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18/01/2024Business leaders are overwhelmingly positive about the green transition, but more needs to be done to implement green skills programmes Most business leaders believe that responsibility for driving the green transition rests with the private sector rather than policymakers, with the vast majority anticipating more opportunities than challenges. However, rapid progress to a lower carbon economy is under threat from the failure of companies to develop and source sufficient green skills, according to the Green Skills Outlook – new research from Economist Impact, supported by Europe’s largest electricity company, Iberdrola. The research explores the impact of the green transition on global labour markets and is based on a scoping literature review and data audit, a global survey of 1,000 business leaders, sector-specific workshops, and the convening of an advisory board of subject-matter experts. It looks at nine countries and four sectors of the economy playing a central role in the green transition, including IT and Technology, Construction and Infrastructure, Transport and Logistics and Energy and Utilities. Despite an overwhelming majority (79%) of business leaders agreeing that skills will be the most important driver of the green transition, just 55% are implementing or planning to implement relevant programmes to create these for their workforce. This leaves a large proportion of the workforce without training in the skills necessary for a greener economy, and risks obstructing progress on the green transition, at a time when it is gaining urgency in order to tackle the climate crisis and enhance energy security. Accordingly, the Green Skills Outlook found that 62% of global business leaders say shortages in green skills will create bottlenecks that will delay the green transition. Green transition will have net-positive impact on job creation As greener industries gain prominence, the Green Skills Outlook shows that business leaders are overwhelmingly optimistic about the green transition, with 79% saying it presents more opportunities than challenges for their organisation. European business leaders, albeit generally optimistic, show a slightly more cautious stance. Smaller majorities of survey respondents in the UK (68%), Germany (72%), France (74%), and Spain (75%) were confident that opportunities will surpass challenges compared to near unanimity (94%) in Brazil and China (94%). However, the green transition is expected to have a net-positive impact on job creation, with particular benefits seen in clean energy, electrification, energy efficiency and research and development. Almost three quarters (73%) of respondents agreed that the green transition will create more jobs than it eliminates, and 81% say that it will create higher-quality jobs for workers. At a global level, the International Labour Organization (ILO) estimates the transition could lead to 25 million net new jobs by 2030, particularly in green sectors and activities. For example, in the energy sector, the expansion and maintenance of electricity grids and storage facilities provides millions of additional jobs around the world, up to 3,500 jobs per 100,000 jobs in Europe. The growing demand for green skills across the economy The green transition will require all workers to acquire green skills – not just those working in explicitly green roles. Such skills will range from non-vocational, non-technical soft skills that are needed to excel in green jobs, to more technical, role-specific skills. For example, over a third (38%) of respondents in the Energy sector identified smart grid implementation as one of the most important green skills to enabling their organisation’s green transition. More broadly, the most important cross-sectoral green skills are sustainability and disclosure reporting (39%), environmental impact assessment (35%) and sustainability compliance (32%). However, skills in compliance and disclosure, and reporting remain some of the most challenging to source. In addition, soft skills will be important to supporting business leaders’ efforts in transitioning their businesses towards greener ways of working. The top three which businesses are looking for are environmental awareness (45%), innovation and creativity (37%), and problem solving (31%). Innovative strategies from governments, educational institutions and the private sector are required to bridge emerging green skills gaps The Green Skills Outlook shows that there is overwhelming positivity for the green transition from business leaders globally, and two thirds (63%) say responsibility for leading it ultimately lies with them, over policymakers. However, bridging emerging gaps in green skills will be imperative to driving the transition forward, and will require coordination and innovative strategies on the part of governments, educational institutions, and the private sector. The role of government policy in fostering the green transition cannot be overstated. The top three policies that business leaders think should be prioritised to ensure the supply of green skills in the labour market meets the needs of the green transition are: * Support for businesses' investment in up-skilling and re-skilling programmes (e.g. through grants or tax relief) (53%) * Support for the establishment of green skills courses at educational institutions (e.g. through strategic funding) (49%) * Adapting existing work and training programmes for the unemployed to increase the emphasis on and support for green skills (46%) As well as introducing active labour market policies that nurture the supply of green skills, in the longer term, governments will need to create an enabling environment that incentivises the greening of the economy more broadly. Such as through stricter standards, putting a price on emissions, and removing subsidies for polluting industries, such as fossil fuels. Ignacio Galán, Iberdrola's Executive Chairman, says: “The opportunities presented by the transition are vast, but it is critical that both businesses and policymakers are sharply focused now on ensuring people are equipped with the right skills and training. Without skilled workers, the transition will not be delivered, and the benefits will not be realised." “As the world emerges from COP with a clear focus on phasing out fossil fuels, as well as tripling renewables in six years, every company in every sector is fully aware that change is coming fast." “Those who plan well will lead and be at the forefront of the transition. For two decades at Iberdrola we have been helping workers and industries to refocus and retrain to make the most of the green transition. We have helped aeronautics companies to take the lead in wind power, shipbuilders to diversify into offshore wind fabrication, and oil and gas workers to retain their offshore expertise, but switching to renewables." “Iberdrola and the energy sector also have much more to do, and we are not standing still. We continue to work with schools, universities and policymakers across the world, as well as delivering our own new initiatives, such as the Global Green Employment platform, and cross-sector initiatives, such as Reskilling 4 Employment. In producing this Outlook we also now have detailed thoughts from a thousand business leaders across the world, giving us valuable insight into where the pinch points are and how they can be addressed.” Commenting on the demand for green skills, Kevin Nilsen, President of ECO Canada, says: “All individuals will need to acquire green skills - if a person doesn’t have basic green literacy skills, they won’t be able to effectively carry out their role.” On the role of different stakeholders in the green transition, Simon Schmid at SkillLab emphasises, “What is important is having an ecosystem that enables communication and alignment between educational institutions, employers and governments.” Matus Samel, Senior manager and the Green Skills Outlook programme lead at Economist Impact, says: “We see green skills as the key to a just and equitable transition to a more sustainable economy. The Greek Skills Outlook highlights that much more needs to be done across private and public sectors in advanced as well as emerging economies to enable workers and communities to participate in this crucial transition.” READ MORE
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17/01/2024Ignacio Galán in Davos: "Electrification with renewables and the creation of value for society in the form of lower emissions, better prices, better service and more employment are the cornerstones of our strategic plan". "In a little over two months, we will present the company's new strategic plan," explains Iberdrola's Executive Chairman, Ignacio Galán, in an interview with the prestigious Spanish business daily Expansión, on the occasion of his speech at Davos Economic Forum. During the next Capital Markets Days, Galán asserted that we will have a "strategic thrust based on electrification with renewables, grids and storage" and "a social axis with value creation for society in the form of lower emissions, better prices, better service and greater activity and employment," he asserts. "Financial strength, investor remuneration and growth" will be the pillars of the financial axis. You can read the full interview at: Ignacio Galán: "Iberdrola will grow and will continue to invest and increase its dividend" | Energía (expansion.com) READ MORE
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17/01/2024Iberdrola and Norges Bank Investment Management double their alliance, with more than €2 billion renewable Iberdrola and the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management, are to double their clean energy investment alliance, adding 1,300 MW of additional renewable energy capacity to unlock more than €2 billion joint investment over the next three years. As of today, 674 MW of wind and solar has been added to the alliance, with the rest to be included in the coming months, to reach a total capacity of 2,600 MW. The 674 MW of new renewable energy capacity is in the development stage – 40% wind and 60% solar PV – across the Iberian Peninsula. Final negotiations on exclusivity are also taking place on including an additional 643.5 MW of operational and under development solar PV capacity to the alliance. Both companies have joined forces to accelerate decarbonisation in the Iberian Peninsula, and the agreement could be extended in the future to other countries. Iberdrola will have a majority stake of 51% in the assets. The executive chairman of Iberdrola, Ignacio Galán, announced the agreement during meetings at the World Economic Focus held in Davos. "Today we have expanded our clean energy alliance to advance the development of renewables in the Iberian Peninsula in a faster, more consolidated and competitive way. Innovative agreements like this allow us to combine our knowledge in clean energy and our financial strength with those of Norges Bank Investment Management, a truly progressive partner, building on our alliance that has been growing for many years," said the executive chairman. Norges Bank Investment Management CEO, Nicolai Tangen, said: “We are really pleased to announce this new important deal with our great partner Iberdrola. It gives us more critical mass in Spain and is also our first step into Portugal. We look forward to adding more attractive renewable infrastructure projects going forward.” Under the terms of the agreement, the valuation of 100% of the 674 MW now incorporated amounts to €627 million, excluding extra margins for asset management, provision of operation and maintenance services, as well as other corporate services. This renewable portfolio will have the capacity to supply energy to more than 400,000 homes each year, resulting in more than 350,000 tonnes of CO2 avoided per year. The perfect partner to co-invest Norges Bank Investment Management, which manages Norway's sovereign wealth fund, has assets under management of around €1.4 trillion and stakes in more than 9,000 companies. It owns on average 1.4% of all listed companies in the world and 2.5% of all listed companies in Europe. Norges Bank Investment Management is also one of Iberdrola's main shareholders, holding a stake of 3% for more than seven years. As a result of this relationship, Norges Bank Investment Management has decided to make its first direct investment in renewable assets in Spain with Iberdrola, the largest European electricity company by capitalisation. Iberdrola and Norges Bank Investment Management have formed a secure alliance, between two preferred partners, which could be extended to additional renewable opportunities in other geographies. Partnerships for growth In recent months, Iberdrola has closed several long-term alliances to promote the decarbonisation of the economy: * In December, Iberdrola closed an agreement with Masdar to seek to co-invest €15 billion in offshore wind and green hydrogen in Germany, the United Kingdom and the United States * Masdar also signed an agreement last year to co-invest in the 476 MW Baltic Eagle offshore wind farm , which valued the project at €1.6 billion * Last September, Iberdrola partnered with GIC for the expansion of transmission networks in Brazil for 430 million euros * The original alliance with Norges Bank Investment Management was to develop 1,265 MW of renewable energy in Spain * The company has signed an agreement to sell more than 8,400 MW of gas-fired combined cycle plants in Mexico for $6 billion . * Iberdrola and MAPFRE have continued to advance their strategic alliance by incorporating 150 new MW through a joint venture, which already has 450 MW. * Iberdrola and BP also signed a strategic alliance in March to deploy 11,700 fast charging points in Spain and Portugal. * In addition, in 2022, Iberdrola signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and boost its offshore wind portfolio. READ MORE
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15/01/2024ScottishPower unveils £5.4bn worth of contract opportunities as it turbo charges its next phase of electricity network investment The early new year boost for the supply chain by its SP Energy Networks business is the company’s biggest issued contract opportunity ever and will see major investment in green energy infrastructure and green jobs which will bolster the grid for decades to come. With electricity demand forecast to double in the next 10 years, the International Energy Agency says the UK needs more than 600,000km of new or upgraded electricity lines to meet its needs. ScottishPower is at the forefront of unlocking green growth and now has billions of pounds in contracts on offer for the supply chain to support its electricity network ambitions and a net zero future. Keith Anderson, ScottishPower CEO, said: “We’re kickstarting the largest overhaul of the grid since its inception. Our investment plans will help grow our electricity networks, grow our workforce and will provide a massive opportunity for the supply chain whilst unlocking growth for the wider economy." “It is vital we get serious about getting on with the job of consenting and getting this new grid built so that we can take advantage of clean green renewables, transport it around the country and lock in our energy security and maintain the UK’s track record in leading on decarbonisation” ScottishPower’s grid business, SP Energy Networks, is now encouraging companies with the skills and experience to bid for contracts to design, develop and upgrade new and existing strategic transmission infrastructure. This will include new high voltage substations, overhead line construction as well as design, engineering, construction, and electrical works. Vicky Kelsall, CEO of SP Energy Networks, said: “This is one of the most significant infrastructure roll outs to upgrade the grid to support the electricification of the wider economy. We’ve got the plans and we’ve got the financial capital to invest, and the UK supply chain stands ready to benefit to the tune of billions.” The £5.4bn worth of contracts will cover the next 10 years and includes transmission projects across central and southern Scotland. It will help move more green energy across the country to help deliver a low carbon future, connecting 80-85GW of clean renewable energy to the GB transmission system and reduce the UK’s reliance on fossil fuels. In November, the UK Government announced plans to halve the time it takes to build high voltage power lines and cut the time it takes to connect to the grid. Its package of measures aims to support economic growth and cement the UK as one of the best countries in the world to invest in renewables. READ MORE
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12/01/2024Iberdrola and ANFACO-CECOPESCA sign an agreement to help decarbonise the industrial fishing chain Iberdrola has signed an agreement with ANFACO-CECOPESCA – an entity representing the marine-industry chain – by which the 255 companies associated with this cluster of the marine-industry chain that wish to do so, will receive personalised advice on how to reduce their carbon footprint by implementing decarbonisation solutions adapted to their industrial processes. Iberdrola will also make its GGE (Global Green Employment) platform available to members, which focuses its activity on the dissemination of green jobs. Through this portal, any citizen can consult the demand for professionals in this sector and access information on all jobs worldwide. Find out more about this news in the Iberdrola España Communication Room . READ MORE
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11/01/2024Iberdrola partners with ZeroAvia to explore green hydrogen solutions in the UK aviation sector Iberdrola, through ScottishPower, its UK subsidiary, has reached an agreement with aircraft manufacturer ZeroAvia to explore the development of green hydrogen supply solutions in the UK aviation sector. This collaboration will allow ScottishPower and ZeroAvia to analyse the necessary infrastructures to enable the use of this fuel on certain flights. Scottishpower also supports decarbonisation through green hydrogen projects across the British Isles. You can find more information about this news in ScottishPower's Communications Room. READ MORE
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10/01/2024Iberdrola brings Olympic champion Ana Marcela on board as a women's sports ambassador in Brazil Iberdrola, through its Brazilian subsidiary Neoenergia, has already brought on board the sportswoman Ana Marcela as a women's sports ambassador in its ambassador programme, whose focus is on promoting gender equality and boosting Brazilian women's sport . Ana Marcela Cunha, the first Brazilian woman to win Olympic gold in open water, also wants to win gold at the next Paris 2024 Olympic Games. To fulfil this dream, the athlete counts on the support of Neoenergia – which will help her to raise the quality of her preparation for competitions in France. Find out more about this news in the Neoenergia Communication Room . READ MORE
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09/01/2024Iberdrola reopens the hybrid green bond market with an issue of €700 million Iberdrola is reopening the hybrid bond market in Europe with a €700 million issue, as reported to the National Securities Market Commission (CNMV). The bond issued is perpetual, but has a repurchase option within 7 years. The coupon has been set at 4.871%. It ranks as the most competitive hybrid operation in the last 12 months. The demand demonstrates fixed income investors interest in Iberdrola. It reached €3.4 billion, 4.8 times oversubscribed, and consists of more than 200 international investors, mainly from Europe and the United Kingdom. It is the first hybrid bond issue on the Euromarket for two months. The demand and the coupon rate show investors’ confidence in Iberdrola’s fiscal strength, business outlook and growth plans. The operation refinances the €700 million issued in 2018, which will be repurchased shortly, keeping the company's hybrid volume stable at €8.25 billion. The funds obtained will be used to refinance the same revolving assets that were included in the operation in 2018. The improvement in both interest rates and credit margins since the end of last year has allowed Iberdrola to benefit from better financial conditions than those available in H2 2023, when the market environment was more volatile. Iberdrola's flexibility to analyse evolving market conditions and refinance this operation in a more positive environment helped to ensure the successful placement. Hybrid bonds count as 50% capital, in accordance with the methodology of the main rating agencies, so this operation contributes to maintaining the group's credit ratings. The last issuance of this type of debt by Iberdrola was in January 2023. Eight top-tier international banks participated in the placement: JP Morgan, Barclays, Crédit Agricole, BBVA, Natwest, Deutsche Bank, Caixabank and Royal Bank of Canada, which facilitated access to investors. International Trust Investor confidence in Iberdrola remains strong. At the end of December the company signed its largest credit line in history for €5.3 billion with 33 international banks. The transaction was completed at competitive rates for Iberdrola, with prices similar to those in 2019, and the operation was oversubscribed by more than 40%. It highlighted the banking world’s strong confidence in Iberdrola, Europe leading electricity company by market capitalisation and the second largest in the world. In addition, yesterday Iberdrola expanded its partnership with the World Bank, securing a €300 million green loan for renewable projects in countries dependent on fossil fuels, such as coal, including Morocco, Poland and Vietnam. Global leader in sustainable and green finance Iberdrola has established itself as a global benchmark in sustainable finance. The company was the first Spanish group to issue green bonds in 2014 and is now the world's leading private issuer of green bonds. The group currently has almost €20 billion of outstanding green bonds. Iberdrola agreed its first green loan in 2016 for €500 million, thereafter focusing its strategy for loans and credit lines to be aligned with sustainability objectives. This financial strategy strengthens Iberdrola’s record €47 billion investment plan announced in November 2022, for the period 2023 through 2025. The plan aims to boost the decarbonisation of the economy and the move away from fossil fuels, with a strong commitment to smarter electricity grids and renewables. Iberdrola will update this plan in March 2024 at its next Capital Markets Day. READ MORE
