the Net Zero Race 

Natural geographical advantages and business innovation have placed Wales in a strong position to drive sustainable economic growth and green skills. 

Wales has the Severn Estuary’s tidal range to harness clean, affordable energy, the Celtic Sea for offshore wind, and Milford Haven’s coastal location to transport CO2 for under-sea carbon capture and storage.

Bute Energy’s Twyn Hywel wind park in Caerphilly will support the UK’s target to double onshore wind power by 2030. Aviation supplier AerFin’s new offices in Newport have solar panels, a rooftop rain-harvesting system and low energy lighting. From Cardiff to Carmarthen, digital skills are transporting businesses to develop smarter and greener technology.

It is perhaps no surprise that a recent report by the Energy and Climate Intelligence Unit, based on CBI Economics insights, found that net zero makes up 3.7% of Wales’ GVA (£3.1 billion). Net zero also supports 37,800 full-time jobs across Wales.

More firms need to know about the importance of green skills if the local economy is to build on these opportunities. Businesses should also feel confident about how they can seek out the support needed to build their workforces and contribute to the green economy, advanced manufacturing and AI.

Apprenticeships is another area of importance for the green economy. In February, CBI Wales published ‘The business of apprenticeships in Wales,’ a briefing document which called for business to be allowed to co-design the system.

The report recommended: 

• The apprenticeship system in Wales be refreshed to improve efficiency and to maximise the opportunities in the green economy, and other emerging sectors
• The expansion of Science, Technology, Engineering and Mathematics (STEM), and higher apprenticeships, to tackle cross-sectoral skills shortages
• Greater flexibility within the UK Apprenticeship Levy, to support reskilling and upskilling. With large numbers of skilled employees leaving traditional industries such as steel, there are opportunities for these workers to contribute to the net zero transition.

CBI Wales also called for more flexible, shorter apprenticeship courses and a more responsive system that reflects the rapid labour market changes. Apprenticeships need to be aligned with the needs of business to further innovation, productivity, and long-term career progression.

Apprenticeships are worth £18 per £1 spent on them. They future-proof the labour market by providing a supply of skilled, productive, and healthy workers and we need to find and remove the barriers to firms investing in skills.

Persistent labour and skills shortages are the most pressing issues holding back sustainable economic growth in Wales. Let us seize this opportunity to build on Wales’ fantastic opportunities to refresh the apprenticeship system, giving businesses and workers the green skills to support Wales’ net zero ambition.