New capacity in renewables and an increase in equipment manufacturing has led to the biggest ever rise in renewable energy jobs in 2023, according to a new report.
The study ‘Renewable Energy and Jobs – Annual Review 2024’ is a joint effort from International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO).
The data shows an increase from 13.7 million in 2022 to 16.2 million, mostly from the solar photovoltaics (PV) sector which is under rapid expansion and supported 7.2 million global jobs.
Close to two-thirds of new global solar and wind capacity, however, were installed in China alone last year and out of the 7.2 million jobs in solar PV, 4.6 million were in China - a dominant PV manufacturer and installer.
China leads with an estimated 7.4 million renewable energy jobs, followed by the EU at 1.8 million, Brazil with 1.56 million, and the United States and India, each with close to one million jobs.
Enabled by significant Chinese investments, Southeast Asia has emerged as an important export hub of solar PV, creating new green jobs enabled by large investments from China.
Liquid biofuels ranked second in the largest number of jobs, followed by hydropower and wind. Brazil topped the biofuels ranks, with Indonesia in second place, with a quarter of global biofuels jobs.
Direct jobs associated with hydropower were estimated to have decreased from 2.5 million in 2022 to 2.3 million due to a deployment slowdown. China, India, Brazil, Vietnam and Pakistan were the industry’s largest employers.
China and Europe lead the way in wind turbine manufacturing and installations, contributing 52 per cent and 21 per cent to the global total of 1.5 million jobs, respectively, while Africa received just a small share of global renewables investments, which translated into a total of 324,000 renewables jobs in 2023, despite immense resource potential.
For regions like Africa, in urgent need of reliable and sustainable energy access, and especially in remote areas, decentralized renewable energy (DRE) solutions – stand-alone systems that are not connected to the utility grids – can both plug the access gap and generate jobs in regions such as Africa which are in desperate need of access to sustainable energy. Removing barriers for women to start entrepreneurship initiatives in DRE can stimulate the sector, improving local economies and energy equity.
This latest edition of the annual review report emphasizes the importance of a people and planet-centred approach to ensure a just and inclusive transition. It calls for a holistic policy framework that prioritizes local value creation, creates decent jobs, and develops collaboration to shape the energy transition.
Francesco La Camera, IRENA Director-General, said: “The story of the energy transition and its socio-economic gains should not be about one or two regions. If we are all to fulfil 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 transitions 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.”
A smooth energy transition requires diverse skills and talents, and policies must support wider workforce diversity and gender equity. While women represent 32 per cent of the renewables total workforce, they continue to hold an unequal share despite the rising number of jobs. Education and training must lead to diverse job opportunities for women, youth, and minority and disadvantaged groups.
Gilbert F. Houngbo, ILO Director-General, said: "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."
