We have standards and targets designed to encourage more sustainable development, including:
x 18 per cent of electricity generation in Scotland to come from renewables by 2010
x 40 per cent of electricity generation in Scotland to come from renewables by 2020
x the Renewables Obligation (Scotland) compels licensed suppliers to provide more renewable electricity, and provide evidence that they are meeting their obligation
x 25 per cent recycling and composting of municipal waste by 2006 x 30 per cent recycling and composting of municipal waste by 2008 x 55 per cent recycling and composting of municipal waste by 2020 x targets to divert biodegradable municipal waste from landfill
x increase membership of the Green Tourism Business Scheme by a third each year for the next three years
x high thermal insulation standards for new buildings work, including o a wall insulation standard that is currently the highest in the UK o a requirement for 270mm of conventional roof insulation
o a further tightening of window standards from 1 May 2005
We will also consider the need for new energy efficiency measures as part of the development of the proposed energy efficiency strategy for Scotland. And we have a review underway of the energy standards within Scottish building regulations.
As noted in earlier sections, these targets present companies with business opportunities. We want to measure how successful we are in taking up these opportunities, and also how successful we are in improving resource efficiency. For this we need to be clear about what outcomes we seek, while taking into account the potential wider economic impact. Clarity on outcomes then allows us to establish targets for the outputs which will contribute to the desired outcomes.
Outcomes
As the Optimat report17 noted, there is very limited international evidence on the impact of government interventions to create jobs in environmental sectors and of the employment benefits of greater resource efficiency generally. There is even less evidence on the overall employment impact, taking into account displacement effects18.
Assessment of jobs growth in Denmark, where there has been a large number of interventions, is limited to the wind industry, which now supports over 20,000 jobs. However, our aim for this strategy goes much wider than one or two
17 Optimat (2004), Green Jobs Strategy Review, www.scotland.gov.uk/cru/resfinds/gjsr-00.asp
18 See HM Treasury (2003). The Green Book: Appraisal and Evaluation in Central Government, www.hm-treasury.gov.uk.
“Displacement impacts […] measure the extent to which the benefits of a project are offset by reductions of output or employment elsewhere.”
selected industries and our vision is for a Scotland where all areas of business benefit.
As noted in our consultation paper, it is far from clear-cut to set targets for growth in green sectors. Quite apart from straightforward problems of data collection, the range of industries and activity covered within this strategy does not easily lend itself to setting useful or manageable targets. Nor is it simple to measure improved resource efficiency for business as a whole. What we intend is to measure progress at the highest level and in terms of outputs that contribute to such progress.
Measuring Scotland’s Progress Towards a Smart, Successful Scotland19 sets out a range of progress measures, including ones dealing with productivity and innovation:
x 1A: Gross Domestic Product (GDP) per head of population x 1B: Index of CO2 emissions divided by GDP
x 2C: Proportion of innovative firms
x 4A: Business research and development as percentage of GDP x 4B: Number of academic spinouts
x 4C: Number of patents filed (academic and industry) x 5A: Relative productivity levels in Scottish industry
In 2004 we added measure 1B as an additional headline measure. It is designed to give an indication of the sustainability of economic growth and is also one of a broader suite of measures which were published in 2002 in Meeting the Needs…20. These measures are being reviewed as part of the development of our new Scottish Sustainable Development Strategy.
Outputs
We will also set or agree output targets for the activity which we expect to contribute to the implementation of this strategy and to the achievement of progress in the measures set out above.
Scottish Enterprise (SEn) and Highlands & Islands Enterprise (HIE) set out their planned activity in Operating Plans. They track outputs which provide a measure of progress, and are currently focusing on supporting businesses to achieve business benefits through environmental initiatives. In 2004/05 HIE supported 100 businesses and SEn supported over 300 businesses in this way. This represented an increase on 2003/04 and we expect this trend to continue.
We expect SEn’s and HIE’s next operating plans to reflect this green jobs strategy and will work with them to further develop objectives within their operating plans, building also on the work emerging from the new Scottish Sustainable Development Strategy.
19 Scottish Executive (2004). Measuring Scotland’s Progress Towards a Smart Successful Scotland,
www.scotland.gov.uk/library5/enterprise/MP%20Report%202004.pdf
20 Scottish Executive Environment Group (April 2002). Meeting the Needs… Priorities, Actions and Targets for sustainable development in Scotland, http://www.scotland.gov.uk/library5/rural/mtnsd.pdf
6. CONCLUSION
Our aim is to seize the business opportunities and advantages arising from our belief in, and commitment to, sustainable development. This strategy represents a wide-ranging and ambitious programme of work in support of that aim. Its implementation will require commitment from all parts of the public and private sector through partnership working. As well as individual businesses, a number of organisations can support us in achieving these aims:
Enterprise Networks î Scottish Enterprise and Highlands & Islands Enterprise have a key role to play in promoting economic development across Scotland. They will support sustainable economic growth in pursuit of A Smart, Successful Scotland, as well as pursuing the range of activities outlined in this strategy.
Business organisations – Business organisations can support their members in accessing the opportunities emerging from developing markets in the newer ‘green’ industries, and help them reassess their patterns of consumption, make better use of their resources and minimise waste. They also play a key role in informing the design of business support.
Local authorities – Local authorities are important players in all aspects of local economic development, including direct support for businesses. They also have a responsibility to lead by example, embedding sustainability into procurement procedures and improving environmental performance in their own operations. Higher and further education institutions î Higher and further education institutions have a vital role to play in equipping the future workforce with the necessary skills to meet the demands of the ‘green’ sector. They are also key to maximising the impact of research and development in emerging technologies. Skills organisations – The Sector Skills Councils can provide a sound understanding of employer demand for workforce skills and where any gaps or shortages occur. Through joint working with Futureskills Scotland they promote a shared knowledge and understanding of labour market intelligence and how it may be used to identify opportunities for skills development.
Trade unions – Through their expertise in developing good workplace practices, trade unions help to encourage a well-motivated and productive workforce, and support our policy aims in ensuring that the relevant training opportunities are available across Scotland. Trade union representatives also add value to the strategic discussion through their labour market knowledge, and company and sectoral intelligence.
Communities Scotland – Housing and community regeneration can make a significant contribution to sustainability objectives and Communities Scotland has an important function to play both in improving the environmental performance and sustainability of Scotland’s houses and in community regeneration programmes for the benefit of present and future generations.
Social economy partnerships, voluntary sector organisations – Social economy partnerships and voluntary organisations are offering increasing employment opportunities. Implementation of resource efficiency, recycling and composting, and waste minimisation measures will be of critical importance to the sustainability of this growing sector.
Equality organisations – Equality of opportunity is closely linked with economic development. Given our ageing population, Scottish businesses will have to ensure they recruit from the widest pool of talent available and are able to meet the needs of a more diverse customer base if they are to remain competitive. We intend to work with the Equal Opportunities Commission, the Commission for Racial Equality, the Disability Rights Commission and the proposed Commission for Equality and Human Rights to provide leadership to delivery agents to ensure we capitalise on the skills of our entire workforce.
VisitScotland – Tourism is a vitally important sector of the Scottish economy. The industry has already taken steps to encourage environmental good practice with its environmental accreditation scheme, the Green Tourism Business Scheme.
Forestry Commission Scotland – Forestry Commission Scotland puts sustainability at the heart of forestry policies and practices so that the full potential of Scotland’s woodlands as economic, environmental and social resources are realised. Forestry Commission Scotland is also represented on the FREDS Biomass Energy Group.
Scottish Environment Protection Agency (SEPA) – SEPA is an important partner as its main aim is to provide an efficient and integrated environmental protection system for Scotland that will both improve the environment and contribute to Scottish Ministers' goal of sustainable development.
Waste & Resources Action Programme (WRAP) and Remade Scotland – The work WRAP and Remade Scotland do is key to the growth of the waste and recycling sector. WRAP's mission is to accelerate resource efficiency by creating efficient markets for recycled materials and products, while removing barriers to waste minimisation, reuse and recycling. Remade Scotland does similar work in that it seeks to stimulate and strengthen recyclate material markets in Scotland.
Scottish Executive – We will continue to support businesses by offering a range of advice services via Scottish Enterprise and Highlands & Islands Enterprise, including the new Scottish Manufacturing Advisory Service. We will also continue to support resource efficiency through a range of bodies, and provide direct innovation and investment support to businesses.
This is our green jobs strategy. We have also published a more detailed implementation plan on our green jobs strategy website,
www.scotland.gov.uk/greenjobsstrategy and will track and report progress regularly.