North Sea energy transition faces workforce and investment risks

The North Sea Transition Taskforce has warned that the UK risks losing critical industrial capability and skilled workers as oil and gas activity declines faster than renewable energy industries are growing. Since the last election, approximately 25,000 jobs have been lost in the sector, with a particularly heavy impact on North-east Scotland.

To mitigate this, the Taskforce recommends providing fiscal certainty to unlock investment, suggesting the UK Government transition from the Energy Profits Levy to an Oil and Gas Revenue Levy by 2027-28. The Scottish Greens have emphasized the need for a just transition, noting that the £500 million Just Transition Fund has only seen 20% of its allocation used halfway through its ten-year lifespan.

Compounding these challenges, new data indicates a projected shortage of over 31,000 skilled workers in Scotland’s offshore wind industry by 2030. The shortfall is expected across six critical roles, including wind turbine technicians, electricians, and mechanical design engineers. Experts warn that without addressing this workforce deficit, the construction and operation of offshore wind farms cannot proceed at the necessary pace.