The Energy Transition | Office for Clean Energy Jobs launched to support UK's 2030 targets

This week, we look at the government's launch of the Office for Clean Energy Jobs, the new maritime decarbonisation strategy, a new service for distributed energy assets, and more.

UK government launches Office for Clean Energy Jobs to support 2030 action plan

The Department for Energy Security and Net Zero (DESNZ) has established the Office for Clean Energy Jobs to ensure the UK has a skilled workforce capable of supporting its transition to net zero. This initiative is intended to support the Clean Power 2030 action plan and is designed to help workers adjust to new roles in clean energy sectors, with a focus on ensuring that regional economies as they transition will benefit from the shift away from carbon-intensive industries.

The government has stated that the number of jobs within low-carbon sectors increased by 27% from 2020 to 2022 and suggests up to 725,000 new jobs in these sectors could be created by 2030. The government further estimates that during the course of the net-zero transition, around 3 million workers will need to re-skill that one in five jobs will experience a shift in demand for skills to fill roles in low-carbon industries.

Some of the industries defined by the government as "low carbon" include the offshore wind, hydrogen production, carbon capture and storage, and energy efficiency sectors, which it expects to expand significantly over the next decade. The government also hopes the initiative can enhance energy security by equipping more workers with the skills needed to maintain and improve the UK’s energy infrastructure. By investing in training and reskilling efforts, the government aims to reduce reliance on foreign energy markets and build a more sustainable energy system.

The Office for Clean Energy Jobs will aim to close skills gaps by supporting training programmes and ensuring opportunities are spread across the UK. A special focus will be placed on regions with a history of reliance on fossil fuels. The government stated that the office will ensure jobs created in the sector benefit from good working conditions, fair pay, and are of a skilled nature. It said that this would help to ensure an energy transition that is both economically viable and socially inclusive.

Decarbonisation strategy and calls for evidence published for UK maritime sector

The government has published its new maritime decarbonisation strategy as part of its "plan for change" mission. The strategy sets out how the government is planning for the sector's future, including setting new domestic decarbonisation goals for the UK domestic maritime to reduce greenhouse gas (GHG) emissions by 30% by 2030, 80% by 2040, and to zero by 2050, compared to 2008 levels. These align with the targets agreed at the International Maritime Organisation (IMO)'s 2023 GHG reduction strategy.

The government has set out policy measures to achieve its goals within the strategy, including:

• Regulating fuel use by encouraging the IMO to adopt a "global GHG intensity fuel standard" in 2025 and consulting on the regulation of maritime technologies and fuels in 2026.
• Placing a price on emissions by bringing the maritime sector into the scope of the UK emissions trading system. The government aims to ensure operators of larger vessels that cause the most pollution pay more for GHG emissions.
• Considering requirements for zero or near-zero GHG emissions from vessels at berth by addressing the cause of almost half of the sector's current emissions.
• Supporting smaller vessels to decarbonise and accelerate uptake in targeted sectors by developing bespoke interventions for subsectors in recognising that the whole sector will need to reduce its emissions.
• Increasing the energy efficiency of maritime operations by collaborating with the IMO to encourage the uptake of energy efficiency technologies and practices, which will reduce emissions and operational costs.

As part of the strategy, the government has published supplementary calls for evidence on net-zero ports and decarbonising smaller vessels.

Currently, almost half of domestic maritime GHG emissions come from vessels at berth, and the government intends to produce a policy to mandate "net zero carbon practices" of docked vessels.

Alongside its publication of the maritime decarbonisation strategy, the government has launched the call for evidence on net-zero ports to inform policy on the role that these facilities can play in deploying decarbonising infrastructure and the growth opportunities arising from their decarbonisation.

The government is seeking evidence, in particular, on refuelling capabilities, onsite energy generation, and current and future electricity requirements at ports. The call for evidence closes on 24 June.

The government's call for evidence on decarbonising smaller vessels aims to inform policy on emission reduction measures for smaller craft less than 400 gross tonnage that operate in targeted subsectors.

The aim call for evidence aims to gather responses about zero or near-zero emissions vessels, in particular, on the associated capital and operational costs, the capacity to build or retrofit these vessels, the infrastructure required, and any issues around implementation in specific sub-sectors. This call for evidence closes on 25 July.

UKPN and NESO launch streamlining service for distributed energy assets

UK Power Networks (UKPN) and the National Energy System Operator (NESO), following extensive operational trials, have launched MW Dispatch. This is a new service designed to streamline energy market access for distributed energy resources (DERs), which are typically smaller-scale grid-connected assets located near areas of high electricity demand, such as rooftop solar and battery storage systems. UKPN, as a distribution system operator, has been working with NESO for two years on the initiative, supported by technology partners Kyndryl and Smarter Grid Solutions.

The service will use advanced cloud and application programming interface-based technologies to integrate DER assets with NESO and UKPN control centres. The resulting exchange and coordination of data will allow NESO's control centre to reduce excess generation from the network at times of transmission system constraints. It will instruct UKPN, which will then dispatch available DERs.

From an asset perspective, MW Dispatch provides a simpler and cheaper alternative to participation in NESO's balancing mechanism; from an industry perspective, the service provides access to lower-cost energy sources and DERs to help solve transmission constraints, reduce overall system costs, and enhance grid reliability and efficiency.

Five sites, including generation and storage assets, have joined the service so far, which is being rolled out in the South East region. Sotiris Georgiopoulos, director of UKPN, said: “This new service sets out the blueprint for transmission and distribution coordination, unlocking faster access to the national transmission network. Collaborating as an industry is the only way we can enable the energy transition whilst keeping costs down for customers.”

UK government consults on Climate Change Levy costs for low-carbon electrolytic hydrogen

The UK chancellor of the exchequer, Rachel Reeves, in the Spring Statement 2025 announced the government's commitment to removing the Climate Change Levy (CCL) cost from electricity used in electrolysis to produce green hydrogen. Stakeholders have been invited to respond to a consultation on removing CCL costs for hydrogen production and the best legislative route to effect this change.

The government also confirmed its intention to review CCL more widely, given the evolution of the energy landscape since its introduction. The levy was originally introduced in 2001 to incentivise energy efficiency in businesses to reduce greenhouse gas emissions by taxing certain energy supplies.

Electricity input costs account for up to 70% of the levelised cost of hydrogen production. The removal of the CCL liability for the significant input electricity required in green hydrogen production is aimed at promoting the development of electrolytic hydrogen as a low-carbon energy source and boosting the use of this renewable and low-carbon technology. This compares with hydrogen produced by steam reformation from natural gas – that is, "grey" or "blue" hydrogen – which already benefits from an exemption from CCL.

The government's support for green hydrogen production builds on the Autumn Budget last year, in which the government committed to providing support for the 11 low-carbon hydrogen projects contracts awarded in the first Hydrogen Allocation Round (HAR1), three of which have now been signed.

The consultation seeks input on three proposals for the manner of removal of CCL costs from electrolytic hydrogen production:

• Addition of hydrogen electrolysis to the non-fuel use exemption. The government considers that, subject to parliamentary approvals, this could potentially remove CCL costs by the end of 2025 – in advance of most HAR1 projects being liable to pay CCL.
• Exemption of input fuel to hydrogen production. The government noted that the earliest this option could be implemented is the spring of 2026.
• Designating hydrogen supply as a taxable commodity. The government said that it is unlikely this option could be implemented for at least three years, because of a requirement for more substantial primary legislation changes and the CCL rates typically being announced 18-24 months in advance.

The consultation is open for stakeholders to respond until 7 May. For more information and to submit feedback, please visit the government's consultation page.

For more on how to tackle the barriers facing investment in green hydrogen production, please read Osborne Clarke's white paper "Unlocking Green Hydrogen Projects".

This article was written with the assistance of Ellie Smyk and Imogen Drummond, trainee solicitors, Sumaiya Hafiza, solicitor apprentice, and Tomi Agbonifo, paralegal.