A recent study reveals a remarkable surge in employment within the renewable energy sector, which saw a record high of 16.2 million jobs globally in 2023. The report, “Renewable Energy and Jobs—Annual Review 2024,” published by the International Renewable Energy Agency (IRENA) alongside the International Labour Organisation (ILO), highlights a significant increase from 13.7 million jobs recorded in 2022. This 18 percent year-on-year growth has been attributed to the rapid expansion of renewable energy generation capacity and an uptrend in equipment manufacturing across the globe. The report underscores the vital role of renewable energy as a driver of economic growth and job creation, showcasing its potential to contribute to sustainable development and climate goals.
However, the report also presents a nuanced view of the renewable energy job landscape, revealing stark regional disparities in job creation. China dominates the sector, with approximately 7.4 million renewable energy jobs, accounting for nearly 46 percent of the global total. Following China, the European Union ranks second with 1.8 million jobs, while Brazil, the United States, and India hover around the one-million mark each. This uneven distribution reflects the varying levels of investment and infrastructure in renewable energy technologies across different countries. Notably, the solar photovoltaics (PV) sector has emerged as a significant contributor to job growth, illustrating the ascendancy of solar energy in achieving higher capacity installations worldwide.
A closer examination of the renewable energy sectors reveals that the solar PV industry, in particular, has driven job creation with around 7.2 million jobs globally, of which 4.6 million are located in China. This growth is supported by substantial Chinese investments and has led Southeast Asia to evolve into an essential export hub for solar PV, further enhancing employment opportunities in the region. The liquid biofuels sector also shows promising job statistics, with Brazil leading the market by accounting for one-third of the 2.8 million jobs worldwide. Conversely, the hydropower sector experienced a decline, reducing the number of jobs to 2.3 million, with significant employment still found in Brazil, China, India, Pakistan, and Vietnam.
In the wind energy domain, China and Europe continue to hold substantial market shares, contributing 52 percent and 21 percent, respectively, to the global total of 1.5 million jobs in this sector. Despite the growing potential of renewable resources, regions such as Africa remain underrepresented in this surge, commanding only 324,000 renewable energy jobs as of 2023. The IRENA report suggests that decentralized renewable energy systems could play a crucial role in not just alleviating energy shortages but also in generating job opportunities in remote areas of Africa. This highlights the need for targeted investments to elevate African energy markets and create a more balanced global employment landscape in renewable sectors.
Leadership figures from IRENA and ILO stress the importance of international collaboration and targeted financial support for underrepresented regions. IRENA’s Director-General, Francesco La Camera, emphasizes that achieving the collective goal of tripling renewable power capacity by 2030 necessitates focused efforts to address the barriers that marginalized areas face in transitioning to renewable energy. The ILO’s Director-General, Gilbert Houngbo, reinforces the critical need for investment in education, skills training, and reskilling workers from fossil fuel sectors to facilitate a just transition to clean energy roles.
Such initiatives not only aim to reduce current employment disparities but are also crucial in ensuring that the workforce is prepared for jobs created by the clean energy transition. By equipping individuals with necessary skills and fostering inclusive growth, the renewable energy sector can align with broader social and environmental goals. The Paris Agreement further mandates that such transitions be sustainable and equitable, thus, establishing the groundwork for a resilient labor market that can support future advances in innovative energy solutions. The pathway to a greener economy and workforce hinges on these essential commitments and collaborative efforts on a global scale.
