Employment is growing despite crises and challenges, and the increasing use of industrial policy can create more localized supply chains, a new report shows.
Abu Dhabi, United Arab Emirates / Geneva, Switzerland, September 28, 2023 – Global renewable energy employment reached 2022 million in 13,7, an increase of one million since 2021 and up from a total of 7,3 million in 2012, according to a new report from the International Renewable Energy Agency ( IRENA) and the International Labor Organization (ILO). The tenth edition of Renewable Energy and Jobs: Annual Review 2023 is the product of an ongoing collaboration between the two agencies.
The report shows that renewable energy is increasingly attracting investment, leading to job creation in a growing number of countries. But as in previous years, most jobs are concentrated in a few states, particularly China, which accounts for 41 percent of the global total. Brazil, European Union (EU) countries, India and the United States of America (US) were among others. Together they represent the majority of global capacity installations and play a key role in equipment manufacturing, engineering and related services.
Photovoltaic solar energy (PV) was again the largest employer in 2022, it shows annual review , with 4,9 million jobs, more than a third of the total workforce in the renewable energy sector. Hydropower and biofuels had a similar number of jobs as in 2021, around 2,5 million each, followed by wind energy with 1,4 million jobs.
Francesco La Camera, Director General of IRENA, noted that “2022 was another excellent year for renewable energy jobs, amid mounting challenges. Creating many more millions of jobs will require a much faster pace of investment in energy transition technologies. Earlier this month, G20 leaders agreed to accelerate efforts to triple global renewable energy capacity by 2030, in line with our recommendations ahead of COP28. I call on all policymakers to use this momentum as an opportunity to implement ambitious policies that drive the necessary systemic change.”
ILO Director-General Gilbert F. Houngbo said: “To seize the significant opportunities to achieve full, productive and freely chosen employment, social inclusion and decent work for all during these complex transitions, there is a need to develop and implementing specific policies for inclusive macroeconomic growth, sustainable enterprises, skills development, other active labor market interventions, social protection, occupational safety and health and other rights at work, and finding new solutions through social dialogue.”
The quality of jobs is just as important as their quantity, the study notes. To promote social justice, the transition to a cleaner energy future must be fair and inclusive for all; employees, companies and communities. Therefore, coherent and integrated frameworks are indispensable, focusing on wages, occupational safety, health and rights at work, and based on effective social dialogue. The ILO guidelines for a just transition to environmentally sustainable economies and societies provide a central reference point for policymaking and actions in support of a just transition that governments and other stakeholders can build on.
A just and inclusive energy transition must also pursue workforce development and diversity. The report emphasizes the need to expand education and training and increase career opportunities for young people, minorities and marginalized groups. Greater gender equality is also essential. Currently, jobs in the sustainable energy sector are still unevenly distributed between men and women. Currently, solar technology has the best gender balance compared to other sectors: 40 percent of jobs are held by women.
Many countries are showing increasing interest in localizing supply chains and creating jobs domestically, with the support of appropriate industrial policies. This goes hand in hand with a growing desire to reduce uncertainties in the energy supply. China has been successfully pursuing a wide range of these industrial policies for several years. More recently, the EU, India, Japan, South Africa and the US have announced initiatives to boost domestic production. However, countries will need to find ways to combine localization efforts with continued global cooperation as they pursue an ambitious energy transition.
Read here the full report.
