EDAS Road to Recovery

Series Finalé

11 February 2010

From Grim to Green

Opportunities for Green Recovery

Ewan Mearns

Industries, Research and Policy

Key messages

• While there are undoubtedly risks and adaptation challenges, the transition to a

low carbon economy provides positive opportunities for the Scottish economy

• We need to act quickly to help accelerate economic recovery in the short-term

while also sowing the seeds of long-term sustainable economic growth

• Approach focused on Scotland‟s global comparative & competitive advantages

- significant opportunities in renewable energy, environmental & clean technologies and

the adaptation of Scotland‟s key sectors – together with resource efficiency across the

business base

• Proactive government policy/funding is needed in the short and medium term to

catalyse and mobilise large-scale private investment and behaviour change

• The scale of opportunity must be matched by a similar level of innovation and

ambition in our policy and financial mechanisms.

A vital agenda for Scotland

• An economic and environmental imperative

• Our world-leading approach to climate change

legislation

• Resource efficiency and energy security

• Stern: the costs of early action will be lower

• Scotland‟s has genuine comparative and

competitive advantages

• Rapidly-expanding global market opportunities

“…we must take the lead in the green energy revolution.

This country has played a hugely influential role in the

development of green technology but we need to take that

to another level. I want Scotland to become the pre-

eminent location for clean energy research and

development in Europe‘”

Alex Salmond, First Minister

A strong policy direction

Sustainable economic growth

High growth

High value

Low carbon

GREENER SMARTER

WEALTHIER

Low Carbon

Strategy

Government

Economic

Strategy

Decarbonised electricity,

heat, transport & land use sectors

Low carbon economic opportunities

Climate change adaptation

Behavioural change

Emissions

reduction

targets

LOW CARBON TRANSITION

SUSTAINABLE ECONOMIC GROWTH

Annual Reports on Policies and Programmes

CO2 reduction:

42% by 2020

80% by 2050

Strategies for a low carbon economy

Market opportunities

Clear evidence of Scotland’s geographic

competitive advantage :

• 25% of Europe‟s potential wind power

• 25% of Europe‟s potential tidal power

• 10% of Europe‟s potential wave power

• Offshore carbon storage capacity greater

than the Netherlands, Denmark and

Germany combined

Energy sector

• Wind (mainly offshore)

• Tidal and wave

• Heat (biomass, heat pumps)

• Carbon capture

• Hydrogen

Market opportunities

UK low carbon environmental goods and

services market:

• worth £106 bn and employs 880,000 people

directly or across the supply chain

• expected to grow at over 4% pa to 2015,

when it could employ over 1 million people

• over 16,000 green jobs could be created in

Scotland‟s energy industry by 2020

– plus „000s more in environmental and

clean technologies

Environmental & Clean Technologies

• Sustainable construction (“Sustainable Scotland”)

• Sustainable transport (industry-led Sustainable

Transport Group)

• Recovery and recycling

• Water and waste treatment

• Environmental monitoring

Key Sectors

• Food & Drink: resource efficiency, energy

from waste, local sourcing and provenance

• Tourism: resource efficiency, „green‟ tourism

products, „green‟ branding, promotion and

accreditation

• Digital markets: „green‟ data centres

• Financial services: climate change

insurance products, green/ethical investment,

investment in clean & renewable technologies

• Life sciences: sustainable health and clean

technologies

Other Growth Industries

• Construction: low carbon building technologies,

retrofit of current building stock (eg sensors)

• Aerospace, Marine & Defence: manufacture/

maintenance of lighter materials for more fuel-

efficient planes

• Chemical Sciences: renewable fuels/ feedstocks

to replace hydrocarbons in chemicals manufacture;

new materials (eg low carbon plastics)

• Forest Industries: wood fuel & biomass for

renewable heat/power; locally-sourced timber for

construction

• Textiles: functional textiles (eg lighter, stronger

materials, insulation manufacture)

UniversitiesCreative Industries

(Digital Markets)Energy

Life Sciences

Food & DrinkFinancial & Business

Services

Tourism

Enabling

Technologies

Market opportunities

Round Three Sites in Scotland

Moray and Cromarty Firths (expected

2-3GW)

Forth and Tay Estuaries (3-5GW)

Build start dates 2014/15

Scottish Territorial Waters Round

(6.4 GW)

10 sites - 5 on the West Coast and 5

on the East Coast

Expected to total 6.4GW

Build start dates in 2013

Scotland’s Offshore Wind Opportunity

R3 and STW

Fife Energy Park

Operation & Maintenance Bremerhaven Installation Processes

Belfast

Different needs/roles:-

- Construction

- Manufacturing single or

distributed sites

- O & M

Over 7,000 Offshore Turbines by 2020

3700 within reach of Scottish sites

Offshore Renewables Site Requirements

Infrastructure - Sites

• Locations

– supply chain

– installation process

• Industry will drive use

• Need for focus

• National Renewables

Infrastructure Plan

N-RIP

• Development of Investment Plans

• Planning and Consenting

• Industry will drive use

Share Fairs

• Aberdeen 28th January

• Inverness 2nd February

• Glasgow 4th February

• Promoted with event partners

• A „marketplace‟ for companies to find out about

offshore wind developments and to do business

• Morning - The Opportunity - presentations by the

UK/Scottish Government, SE/HIE, The Crown Estate,

a Round 3 Development Partner, and a Scottish

Territorial Water Development Partner and Tier 1

contractor

• Afternoon - Down to Business - networking, share

fair style event with one-to-one meetings and

exhibition stands

EDAS Road to Recovery

Series Finalé

11 February 2010