— The energy workforce has major worries about the skills-transfers required for the green transition, according to new research.

— MPs and the aviation industry have mounted a last minute bid to get ‘jet zero’ at the heart of the Energy Bill.

— Ed Miliband thinks Europe just needs to chill its boots over Joe Biden’s Inflation Reduction Act.

Good Thursday morning. Welcome to POLITICO Pro Morning Energy and Climate UK.

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THE GREEN SKILLS GAP: You can’t have a Green transition without a workforce to deliver it. But the people at the frontline of the push for a decarbonized Energy system — the existing workforce — fear they’re not being primed for the future net zero energy system.

Skills, skills, skills: New research, including a survey of 1,000 energy sector workers, finds that only a third are confident they’ve got the skills needed for the next phase of net zero.

Job fears: The report — from Engineering UK, skills and training organisation City & Guilds, and analysts Lightcast — also found that nearly two thirds of workers in fossil fuel roles expect their jobs to be at risk in the next two years because of decarbonization of the power system.

Transfer targets: That’s a grim number for those who hope that many workers in high carbon sectors will shift to new jobs in renewables. There is strong enthusiasm among fossil fuel employees for moving sectors, the research says, but numerous things block them from making the change — including not enough training and fears over losing well-paid, secure jobs. “This threatens to halt the energy transition in its tracks,” the report warned.

Growth and decline: Changes to the jobs market have only really taken off in the past four years, according to the report — since the Government put net zero into law. The number of job postings for ‘renewable energy managers’ increased from 16 to 199 between 2019 and 2022, while demand for oil and gas engineers decreased by 34 percent.  

Make it simpler: Nick Worpole, associate director at the energy and infrastructure recruitment firm Spencer Ogden, said it was fairly straightforward for “white collar” energy workers to transfer their skills to new sectors. But for technicians, engineers and others doing the hands-on work, the U.K. should “overhaul” the certifications required to work in different sectors.

Quote: “To take individuals from offshore oil and gas and put them into offshore wind, they have to do a whole new set of certifications and training, even though they have the skills,” Worpole said. “That becomes a challenge. It’s a sizeable investment for people to actually make before they can start working in that new industry.”

More barriers: Andy Moss, City & Guilds’ chief customer officer, said that “uncertainty over the timing and scope of major energy projects” meant employers weren’t investing in skills. Industry and government must work together, he said, “to equip the energy workforce with the green skills required for the future. If we don’t act now, we’ll almost certainly lose the race to a more sustainable future.”

SPOT THE DIFFERENCE: The government publishes its response to a consultation on future rounds of the Contracts for Difference (CFD) scheme later today.

Reminder: CFD is used to attract investment into low carbon electricity generation — think big wind, solar, hydro projects — by guaranteeing long-term fixed payments to developers. Prime Minister Rishi Sunak is such a big fan he boasted about the scheme when he appeared before MPs on Tuesday.

GET SMART: DESNZ will release its response to the Smart Meter Implementation Programme, which sets installation targets for energy suppliers for 2024 and 2025.

GET PLANNING: A decision is due today from the Planning Inspectorate on whether to grant development consent to the Boston Alternative Energy Facility. Expect a statement from the government, too.

DEFRA QUESTIONS: Environment Secretary Thérèse Coffey is taking questions in the House of Commons at 9.30 a.m. … The Lords’ Grand Committee is holding a short debate on the potential for geothermal power in the U.K.

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LEADERSHIP LATEST: ICYMI – a timely scoop from The Guardian on Tuesday night, which reported that the government was dropping its £11.6 billion climate finance commitments for 2026. It came just hours after Prime Minister Rishi Sunak rejected claims that the U.K. had lost its global green leader status.

Green Tory backlash: The risk to the commitment was first revealed in Zac Goldsmith’s resignation letter. Goldsmith has hit back at Sunak’s claim that the pledge still stands, while former COP26 President Alok Sharma said that announcing the pledge had been a “proud moment” for the U.K.

SUNAK COP28 HINT: The PM spoke on Wednesday to the president of COP28 hosts the UAE. According to Downing Street, Sunak and Mohamed bin Zayed Al Nahyan discussed “economic and technological cooperation … including in green industries and nuclear power.” The pair “looked forward to working together on this agenda and driving innovation and investment to address climate change ahead of the COP28 summit,” the readout said. It’s too early for the government to officially confirm Sunak’s attendance — but that’s a pretty strong signal that the PM intends to go.

NET ZERO TAX SYSTEM: The Confederation of British Industry has a new report calling for the government to use the tax system in its pursuit of net zero. They want to see “piecemeal legislation” replaced with a “strategic plan for business tax” that competes with the U.S. Inflation Reduction Act.

GUMMER ON BREXIT: Leaving the EU hurt the U.K.’s influence over global climate policy, former Climate Change Committee Chair John Gummer, aka Lord Deben, told peers. “Leaving the EU was a dereliction of duty because what it meant was that we no longer have the influence that we once had. I think that’s morally wrong actually,” he told the House of Lords environment committee.

Grudge match: Gummer’s session with the committee also saw some fairly spiky exchanges with fellow Tory Peter Lilley. Watch back from 12.44 for some blue-on-blue action.

NOT THE TENNIS! Yes, they’ve done it again.

OUT OF A CLEAR BLUE SKY: Just as the Energy Bill enters its final stages, senior Tories and the aviation industry have launched an eleventh-hour bid to amend the legislation. They hope to force ministers into giving financial backing to the U.K.’s hunt for “jet zero” sustainable aviation fuels (SAFs).

Grayling/Courts amendment: Former Transport Secretary Chris Grayling and former Aviation Minister Robert Courts have put down an amendment ahead of the Bill’s report stage (expected next week). It would require the government to introduce a “price stability mechanism to incentivize the production” of SAFs within the next year.

Which means? This would involve introducing something akin to the Contracts For Difference schemes that exist for renewable energy, but aimed at developing clean jet fuels (something currently in an embryonic stage).

Jumbo lobbying effort: The amendment is supported by the Rise coalition, which consists of 14 airlines, airports, manufacturers and fuel producers. The industry in the U.K. is betting that SAFs will help the sector decarbonize without sharply reducing the number of flights taking off — but there is a long way to go. SAFs represented just 0.22 percent of total aviation fuel supply in 2022.

International competition: Nonetheless, the SAFs dream isn’t just pie in the sky (sorry). Other countries like the idea, too. Biden’s Inflation Reduction Act includes tax credits for the production of SAFs. France recently announced €200 million in government investment.

A familiar refrain: Heathrow chief executive John Holland-Kaye said the U.K. “should be matching the scale of ambition we see in the U.S.”

Pace, please: Shai Weiss, Chief Executive of Virgin Atlantic, said that without some kind of government “price support mechanism”, the UK won’t “keep pace in the race to attract investment and will miss the opportunity to create thousands of green jobs and advance regional development.” The government has committed to 10 percent SAF uptake by 2030 and wants to see five “commercial-scale” SAF plants under construction by 2025.

Go go go: Industry lobbyists are concerned that, with the legislative agenda for the next King’s Speech — expected in the autumn — still uncertain, the Energy Bill might be their last chance to get concerted U.K. government action on SAFs this side of an election .

Tick tock: “If we don’t get it now, our fear is that there won’t be a Transport Bill in the autumn and then we’re walking toward a general election and nothing will happen until the latter half of 2025,” said one aviation sector figure working on SAFs, granted anonymity to discuss lobbying strategy. By that time, the rest of the world could be way ahead.

Backing the amendment … are several prominent Tories including 1922 Committee Chair Graham Brady and former Cabinet Minister David Jones, plus Labour’s Sarah Champion. It is not clear whether the Opposition will back it.

Government says … A Department for Transport spokesperson told MECUK: “Our sustainable aviation fuel programme is one of the most comprehensive in the world and our mandate will provide strong incentives for the industry.”

What happens next: Parliamentary debate at report stage is likely to be limited to just one day and only four amendments will be selected — so this may not even come to a vote. But the aviation industry has made its move. Its concerns are plane to see.

GLASTONBURY FOR NERDS: The Institute for Government (IFG) think tank held its Net Zero Conference on Wednesday. Ed Miliband, Labour’s shadow secretary of state for climate change and net zero, was the headline act.

ED START: Miliband’s speech mainly ran through Labour’s existing green commitments, but he had a few extra insights for the policy-heads and lurking journalists.

Cheer up, Europe: Asked about future economic opportunities, Miliband took a swipe at the pessimism of some (unnamed) European governments in response to big U.S. green investment.

Quote: “I think Europe has been far too negative about the Inflation Reduction Act, as if all of the business is going to go to the U.S.,” he said. “The IEA [International Energy Agency] says we need $5 trillion of investment each year, public and private, in the green economy from 2030 to 2050. The idea that it’s all going to be in the U.S. just seems to be Europe over-react[ing] to it.”

Grand ideas into action: Miliband also admitted that announcing policies was the easy bit compared with getting stuff done (he has been a government minister, remember). “I am under no illusions that the department, if I am secretary of state, is going to have an absolutely enormous delivery challenge,” he said, eyeballing a big job ahead at DESNZ.

Er, how big exactly? A Labour government has targeted clean power by 2030, five years ahead of the government’s goal – but plenty stands in its way, Miliband said. “The biggest inhibitors … are what I call the four horsemen of the apocalypse: planning, grid, supply chains, and skills.” Crikey.

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