Job creation in a low carbon transition to renewables and energy efficiency: a review of international evidence

Abstract

In this paper, we present findings from a systematic review on job creation, quality, and skills, focusing on decarbonisation in the energy sector. We compare a range of gross job employment factors which indicate that overall, investment in renewable energy and energy efficiency can deliver more jobs than gas or coal power generation. In addition, we review a subset of recent studies which estimate the net employment effects of decarbonisation in the energy sector at a national scale, across various international contexts. These national studies largely agree that the most likely outcome over the next few decades is a modest net positive creation of jobs and moderate economic growth. In certain regions within these countries, jobs in fossil fuel industries may be lost faster than the pace at which low carbon energy sectors can offer new employment. There may be mismatches between regions where displaced workers live and where new opportunities become available, which may be a barrier to accepting alternative employment even if former workers have the requisite skills. In these cases national government transition plans are recommended, coordinated with local governments, to manage the impacts of displacement from carbon-intensive sectors and respond to the need to build a new low carbon workforce including through skills development and training. We highlight a lack of metrics and data in the literature on job quality, skills, and the geographic distribution of employment impacts in decarbonising energy systems, and these should be priority areas for further research.