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Sector update: Financial services
Moving up a gear
Scotland has an enviable reputation within the financial services community. Not only is it a major employer that makes a significant contribution to the Scottish economy, it also has an international outward-looking focus.
Companies operating in Scotland are increasingly looking to take their skills and services to a global market. In addition, Scotland’s academia have been at the forefront of supporting and developing the skills required for the financial services sector.
The main professional bodies are also well placed to deliver relevant professional qualifications to an international customer base. As China’s market opens and develops, Scotland, as an integral part of the UK financial services industry, is well placed to support this development.
Scottish Development International in partnership with the financial services industry in Scotland has instigated a bespoke research and development exercise to assess the financial services market in China. Early indications show that many potential opportunities exist in China.
To further validate this exercise, SDI organised two roundtable events both in Shanghai and Hong Kong. These events were hosted by Scotland’s minister for finance and public reform, Tom McCabe.
Representatives from some of the major Scottish and UK financial services companies already op-erating in China participated in the discussions including Royal Bank of Scotland, Martin Currie, Standard Chartered Bank, Standard Life and Royal & Sun Alliance. The aim of the events was to:
• develop a deeper understanding of the opportunities for Scotland’s financial services industry as the market in China opens up fully in line with world trade organisation requirements
• to learn from both Chinese and Scottish key financial services market experts and discuss the development of Scotland’s proposition in China
• engage the ongoing support of key market contacts and invite them to contribute to identifying opportunities for Scotland and Scottish companies
• agree the shape of a planned trade mission in early 2007.
In addition to the events, SDI also met related trade associations in Shanghai and the Shanghai Metropolitan Government to further validate its thinking. SDI is currently assessing all of the information gathered from the roundtable discussions and company visits and the results will be made available in the near future. Mark McMullen
Sector update: Energy
What’s the alternaive
Nicol Stephen writes that Scottish renewables companies are well placed to work with China as China seeks alternatives to coal and oil for its energy needs.
China is the second biggest energy consumer in the world. The country’s demand for energy is so huge that it is opening at least one new coal-fired power station every month. The Chinese government know that this cannot be sustained. They know that China – and the world – need to move increasingly towards renewable sources of energy. They aim to achieve 10 per cent of total energy consumption (60GW) across China coming from renewables by 2010, rising to an astonishing 300GW by 2020.
China therefore represents a tremendous market opportunity for renewable energy providers and innovators. Scotland is the home to many of those providers and innovators. In October I travelled to Beijing to help make connections – mutually beneficial to both countries.
In October, for the first time ever, Scottish renewables companies exhibited in China, at the Great Wall World Renewable Energy Forum. As a speaker at that conference I was able to promote our achievements in Scotland to an international audience which included a wide group of Chinese decision-makers.
I explained that – like China – onshore wind and hydro provide the vast majority of Scotland’s current renewables output. But I also explained that the key to meeting and exceeding targets is developing a diverse mix of technologies, including new technologies in which Scotland has an edge.
I was able to tell them that Scotland can help China get clean energy and the technologies which can help drive economic growth. They were interested to hear that the country that had given the world the television, the telephone and Dolly the sheep was also responsible for world-class renewables projects.
The massive offshore wind turbines being deployed by Talisman and Scottish and Southern Energy in deep water off the Beatrice oilfield is a world first in deep water wind environment. The PURE renewable hydrogen project operating in the island of Unst – particularly important in remote communities – is potentially very relevant to China. Ocean Power Delivery’s Pelamis – the world’s first commercial operating wave energy generator – is a Scottish-manufactured export to Portugal this year which I am determined to see in Scotland’s waters next summer.
These developments are in addition to achievements in onshore wind. We currently have the largest operating windfarm in the United Kingdom at Black Law. We have started to build what will be the largest wind farm in Europe at Whitelee. And we also have companies like Renewable Devices that specialise in micro-renewables. In a large country with a dispersed population such as China they have huge potential.
I met with the Chinese National Development and Reform Commission (NDRC). The NDRC – the body responsible for the design of China’s energy structure – was genuinely interested in what we are doing in Scotland. Details were exchanged and doors were pushed open. I am certain that the outcome of these discussions will be greater opportunities for research collaboration between the countries.
I also met with China’s vice-minister of science and technology, Shang Yong. Mr Shang was so impressed with Scotland’s achievements that he suggested the establishment of a joint Scotland/China fund to take forward research and development. This could offer a big benefit for Scotland and is something we will actively pursue.
Scottish officials are now in discussion with their Chinese counterparts about how the scheme will develop and operate.
Scotland is not China but we face the same challenges. As the Stern report made clear, climate change threatens the world. China has no choice but to turn towards renewable sources of energy production. Where they do have a choice is in how they make that difference.
Scotland has the technology and the expertise to help transform China’s renewables energy landscape. In Beijing in October, we made the case for Scotland’s contribution.
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