2023 saw the highest ever increase in renewable energy jobs, from 13.7 million in 2022 to 16.2 million, according to the newly released Renewable Energy and Jobs – Annual Review 2024 by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO).
This 11th edition of the Annual Review is the 4th edition developed in collaboration with the International Labour Organization (ILO).
The joint report underscores the importance of a people- and planet-centered approach to achieve a just and inclusive transition and is part of IRENA’s extensive analytical work on the socio-economic impacts of a renewables-based energy transition.
Record year-on-year renewable jobs growth
The report finds that 2023 saw the highest-ever increase in renewable energy jobs, from 13.7 million in 2022 to 16.2 million. The 18 percent year-on-year (yoy) leap reflects the strong growth of renewables generating capacities, together with a continued expansion of equipment manufacturing.
However, a closer look at the report’s data shows an uneven global picture. Almost two-thirds of new global solar and wind capacity were installed in China last year.
China leads with an estimated 7.4 million renewable energy jobs or 46 percent of the global total.
The EU followed suit with 1.8 million, Brazil with 1.56 million, and the United States and India, with almost 1 million jobs each.
Solar PV and China dominate
As in the past few years, the strongest impetus came from the rapidly growing solar photovoltaics (PV) sector, which supported 7.2 million jobs globally.
Of these, 4.6 million jobs were found in China, the dominant PV manufacturer and installer. Enabled by significant Chinese investments, Southeast Asia (SEA) has emerged as an important export hub of solar PV, creating jobs in the region.
Liquid biofuels had the second-largest number of jobs, followed by hydropower and wind. Brazil topped the biofuels ranks, accounting for one-third of the world’s 2.8 million jobs in this sector.
Soaring production put Indonesia in second place, with a quarter of global biofuel jobs.
Due to a slowdown in deployment, hydropower became an outlier to the overall growth trend, with the number of direct jobs estimated to have shrunk from 2.5 million in 2022 to 2.3 million. China, India, Brazil, Vietnam, and Pakistan were the largest employers in the industry.
In the wind sector, China and Europe remain dominant. As leaders in turbine manufacturing and installations, they contributed 52 percent and 21 percent to the global total of 1.5 million jobs, respectively.
Africa lags in renewable investments and jobs
Despite immense resource potential, Africa continues to receive only a small share of global renewables investments, which translated into a total of 324,000 renewables jobs in 2023.
For regions in urgent need of reliable and sustainable energy access like Africa, especially in remote areas, decentralized renewable energy (DRE) solutions – stand-alone systems not connected to the utility grids – present an opportunity to plug the access gap and generate jobs.
Removing barriers for women to start entrepreneurship initiatives in DRE can stimulate the sector, and improve local economies and energy equity.
The story of the energy transition and its socio-economic gains should not be about one or two regions. If we are all to fulfill our collective pledge to triple renewable power capacity by 2030, the world must step up its game and support marginalized regions in addressing barriers impeding their transition progress. Strengthened international collaboration can mobilize increased finance towards policy support and capacity building in countries that are yet to benefit from renewables job creation, commented Francesco La Camera, Director-General of IRENA.
Workforce diversity and gender equity needed
To meet the energy transitions’ growing demand for diverse skills and talents, policies must support measures in favour of greater workforce diversity and gender equity.
Representing 32 percent of the renewables total workforce, women continue to hold an unequal share even as the number of jobs keeps rising.
Both IRENA and ILO emphasize that it “is essential that education and training lead to diverse job opportunities for women, youth, and members of minority and disadvantaged groups.”
Investing in education, skills, and training helps reskill all workers from fossil fuel sectors, address gender or other disparities, and prepare the workforce for new clean energy roles. It is essential if we are to equip workers with the knowledge and skills that they need to get decent jobs and to ensure that the energy transition is a just and sustainable one. A sustainable transition is what the Paris Agreement requires of us, and what we committed to achieving when we signed up to the Agreement, explained Gilbert F. Houngbo, Director-General, ILO.
