Latest news with #RussellBorthwick
The National
3 days ago
- Business
- The National
UK losing skills to deliver net zero as energy workers head to Dubai
A growing share of the UK's energy sector jobs, investment and innovation are shifting abroad, a new report has found. The 41st Energy Transition Survey has revealed that of more than 100 companies, two-thirds expect to increase their headcount overseas in the next five years, undermining Britain's ability to deliver net zero. Companies expect the majority of their work will be overseas by 2030, with the tipping point coming in about 2027-28, according to the report, published by Aberdeen and Grampian Chamber of Commerce (AGCC). As fossil fuel production is wound down, Aberdeen has in recent years been hoping the North Sea oil and gas industry's engineering expertise can be repurposed to make it a centre for green energy. But according to the report almost half said staff were already leaving the UK to work in other energy regions, caused by weak domestic confidence, uncompetitive policy and a lack of viable projects. Dubai has emerged as one of the top destinations for UK expats, making it one of the world's fastest growing wealth hubs. A representative for AGCC said of the energy jobs leaving the UK that 'anecdotally, we hear a lot are heading to Dubai'. Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said the findings of the survey are 'a wake-up call for policymakers' in the UK. 'We are training a world-class workforce and building the technology to lead the energy transition, but that talent and investment is increasingly being deployed overseas. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' The survey was produced in association with financial analysts Johnston Carmichael and clean energy company D2Zero. Mark Stewart, head of energy, infrastructure and sustainability at Johnston Carmichael, said: 'Uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends. 'We are seeing a growing trend of skills, capital and capability moving overseas, particularly in areas like offshore wind, carbon capture and decarbonisation technologies.' A UK Government representative said it 'recognises that oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in both existing and future industries'.
Epoch Times
4 days ago
- Business
- Epoch Times
UK Losing ‘Mission Critical' Net Zero Supply Chain as Projects, Talent Move Overseas: Report
The UK is losing 'mission critical' supply chain capacity needed to deliver net zero, the Aberdeen and Grampian Chamber of Commerce (AGCC) has warned, highlighting an 'alarming exodus' of workers and projects relocating abroad. In its 41st Energy Transition survey, The survey found that two-thirds of these firms expect to increase their overseas staffing in the next five years. Many also expect that most of their work will be based abroad by 2030, with this shift possibility beginning as early as 2027–28. According to the survey, almost half (46 percent) say that staff are already leaving to find work in international regions, triggered by a lack of viable energy projects in the UK, as well as weak domestic confidence. Only 5 percent said that they were losing workers to the renewables industry, which authors said reflected a lack of projects. The report, published in association with renewables energy group D2Zero and business advisers Johnston Carmichael, said: 'Despite the UK's stated ambition to lead the energy transition, the report shows that activity across renewables, electrification and decarbonisation technologies remains flat. 'Companies warn that the current trajectory could permanently undermine the UK's ability to deliver net zero using domestic supply chains.' Related Stories 5/23/2025 3/25/2025 The survey's findings come as others, including SNP MP Kirsty Blackman, have No Net Zero Without Industrial Base Russell Borthwick, chief executive of the AGCC, called the survey a 'wake-up call for policymakers.' He said: 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Mark Stewart, head of energy, infrastructure, and sustainability at Johnston Carmichael, said the report reflects what many of their clients are saying. Firms have told Johnston Carmichael that inconsistent and uncertain energy policies now pose a greater threat to investment than global market trends or commodity prices. He added his company has also noted a growing trend of capital and skilled workers moving overseas, particularly in areas like offshore wind, carbon capture, and other decarbonisation technologies. 'The energy transition isn't failing because of a lack of ambition—it's failing because of a lack of execution. Businesses are ready to invest, innovate, and diversify, but they need stable, predictable conditions to do so. Right now, the economics simply don't stack up for many green projects,' Stewart said. Next Generation of Energy Jobs The warnings from business leaders come after Blackman told fellow MPs in April that the rate of job creation in the renewables market is failing to keep pace with the decline of the oil and gas industry. As a result, experienced North Sea workers may seek opportunities abroad. The SNP MP cautioned that this could lead to a critical skills shortage, which could impact the government's plans to expand the UK's renewable energy sector. The BP ETAP (Eastern Trough Area Project) oil platform in the North Sea, 100 miles east of Aberdeen, Scotland, on Feb. 24, 2014. Andy Buchanan/AFP/Getty Images In response to the AGCC's report, a British government spokesperson told The Epoch Times: 'The government recognises that oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in both existing and future industries. 'We have taken rapid steps to deliver the next generation of good jobs for North Sea workers in a fair and orderly transition as part of our Plan for Change—including the biggest investment in offshore wind and two first-of-a-kind carbon capture and storage clusters.' The spokesperson added that this comes alongside the formation of Great British Energy, which has previously announced a £300 million investment in British supply chains. 'Just Transition' for Workers Last week, a report by the Just Transition Commission The Scottish Government told The Epoch Times that workers 'are at the heart of Scotland's just transition to net zero,' and it was working with the energy sector to plan for a multi-skilled workforce which can adapt to different roles as the sector evolves. 'We will continue to work together with organisations and workers across the region to ensure people and the communities they live in continue to thrive,' the Scottish Government said.
Scotsman
4 days ago
- Business
- Scotsman
How SNP and Labour are blowing a historic opportunity to save North Sea energy industry
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Another day, another warning to politicians about their failure to ensure that Scotland's declining oil and gas industry is replaced by a world-leading renewable energy sector. This latest wake-up call comes from a survey of more than 100 companies operating on the UK Continental Shelf. Nearly half reported staff were already leaving the UK to work elsewhere, in part because of low confidence in the domestic industry and a lack of viable projects. Advertisement Hide Ad Advertisement Hide Ad Firms told the 41st Energy Transition Survey, published by Aberdeen and Grampian Chamber of Commerce, that they expected the majority of their work would be overseas by 2030 and Russell Borthwick, the chamber's chief executive, spelt out what this would mean in no uncertain terms. 'We are training a world-class workforce and building the technology to lead the energy transition – but that talent and investment is increasingly being deployed overseas,' he said. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Expertise in marine engineering built up in the North Sea oil and gas industry could help create a world-leading marine renewables industry (Picture: Andy Buchanan) | AFP via Getty Images 'Uncertainty and inconsistency' One key finding was that 90 per cent of firms believed the absence of a Scottish Government energy strategy was damaging investor confidence. And Mark Stewart, of accountancy and business advice firm Johnston Carmichael, said the survey reinforced messages from their clients 'that uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends'. Advertisement Hide Ad Advertisement Hide Ad Clearly governments cannot do everything. They need cooperation from the private sector if a managed transition – let alone a 'just' one – from fossil fuels to renewable is to be achieved. However, having an energy strategy in the first place and ensuring that policies are clear and consistent should be the very least we can expect from ministers.
Scotsman
4 days ago
- Business
- Scotsman
How SNP and Labour are blowing a historic opportunity to save North Sea energy industry
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Another day, another warning to politicians about their failure to ensure that Scotland's declining oil and gas industry is replaced by a world-leading renewable energy sector. This latest wake-up call comes from a survey of more than 100 companies operating on the UK Continental Shelf. Nearly half reported staff were already leaving the UK to work elsewhere, in part because of low confidence in the domestic industry and a lack of viable projects. Advertisement Hide Ad Advertisement Hide Ad Firms told the 41st Energy Transition Survey, published by Aberdeen and Grampian Chamber of Commerce, that they expected the majority of their work would be overseas by 2030 and Russell Borthwick, the chamber's chief executive, spelt out what this would mean in no uncertain terms. 'We are training a world-class workforce and building the technology to lead the energy transition – but that talent and investment is increasingly being deployed overseas,' he said. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Expertise in marine engineering built up in the North Sea oil and gas industry could help create a world-leading marine renewables industry (Picture: Andy Buchanan) | AFP via Getty Images 'Uncertainty and inconsistency' One key finding was that 90 per cent of firms believed the absence of a Scottish Government energy strategy was damaging investor confidence. And Mark Stewart, of accountancy and business advice firm Johnston Carmichael, said the survey reinforced messages from their clients 'that uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends'. Advertisement Hide Ad Advertisement Hide Ad Clearly governments cannot do everything. They need cooperation from the private sector if a managed transition – let alone a 'just' one – from fossil fuels to renewable is to be achieved. However, having an energy strategy in the first place and ensuring that policies are clear and consistent should be the very least we can expect from ministers.
Scotsman
5 days ago
- Business
- Scotsman
North Sea 'wake-up call' as survey reveals staff leaving to work abroad at 'alarming' rate
Aberdeen and Grampian Chamber of Commerce highlighted 'an alarming exodus' of activity and talent Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Ministers have been warned the energy transition is failing after a survey found almost half of firms active in the North Sea say staff are leaving the UK to work abroad. Aberdeen and Grampian Chamber of Commerce (AGCC) said its 41st energy transition survey, published in association with Johnston Carmichael and clean energy group D2Zero, showed an alarming exodus of activity and talent. Advertisement Hide Ad Advertisement Hide Ad The survey of more than 100 firms found two-thirds expect to increase headcount overseas in the next five years. Firms anticipate the majority of their work will be overseas by 2030. PA A total of 46 per cent said they were losing more UK-based staff than usual to other international regions, while 58 per cent reported staff leaving to work in other industries or sectors. Just 5 per cent reported more staff than usual moving into renewables. Russell Borthwick, chief executive of AGCC, said it was 'a wake-up call for policymakers'. He said: 'We are training a world-class workforce and building the technology to lead the energy transition - but that talent and investment is increasingly being deployed overseas. 'You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK's future energy system.' Advertisement Hide Ad Advertisement Hide Ad The energy transition survey tracks industry confidence and activity trends across oil, gas and low-carbon energy. AGCC said this year's findings highlighted a deepening crisis in domestic confidence. The chamber found 66 per cent of firms expect to increase their overseas workforce by 2030. Nine in ten believe the absence of a Scottish Government energy strategy is damaging investor confidence, while 89 per cent said ending the UK government's windfall tax would boost investment and jobs. Almost half believe green energy roles will never fully replace lost oil and gas jobs. For the first time in the report's 20-year history, AGCC said, market fundamentals like commodity price and demand have been displaced by UK policy as the top long-term concern for the sector. UK tax and licensing rules are now the first and third most pressing issues cited by respondents. Advertisement Hide Ad Advertisement Hide Ad AGCC said it believed ending the windfall tax in 2025 and issuing targeted new licences could unlock billions in economic activity and protect thousands of jobs. Mark Stewart, head of energy, infrastructure and sustainability at Johnston Carmichael, said: 'This survey reinforces what we are hearing daily from the companies we advise - that uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends. 'The energy transition isn't failing because of a lack of ambition - it's failing because of a lack of execution. Businesses are ready to invest, innovate and diversify, but they need stable, predictable conditions to do so. Right now, the economics simply don't stack up for many green projects. 'We are seeing a growing trend of skills, capital and capability moving overseas - particularly in areas like offshore wind, carbon capture and decarbonisation technologies. That's deeply worrying, because it's the same supply chain we'll need to deliver a net-zero system here in the UK. Advertisement Hide Ad Advertisement Hide Ad 'There's still time to reverse that trend, but it will require faster project approvals, a stable tax regime, and co-ordinated policy leadership. If we can bridge the gap between today's oil and gas activity and tomorrow's clean energy projects, we can create a sustainable path forward for both our economy and the environment.' Bob Drummond, chief executive of clean energy group D2Zero, said: 'The UK has the talent, the technology and the track record to lead the global energy transition - but we are now at serious risk of falling behind due to fragmented thinking and short-term policymaking. 'This report lays bare a critical truth: if we don't act decisively, the infrastructure and ingenuity we need to build a low-carbon future will be deployed elsewhere. And once that capability is gone, it will be extremely difficult to rebuild. 'Energy transition isn't a switch we flip overnight. It's a series of complex, interconnected projects that require sustained momentum. A co-ordinated national delivery plan to bridge the gap between where we are and where we need to be will ensure progress is practical, investment is aligned, and no region or sector is left behind. Advertisement Hide Ad Advertisement Hide Ad 'From offshore electrification and carbon capture to advanced decommissioning and hydrogen, the UK has real advantages. We need to create the right environment to keep projects moving and capital flowing, to ensure high-value jobs and strategic independence.' A UK government spokesperson said: 'The Government recognises that oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in both existing and future industries. 'We have taken rapid steps to deliver the next generation of good jobs for North Sea workers in a fair and orderly transition as part of our Plan for Change — including the biggest investment in offshore wind and two first-of-a-kind carbon capture and storage clusters.
