Green and Decent Jobs- a case for local action

“The ordinary person in the street does not necessary care about the Green aspect of this. He is only interested in two things firstly is there a prospect of a job in this and secondly will it save me money” So said one of the delegates at the Green Jobs summit another said “What option do we have in the present climate. It is the only option”

Two views that neatly encapsulate the essential pragmatism of many of the people present at an event at the Law Society in London, which was, hosted by the think tank the Institute of Public Policy Research. I attended yesterday (22nd June)

I have been interested in this issue for a number of years and earlier this year carried out a short-term project for Keele University on the numbers of Green jobs that existed in the local economy. I was quite careful to ascertain what a “green” job was including the type of work that included recycling, energy conservation and generation, public transport, land conservation and management, weather proofing and green manufacturing. I found about 4,000 jobs provided in over 180 companies

Why do we need green jobs and what should they deliver?

The main driver of the green job movement is the need to tackle climate change and the move to a low carbon economy. The Climate Change Act 2008 sets out demanding emission reduction targets for the UK of 34% by 2020 and an 80% reduction by 2050 (on a 1990 baseline).

Rising unemployment

I have written on Pits and Pots on the loss of all the jobs created in the 13 years of the last Government. The Sentinel reported a job loss figure of 7,000 in the local travel to work area last year. It is difficult to say how many new jobs we might see in these sectors and attempts to put a figure on the number of jobs have varied considerably. However if we put in place the measures that are needed to keep on track with climate change commitments, then a large and rapid expansion in the low-carbon sector will be required.

Labour market exclusion

In the context of Stoke on Trent the Sentinel reported that over 24% are economically inactive and this figure has not been reduced over the years. Many economically inactive people have been out of work for a great period of time, sometimes years and the opportunities to find suitable, good quality employment locally.

Too many people on low wages

Moving into work does not necessary mean a move out of poverty and the UK and North Staffordshire particularly has many people on low wages- including the writer of this report. In 2006 there were over 5million people on low pay. This is 60% of the median average wage. The proportion of people on low wages in the UK is considerably higher than elsewhere in Europe compared with 13% in France and 8% in Denmark.

Research also indicates that moving into higher paid jobs is very difficult: over half of people in low paid jobs experienced no significant improvement in their income between 2002-2005.

American Experience

The conference at the start heard of the American experience from two delegates from Oregon and Wisconsin. In the later state the Wisconsin Energy Efficiency project known as WE2 has designed a large scale building retrofit programme and has created training opportunities and decent jobs for local people.

WE2 has developed in partnership with Wisconsin State and local authorities, trade unions, environmental and community organisations and a Wisconsin Training Partnership-an umbrella organisation operating across the state to connect the unemployed with the skills they need in order to gain work.

A scheme operating in three cities working to retrofit building to make them fuel efficient and making sure that jobs pay a decent wage and benefit local communities.

One aspect of the project was the cost of retrofitting Milwaukee which cost $500,00 and generated 8,000 jobs saving the city $125,000 in energy costs which was retained in the local economy.

The key principles

The case studies in the US and the UK provide some important lessons who is interested in this agenda

Principle1 Keep it local

The case studies show the importance of having local level involvement in efforts to create green jobs. It has been concluded that local knowledge is very important in making the connections between new green opportunities, local training programmes and local communities.

Local awareness is important in understanding what kinds of green jobs are viable in the local area, what local barriers or threats there might be to green industries, what the local needs there are in terms of employment and what organisations might be able to help.

Without local help the possibility that the jobs created will not go the areas and the people that need them most. As was pointed out at the IPPR event the need to meet skill requirements was very important and local insight was essential. In additional new green industries might not know the local skill base, so better engagement with local organisations will help them find a work force for their new enterprise more easily.

It is important in the UK as cluster of different green industries developing around the country. Different approaches will be need in different areas to maximise the benefits of the different jobs.

Principle 2 Join forces.

From the US the most successful examples have involved cross sector partnerships. Each partner has been able to contribute something to each coalition, whether that is knowledge of upcoming green initiatives, training facilities, community networks or apprenticeships. By working together coalitions have been able to ensure they take a holistic approach from developing and lobbying for new policies, to providing relevant training for deprived areas and real job opportunities.

Some of the best examples from the UK have shown the benefits of partnership working. Projects like the Birmingham New Deal whose home is to boost the number of homes and businesses installing photo voltaic solar panels and efficient boilers around the city is a good example.

Under the deal Birmingham is offering local residents and businesses grants and low cost loans to install insulation, efficient boilers and solar panels. In return the council collects the feed in tariff from each unit of energy generated by a panel (currently 41.3 p/kWh). This money is spent on providing more panels making the scheme self funding. Participants benefit from insulation measures that help to cut their energy bills and the additional energy generated by the panels for free. They can also sell any spare electricity back to the national grid and keep proceeds.

The scheme is funded by the Energy Saving Trust, the Local strategic Partnership and the Working Neighbourhood Fund. The pilot installed 5,000 domestic panel and 300 local businesses. It is intended to retrofit 2,000 properties a year.

Creating local Jobs

The Council has taken steps to maximise the local economic benefits of the scheme for example placing requirements on contractors to recruit locally and targets deprived neighbourhoods and provide training.

The Council has learnt a number of lessons

Amongst them

 It was unable to use local manufactures to supply solar panels because they do not have the necessary accreditation to qualify for the feed in tariff.

 The requirement for local authorities to tender any contracts across Europe make it difficult to capture benefits locally

 Funding cuts make it difficult for the Council to get the right staff to run the project.

In response to these problems the Council is helping to set up local PV manufacturing and is further developing its approach to procurement by assisting local companies.

Peckham Power, London

A community based organisation working to get everyone in the area to use and produce energy sensibly, whatever their income. The organisation developed out of conversation between Councillors and a local community group. This led to a community conference on local energy improvements. Around 130 people attended the conference, which included sessions on renewable energy and retrofitting energy efficient measures and networking. Following the conference a group of 5 local volunteers with different experiences and expertise in energy efficiency developed Peckham Power’s programme of work in response to local needs.

In partnership with other local community groups a Power Meter project has been run. This promotes energy literacy among local people by demonstrating local renewable electricity production on the Peckham Power website and lends smart meters to help local residents monitor their energy usage.

In partnership with the a local environmental network have lead draught busting sessions which have educated local people on how to make small energy efficiency improvements and there is a possibility of turning this project into a social enterprise.

Recently Peckham Power received support from the Creative Energy Networks to deliver energy awareness fair in which locals received advice and practical demonstrations.

A number of barriers exist from creating Green Jobs

 A lack of time on part of the volunteers which prevents any scaling up of activity. The pool of volunteer is small.

 A lack of understanding on the key aims of the projects amongst the local community due to low levels of understanding of energy.

 Lack of funds to finance what a skilful and complex work

Principle 3 Not just jobs

The examples show that it is important to be clear about programme advantage from the start. Tackling poverty and supporting disadvantaged communities are at heart of many of these schemes. Without this being a central goal the desire to provide green jobs will not benefit those who need them most.

It is important, as the American examples show that the projects recruit locally and pay a decent wage.

Principle 4 Build a training to work pipeline

It is important to ensure those job creation opportunities with training and welfare to work programmes to ensure that the journey from unemployment into green work is viable.

One option is to partner training providers with work force mentor’s people who have a good knowledge of the local green industries and a good network of contacts within them. They can match candidates with vacancies

At the same time training programmes need to be linked to job creation programmes to ensure that local people have the right skills to take on new jobs and progress. Otherwise there is a risk that jobs that are created that are beyond the reach of local people.

Opportunities in the local area.

The Change of Government.

The Big Society

To quote from the Cabinet Office document

“We want to give citizens, communities and local government the power and information they need to come together, solve the problems they face and build the Britain they want. We want society – the families, networks, neighbourhoods and communities that form the fabric of so much of our everyday lives – to be bigger and stronger than ever before. Only when people and communities are given more power and take more responsibility can we achieve fairness and opportunity for all”.

The Budget

The government pledged to flesh out its plans for a Green Investment Bank to encourage funding for low carbon technologies in the autumn.

The project, which was included in Alistair Darling’s last Budget, will attempt to remove barriers to an environmentally sustainable economy.
The Budget report said: “The government will put forward detailed proposals on the creation of a Green Investment Bank to help the UK meet the low-carbon investment challenge.

“The government is considering a wide range of options for the scope and structure of the Green Investment Bank. The options will be evaluated for effectiveness, fiscal affordability and transparency.”

The 9 million retrofit centre in Longton, which is to be built on the site of an old potbank, and funded from a number of different sources such as the EU, National government and the City Council. The Centre will train 400 young people to work retrofitting buildings in the area.

I was approached last April by John Dalgleish from Middleport who is interested in taking forward some of the ideas that appear in both the Wisconsin and Peckham Power schemes to quote from his e mail

" You will know I have been to several events around housing, regeneration and green issues of late and I have been very impressed with what's going on around improving home insulation, solar panels etc - all things that could improve our houses and reduce our bills (up by 125% in last 5 years)

The only problem is that is that not much seems to have percolated down to local residents; although I only speak for myself!

I have asked several of the speakers at a couple of the events if they would like to come to Stoke to talk to residents (AND Council officers, builders etc - they are even more important to influence) and not one has turned me down

I will give just two examples -

A) Summerhill Eco Village

http://www.regenwm.org/events/event_details_past.asp?eid=625

Rob Annable from Axis (who have designed the Eco Terraces in 'Castle) is willing to come and talk to us; the whole Summerhill project is a good model for us, as they not only improve existing housing stock but use local "hard to reach" labour to do it - and with projects like JET and the Stoke College green housing work”

B) Various initiatives from the LSE event - the example I will give is -

http://www.kirklees.gov.uk/community/environment/energyconservation/warm...

Philip Webber or one of his colleagues from Kirklees is willing either to come to Stoke or (perhaps better) host a party from Stoke to show what they have done

There is also a fair amount of funding available for some of these schemes
Do you think some sort of event might be worth organising - perhaps for all the Forums in the City? "

I wonder whether there is an opportunity to look at the possibility of developing a social enterprise linked to some of the concepts that are floating around community based organisations using and producing energy sustainable such as the Peckham model in the Middleport/Burslem area as a pilot. The ultimate goal to provide green jobs and training opportunities for all sectors of the community?