Social impact of decarbonisation
The UK government has set an ambitious target to achieve net-zero greenhouse gas emissions by 2050. This goal is at the heart of the new Labour government's strategy, which aims to lead the development of future technologies and create new job opportunities. (1) The King's Speech highlighted the urgency of the global climate challenge and the government's commitment to a clean energy transition that will lower energy bills for consumers over time. (2)
One of the key initiatives is the establishment of Great British Energy, headquartered in Scotland. This new venture will help the country achieve energy independence with a mandate to invest in clean energy – wind, solar, tidal, nuclear and other emerging technologies.
Within a month of the general election, Energy Secretary Ed Miliband chaired the first energy Mission Board with ministers from across government, tasked with delivering the Clean Energy Superpower mission. It has two main objectives:
to secure clean power by 2030 as part of the net zero target;
boost energy independence, protect consumers, and support green jobs. (3) (© Crown copyright. OGL)
Effects on the social housing market and communities
A government study examined the possible effects of decarbonisation on the social housing market and communities. The study aimed to understand the ambitions of social housing providers for energy performance retrofit, current plans for carrying out retrofit on their stock, and key issues associated with working with tenants and leaseholders in mixed-tenure stock. (4) The research indicated that while energy efficiency improvements have not historically been the primary motivator for improving stock, all providers were seeking to improve energy performance in the future.
Financial Costs of Decarbonisation
The financial implications of decarbonising the social housing sector are substantial, with estimates in excess of £100bn to retrofit all of the UKs social homes – this figure using an average cost of c.£20,000 per property across 5 million social homes. These figures underscore the significant financial burden that decarbonisation efforts will place on the social housing sector.
Some grant funding for decarbonisation is available. The Social Housing Decarbonisation Fund (SHDF) aims to upgrade a significant amount of the social housing stock below Energy Performance Certificate (EPC) band C up to that standard. The government advises that the SHDF “will support the installation of energy performance measures in social homes in England and facilitate the subsequent widespread adoption of decarbonised heating systems.” Impacts go much wider than delivering warm, energy efficient homes by tackling fuel poverty, improving the comfort, health and wellbeing of tenants as well as stimulating the growth of green jobs
The SHDF was allocated a further Wave 3 funding of £1.25 billion in December 2023 for the period 2025-26, 2027-28 but is still some way short of the financing required by housing associations and local authorities to meet the costs of decarbonisation. (5)
Impacts of decarbonisation on jobs
The transition to a net-zero economy presents both challenges and opportunities for the job market. The decarbonisation strategy is an opportunity to transform the UK's industrial regions, attracting inward investment, future-proofing businesses, and securing the long-term viability of jobs. (6)
One of the key goals is to unlock new job opportunities through the deployment of low-carbon infrastructure in industrial areas. This includes supporting the skills transition so that the current and future workforce can benefit from the creation of new jobs.
As part of the new Labour government’s mission to switch on Great British Energy and make Britain a clean energy superpower, they have announced the creation of 650,000 new, skilled jobs in industries of the future, rebuilding the strength of the industrial heartlands. Great British Energy will be capitalised with an initial £8.3bn in the first Parliament, investing in clean power in partnership with the private sector. (7) As more workers acquire the skills to implement low-carbon technologies, there will be a requirement for the development of supply-chain capabilities to meet the demands of future low-carbon jobs and wider industrial decarbonisation efforts.
Effects of decarbonisation on work life
The transition to a net-zero economy is set to significantly reshape the UK’s labour market. Estimates suggest that up to 20% of the workforce could see demand for their skills affected, either positively or negatively. This shift presents both challenges and opportunities, as workers will need to adapt to new roles and acquire new skills to thrive in a low-carbon economy.
SaveMoneyCutCarbon's perspective is that while up to 20% of the UK workforce may be directly affected by the transition to a low-carbon economy, there is a case to be made that all forms of livelihood will, in part, become "green jobs" as the UK moves towards its net-zero target by 2050. (8) This means that every job will need to support strategies to combat climate change, creating a sustainable and green working culture.
In this transformational labour environment, employees will need to change their working practices and behaviours to align with environmental goals. This includes understanding the impacts of their work on the environment and participating in environmental awareness training. Business leaders will play a crucial role in creating "green agents of change" within the workplace, focusing on areas like transport, recycling, and sustainability processes.
The transition to a net-zero economy will also require upskilling and reskilling in various fields, such as business development, data management, consultancy, software specialists, and operations & facilities maintenance. Businesses will need to hire or train employees with systems skills to effectively manage environmental, social, and governance (ESG) performance indicators.
This shift may have significant impacts on the daily working lives of employees. It could even be argued that the traditional focus on academic skills embodied in university degrees will shift towards "green skills" like deep knowledge of pollution prevention and conservation of natural resources.
In conclusion, the decarbonisation of the economy will bring about profound changes in the way we work. By embracing these changes and investing in green skills, the UK can create a resilient and sustainable workforce ready to meet the demands of the future.
Effects on health and wellbeing
The journey towards decarbonisation is not just about reducing carbon emissions; it also has profound implications for our health and wellbeing. The UK government has highlighted that the extent of health benefits from climate adaptation and mitigation depends on how quickly and effectively the UK and its health systems adapt to changing temperatures. (9)
One of the most significant health benefits of decarbonisation is the improvement in air quality. By reducing greenhouse gas emissions, we can also reduce harmful pollutants in the air, leading to better respiratory health and fewer cases of asthma and other lung diseases. Additionally, policies that promote active travel, such as walking and cycling, not only reduce carbon emissions but also improve physical fitness and mental health.
The transition to a net-zero economy also has the potential to improve housing conditions. Better insulation and energy efficiency in homes can reduce heating demand, lower greenhouse gas emissions, and decrease cold-related illnesses and deaths. Improved ventilation can also help reduce indoor pollutants and prevent overheating in the summer. (10)
Furthermore, the shift towards more plant-based diets, which have a lower carbon footprint, can lead to better nutrition and overall health. Nature-based solutions, such as expanding urban green spaces and creating new forests, provide shade and thermal comfort, positively impacting mental health and wellbeing. (11)
In conclusion, the decarbonisation journey offers a unique opportunity to enhance our health and wellbeing. The health benefits of decarbonisation represents a key opportunity for health in the UK this decade. (12)
Sources
1 https://www.gov.uk/government/publications/net-zero-strategy/executive-summary
2 https://www.gov.uk/government/speeches/the-kings-speech-2024
5 https://www.gov.uk/government/news/over-8000-households-to-benefit-from-warmer-homes
6 https://www.gov.uk/government/publications/industrial-decarbonisation-strategy
7 https://www.gov.uk/government/news/expert-report-every-uk-job-has-the-potential-to-be-green
8 https://www.gov.uk/government/publications/net-zero-strategy/1-why-net-zero