2024 | Richard Hanna, Philip Heptonstall, Robert Gross
This review article examines the impact of a low carbon energy transition on job creation, quality, and skills, focusing on renewable energy and energy efficiency. It compares the job creation potential of renewable energy and energy efficiency with that of fossil fuel-based energy generation. The findings suggest that investment in renewable energy and energy efficiency can create more jobs than fossil fuel-based energy generation. However, there may be regional mismatches between areas where displaced workers live and where new opportunities become available, which could hinder the acceptance of alternative employment even if former workers have the necessary skills. National government transition plans, coordinated with local governments, are recommended to manage the impacts of displacement from carbon-intensive sectors and to build a new low carbon workforce through skills development and training. The review highlights a lack of metrics and data on job quality, skills, and the geographic distribution of employment impacts in decarbonising energy systems, which should be priority areas for further research. The review also finds that the net employment effects of decarbonisation in the energy sector are likely to be modestly positive over the next few decades, with some regions experiencing job losses in fossil fuel industries faster than new opportunities in low carbon sectors. The review also considers the economic impacts of net job creation or destruction at a national or regional scale, finding that renewables and energy efficiency can generate more jobs than fossil fuels for the same level of investment. However, the long-term economic benefits of supporting a low carbon energy transition are not automatically guaranteed, and careful planning is needed to ensure that displaced workers can transition to new roles in low carbon sectors. The review also finds that the economic impacts of a low carbon energy transition can vary depending on the extent to which new and displaced energy sectors utilise labour within or outside a given country. Overall, the review suggests that a low carbon energy transition can contribute to economic growth and resilience, but careful planning and policy support are needed to manage the transition and ensure that workers are supported in their transition to new roles.This review article examines the impact of a low carbon energy transition on job creation, quality, and skills, focusing on renewable energy and energy efficiency. It compares the job creation potential of renewable energy and energy efficiency with that of fossil fuel-based energy generation. The findings suggest that investment in renewable energy and energy efficiency can create more jobs than fossil fuel-based energy generation. However, there may be regional mismatches between areas where displaced workers live and where new opportunities become available, which could hinder the acceptance of alternative employment even if former workers have the necessary skills. National government transition plans, coordinated with local governments, are recommended to manage the impacts of displacement from carbon-intensive sectors and to build a new low carbon workforce through skills development and training. The review highlights a lack of metrics and data on job quality, skills, and the geographic distribution of employment impacts in decarbonising energy systems, which should be priority areas for further research. The review also finds that the net employment effects of decarbonisation in the energy sector are likely to be modestly positive over the next few decades, with some regions experiencing job losses in fossil fuel industries faster than new opportunities in low carbon sectors. The review also considers the economic impacts of net job creation or destruction at a national or regional scale, finding that renewables and energy efficiency can generate more jobs than fossil fuels for the same level of investment. However, the long-term economic benefits of supporting a low carbon energy transition are not automatically guaranteed, and careful planning is needed to ensure that displaced workers can transition to new roles in low carbon sectors. The review also finds that the economic impacts of a low carbon energy transition can vary depending on the extent to which new and displaced energy sectors utilise labour within or outside a given country. Overall, the review suggests that a low carbon energy transition can contribute to economic growth and resilience, but careful planning and policy support are needed to manage the transition and ensure that workers are supported in their transition to new roles.