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4. MAKING IT HAPPEN

"There is a way to do it better. Find it."
Thomas A Edison

The private sector is the engine of business productivity and of economic growth. However, the public sector has an important role to play in fostering an environment in which the private sector can flourish. This includes addressing any apparent market failures by supplying public goods which would not be supplied by the market; helping to remove market barriers to competition; addressing information failures; and dealing with externalities when the market outcome may not take into account wider social benefits or costs, for example environmental impacts. ¹³

In this strategy we are looking at promoting resource efficiency and supporting the exploitation of new business opportunities. For both of these areas we have identified five broad types of activity where the public sector can add real value, namely:

The types of support appropriate under these headings will differ. In relation to resource efficiency, the needs of individual companies will vary according to their scale and function. Some may benefit from a straightforward energy audit; others from a more in-depth assessment of their overall resource use.

Where new business opportunities are concerned, the maturity of the sector will determine what is required. For example, wave and tidal energy is still at the stage of developing technologies and prototypes which is why the emphasis is on research and development (R&D) support and demonstration projects. In contrast, waste management technologies are largely well-established, but with scope for further innovation.

As work on this strategy has developed we have been able to make progress in a number of areas, and these are highlighted at the end of each of the next five sections, together with commitments for additional action from the Scottish Executive, the Enterprise Networks and other public sector sponsored bodies in Scotland.

4.1 Information and awareness

Overall aim

To ensure that businesses are aware of potential resource efficiency gains and emerging business opportunities

Resource efficiency

We want the idea of resource efficiency to be embedded in businesses from the earliest stages of their development. We will therefore seek to engage with professional bodies in the financial community, whose members deal with businesses daily and can play a role in raising awareness of the opportunities for increased efficiency.

There is a wide variety of practical and financial support available to companies seeking to improve their use of resources (see Annex A for a summary). This can sometimes lead to confusion about how best to access such support. We are therefore committed to achieving a clear, single entry point to support from the Carbon Trust, Envirowise, the new Scottish Manufacturing Advisory Service and others so that linkages between different agencies work.

The first point of contact for businesses seeking to access public sector support or advice is the business adviser at their local Business Gateway, or local enterprise company in the Highlands and Islands. Scottish Enterprise has developed a new training module on business resource efficiency as part of the mandatory accreditation process for all advisers who regularly deal directly with businesses. This will enable advisers to properly signpost companies to available resource efficiency support. The module is now being rolled out and Scottish Enterprise will make sure that all advisers take up this training within their programme of continuing professional development.

Not all resource efficiency support is marketed as such. For example, as part of its support for business improvement, Scottish Enterprise runs a Lean Management Programme. This encompasses productivity improvements in their broadest sense, including many of the key aspects of improving resource efficiency.

Sustainable accreditation scheme for architects

A key outcome of the first phase of the Lighthouse's Sust campaign was the launch in February 2005 of the world's first ever Sustainable Building Design Accreditation Scheme for architects, managed by the Royal Incorporation of Architects in Scotland ( RIAS). Recognising solid achievement in buildings that have been in use for at least a year helps encourage other professionals to lift their game, and also helps clients find chartered architects with the skills for tomorrow.

Sebastian Tombs, FRIAS RIBA MCIArb Secretary/Chief Executive, Royal Incorporation of Architects in Scotland

The design, construction and maintenance of the built environment offer significant business opportunities. But realising the potential of this sector is dependent on mainstreaming sustainable design and turning the theory on green design into practice more consistently. The Scottish Executive's Sustainable Action Fund has supported the Lighthouse's Sust campaign to tackle this issue and promote sustainable design. £600,000 has been allocated to extend this campaign for a further three years, with the following key objectives:

• to raise public awareness of sustainable design and the contribution it can make in delivering a sustainable future;
• to improve an understanding of sustainable design for those commissioning new buildings;
• to highlight sustainable design achievement in Scotland, while drawing attention to best practice internationally;
• to act as a catalyst, working in partnership with key agencies to mainstream 'green' thinking in the built environment; and
• to provide educational opportunities young people.

Furthermore, in partnership with the construction industry we have set up an on-line awareness initiative www.wascot.org.uk/construction to encourage the separation of materials to enable easier recycling of construction and demolition waste.

New business opportunities

We are working to improve awareness of new business opportunities. The consultative process undertaken during the development of this strategy has helped to raise general awareness, as will this strategy itself, but we see limited value in generic awareness-raising beyond this. However, the public sector is addressing specific industry and market needs and actively raising awareness of the potential for new business in a number of specific areas, including the following:

The Waste & Resources Action Programme ( WRAP) and Remade Scotland are working on developing markets for recyclates, including awareness-raising through their material and procurement programmes, and also through WRAP's business development service. Both organisations also hold regular events to illustrate the viability of recycled products and highlight the potential uses of different material streams. We are also working with the Scottish Environment Protection Agency ( SEPA) to bring together academics in Scotland involved in waste and resource management issues, to consider whether there are any longer-term commercial opportunities from waste and resource management R&D.

We are funding work commissioned by Scottish Enterprise on waste electrical and electronic equipment ( WEEE) to ensure we have the necessary information about the size and source of the WEEE waste stream, current waste management practice and opportunities for growth, along with knowledge of the current capability of individual reprocessing plants and the collective capability within Scotland. This will help ensure we can support Scottish recycling firms in exploiting the business opportunities arising from the implementation of the WEEE Directive.

Forestry Commission Scotland ( FCS) is working with partners including local authorities, non departmental public bodies ( NDPBs) and the private sector to increase awareness of the benefits of biomass energy. Its Woodfuel Development Programme is supported by a Woodfuel Information Officer providing a point of advice and contact for stakeholders in the Highlands, bringing suppliers and customers together in local clusters and developing a sustainable market for woodfuel. It will provide further support for businesses and stakeholders by recruiting two more officers to cover the rest of Scotland. As the bioenergy industry matures in this country, operators will gain more experience and consumers will gain confidence, further supporting market development and, in turn, opportunities for business.

Scottish Enterprise Community of Practice for Wind Energy

We have joined forces with the Scottish Renewables Forum, Scottish Development International, the Scottish Executive, Highlands & Islands Enterprise and the Department of Trade and Industry ( DTI) to work together to maximise the resources we have available to promote and support the wind power industry. This will include sharing information to avoid duplication of effort, and collaboration on joint projects.

Lindsey Burnett, Senior Executive, Scottish Enterprise Energy Team

Scottish Enterprise is funding ITI Energy - the Intermediary Technology Institute for energy. It is charged with making sure that technologies reach the market by supporting market-based pre-competitive research in areas of high potential to identify opportunities for companies to exploit. It has published a foresighting report into energy storage, and announced associated R&D investment to investigate the production of a low-cost hydrogen storage material. Its foresighting report into low-cost renewables¹⁴, highlights the key areas which it considers will offer the greatest potential for new technologies to successfully meet the needs of the onshore and offshore wind, wave and tidal markets. The European Marine Energy Centre also has a major role to play in promoting wave and tidal technologies.

Through its energy sector work Scottish Enterprise is also supporting the development of supply chains by running a series of workshops for businesses, highlighting emerging opportunities and introducing businesses to potential purchasers and suppliers. It will also commission a report to identify emerging opportunities in the marine energy supply chain. And together with Scottish Development International it is fostering links with overseas organisations to help Scottish companies capitalise on renewable energy opportunities around the world.

We are…

• Increasing awareness of the case for improving resource efficiency through a range of bodies and promoting energy efficiency
• Raising the profile of resource efficiency with businesses through Scottish Enterprise's Lean Management Programme
• Scottish Enterprise runs the Resource Efficiency Environment Forum ( REEF), an on-line service for exchanging best practice

We are…

• Funding WRAP, which is making good progress in promoting the recycling sector to commercial investors - one of WRAP's key objectives
• Funding ITI Energy, whose foresighting report into low-cost renewables highlights the key areas offering the greatest potential for new technologies

We will also...

• Review the way we support resource efficiency initiatives to ensure there are no wasteful overlaps, or gaps, in provision
• Scottish Enterprise will build on the experience of its Lean Management programme to engage with finance managers of participating businesses
• Scottish Enterprise will build on good practice to review and, if appropriate, extend REEF
• Support Scottish Enterprise in rolling out its new business efficiency module for all Business Gateway business advisers

We will also...

• Showcase innovative products and processes through websites, promotional material and conferences
• Work with SEPA to consider the scope with academics for longer-term commercial opportunities within waste and resource management
• Fund and work with Scottish Enterprise on its WEEE recycling capability assessment for Scotland
• Work with DTI to ensure implementation of the WEEE Directive
• Forestry Commission Scotland will recruit a further two Woodfuel Information Officers to cover the rest of Scotland
• Support the European Marine Energy Centre in promoting its activities both here and abroad
• Scottish Enterprise will commission a report to identify supply chain opportunities in the marine energy industry

4.2 Delivery of specialist advice and support

Overall aim

To ensure that we deliver appropriate, high-quality advice and support to businesses where needed

The main initial source of advice for companies is the Enterprise Networks, who can provide everything from basic support in developing a business plan to helping a company identify new markets and operating techniques. Scottish Enterprise's Business Gateway can provide advice to all companies including signposting to specialist forms of support. Highlands & Islands Enterprise provides single entry points in its area. Both organisations provide more intensive support to client companies with growth potential. This includes Scottish Enterprise's diversification toolkit for oil and gas companies looking to exploit opportunities in other markets such as renewable energy.

There are already a range of consultants able to offer specialist resource efficiency advice and it is not our intention to displace private sector provision. Rather, public sector bodies can encourage businesses to consider their use of resources, and signpost them to the more detailed advice available.

Building on the work of the Scottish Manufacturing Steering Group ¹⁵, the Scottish Executive's Partnership Agreement signalled the introduction of a Scottish Manufacturing Advisory Service ( SMAS) aimed at improving productivity, innovation and competitiveness of companies who manufacture in Scotland. SMAS has been designed to be delivered 'by manufacturing, for manufacturing'. Based within Scottish Enterprise, but operating across Scotland, SMAS will be led by an industry advisory board with a director and staff recruited or seconded directly from industry. SMAS will complement existing business support by providing specialist advice on best practice techniques and their implementation in manufacturing. It will also provide communication and networking opportunities and specialist skills and training.

Scottish Manufacturing Advisory Service ( SMAS) pilot

The Edrington Group is well known for premium brands such as The Famous Grouse, Cutty Sark, the Macallan and Highland Park single malts. We operate our worldwide business from a base in Glasgow, where we use an environmental management system that covers all aspects of our operation.

We saw the potential for further improvements (both business and environmental) in our manufacturing processes and signed up to the SMAS pilot 'lean manufacturing' programme run by Scottish Enterprise Glasgow. We are now more than half way through the 20 day programme, which has highlighted potential improvement in the overall equipment effectiveness of 47% in our principal malt whisky line. We anticipate that this work will improve our profit performance as well as reducing our impact on the local environment.

Graham Hutcheon, Group Operations Director, The Edrington Group, Glasgow

Delivery of specialist advice and support

The services on offer from SMAS will include advice and guidance on manufacturing issues; a free initial on-site diagnostic assessment; seminars and training on manufacturing techniques; and funding and research into specific projects that will take forward and improve Scotland's competitive position in manufacturing. The service is currently being piloted and will be operational later in 2005.

Recycled glass as a substitute for sand

We were aware that WRAP was supporting a number of operational trials to promote the innovative use of glass in various applications. We had been using recycled glass as a substitute for sand in the manufacture of concrete blocks and found the resulting products to have a good finish and excellent thermal properties. As our plant in Bonnyrigg is located alongside a glass recycling company, we are now moving forward with more extensive operational trials, supported by WRAP, aiming to take the recycled glass directly into our manufacturing process. This avoids the need to transport the glass and will significantly improve the economics of the process.

Gary Bell, Managing Director, Brand and Rae, Bonnyrigg

WRAP and Remade are working to develop markets for recyclate, particularly for materials such as paper, wood, plastic, glass and aggregates. WRAP is now expanding its work to cover batteries, tyres and plasterboard. WRAP is also helping to develop standards and specifications to give businesses confidence that recyclates are of the standard they require. In addition, WRAP and Remade provide direct, specialist support to companies in using recyclate in innovative ways.

The European Marine Energy Centre in Orkney is a world-class facility for the development, testing, and accreditation of ocean generation and delivery systems. It is a focal point for research and development into marine energy exploitation and is helping to forge closer links between businesses and universities. Following the recommendations of the Forum for Renewable Energy Development in Scotland ( FREDS) Marine Energy Sub-group, we will undertake a Strategic Environmental Assessment of the Scottish coastline to assist developers in identifying the best sites for wave and tidal energy devices.

The Green Tourism Business Scheme is a VisitScotland accreditation scheme that promotes sustainable tourism and provides environmental advice to tourism businesses. By encouraging good environmental practice, the scheme helps businesses reduce costs, improve their efficiency and tap into the growing market of green-conscious customers. There are three award levels in the scheme: gold, silver and bronze. The standards at bronze level are commonsense measures involving minimal cost. The silver and gold levels require progressively more rigorous practices to be put in place. Over 30 per cent of Green Tourism Business Scheme members can demonstrate that they have increased their profits as a direct result of joining the scheme. The scheme has nearly 500 members in Scotland, and is the largest scheme of its sort in Europe.

We are…

• Providing advice to businesses via Scottish Enterprise and Highlands & Islands Enterprise
• Providing via Scottish Enterprise a diversification toolkit to support oil and gas companies in reviewing and exploiting opportunities in other markets, such as renewable energy
• Supporting the work of WRAP and Remade on developing markets for recyclates
• Provided funding to establish the wave test centre at the European Marine Energy Centre in Orkney

We will also…

• Set up a new Scottish Manufacturing Advisory Service ( SMAS) by the end of 2005
• Provide an additional £5.4 million from Landfill Tax receipts to Envirowise for broader resource efficiency support for businesses
• Through VisitScotland, increase the membership of the Green Tourism Business Scheme by a third each year for the next three years

We will also…

• Extend the work of the European Marine Energy Centre to cover tidal devices
• Continue working closely with industry stakeholders to establish the European Marine Energy Centre as the internationally recognised centre for marine energy technical, operating and safety standards
• Carry out a Strategic Environmental Assessment of the Scottish coastline
• Scottish Enterprise's energy cluster team will investigate and disseminate details of market opportunities presented by carbon capture and storage

4.3 Access to finance to exploit opportunities

"Much ingenuity with a little money is vastly more profitable and amusing than much money without ingenuity."
Arnold Bennett

Overall aim

To ensure that schemes of financial support meet the needs of businesses exploiting new business opportunities

The public sector offers financial support to businesses when it is clear that a project can only proceed with that support, and will provide additional benefits to the Scottish economy. There are a wide range of support schemes available to Scottish businesses, including those seeking to maximise opportunities in environmental industries. (See Annex B for a summary of support available within Scotland.)

Innovative wind turbines

We are a family-owned business involved in the design and manufacture of small wind turbines, and one of the top five manufacturers of such turbines worldwide.

In 1995, we won a SMART award to design, develop and demonstrate a wind pump system with a hydraulic transmission based on a novel power-matching system. The system can also be used for sea or polluted water conversion to pure drinking water. Wind turbines using the technology are now in operation in New Zealand, Ethiopia, Brazil and South Africa. We received a further SMART award to investigate a new wind turbine for the developing urban renewable electricity generation market. This turbine will perform effectively, be cheaper to install and have a flexible design that reduces loading on the building it is mounted on.

We have installed three of our wind turbines on our premises for testing and demonstration. These turbines also supply some 40 per cent of our electricity. We eventually hope to get all of our electricity from our on-site turbines.

Gordon Proven, General Manager, Proven Energy Ltd, Stewarton

Investment incentives

Available financial support covers three main areas:

• Research & development (R&D) grants to support the development of new products to market (new business opportunities);
• Innovation grants to support companies in adopting best practice in their operations (resource efficiency); and
• Regional Selective Assistance for companies in Assisted Areas (new business opportunities).

This represents a pipeline of support from early-stage R&D to market-ready technologies. We have already seen an increase in the number of 'green' projects securing funding from these sources, covering the development of technologies as diverse as silent wind-powered rooftop heating systems to novel, biodegradable plastic coatings.

Businesses can get assistance through Regional Selective Assistance ( RSA) towards projects that involve capital investment and create or safeguard jobs in designated 'Assisted Areas' in Scotland. RSA can help at all stages through the business cycle, from start-up to expansion, and companies can receive grant more than once. RSA has helped a number of green projects, including Anaxiom (Scotland) Ltd and Argent Energy Ltd (see page 11).

New tyre recycling facility

We are a newly-established tyre recycling company, the first of its kind in Scotland. Tyres are difficult to dispose of because of their bulk, poor degradability and high toxicity. Their recycling involves the shredding and crumbing of tyres, and extracting and separating the steel and fluff from the rubber. We plan to accept and process up to three million tyres annually. The Scottish Executive offered us RSA of £230,000 in November 2003 to assist with a project involving capital expenditure of £1.4 million. We anticipate creating 29 new jobs over a two year period.

Phillip Benge, Managing Director, Anaxiom (Scotland) Ltd, East Kilbride

From April 2004 all companies awarded RSA grants of £2 million or more have been required to look constructively at the environmental, waste and resource issues raised by their projects. In addition, free energy audits have been offered to all companies offered more than £250,000. We intend that in future all companies offered over £1 million will be required to examine their use of resources and environmental impact, and all companies receiving an offer of grant will also be offered a free energy efficiency audit.

There are also EU schemes such as LIFE (the Financial Instrument for the Environment) which co-finances environmental demonstration projects developing innovative and integrated techniques and methods. Projects must address EU environmental issues in areas such as sustainable attitudes to environmental problems; water and waste management; or reducing environmental impact through development of clean technologies or integrated approaches to production, consumption and disposal of products. In September 2004 the European Commission adopted a proposal for a future programme, LIFE+, which would run from 2007-2013 - although it could differ in structure and criteria.

Other financial support

As well as these general business grant schemes, other financial support is available for specific sectors. For example, Forestry Commission Scotland ( FCS) provides support, through the Scottish Forestry Grant Scheme, for growing short rotation coppice, which can be used as fuel for biomass generation. Encouraging the growth of short rotation coppice could help farmers diversify into a new market, and FCS will provide farmers with the information and advice they need when considering this step.

In addition, the Agricultural Business Development Scheme and the Farm Business Development Scheme can support diversification by farming families, providing and sustaining jobs and incomes in rural areas throughout Scotland. Examples of projects supported include tourist facilities, wind turbines, a collaborative hydro electric scheme involving three farming families, and waste collection and recycling.

As part of its materials programmes, WRAP runs targeted capital support programmes to accelerate the development of reprocessing infrastructure and to support operational trials. WRAP has also established an equity fund (the Recycling Fund) and an innovative leasing scheme (eQuip) to help recycling businesses get access to equity and asset finance. WRAP can also help businesses access commercial finance through its Business Development Service.

The Enterprise Fellowship programme helps postgraduate students and researchers at Scottish universities or research institutes turn academic research into commercial business ventures. Funded by Scottish Enterprise and delivered by the Royal Society of Edinburgh, the programme provides successful applicants with a year's salary to develop their idea; help with preparing a business plan; and access to networks of mentors and professional advisers. It is part of the overall aim to translate the excellence in Scottish research into new businesses and products.

The Enterprise Networks provide support for individual projects such as Highlands & Islands Enterprise's ( HIE) support for a business park for renewable energy-based enterprises in the Arnish Yard near Stornoway. HIE also supports community organisations to adopt small-scale renewable energy systems and is setting up a new community energy company to assist local communities to develop and own renewable energy projects.

The Department of Trade and Industry ( DTI) has established a marine energy fund of £50 million to assist the further development and deployment of wave and tidal stream devices. Scottish developers and projects are well-placed to benefit from this funding.

Heat pumps in Kirkwall

We were awarded funding from the Scottish Community and Householder Renewables Initiative ( SCHRI) of £77,000 towards a £180,000 project to install 19 heat pumps at a new housing development in Great Western Road, Kirkwall. The heat pumps were supplied by a local company, ICE Energy Scotland, and are expected to last for 25 to 30 years with the ground loops (pipework) expected to last for up to 90 years with minimal maintenance.

The annual heating cost for each house is £176 as against a comparative heating cost for direct electrical heating of £461, a saving of £285 per year. The carbon savings compared with conventional fossil fuels can be up to 80 per cent, around 0.294 kg/kWh of CO₂ when compared to on-peak electric heating. The heat pump will contribute 80 to 85 per cent of the housing development's energy requirements.

Sam Harcus, SCHRI Area Adviser- Orkney area

The Scottish Community and Householder Renewables Initiative ( SCHRI), developed by the Scottish Executive, is a one-stop shop for community groups and householders interested in developing renewable energy solutions to meet their own energy needs. It provides expertise, advice and development support as well as financial support for individual schemes, with the Scottish Executive providing total funding of £11.6 million until 2007-08. A range of technologies are supported including wind, solar, hydro, wave, geothermal, biomass, heat pumps and woodfuel heating systems.

We are…

• Encouraging companies granted over 2 million in RSA to engage constructively with the Scottish Executive or its agents to discuss the environmental, waste and resource issues connected with their grant-aided projects
• Offering free energy audits to all companies offered more than £250,000 in RSA

We are…

• Providing support for businesses via a range of financial mechanisms, directly and through the Enterprise Networks
• Funding WRAP, which is working with commercial investors to address gaps in the availability of debt and equity finance for the recycling sector
• Supporting R&D in universities and specialist research facilities
• Supporting new renewable energy development through Renewable Obligation Certificates ( ROCs) and by funding the SCHRI

We will also...

• Further extend the arrangements for recipients of RSA to engage constructively with the Scottish Executive or its agents to all companies awarded grants over 1 million
• Extend the offer of free energy efficiency audits to all successful RSA applicants
• Consider the need for additional funding mechanisms for energy efficiency measures within the proposed energy efficiency strategy for Scotland

We will also...

• Highlight 'green' projects that have been successful under our grant schemes in promotional material and on our websites
• Work with DTI on how their £50 million marine energy fund can best be used
• Use the green jobs fund to help implement recommendations emerging from FREDS on support for technologies such as marine, biomass and hydrogen
• The Enterprise Networks will promote and facilitate more demonstrator projects in areas of high potential in renewable energy
• Undertake a fundamental review of the Renewable Obligation to ensure that it remains fit for purpose
• Review the operation of the SCHRI to ensure that it remains effective

4.4 Government's role in creating a market

Overall aim

To ensure that the public sector uses its role as a major purchaser of goods and services to lead by example in how it runs its own estate and to stimulate demand for 'green' products and services

Public sector bodies can act as exemplars, highlighting the potential commercial advantages in improving resource efficiency in operations and also in supplying the growing market for 'green' products. We have already taken steps to encourage public bodies to adopt good environmental practice. In summer 2004, the Minister for Environment and Rural Development asked Scottish Executive agencies and public bodies to carry out audits of their energy use, waste minimisation, use of recycled materials, travel, water use, procurement and biodiversity. They were also asked to adopt a suitable environmental policy by the end of 2005.

Improved air conditioning

From our share of Scottish Executive public sector energy efficiency initiative funding we have installed variable speed drives in the air conditioning fans in the A K Bell library in Perth. A feasibility study carried out by Nifes Consultancy Group funded under the Carbon Trust Partnership Programme (also funded by the Scottish Executive) identified the possibility of reducing carbon emissions by the installation of variable speed drives.

The drives will cost us £10,500 but we will save £8,700 a year in energy costs, making the payback period just over a year. The equipment will also save 1,000 tonnes of CO₂ over its lifespan which is expected to be in excess of 30 years. We see considerable scope for this type of initiative in public and private sector buildings across Scotland.

Gordon Dick, Energy Officer, Perth and Kinross Council

Another way in which we are leading by example is through our Public Sector Energy Efficiency Initiative. This 'spend to save' programme for the public sector will make available revolving funds for local authorities, health boards and Scottish Water to implement energy efficiency measures. These projects will demonstrate to business the financial and environmental benefits of investing in energy efficiency measures.

The Scottish Executive's Greening Government policy sets out what we can and should do to promote sustainable development, and sets targets for environmental improvements across our estate. The overall aim is to improve our environmental performance and reduce the environmental impact of our activities and operations. We review annually our target for reducing the amount of office waste going to landfill, and we have made year-on-year improvements through a continuing roll-out of an enhanced waste contract across our estate. We have exceeded 58 per cent recycling of total waste for the last two years and are working towards achieving a minimum of 70 per cent recycling.

Communities Scotland has a role through the strategic management of spend through partners such as Community Planning Partnerships, housing associations and community and voluntary organisations. It also promotes the sharing of good practice in sustainable development through its community regeneration work. It is exploring in more detail what further contribution it can make in this area through a review of its sustainable development policy.

Green procurement in the public sector

The Scottish Executive's Scottish Procurement Directorate ( SPD) encourages good practice in the wider public sector in Scotland by maintaining a website with a section dedicated to sustainable development issues in procurement. The website includes guidance for both suppliers and purchasers on incorporating green issues into procurement practice, including guidance on the use of recyclates. The guidance explains that suppliers offering more environmentally friendly solutions are likely to gain a competitive advantage.

Nick Bowd, Head of Scottish Procurement Directorate

Our internal procurement procedures require that sustainable development issues are considered as part of every procurement carried out by the Scottish Executive, its executive agencies and associated departments. A new training course has been introduced for Scottish Executive staff within the Scottish Procurement Directorate ( SPD) on how green issues can be considered at each stage of the procurement process. SPD's procurement manual has been revised and gives more prominence and emphasis to green issues in procurement. The Scottish Executive's environmental procurement policy has already had some notable successes. For example, 100 per cent of our standard A4 office paper is made from recycled material. SPD encourages sustainable procurement across the wider Scottish public sector and works with WRAP and Remade Scotland to support the recyclates market. SPD also works with the Sustainable Scotland Network to publicise good practice and share knowledge across Scottish local authorities.

Our proposed modernisation of the planning system will provide the framework for efficient and effective decision-making for all developments, including those that support the aims of this strategy. In addition, we will review National Planning Policy Guideline ( NPPG) 6: Renewable Energy Developments, due in 2006. That review will be informed by the work of the Environmental Advisory Forum on Renewable Energy. The review process will also consider the recommendation in the FREDS biomass report to encourage local authorities to consider the wider impact of biomass projects. We are also reviewing NPPG 10 on planning and waste management to ensure that it provides up-to-date guidance to local authorities, developers and other interested parties to help them plan the development of new waste management facilities.

We are helping to develop the supply chain in recyclate through the Strategic Waste Fund. All 32 local authorities have initially been awarded funding to 2007/08 totalling £327 million to implement waste prevention initiatives; to improve recycling and composting services; to fund infrastructure to divert waste away from landfill; and to support education and awareness campaigns. We are supporting WRAP's work to improve collection of recyclate from small and medium-sized enterprises ( SMEs) through consultation with business, research and pilot projects. We also intend to consult key parties on targets for public bodies to stipulate recyclate in contract specification. In addition, the Scottish Waste Awareness Group intends to establish a directory of recycling facilities that are available for business. In this way, we are supporting the development of a steady and reliable stream of recyclates for use by Scottish businesses.

We are…

• Ensuring that Scottish Executive agencies and public bodies monitor their environmental performance and adopt robust internal environmental management systems
• Helping improve energy efficiency across local authorities, health boards and Scottish Water via a new £20 million fund
• Implementing our Greening Government policy, through targets on energy and water use, recycling and reducing the environmental impact of our business travel
• Providing £2 million to local authorities to enable them to carry out internal waste audits and draw up and implement waste prevention action plans

We are…

• Supporting public sector green procurement by training Scottish Procurement Directorate operations staff on how sustainable development can be integrated into public procurement

We will also…

• Ensure that Scottish Executive agencies and public bodies adopt challenging environmental targets, report regularly on progress and monitor performance to ensure targets are achieved

We will also…

• Review the National Planning Policy Guideline ( NPPG) 6: Renewable Energy Developments, due in 2006
• Review NPPG 10 on planning and waste management
• Support WRAP's work to improve the collection of recyclate from SMEs
• Consult key parties on targets and goals for public bodies to stipulate recyclate in contract specifications
• Support work by the Scottish Waste Awareness Group to provide comprehensive information on recycling facilities available to local businesses
• Feature green/sustainable tourism as a strong theme in our refreshed tourism strategy

4.5 Skills

"The great aim of education is not knowledge but action."
Herbert Spencer

Overall aim

To ensure we have a flexible education and skills sector, responsive to the changing needs of business

Although businesses themselves are best placed to determine the skills and training needs of their workforce, there is also a clear supporting role for the public sector. The formal education system has a key role to play in equipping our future workforce with core and more specialist skills. As we asserted in our Lifelong Learning Strategy ¹⁶, increased levels of knowledge and skills are the means of developing innovative solutions to the problems of sustainable development.

The Forum for Renewable Energy Development in Scotland ( FREDS) Skills Sub-group

Over the years, the traditional energy sector in Scotland has developed an extremely well-skilled and effective workforce. However, rapid technological growth and the development of a range of renewable technologies are presenting new opportunities and challenges for the sector.

The FREDS Skills Sub-group, which brings together key stakeholders, was tasked with scoping the existing and future skills needs of the renewable energy labour market in Scotland. In recognition of the need for a vibrant and appropriately skilled energy labour market in Scotland, we have considered how Scotland might best support, influence, develop and put in place mechanisms to meet those skills needs. Our findings were that the supply of skills does not currently appear to be a major constraint on the expansion of the sector. Based on this, we have made a number of preliminary recommendations to the Scottish Executive including a functional occupational mapping exercise of the renewables sector, the development of a multi- agency approach to consider ongoing skills and career opportunities and the development of proposals to increase awareness among careers advisers.

Paul McKelvie, Chair of FREDS Skills Sub-group

In addition, the public sector supports the training of young people and the unemployed and encourages increased levels of in-work training by employers. This range of provision must support our objective of developing innovative technologies and embedding a culture of sustainable development.

As technology advances against a background of rapid change, global competition and rising expectations of choice, the skills of our people and their continuing development are ever more important. We are keen to continue working with the relevant bodies to develop the existing skills base and support the development of necessary new skills.

The Scottish Further and Higher Education Funding Council ( SFHEFC) is working to raise awareness of the importance of sustainable development in our universities and colleges. It is developing a strategy to enable universities and colleges to make a meaningful contribution to the UN Decade of Education for Sustainable Development.

The Sector Skills Councils ( SSCs) are employer-led organisations, set up to ensure that there is an appropriately skilled workforce to help businesses improve their performance. The work of all the SSCs will help to support the delivery of this strategy, but Energy and Utility Skills ( EU Skills) - the Sector Skills Council for electricity, gas, waste management and water - is particularly important to this. For example, EU Skills is carrying out a skills mapping of the waste management and renewable energy sectors to identify any skills gaps (where employees are judged by their employer to lack proficiency at what they do) or shortages (where there is a shortage of applicants with the required experience, qualification or skills).

A wide range of partner organisations such as the Scottish Qualifications Authority, City and Guilds and further and higher education institutions can take account of these changing skills needs and standards and incorporate them into new or refreshed qualifications and courses in schools, colleges, universities and the workplace.

Futureskills Scotland ( FSS) is part of Scottish Enterprise and Highlands & Islands Enterprise and aims to analyse the Scottish labour market to inform policy making and improve the availability, quality and consistency of labour market information and intelligence across Scotland. FSS also works closely with Careers Scotland to provide the organisation and its clients with labour market information.

The role of Careers Scotland in supporting individuals in planning their careers puts them in a prime position to link individuals to the changing job market and employers, including those who are taking advantage of sustainable development. Careers Scotland can raise awareness of emerging opportunities and the skills and qualifications required, through their work with individuals. This can be directly, for example through their work in schools and in their own centres, and also through their website. They are also working in partnership with Forward Scotland on emerging opportunities in environmental sectors such as waste management, renewable energy and natural heritage.

We are…

• Working with the Scottish Further and Higher Education Funding Council ( SFHEFC) to raise awareness of the importance of sustainable development in higher and further education institutions
• Funding Forward Scotland's work on skills in the waste and renewables sectors

We will also…

• Consider the recommendations of the FREDS Skills Sub-group
• SFHEFC will encourage Higher and Further Education institutions to make a meaningful contribution to the UN Decade of Education for Sustainable Development
• Continue working with Energy and Utility Skills on their functional and occupational mapping of the waste and renewable energy sectors, and on their labour market investigation of the waste management sector
• Continue to work closely with Futureskills Scotland
• Careers Scotland will highlight emerging opportunities within the labour market when supporting individuals in planning their careers

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