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Clean Energy Jobs Surge Amid Global Energy Transition Challenges: IEA Report 2024

Source：solarquarter

The International Energy Agency (IEA) has released its “World Energy Employment 2024” report, which presents a comprehensive look at global energy employment trends, highlighting growth in clean energy jobs despite challenges. In 2023, the energy sector added around 2.5 million jobs, bringing the total to over 67 million. This growth rate of 3.8% outpaced the global average of 2.2%, driven by record investments in energy, spurred by a global energy crisis. Clean energy sectors led the way, accounting for a significant portion of new jobs, with solar photovoltaic (PV) adding half a million positions. However, fossil fuel sectors also saw employment growth, with oil, gas, and coal adding about 940,000 jobs, especially in regions like the Middle East, where fossil fuels represented 80% of energy job gains.

Investment in clean energy, reaching new highs, has been a critical driver, with the sector seeing a 10% increase in 2023, while fossil fuel investments grew by 9%. This rise in clean energy employment was concentrated in solar PV, electric vehicles (EVs), and energy storage technologies. These sectors not only added jobs but contributed substantially to economic growth, with clean energy now accounting for a large share of GDP growth in countries like China, where 90% of energy job growth came from clean sectors. However, a significant barrier remains in emerging and developing economies, which have not attracted as much clean energy investment due to challenges like infrastructure deficits, limited skills, and insufficient manufacturing bases.

The report highlights China’s role as a leader in clean energy employment, accounting for 68% of global EV and 84% of solar PV jobs. India and North America followed in job growth, with clean energy sectors representing around 10% of new jobs across several major economies. The transition also means that clean energy employment is expected to increase even further, driven by governmental policies supporting renewable technologies and sustainable development goals.

Skills shortages are a growing challenge, as the need for a specialized workforce becomes apparent. The report identifies that the clean energy industry increasingly requires technical skills, such as those needed for installing and maintaining new technologies. Labor shortages, particularly for roles like solar PV installation, have prompted companies to invest more in training. For instance, many companies now offer on-the-job training to address skill gaps, with firms in the U.S. and Europe leading this trend. Furthermore, the aging workforce in regions like Europe has worsened the skills gap, with an average worker age of over 50 in sectors like electro-engineering, exacerbating labor shortages.

Gender disparity in the workforce remains a challenge, but the report notes some progress, especially in solar PV, where women make up about 40% of the workforce. However, in occupations like electrical engineering, women represent less than 3% of workers. Clean energy roles are seen as offering an opportunity to balance gender representation, especially in emerging economies that face challenges in providing equitable employment.

The IEA also projects that job growth in the energy sector will slow slightly in 2024 due to tight labor markets, high interest rates, and geopolitical tensions. The shift toward clean energy is projected to create more employment than it eliminates in fossil fuel sectors, particularly under scenarios that aim for net-zero emissions by 2050. The report underscores the need for proactive policies to manage this transition, including vocational training to prepare workers for a changing energy landscape. Transitioning fossil fuel workers to clean energy roles remains a complex task, with around half of fossil fuel jobs lacking a straightforward pathway to clean energy roles, especially in coal-dependent regions.

The IEA concludes that with adequate planning and collaboration between governments, companies, and educational institutions, the clean energy transition can generate lasting socio-economic benefits. Investments in clean energy have not only driven job growth but also offered avenues to address broader goals such as wage growth, gender balance, and sustainable development. The report emphasizes that continuing investment in training and policies focused on upskilling the workforce will be essential to ensuring that the global shift toward cleaner energy creates inclusive and sustainable employment opportunities.

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