The global renewables industry could be providing more than 40 million jobs by 2050, according to a new report from the International Renewable Energy Agency (Irena). Renewable energy currently employs 11 million people around the world, according to Irena estimates.
Entitled ‘Measuring the socio-economics of transition: Focus on jobs’, the report offers detailed insights on how the energy transition will impact employment at both global and regional levels. The analysis highlights the potential of regional disparities in job creation with job gains in some parts of the world outpacing losses in others. The identification of policies to balance the impact of the transition while maximising the socioeconomic opportunities is noted as key.
IRENA Director-General Francesco La Camera spoke of the importance of the Agency’s work to understand the socioeconomic benefits associated with the energy transition. “Everybody is talking about a just transition but not many know how to make it happen. We all have to work on this subject to present a clear voice that supports an inclusive transition. “As the energy transition picks up speed and decentralised technologies permit better energy access and productive use, renewable energy could employ more than 40 million people by 2050, with additional jobs in energy efficiency and grid modernisation,” said the report statement. “Furthermore, the shift to electric or hybrid cars will create jobs and demand for new skills as well.
In contrast, recent ONS employment figures show that the UK is home to more "green-collar" jobs than in 2015, but fewer than in 2014. Published last week, the Office for National Statistics’ (ONS) low-carbon and renewable energy economy figures for 2018 reveal overall, but not sizeable, growth in the sector since 2015.
The analysis covers businesses involved in renewable energy generation and distribution, and the manufacturing of carbon-saving products, stating that annual turnover in this space increased by £6.2bn between 2015 and 2018. It reveals that the biggest drivers of turnover (36%) and employment (51%) within the sector were energy-efficient products. In terms of exports, the biggest contributor to turnover was found to be low-emission vehicles, despite challenges to UK manufacturing as a result of factors such as Brexit and slow legislation changes.
As for jobs, the analysis states that employment in the UK’s low-carbon and renewable energy economy was equivalent to 224,800 full-time jobs in 2018, up from 200,800 in 2015.
But previous figures from the ONS claimed that there were 235,900 full-time jobs in the sector in 2014, meaning that there has, overall, been a slight decrease in employment in the sector over the past six years.
It has been suggested that the fall in employment relative to 2014 is linked to cuts to the solar power subsidies, which hit in 2015.
The Department for Business, Energy and Industrial Strategy (BEIS) claims that the ONS figures for 2014 were “distorted” and that employment in the sector has continued to rise on a year-on-year basis. BEIS is targeting two million “green-collar” jobs in the UK by 2030 as part of the nation’s 2050 net-zero target.
However, unions have slammed the figures branding the drop “an appalling failure” and suggesting annual progress in creating green jobs is still far too slow. “This is a dreadful record,” said TUC general secretary Frances O’Grady.
“The climate emergency is a major threat to the living standards of British people, but we are making next to no progress in transforming our economy to safeguard our future. “There should be a very good news story to tell. A path has been open to us for a long time now that’s full of opportunities to create good quality green jobs. No more excuses – the government must sit down with unions and businesses to plan a just transition to a fairer greener economy.” Britain’s onshore wind and solar sectors have seen big drops in employment since the controversial withdrawal of government support, according to new official data that unions branded “an appalling failure”.
The number of direct jobs in the onshore wind sector fell from 7,600 in 2015 to 5,500 in 2018, according to the Office of National Statistics (ONS). Solar sector employment also dropped from 9,900 in 2015 to 6,600 in 2018.
Offshore wind is the UK’s one renewables employment bright spot within the ONS figures, showing an increase in the number of full time employees from 3,100 in 2015 to 7,200 in 2018.
