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Finding common

ground for a just

energy transition

Labour and employer perspectives

Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced,

printed and/or stored, provided that appropriate acknowledgement is given of the author(s) as the

source and IRENA as the copyright holder. Material in this publication attributed to third parties may be

subject to separate terms of use and restrictions, and appropriate permissions from these third parties

may need to be secured before any use of such material.

ISBN: 978-92-9260-536-0

Citation: IRENA Coalition for Action (2023), Finding common ground for a just energy transition:

Labour and employer perspectives, International Renewable Energy Agency, Abu Dhabi.

About the Coalition

The IRENA Coalition for Action brings together leading renewable energy players from around the

world with the common goal of advancing the uptake of renewable energy. The Coalition facilitates

global dialogue between the public and private sectors to develop actions to increase the share of

renewables in the global energy mix and accelerate the energy transition.

About this paper

This brief was developed jointly by members of the Coalition’s Working Group on Sustainable Energy

Jobs. It builds on exchanges and discussions among labour unions and employers that took place during

a series of webinars on a just transition. This paper is also informed by perspectives from more than a

dozen trade unions covering Asia-Pacific, Africa, Europe, the Middle East, and the Americas that were

interviewed under the Chatham House rule.

Acknowledgements

Contributing authors: Giedre Viskantaite (IRENA), and Kelly Rigg (IRENA consultant) under the

guidance of Rabia Ferroukhi (Director, IRENA Knowledge, Policy and Finance Centre). Beneficial

input, support and reviews were provided by Celia García-Baños, Diala Hawila, Paul Komor, Divyam

Nagpal, Bishal Parajuli, Ilina Radoslavova Stefanova, Faran Rana, Mirjam Reiner, Michael Renner and

Gondia Sokhna Seck (IRENA).

Case studies and additional reviews were provided by: Nils Askær-Hune (Ørsted), Ibtissem Hammi

(Enel Green Power), Reshmi Ladwa (GWEC), Marta Martinez Sanchez (Iberdrola), Andrea Real Ruiz

(Acciona), and Esther Wanza (Raynow Energy).

Valuable reviews and inputs were also provided by: Irene Giner-Reichl (GWNET), Moustapha Kamal

Gueye, Marek Harsdorff, and Camila Pereira Rego Meireles (ILO), Namiz Musafer (Integrated Development

Association Kandy), Robert Marinkovic (IOE), Bert de Wel (ITUC) and Hannibal Tesfahunegn (Power for All).

The IRENA Coalition for Action would also like to express its gratitude to all the labour union and

employer representatives who participated in the events and discussions that informed this brief.

This report was edited by Justin French-Brooks and designed by Richard Kubicz.

Disclaimer

This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA

and the IRENA Coalition for Action to verify the reliability of the material in this publication. However, neither

IRENA, the IRENA Coalition for Action, nor any of its officials, agents, data or other third-party content providers

provides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any

consequence of use of the publication or material herein.

The information contained herein does not necessarily represent the views of all Members of IRENA or Members of the

Coalition. Mentions of specific companies, projects or products do not imply any endorsement or recommendation.

The designations employed and the presentation of material herein do not imply the expression of any opinion on

the part of IRENA or the IRENA Coalition for Action concerning the legal status of any region, country, territory,

city or area or of its authorities, or concerning the delimitation of frontiers or boundaries.

All images in this report were generated using Midjourney AI - ©WeDoDesign.fr

Contents

Figures 04

Boxes 04

Abbreviations 05

EXECUTIVE SUMMARY 06

INTRODUCTION 08

SECTION 1: AN ENERGY TRANSITION THAT WORKS

FOR PEOPLE AND THE PLANET 10

1.1 Implications of the transition for the world of work 11

1.2 Avoiding misalignments between jobs lost and jobs gained 12

1.3 A just transition for workers and communities 13

1.4 New development models compatible with climate,

ecological and social sustainability 23

SECTION 2: CREATING DECENT JOBS 24

2.1 Ensuring decent jobs means that all voices must be heard:

Social dialogue and participation 26

2.2 Working with dignity and fairness:

Fundamental human and labour rights 28

SECTION 3: BUILDING THE WORKFORCE OF THE FUTURE 30

3.1 Skills, education, and training 31

3.2 Workforce diversity 34

SECTION 4: MOBILISING FINANCE FOR A JUST ENERGY TRANSITION 42

RECOMMENDATIONS 47

REFERENCES 50

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FindingcommongroundforajustenergytransitionLabourandemployerperspectives2©IRENA2023Unlessotherwisestated,materialinthispublicationmaybefreelyused,shared,copied,reproduced,printedand/orstored,providedthatappropriateacknowledgementisgivenoftheauthor(s)asthesourceandIRENAasthecopyrightholder.Materialinthispublicationattributedtothirdpartiesmaybesubjecttoseparatetermsofuseandrestrictions,andappropriatepermissionsfromthesethirdpartiesmayneedtobesecuredbeforeanyuseofsuchmaterial.ISBN:978-92-9260-536-0Citation:IRENACoalitionforAction(2023),Findingcommongroundforajustenergytransition:Labourandemployerperspectives,InternationalRenewableEnergyAgency,AbuDhabi.AbouttheCoalitionTheIRENACoalitionforActionbringstogetherleadingrenewableenergyplayersfromaroundtheworldwiththecommongoalofadvancingtheuptakeofrenewableenergy.TheCoalitionfacilitatesglobaldialoguebetweenthepublicandprivatesectorstodevelopactionstoincreasetheshareofrenewablesintheglobalenergymixandacceleratetheenergytransition.AboutthispaperThisbriefwasdevelopedjointlybymembersoftheCoalition’sWorkingGrouponSustainableEnergyJobs.Itbuildsonexchangesanddiscussionsamonglabourunionsandemployersthattookplaceduringaseriesofwebinarsonajusttransition.ThispaperisalsoinformedbyperspectivesfrommorethanadozentradeunionscoveringAsia-Pacific,Africa,Europe,theMiddleEast,andtheAmericasthatwereinterviewedundertheChathamHouserule.AcknowledgementsContributingauthors:GiedreViskantaite(IRENA),andKellyRigg(IRENAconsultant)undertheguidanceofRabiaFerroukhi(Director,IRENAKnowledge,PolicyandFinanceCentre).Beneficialinput,supportandreviewswereprovidedbyCeliaGarcía-Baños,DialaHawila,PaulKomor,DivyamNagpal,BishalParajuli,IlinaRadoslavovaStefanova,FaranRana,MirjamReiner,MichaelRennerandGondiaSokhnaSeck(IRENA).Casestudiesandadditionalreviewswereprovidedby:NilsAskær-Hune(Ørsted),IbtissemHammi(EnelGreenPower),ReshmiLadwa(GWEC),MartaMartinezSanchez(Iberdrola),AndreaRealRuiz(Acciona),andEstherWanza(RaynowEnergy).Valuablereviewsandinputswerealsoprovidedby:IreneGiner-Reichl(GWNET),MoustaphaKamalGueye,MarekHarsdorff,andCamilaPereiraRegoMeireles(ILO),NamizMusafer(IntegratedDevelopmentAssociationKandy),RobertMarinkovic(IOE),BertdeWel(ITUC)andHannibalTesfahunegn(PowerforAll).TheIRENACoalitionforActionwouldalsoliketoexpressitsgratitudetoallthelabourunionandemployerrepresentativeswhoparticipatedintheeventsanddiscussionsthatinformedthisbrief.ThisreportwaseditedbyJustinFrench-BrooksanddesignedbyRichardKubicz.DisclaimerThispublicationandthematerialhereinareprovided“asis”.AllreasonableprecautionshavebeentakenbyIRENAandtheIRENACoalitionforActiontoverifythereliabilityofthematerialinthispublication.However,neitherIRENA,theIRENACoalitionforAction,noranyofitsofficials,agents,dataorotherthird-partycontentprovidersprovidesawarrantyofanykind,eitherexpressedorimplied,andtheyacceptnoresponsibilityorliabilityforanyconsequenceofuseofthepublicationormaterialherein.TheinformationcontainedhereindoesnotnecessarilyrepresenttheviewsofallMembersofIRENAorMembersoftheCoalition.Mentionsofspecificcompanies,projectsorproductsdonotimplyanyendorsementorrecommendation.ThedesignationsemployedandthepresentationofmaterialhereindonotimplytheexpressionofanyopiniononthepartofIRENAortheIRENACoalitionforActionconcerningthelegalstatusofanyregion,country,territory,cityorareaorofitsauthorities,orconcerningthedelimitationoffrontiersorboundaries.AllimagesinthisreportweregeneratedusingMidjourneyAI-©WeDoDesign.fr0302010304ContentsFigures04Boxes04Abbreviations05EXECUTIVESUMMARY06INTRODUCTION08SECTION1:ANENERGYTRANSITIONTHATWORKSFORPEOPLEANDTHEPLANET101.1Implicationsofthetransitionfortheworldofwork111.2Avoidingmisalignmentsbetweenjobslostandjobsgained121.3Ajusttransitionforworkersandcommunities131.4Newdevelopmentmodelscompatiblewithclimate,ecologicalandsocialsustainability23SECTION2:CREATINGDECENTJOBS242.1Ensuringdecentjobsmeansthatallvoicesmustbeheard:Socialdialogueandparticipation262.2Workingwithdignityandfairness:Fundamentalhumanandlabourrights28SECTION3:BUILDINGTHEWORKFORCEOFTHEFUTURE303.1Skills,education,andtraining313.2Workforcediversity34SECTION4:MOBILISINGFINANCEFORAJUSTENERGYTRANSITION42RECOMMENDATIONS47REFERENCES5004FIGURE1:Evolutionofglobalrenewableenergyemploymentbytechnology2012-202111FIGURE2:Jobmisalignments12FIGURE3:Globalprogresstowardsuniversalenergyaccess18FIGURE4:Holisticpolicyframeworks22FIGURE5:Women’sshareintheenergyworkforce34FIGURE6:Sourcesoffunds,intermediaries,instrumentsandpolicies45FiguresBoxesBOX1:ILOjusttransitionguidelines14BOX2:Spaindevelopsjusttransitionagreementsforaffectedregions16BOX3:TheBeyondOilandGasAlliance20BOX4:ØrstedandNABTUpartnership26BOX5:Acciona’ssocialinitiatives27BOX6:Enel“StatutodellaPersona”28BOX7:Skills2Power–buildingskillsintelligenceintheelectricitysector32BOX8:WomeninWind-globalleadershipprogrammeandempoweringthefemaleworkforce35BOX9:SchoolofElectriciansforwomen37BOX10:TheEnergyTransitionEducationNetwork39BOX11:IberdrolaandUNICEFalliance39BOX12:Goodpracticesforyouthinclusion,trainingandqualityjobs–spotlightonEstherWanza40BOX13:PetrochemicalplantsinLouisana,UnitedStates:"CancerAlley"Louisiana41BOX14:Theroleofmultilateralbanksinthejusttransition4605BOGABeyondGasandOilAllianceDFIdevelopmentfinanceinstitutionDREdecentralisedrenewableenergyGWECGlobalWindEnergyCouncilGWNETGlobalWomen’sNetworkfortheEnergyTransitionILOInternationalLabourOrganizationIPCCIntergovernmentalPanelonClimateChangeITUCInternationalTradeUnionConfederationkVkilovoltkWpkilowattpeakNABTUNorthAmerica’sBuildingTradesUnionsNOWANationalOffshoreWindAgreementPPApowerpurchaseagreementSDGSustainableDevelopmentGoalSEJPSustainableEnergyJobsPlatformUNUnitedNationsUNICEFUnitedNationsChildren’sEmergencyFundVETvocationaleducationandtrainingAbbreviationsExecutivesummary07Arapidtransitiontoarenewableenergysystemisimperativeiftheworldistoavoidtheworstimpactsofclimatechange;butajusttransition–wherenooneisleftbehind–iscriticaltomeetjusticeandequitydemandsandensurebroadsocialacceptanceoftheprofoundchangestheenergytransitionentails.Intheshifttowardsarenewables-basedenergysystem,governments,businesses,labourunionsandworkersthemselvesallhavekeyrolestoplaynotonlyinacceleratingtheenergytransition,butalsoinshapinghowitwillunfold.Successwillbepredicatedonapproachingthetransitioninaninclusiveandparticipatoryway,meaningthatitisimportanttogivevoicetoallparticipants.Tothatend,thisbriefpresentslabourunionandemployerperspectivesonajusttransition,andoffersrecommendationsforachievingtheiraimsacrossdifferentgeographies,circumstancesandstartingpoints.Holisticpolicyframeworkstailoredtolocalconditionsmustbeputinplace,asthechallengesareinterconnectedandeachcountryrequiresdifferentapproachesovervariedtimeframes.Morejobswillbecreatedthanlost;however,proactiveeffortsandenablingpoliciesareneededtoaddresspotentiallabourmarketmisalignmentsanddistributionalimpacts,andtoprotectandreskillworkerswholosetheirjobs.Inaddition,givendifferentregionalexperiences,thereisnoone-size-fits-allsolution.Ajusttransitionrequiresdifferentapproachesforregionswithahighdependencyonfossilfuelsascomparedwiththoseinalowenergyaccesssetting.Economicdiversificationiskey,buildingonexistinginfrastructure,skillsandlocalstrengths.Atthesametime,socialequityimperativesmustbeaddressed.Energyisanessentialservice,soitwillbevitaltoensurethatenergyisaffordabletoall,andtolow-incomehouseholdsinparticular.Incountrieswhereenergyaccessislacking,ajusttransitionmustbepursuedwhilesimultaneouslyensuringmodernenergyservicesforall.Ifthetransitionistogainthefullsupportofthelabourmovement,thefocusmustbeonqualitynotjustquantity.Governmentsarefacedwiththechallengeofcreatingtheconditionstogeneratedecentjobsinalow-carboneconomywhilesimultaneouslyprotectingworkers–alongwiththeirfamiliesandthecommunitiesthatdependonthem–asfossilfuel-basedindustriesarephasedout.Socialdialogueshouldplayagreaterroleinshapingenergytransitionlabourpolicy.Thisrequiresthemeaningfulengagementofworkersandlocalcommunities,aswellastheutmostrespectforfundamentalhumanandlabourrightsacrossvaluechains.Also,targetedmeasuresareneededforinformalworkers.Inordertobuildaworkforceforthefuturegreeneconomy,trainingandeducationmustbeadaptedtomeetanticipatedneedsandeffortsmustbeorientedtowardsensuringgreaterworkforcediversityandinclusion.Tomaintainthemomentumofthetransitionandminimisedisruption,itisimportanttoidentifytheskillsthatwillbeneededandadjusteducationandtrainingprogrammestomeettheseevolvingdemands.Beyondpreparingthecurrentworkforceforthetransition,opportunitiesmustbecreatedfortheincreasedparticipationofwomen,ethnicminoritiesandyouth,reflectingthecompositionofoursocietiesandbroadeningthetalentpool.Thetransitionoffersopportunitiesforall,regardlessofbackground,experienceoreducation-whichmayrangefromSTEM(science,technology,engineeringandmathematics)togenericskillsets.Ifgovernments,industry,educationalinstitutionsandtradeunionscollaborateinthiscontext,theoutcomesaremorelikelytobesuccessful.Adequatefinance-includingthroughincreasedinternationalco-operationtodirectinternationalfinancialflowsofpublicfunds-isessentialtoachievingajusttransition.Beyondinvestmentsinenergytransition-relatedtechnologiesandpolicies,fundingshouldflowinto:trainingandeducationtobuildcapacityandensuretheavailabilityofskillstomeetfutureneeds;supportforthedevelopmentoflocalindustries;anddeliveringtherequiredinfrastructure.Proactiveplanningisrequiredsothatfinanceisallocatedtodelivertheresultsmostbeneficialtosociety,includingtoachieveadecisiveshiftawayfrominvestmentinfossilfuelstowardsajusttransitiontorenewablesthatimprovessocio-economicoutcomes.IRENAmodellingresultsreflectbroadinternationalco-operationtoraisegrossdomesticproduct(GDP),employmentandwelfareinnumerouscountries-especiallyindevelopingandemergingeconomieshighlydependentonfossilfuels.Withtherightmeasuresinplace,theenergytransitionpresentsanunprecedentedopportunitytorenderourenergysystemsmoresustainable,equitableandinclusive.Governments,businesses,academiaandcivilsocietygroupsnowmakeroutinereferencesto“leavingnoonebehind”andsimilarphrasesthatemphasisetheimportanceofjustandequitableoutcomestoprofoundsocietalchangessuchastheenergytransition.Thatsuchreferenceshavebecomepartoftheestablishedvocabularyisencouraging;itsignalsagrowingacceptancethattheenergytransitionmustgofarbeyondissuesoftechnologyandcostandmakesocio-economicdimensionsacoreconsideration.However,eventhoughtheconceptofajusttransitionisgainingtractioninclimatepoliciesanddiscussions,itremainstobeseenhowitstenetsareimplementedinpractice.Recentevents,fromtheCOVIDpandemictothecurrentenergycrisis,aswellasperennialconcernsaboutcommunitiestrappedinpovertyintheabsenceofreliableandaffordableenergy,underscorethecloseinterlinkagesbetweenenergy,societiesandeconomies.Thereisaclearneedtotackleclimatechangehandinhandwithjusticeandequityconsiderations.Theinternationalconsensusisthatweneedanenergytransitionthatisjust–greeningtheeconomyinafairandinclusiveway,providingdecentworkandleavingnoonebehind,asdefinedintheJustTransitionGuidelinesoftheInternationalLabourOrganization(ILO).However,amultitudeofapproachesexiststotranslatethisinpractice.Implementationisregion-specificandentailsmanydimensions,suchasfinancing,accessandsocio-economicconsiderations.Theterm“justtransition”originatedwithinthetradeunionmovementmorethan50yearsago,andisrecognisedintheParisAgreement:“Takingintoaccounttheimperativesofajusttransitionoftheworkforceandthecreationofdecentworkandqualityjobsinaccordancewithnationallydefineddevelopmentpriorities...”.Yeteventodayworkersarelargelyexcludedfromprocessesthathavefar-reachingconsequencesfortheirlivelihoods.Introduction09Allthreepillarsofthelabourmarket–workers,includingthoserepresentedbytradeunions;businesses;andgovernments–playacriticalroleineffortstoensurethatthetransitiontoarenewableenergyfutureisinpracticejust,equitableandinclusive.Manytradeunionsintheenergysectorandrelatedindustriessupportaclimate-safeenergytransition(“nojobsonadeadplanet”isafrequentlyheardunionslogan);bbutworkersarealsounderstandablyconcernedaboutthedetailsofhowthetransitionwillunfold.Meanwhile,employersdrivingtheenergytransitionarecallingforalevelplayingfieldandconsistentlong-termpoliciestoenablethecreationofthegreeneconomy,bridgeskillsgapsandmakeajusttransitionacoreconsideration.IRENA’smodellingfindsthatmorenewjobswillbecreatedthanlostbytheenergytransition.Yetsuchmacro-levelfindingsdonotnecessarilymeanthatallaffectedcommunitiesandworkerswillexperienceasmoothtransition,givendisruptivetrendsandvarioustypesofmisalignment(temporal,spatial,sectoralandeducational)inlabourmarketsalongtheway.Inotherwords,jobsgainedwillnotnecessarilyexceedjobslostinanyspecificcommunity.Whilstthenumberofjobscreatedisimportant,theirqualityisalsocriticalforajusttransition.Thisincludesdecentpayandretirementbenefits,occupationalhealthandsafety,overallworkplacepracticesandjobsecurity.Jobsinrenewablesdonotnecessarilypayaswellasthoseinconventionalenergy,particularlyintheminingandutilitysectorswherelabourrepresentationishigherandcollectivebargainingarrangementsaremoreestablished.Also,detaileddataarelacking;muchbetterinformationisneededtoinformdecisionmaking.Theenergytransitionwillhavebroadimpactsonsociety,energyuseandincomeinequalityareinextricablylinked.Energysubsidyreformandcarbonpricingpoliciessuchastaxationwillbeneededtoshiftawayfromfossilfuels–whichtodayaccountfor80%oftheglobalenergysupply–andbringaboutnet-zeroemissionsby2050(IRENA,2022a).Theenergytransition’scostsandbenefitsmustbesharedequitably,avoidingregressivepoliciesthatcouldresultinhigherpricesforlow-incomehouseholdsthatspendalargershareoftheirincomeonenergyandrelatedbasicgoods,suchasfood,housingandtransport.Thegenderperspectiveisalsorelevantaslow-incomehouseholdshaveahigherproportionofwomen.Thecurrentenergycrisishasseencountriesexperienceincreasedsocialdeprivationandinequality,andfacesocialunrestandconflict.Socialequityconsiderationsinenergytransitionpoliciesarekeytogainingpublicsupportandavoidingdelaysandoppositiontoenergytransitionmeasures(ILO,2015).Whiletherearegoodexamplesofjusttransitionpoliciesbeingimplementedbygovernmentstoday,theyremaintoofewandfarbetween.Increasedsocialdialogue–betweengovernments,theprivatesectorandtradeunions–isimperativeasenergy,industrialandclimatepolicyandpublicinvestmentstrategiesarebeingshaped.Between2020and2022,IRENAconsultedwithtradeunionsandenergysectoremployerstounderstandtheirconcernsandinformtheAgency’sworkonajusttransition.Akeyconclusiondrawnfromthisdialogueisthatallvoicesmustbeheard,especiallythoseofworkersandcommunitiesonthefrontlineofthetransitionwhowillbemostaffected.Theobjectiveofthisbriefistocaptureinsightsfromthesediscussionsonhowtheenergytransitioncanunfoldinajustmannerforworkersandcommunities.Thefirstchaptertakesabroadviewoftheenergytransition’simpactsontheworldofworkandhowpolicyframeworksshouldbeadaptedtoanticipatethesenewrealities.Thesecondchapterdissectstheessentialcomponentsofqualityjobsinalow-carbonfuture.Thethirdchapterexaminesthegreenskillsandeducation,trainingandreskillingeffortsneededtobuildtheworkforcepoweringtheenergytransition.Finally,thefourthchapterfocusesonfinanceflowsalignedwithajusttransitionimperative.Thesejusttransitionelementsandenablersareillustratedwithreal-worldexamplesofgovernments,companiesandpeopleturningprinciplesintopractice.Section1Anenergytransitionthatworksforpeopleandtheplanet11Theenergytransitionfromfossilfuel-basedsourcestolow-carbontechnologieswillrequireunprecedentedrestructuringofoureconomies.Industrialisedcountriesbecamewealthyinaneraofcheapandabundantenergyconsistinglargelyoffossilfuels.Virtuallyeveryfacetoftheireconomiesdepended(andstilldoes)insomewayonfossilfuels,whichaccountfor80%oftoday’sglobalenergysupply(IRENA,2023a).Theoilshocksofthe1970scatalysedconcernsabouttherisksofdependingonfossilfuels,butitwasnotuntilthethreatofclimatechangemovedupthepoliticalagendaintheearly1990sthatcallsforarenewableenergytransitionweremadeinearnest.Atthattimetherewaslittleconfidenceinthefeasibilityofarenewableenergyfuture.Inthepastdecade,however,thescaleandspeedatwhichrenewableshavebecomemainstreamhavetakenmanybysurprise.Theadditionofnewcapacityhasregularlysurpassedthemostoptimisticprojections.Now,withtheclimateimperativebecomingincreasinglyurgentandthecostofrenewabletechnologiesfalling,thereisnoexcusefordelayingthephase-outoffossilfuels.1.1IMPLICATIONSOFTHETRANSITIONFORTHEWORLDOFWORKIRENAhascarriedoutextensivestudiesonarangeofdifferentaspectsoftherenewableenergytransition,andaspreviouslynoted,oneofitsmostimportantfindingsisthatarenewables-basedeconomywillyieldmorejobsthanarelostbyphasingoutoffossilfuels.Alow-carboneconomywillcreatenewjobsinrenewables,energyefficiency,thecirculareconomyandrelatedsectorsasfossilfuelsarephasedout–yieldinganetincreaseinthenumberofenergysectorjobsoverall.ThenumberofpeopleemployedintherenewableenergysectorhassteadilygrownoverthepastdecadesinceIRENAbeganmonitoringemploymenttrends:from7.3millionin2012,to12.7millionin2021–evenaccountingfortheeconomicdisruptionsresultingfromthepandemic(Figure1)(IRENAandILO,2022).Figure1Evolutionofglobalrenewableenergyemploymentbytechnology2012-20217.38.59.510.010.111.110.511.512.0SolarphotovoltaicTotal201720182019202012.720212016201520142013201214121086420MillionjobsOtherscBioenergyaHydropowerbWindenergySolarheating/cooling1.361.660.750.222.400.892.272.210.830.232.500.502.492.041.030.192.990.762.772.161.080.202.880.943.092.061.160.242.740.833.371.991.150.163.050.813.682.051.160.183.180.803.751.961.170.183.580.823.982.181.250.273.520.824.292.371.370.433.440.77Source:(IRENAandILO,2022).12Toputthisincontext,approximately65millionpeopleareemployedintheenergysectorworldwide;8millionpeopleworkinoilsupply,over6millionincoalsupply,andnearly4millioningassupply(IEA,2022).Atpresent,thesejobsaredistributedunevenlyacrosstheworld.Asmallnumberofcountries,albeitrepresentinglargeproportionsoftheworld’spopulationandeconomy(China,Brazil,India,theUnitedStatesandtheEuropeanUnion)dominatethejobmarketforrenewableenergy.Chinaaloneaccountsfor42%ofthegloballabourmarket(IRENAandILO,2022)AccordingtotheIRENAWorldEnergyTransitionsOutlook(IRENA,2022a),a1.5°C-alignedenergytransitioncouldcreatecloseto85millionadditionalenergytransition-relatedjobsby2030,providingopportunitiesforpeoplewitharangeofskillsandeducationallevels,assumingthenecessarylarge-scaleinvestmentsareundertakenandtherightpolicyframeworksareputinplace,asdetailedinsection4.1.2AVOIDINGMISALIGNMENTSBETWEENJOBSLOSTANDJOBSGAINEDDespitethenetgainofjobsintherenewableenergytransition,therecouldbesignificanttemporal,spatial,sectoralandeducationalmisalignments(Figure2).Thephase-outofcoalalonecouldleadtothelossof12millionfossilfueljobs,ashiftthatposeschallengesforaffectedworkers,communities,businessoperatingthoseassetsandinvestorscountingonthereturns(IRENA,2020a).Intheshorterterm,challengesincoalregionsthatcurrentlyemploylargenumbersofworkerswillbeespeciallysignificantasitisunlikelythatthejobsincoalwillbedirectlyreplacedwithjobsinrenewableenergy.Educationandtrainingprogrammescancertainlyhelp,butneedtobepairedwithconsistent,smoothplanningtoavoidboomandbustcycles,increasingaccesstofinanceandtraining,adequateindustrialpolicymakingandstrongersocialprotectionschemes.Figure2JobmisalignmentsTemporal.Thecreationofnewjobsdoesnotnecessarilytakeplaceonthesametimescaleasthelossofemployment.Spatial.Newjobsarenotnecessarilybeingcreatedinthesamelocations-communities,regionsorcountries-wherelossesoccur.Sectoral.Jobgainsandlossesmayaectdierentsectorsoftheeconomy,givendierentsupply-chainstructuresanddivergingsetsofinputsbetweenrisinganddecliningindustries.Educational.Theskillsassociatedwithvanishingjobsdonotalwaysmatchthoserequiredbyemergingjobs.43124312TemporalSectoralSpatialEducationalSource:(IRENA,2020b).Avoidingwidespreadmisalignmentswillrequiregovernmentstoadoptpolicyandregulatoryframeworksattunedtothetransition.Economicdiversificationwillbekey,buildingonexistinginfrastructure,skillsandlocalstrengths.Policieswillneedtobeaimedatupskillingandretrainingtheexistingworkforce,andequippingworkers(currentandfuture,includingyoungwomenandmen)withtheskillstomeetfuturedemands,amongothermeasures(IRENA,2022a).13Section1Anenergytransitionthatworksforpeopleandtheplanet1.3AJUSTTRANSITIONFORWORKERSANDCOMMUNITIESILOJustTransitionGuidelines(seeBox1)werenegotiatedataTripartiteMeetingofExpertsandthenapprovedbytheTripartiteconstituenciesin2013,includingthe186ILOmemberStates.TheywereincorporatedintolaterUNagreementsandarereflectedintheParisAgreementandsubsequentUNFCCCdecisions.Accordingtotheseguidelines,ajusttransitionmeansgreeningtheeconomyinawaythatisasfairandinclusiveaspossibletoeveryoneconcerned,creatingdecentworkopportunitiesandleavingnoonebehind(ILO,2015).Givendifferentregionalcircumstances,perceptionsandinterests,thereisno‘onesizefitsall’approachtoimplementingtheguidelines(and,asdiscussedinSection4,thiscanbeabarriertofinance).Mostcriticalformanyistheconceptofinclusivity-especiallyofworkersandcommunitiesonthefrontlinesofthetransition,whoshouldbeinvolvedearlyandthroughouttheprocess.Broadly,ajusttransitionrequiresthatbenefitsbesharedwidelyandequitablyandthattheburdensofadjustmentbeminimisedbothduringthetransitionprocessandinthefinalresult.In2019,IRENA,ILOandseveralinternationalpartnerslaunchedtheSustainableEnergyJobsPlatform(SEJP)tohelpaccelerateprogresstowardsajusttransition.TheSEJPeventuallybecameaworkinggroupundertheIRENACoalitionforAction.In2020morethanadozentradeunionscoveringAsia-Pacific,Africa,Europe,theMiddleEastandtheAmericaswereinterviewed(undertheChathamHouserule)tobetterunderstandandintegratethelabourperspectiveintotheplatform’sstrategy.In2022theIRENACoalitionforActionhostedthreewebinars:thefirstexploredjusttransitionissuesfromatradeunionperspective;thesecondfromanemployer’sperspective;whilstthethirdbroughtbothgroupstogethertodiscusscollectivechallengesandsolutions.Inaddition,in2021IRENAestablishedtheCollaborativeFrameworkonJustandInclusiveEnergyTransition.Theframeworkaimstobringcountriesandotherrelevantstakeholderstogethertoidentifypriorityareasandconcreteactionsandfosterinternationalcollaborationtounderstandhowtopromoteandsupportajustandinclusiveenergytransition.Co-chairedcurrentlybytheUnitedStatesandSouthAfrica,thegrouphasfocusedonexploringthevariousaspectsofequityandinclusionintheenergytransition.HarnessingthesynergiesbetweentheCoalitionforActionandtheCollaborativeFramework,theco-facilitatorsprovidedinputstotheexchangesduringwebinars.Thissectionreflectsthefindingsofthesecollaborationsandconsultations.14BOX1ILOJUSTTRANSITIONGUIDELINESIn2015aTripartiteMeetingofExpertsgatheredundertheauspicesoftheILOandadoptedasetofnon-bindingguidelinestoassistgovernmentsandsocialpartnersintheformulation,implementationandmonitoringofjusttransitionpolicyframeworks.ThedocumentsetsoutavisionfoundedonthefourpillarsoftheDecentWorkAgenda:socialdialogue,socialprotection,rightsatworkandemployment.Ithascometoserveasthecentralreferenceforanyoneworkingonthetransitiontoenvironmentallysustainableeconomiesandsocieties.Theguidelinesare:(a)"Strongsocialconsensusonthegoalandpathwaystosustainabilityisfundamental.Socialdialoguehastobeanintegralpartoftheinstitutionalframeworkforpolicymakingandimplementationatalllevels.Adequate,informedandongoingconsultationshouldtakeplacewithallrelevantstakeholders.(b)Policiesmustrespect,promoteandrealisefundamentalprinciplesandrightsatwork.(c)Policiesandprogrammesneedtotakeintoaccountthestronggenderdimensionofmanyenvironmentalchallengesandopportunities.Specificgenderpoliciesshouldbeconsideredinordertopromoteequitableoutcomes.(d)Coherentpoliciesacrosstheeconomic,environmental,social,education/trainingandlabourportfoliosneedtoprovideanenablingenvironmentforenterprises,workers,investorsandconsumerstoembraceanddrivethetransitiontowardsenvironmentallysustainableandinclusiveeconomiesandsocieties.(e)Thesecoherentpoliciesalsoneedtoprovideajusttransitionframeworkforalltopromotethecreationofmoredecentjobs,includingasappropriate:anticipatingimpactsonemployment,adequateandsustainablesocialprotectionforjoblossesanddisplacement,skillsdevelopmentandsocialdialogue,includingtheeffectiveexerciseoftherighttoorganiseandbargaincollectively.(f)Thereisno‘onesizefitsall’.Policiesandprogrammesneedtobedesignedinlinewiththespecificconditionsofcountries,includingtheirstageofdevelopment,economicsectors,andtypesandsizesofenterprises.g)Inimplementingsustainabledevelopmentstrategies,itisimportanttofosterinternationalco-operationamongcountries.Inthiscontext,werecalltheoutcomedocumentoftheUnitedNationsConferenceonSustainableDevelopment(Rio+20),includingSectionVIonmeansofimplementation."Source:(ILO,2015).Labourperspectives“Thetransitionwillrequirecompletelydifferentjobs.Fromanenvironmentalperspective,thetransitionwillbebeneficialforeveryone.Butwherewillthenewjobsbecreated?Notintheenergysector.Awindfarmdoesn’tneedworkers.Itneedsbuilders,chemicalfactoryworkers,mechanicalengineerstomakemotors.Oncetheinstallationiscompletetherearenoworkers.Onepersonisinchargeofmaintenance,anotherpersonissittinginfrontofacomputermonitoringeverything.Thesameistruewithsolar.Therearemineralmaterialssuchaslithiumandcobalt.Chemicalliquids.Sowhathappenstoallofthesepeopleintheextractionindustries,whoworkonoilandgasplatforms,whoworkintherefineries?Thisiswhyweneedajusttransition.”(Tradeunioninterviewee,2020).Astheworldofworkisprofoundlymodifiedbytheenergytransition,newchallengesandopportunitieswillcontinuetoemerge.Thechallengeliesinensuringthatthetransitionisdeliveringdecentjobsforworkersmovingoutoffossilfuelindustries,withdifferenttasksintheminingsectorandinutilities.15Section1AnenergytransitionthatworksforpeopleandtheplanetAccordingtotheInternationalTradeUnionsConfederation(ITUC):“Forenergysectorworkersinmostoilandgasproducingcountries,thereisnosocialdialogueaboutJustTransition,climatetargetsandthefuture.Someemployersandgovernmentshavecreatedtheirownversionsof“justtransition”thatdonotinvolveworkersandtheirrepresentatives.MosthavenotinvolvedunionsindevelopingdecarbonisationplansorinplansforJustTransition.”(ITUC,LONorway,IndustriAll,2022)Anotherissueariseswithregardtotheneedtoavoidprecariousemploymentinrenewableenergyindustries,wherejobqualityandoccupationalhealthandsafetyvarytremendouslybetweensectorsandregions.Atthesametime,thereareopportunitiestoaddresshistoricalinjusticesandincludeandempowermarginalisedgroups.Someofthemostimportantfindingsfromtheconsultationsaresummarisedhere:•Strongerconsensus.Moreeffortisrequiredtobuildastrongerconsensuswith,andwithin,thelabourmovementthatbetteralignstheclimateagendaandtheinterestsofworkers.Whilemanytradeunionsinenergyandotherindustriessupportthisvision(“nojobsonadeadplanet”isafrequentlyheardunionslogan),itisnotaforegoneconclusionthatalldo.Manyworkersclingtothefossilfuelindustry–forjobandfinancialsecurity,especiallyintheabsenceofcomprehensivestrategiestoensuredecent,well-payingalternativejobsandasolidsafetynet.•Socialdialogue(discussedfurtherbelow).Thisisthekeytoensuringlabourinterestsareheardandaddressed.AsnotedintheILOJustTransitionGuidelines:“Socialdialoguehastobeanintegralpartoftheinstitutionalframeworkforpolicy-makingandimplementationatalllevels.Adequate,informed,andongoingconsultationshouldtakeplacewithallrelevantstakeholders.”Unfortunately,thisisstilltheexceptionratherthantherule.Solutionsbuiltoncommongroundaspartoftransparent,inclusiveprocesseswillbefarmorelegitimateanddurable,andthereforefarmorelikelytosucceed.•Localvaluecreation.Astheenergytransitionentailsimprovingenergyefficiencyandmovingtomoredecentralisedrenewableenergysystems,inmanycasestherewillbenewopportunitiesforlocaljobcreationandamoreequitablesharingofbenefits.Homeinsulationandsmall-scaleinstallationsofresidentialsolar,forexample,aremulti-billiondollarindustries,carriedoutlargelybylocalcontractors.Whilethetotalnumberofjobswillincreaseoverthecourseoftheenergytransition,thereareconcernsthat,withtheexceptionoflargeprojects,theyaremorelikelytobenon-union,lower-paid,contract-basedandlesssecure.However,thetendencytowardsgreatertemporaryworkisobservedacrossvarioussectorsglobally(ILO,2022a).Inotherwords,thequalityofjobsisconsideredasimportantasthequantity-itisnotenoughtohaveajob,itneedstobeadecentjobintermsofwages,jobsecurity,socialprotection,andhealthandsafety.Workersinallsectors,formalandinformal,shouldbeentitledtoqualityjobs.•Tailoredstrategies.Thereisno‘onesizefitsall’justtransitionstrategy;country-by-countryactionstrategieswillbeneeded,witheachcountryrequiringadifferentapproachandtimeframedependingonthenatureofitsenergysectorandotherfactors.Strategiesneedtobebasedongoodinformationaroundtheimpactsofdecommissioningfossilfuelsandtheimplicationsforthelossofemploymentandincome,andmustalignwithinternationalagreements.Thisisacomplexprocessthatrequirestimeandplanning.Thatsaid,muchcanbelearnedfromexistingbestpractices,andseveralexampleswereprovidedduringtheconsultationthatcouldserveasmodelsforothercountries,includingGermany,Spain,AustraliaandNigeria.Spainwasreferencedfrequentlyandishighlightedhere,asdescribedinBox2(Institutoparalatransicionjusta,2022).•Internationallabourstandards.Itisimportantthatinternationallabourstandardsareupheldasnewindustriesemerge.Theyhavebeenestablishedbygovernments,employersandworkerstosetoutbasicprinciplesandrightsatwork.Theseprinciplescoverfreedomofassociationandthe16effectiverecognitionoftherighttocollectivebargaining;theeliminationofallformsofforcedorcompulsorylabour;theeffectiveabolitionofchildlabour;andtheeliminationofdiscriminationinrespectofemploymentandoccupation(ILO,2023a).Governmentshavearesponsibilitytoestablishenablingmeasures,whileemployersholdspecialresponsibilityfortheirpracticalimplementation.Bindingplansarerequiredacrossvaluechains,includingforexamplegrievanceproceduresandpreventinghumanrightsabusesormodernformsofslavery.•Occupationalhealthandsafetywithininternationallabourstandardsarealsoimportantconcernsandarenotadequatelyaddressedinmanycountries.Therearegenuinehealthconcernsinsomeemergingareas,forexamplemininginremoteplacesorrecyclingmaterialsthathavetoxiccomponents.Standardsandregulationsneedtobecomplementedwithinspectionsandchecks.“Movingfromthelineareconomytothecirculareconomyishavingabigimpactonworkers.Forexample,collectingwasteandtakingittothelandfillisnotthesameasrecycling–specialskillsarerequired,andweneedtolookathealthandsafetyissues.Thesearenotbeingadequatelyaddressedinmanycountries.Circulareconomypoliciesfocusonanewwayofproduction,butthereisnothinginitregardingaccesstotherightskills,orthatthejobsbeperformedinasafeworkingenvironment.Forexample,whenrecyclinge-waste,workersneedtobesurethatwhentheyopencomputersorotherdevicestheywon’tbeexposedtoharmful,toxicsubstances.Thesameistrueforbiowaste–bacteriaandpathogenscanaccumulate.”(Tradeunioninterviewee,2020)•Funding.Finally,adequatefundingforimplementingjusttransitionstrategieswasseenasapreconditionforsuccess.ThisisaddressedinmoredetailinSection4.BOX2SPAINDEVELOPSJUSTTRANSITIONAGREEMENTSFORAFFECTEDREGIONSTherenewableenergytransitioninSpainiswellunderwayfollowingdecisionstoclosecoalminesandcoal-firedthermalpowerplantsin2018.InOctoberofthatyeartheFrameworkAgreementforaJustTransitionforCoalMiningandtheSustainableDevelopmentofMiningRegions(2019-2027)wassignedbythegovernment,tradeunionsandminingcompanies,guaranteeingimmediatesupportmeasuresformineworkersandeconomicsupportforminingareas.In2019thegovernmentlaunchedaJustTransitionStrategywithanUrgentActionPlantoaddresstheimpactsoftheclosures.In2020anAgreementforaJustEnergyTransitionforThermalPowerPlantClosureswasreachedbetweenplantowners,tradeunionsandthegovernment,whichprovidedfortherelocationofworkersand/orsupportinfindingalternativeemploymentintheaffectedareas.Alternativeemploymentisbeingfoundthroughrenewableenergyprojectsaswellasotheractivities.Toaddressthesocio-economicimpactsoftheaffectedareas,theSpanishJustTransitionInstitutelaunchedaseriesofJustTransitionAgreementstoguaranteethecommitmentandco-ordinationofnational,regionalandlocalpublicadministrations.Awidearrayofmeasuresisbeingdeployedtoimplementthesecommitmentsandpractice,rangingfromsupportforimpactedworkers(socialassistanceandjobbanks,forexample)topromotingbusinessdevelopmentinadiversified,sustainableeconomy.Moreover,anEnvironmentalRestorationPlanwasputinplaceforareasdegradedbycoalmining,withtheaimofpromotinglocalsocio-economicdevelopment.Ateverystepoftheway,stakeholderconsultationandparticipationhasbeenapriority.17Section1AnenergytransitionthatworksforpeopleandtheplanetEmployerperspectives“Ajusttransitionisaboutchangingthefossilfuels-basedmodelandtechnologicalrevolutionisenablingthischange.Itisalsoaboutmakingitpossiblefortheseopportunitiesforthegreeneconomytodevelopandmaterialise.Onlybyworkingwithothersalongthevaluechaincanwegeneratetheseopportunities.Industrialdevelopment,buildingvaluechains,suppliers,socialdialogueandworkinghand-in-handwiththecommunity–allareneededtomakeourplanspossible,otherwisewewon’thavethatgreeneconomy.Wereallyseeagapinskillsneededsoweneedtofocusonreskilling,skillingyouth,makingtheenergysectormoreattractiveandloweringbarriers.Wehaveariskthatmarginalisedcommunitieswillbecomeevenlessrepresented,soweneedtofocusonthemaswell.”(Employerrepresentative,2022)TheIRENAconsultationinvolvedaseriesoftechnicalwebinarswithemployersofdifferentsizes,acrossdiversegeographiesandrenewabletechnologies.Whileunanimouslysupportiveofajusttransition,employersemphasisedtheneedforgovernmentstocreatealevelplayingfield.Despitecountries’commitmentstoincreaserenewables’share,theindustryfacesmultiplechallenges,suchassupplychainissues,costincreases,andeconomicandpoliticaluncertainties.Toavoidaracetothebottom,governmentsmustsetconditionsandcreateincentivesforbusinessestoactinaccordancewithjusttransitionprinciplesandforgreeneconomyopportunitiestodevelop.Employershighlightedthefollowingpriorities:•Regulations,standards,duediligencerequirementsandauctioncriteriacanberevisitedtoreflectjusttransitionprinciples.Forinstance,ifingrantingcontractsdecisionsarebasedsolelyoncostcriteria,environmentalorsocialconcernsmaybeoverlookedbybusinesses.•Strong,consistentandlong-termrenewableenergypoliciesareneededtoallowthedevelopmentofamarketinwhichsmallandlargecompaniesalikecaninvest.Apredictableandstableenvironmentisessentialforencouraginginvestmentinrenewableenergyandassociatedpowernetworks,drivingthewidergreeneconomyandcreatingsustainablelong-termjobs.•Developingaskilledworkforceisapriorityforemployers,asdescribedinmoredetailinSection3.Thisentailspublicandprivatepartnershipsanticipatingskillneedsandprovidingthenecessarytraining.Educationplaysakeyrole,especiallyatanearlyage,tobuildawareness,skillsandmotivation.•Acommitmenttodiversityisessential,asfurtherexpandedoninSection3.Tobridgetheskillgapsandachievefullsupportfortheenergytransition,moreinclusivepoliciesareneededtoattractandretainpeoplefromdiversebackgrounds.Industryneedstostrengthenitscommunicationtoaddressgenderbiasesandmisconceptionsthathighlyspecialisedskillsetsarerequired.Abroadrangeofskillsareneeded,providingopportunitiesforpeoplewithdifferentlevelofqualifications.Hence,thereishugepotentialfortechnicalandvocationaltrainingandapprenticeshipsthatresultinemployment.•Localknowledgeisinvaluableforsuccessfuloperationontheground.Employersrecognisedthatemployingindividualsfromlocalcommunitiesprovidesaccesstobetterunderstandingofsocialnorms,politicalrealitiesandsocial-environmentalinteractions.Countriesandterritorieshavespecificcontextsandrequiretailoredapproachesthatmustbeinformedbylocalcommunities.Thisimprovestheviabilityandsustainabilityoftheprojectbycreatinglocalvaluethroughjobsandotherbenefits,andincreasingsocialsupport.18EnergyaccesscontextMuchoftheconversationaroundjusttransitioncentresonworkersinindustrialisedcountrieswhowillbenegativelyimpactedbythephase-outofcoal.Lessattentionhasbeengiventotheoilandgasworkersinbothproducingandconsumingcountries.Evenmoreneglectedisthecharcoalandwoodfuelsector,whichistheprimaryenergyandemissionsourceinAfricaandsoutheastAsia,employingmillionsofnon-organisedinformalworkers.Forexample,ILOresearchinNigeriafindsthat25millionhouseholdsareengagedinthecharcoalandwoodfuelsector,whichprovides70%ofprimaryenergyandisthelargestsourceofemissionsanddeforestation(UNDPandILO,2021).Thiscomparestosome70000workersinmostlyoffshoreoilandgas;butthereisanequallyimportantneedforjusticeforcommunitiesthathavelimitedornoaccesstomodernenergyservices.ThisisakeyfocusofSustainableDevelopmentGoal(SDG)7;Figure3showssignificant,ifinadequate,progresssince2010.Accesstoreliable,affordableandsufficientenergyhashistoricallybeenakeyenablerofcountries’industrialisationgoalsandwillcontinuetobesoformanyemergingeconomieslookingtomechanisefarms,buildlocalindustriesandcreatejobsinpursuitofsocio-economicdevelopmentobjectives(IRENA,2022a).Italsomattershowenergyaccessisachieved.Differentoptionswillhavemajorjusticeandlabourimplicationsforlabourintensity,centralisedordecentraliseddevelopment,ownershipandthesharingofbenefitsandcosts.Decentralisedrenewableenergy(DRE)solutions,suchasstand-alonesystemsandmini-grids,areplayinganimportantroleinbridgingtheenergyaccessdeficit.In2021over179millionpeoplegainedaccesstoelectricitythroughsuchsolutions(IRENA,2022b).Figure3Globalprogresstowardsuniversalenergyaccess3billionpeoplewithoutaccesstocleancooking2.4billionpeoplewithoutaccesstocleancooking(2020)peoplewithoutaccesstoelectricitybillion1.2peoplewithoutaccesstoelectricity(2020)million733INDICATOR2010LATESTYEAR7.1.2Proportionofpopulationwithprimaryrelianceoncleanfuelsandtechnologyforcooking7.1.1proportionofpopulationwithaccesstoelectricitySource:(IEA,etal.,2022).Theversatilityofthisapproachallowssolutionstobetailoredtocommunityenergyneeds,tapintolocallyavailablerenewableresources,anddevelopdomesticsupplychainsthatcreateemploymentopportunities.Thisisparticularlyimportantforsub-SaharanAfrica,whereroughlyhalfofthepopulationhasnoaccesstomodernenergyservices.TheDREsectorisalreadyamajorsourceofemployment,withanestimated374000jobsacrossAfricaand80000inIndia(PowerforAll,2022).Asameasureofcomparison,inKenyaDREjobsgreatlyoutnumberthoseoftheutility-scalepowersectorandinNigeriathefigureisfastapproachingthatoftheoilandgassector.19Section1AnenergytransitionthatworksforpeopleandtheplanetWhileDREsolutionsofferanimmenseopportunitytobridgetheaccessdeficit,stepsneedtobetakentomaximisetheirsocio-economicbenefits,particularlyforlocalcommunities.Thesolutionsdeployedwillhaveimplicationsforlabour,ownershipstructuresandthedistributionofcostsandbenefits.Forinstance,strengtheningcommunityengagementandownership,localskillsandvaluechaindevelopment,entrepreneurshipsupportandaccesstofinancingcanplayacrucialroleinensuringnotonlythataccessreachesthelasthousehold,farm,enterpriseandclinic,butalsothatthesolutionsaresustainableinthelongterm.Inaddition,thedistinctionshouldbemadebetweendirectjobscreatedbyDREandindirect/inducedjobs.Providingpowerresultsinhigherproductivityandeconomicoutputinruralandremoteareasthatareusuallyeconomicallydisadvantagedincomparisontourbanareasindevelopingcountries.Thiswillunleashhugejobcreationopportunitiesinthoselocations.AsoneintervieweenotedintheIRENAconsultationprocess:“Energyisdecisiveforsocialandeconomicdevelopmentandtheenergytransitionhasimplicationsforvariousissues,likefightingenergypoverty,ensuringaccesstoenergyandastableenergysupply,potentialforindustrialisationandtechnologicaltransition,etc.Anotherimportantaspect,fromatradeunionperspective,isenergydemocracy.Inmanycountriesinsub-SaharaAfricatheenergysectorisstillcontrolledbyprivatecompaniesorsemi-privatecompaniesthatdonothaveaninterestinajustenergytransition.Therefore,it’simportantforunionstoformallianceswithotherprogressiveactorsinordertoensurethatenergyisapublicgooddrivenbypublicinterests.”Giventhatlackofaccesstoelectricityandcleancooking(renewableorotherwise)affectshundredsofmillionsofpeopleinAfrica,Asiaandelsewhere,adeeperunderstandingisneededofhowtheenergytransitionwillaffectemploymentprospectsintheselargelyruralcommunities.Thisrequiresabroadassessmentnotonlyofjobslostorcreated(e.g.incharcoalvaluechains),butalsothesocio-economicopportunitiesaffordedthosecommunitiesgainingenergyaccessforthefirsttime.Thecloselinkbetweenenergyaccess,livelihoodsandcommunityservices(e.g.healthcareandeducation)shouldalsonotbeunderestimated.Traditionalapproachestoenergyaccesshaveinvolvedalargelytechno-economicapproach,notfullyaccountingforcommunityneedsandaspirations.Beyondeffortstosimplydeploytechnologies,asystemicapproachisnecessarythatpositionsthediversityofpeople’slivelihoodsandaspirationsatthecentreofenergyaccesseffortsanddeliverstailoredenergysolutions,financing,capacityandskills,marketaccessandpolicysupporttorealisethefullbenefitsofenergyaccess(IRENAandSELCOFoundation,2022).Investinginsuchanecosystemislikelytodeliverstronglong-termsocio-economicdividendsbycuttingacrossmultipleSDGs.SocialequityTheimpactoftheenergytransitiononsocialinequalityiscomplexandwilldependonvariousfactorssuchaspolicydesign,localcircumstancesandtheselectedtechnologies.Asenergyisavitalinputinfertiliserproduction,foodprocessing,transport,cookingandheating,energycostchangeswillaffectthepriceoffoodandotherbasicneeds.Food,transportandhousingaccountforalargeshareoflow-incomehouseholdexpenditure,butmuchlessinthecaseofhigh-incomehouseholds.Low-incomehouseholdsarethereforeimpacteddisproportionatelywhenenergypricesincrease.Thiscouldresultinmillionsbecomingimpoversihedandtheremaybefurtherincreasesinunequalaccesstoemploymentopportunities,aswellasgender,incomeandwageinequality.Politicalinstability,oppositiontoclimatepolicies,socialunrestandconflictcouldarise;thiscouldunderminethefeasibilityofclimateaction.20Ajustenergytransitionmustrecogniseandaddressincomeandenergyinequalitysimultaneously(ILO,2015).TheIntergovernmentalPanelonClimateChange(IPCC)andWorldInequalityLabestimatethatwithinandacrosscountries,therichest10%ofhouseholdsareresponsiblefor50%ofglobalgreenhousegasemissionswhilethebottomhalfcontributejust10%.Thisdifferencenotonlymirrorsthestarkinequalityinincomeandenergyintheworld,butisalsoareminderthatclimatechangeiscausedbytheincome-rich,indeveloped,emerging,anddevelopingcountriesalike.Inaddition,thehalfoftheworldpopulationthatowns2%oftotalpersonalwealthisexposedto75%ofrelativeincomelossesduetoclimatechange.Thetop10%owns76%oftotalpersonalwealthandmayincur3%ofrelativeincomelosses(WorldInequalityLab,2023).Hence,ajusttransitionalsorequiresmeasuresforadaptationandthealleviationoflossanddamagetorectifytheseinjustices.Amongsuccessfulpoliciesare"progressivecarbonpricingschemesinwhichrevenuesarereinvestedinsocialprotectionsystemsthatensureincomesecurity,forexamplethroughcashtransfersaspartoftheimplementationofenergypriceandsubsidyreform"(ILO,2015).TheWorldInequalityLabindicatesthatatransformationofnationalandinternationaltaxregimesisrequiredtoincreasetaxprogressivityandensurethatactionstomeetclimateandenvironmentalcrisesareequitablyshared.Asthenextsectiondescribes,policyframeworksmustthoroughlyassessthesocialandequitydimensionstoensurethatlow-incomehouseholdsarenotdisadvantaged,butinsteadbenefitfromtheenergytransition(IRENA,2022a).HolisticpolicyframeworksInre-organisingenergysystemsthereisanopportunitytocorrectmultipleproblemssimultaneously,providedcomprehensiveholisticpoliciesandapproachesareinplace(Figure4).Thestartingpointforanypolicyframeworkneedstobeanunambiguoustargetdateforphasingoutfossilfuels.BOX3THEBEYONDOILANDGASALLIANCETheBeyondOilandGasAlliance(BOGA)isaninternationalallianceofgovernmentsandstakeholdersworkingtofacilitatethemanagedphase-outofoilandgasproduction.LaunchedatCOP26inGlasgow,coremembersincludeDenmarkandCostaRica(co-chairs),France,Greenland,Ireland,Québec,SwedenandWales.California,NewZealandandPortugalareassociatemembers,whileItaly,FinlandandLuxembourgareFriendsofBOGA.Theallianceaimstoelevatetheissueofphasingoutoilandgasproductionatinternationalclimateforums,mobiliseactionandcommitments,andcreateaninternationalcommunityofpracticeonthisissue.Suchtargetshavenotbeenforthcoming,butprogressisbeingmade.OneoutcomeoftheGlasgowclimatenegotiationsin2021urgeddevelopedcountriestophasedownunabatedcoalby2030,withothercountriesfollowingsuitby2040.Althoughasimilareffortcallingforthephase-outofallfossilfuelsfailedtoachievethenecessarysupportinSharmel-Sheikhin2022,initiativessuchastheBeyondOilandGasAlliance(seeBox3)andthenet-zeroCO2emissiontargetsadoptedbymanygovernmentssuggestitmayonlybeamatteroftimebeforeexplicitcommitmentstophaseoutoilandgasbecomethenorm(BOGA,2022).QuiteapartfromtheimperativetorapidlyreduceCO2emissions,acceleratingclimatechangeimpactswilltesttheresilienceofexistingenergyinfrastructure.Dueconsiderationwillneedtobegiventoincreasingresilience,andthedecentralisednatureofrenewablesconferssignificantadvantagesinthisregard.21Section1AnenergytransitionthatworksforpeopleandtheplanetThefactremains,however,thatmanyeconomiesaredependentonthefossilfuelproductionandexports.Institutionalarrangements,sectoralstructuresandinvestmentpatternsoftenreinforcethisdependency.Itisalsochallengingtoreversetheinertiaofthefossilfuel-basedenergysystemduetothedecadesofinvestmentandsunkcosts.Insomecountries,existingsupplychainstructuresareincompatiblewithrenewableenergydevelopment.Thisrelatestomacroeconomicconditionssuchascommoditydependence,technologicaldependence,tradedependenceandtherealityofworkforceimbalances.Again,thechallengesandopportunitiesofphasingoutfossilfuelswilldifferacrossregions.Thereisgeneralagreementthatthebenefitsoftheenergytransitionwilloutweighpotentialnegativerepercussions,firstandforemostbecausenoteffectivelyaddressingtheclimatecrisiswillhaveextremenegativeconsequences.Additionalenvironmentalbenefits(e.g.airandwaterquality)andthepotentialtocreatenewjobsarealsoundeniable.However,activepoliciesandplansareneededtorealisethesebenefits.Ajusttransitionisunlikelytobedeliveredbymarketforcesalone;politicalinterventions,co-ordination,planningandmonitoringarerequired.Governmentsmustcreatelong-termplanstoanticipateandmitigatemisalignments(temporal,spatial,sectoralandeducationalmisalignments,aswellasstructuralcircumstances).Theenergytransitionrequireslong-termpolicyframeworksacrossarangeofareasincludingdeploymentinstruments,enablingpoliciessuchasnationalandregionalcommitments,policiesforintegratingrenewablesintotheenergysystemalongwithstructuralandjusttransitionpolicies.Thelattercanincludemeasurestoadaptsocio-economicstructurestotheenergytransition,labourmarketpoliciesandsocialprotection(e.g.trainingandretraining),andindustrialandtradepolicies.Tosecurethebuy-inofgovernmentsandwidersocietytothejusttransitionagenda,thesocio-economicpotentialassociatedwiththeenergytransitionmustbebetterunderstoodandaccounted,andtheriskofinactionhighlighted.Atransitiontorenewableenergysourceswillstimulatevariousnewindustriesintherenewablesvaluechain,aswellasinenergyapplicationsthataredrivenbyaccesstogreenandcompetitiveenergyornewgreeneconomy-basedactivities(e.g.electrolysersforgreenhydrogenproduction).Thesuccessofadjustmentprogrammeswilldependonacountry’sabilitytoaligntheseprocesses.Eachcountryandregionfacesauniquesetofcircumstancesandcapabilities,whichneedtobetakenintoaccountaspolicyframeworksaredeveloped,alongwiththedifferentperspectivesofstakeholders.Stakeholdersatalllevelsshouldbeengaged–fromsocio-economiccouncils,skillscouncils,climateactionbodiesandotherrelevantinstitutions.22Figure4HolisticpolicyframeworksDEPLOYMENTPOLICIESINTEGRATINGPOLICIESENABLINGPOLICIESSTRUCTURALCHANGEANDJUSTTRANSITIONPOLICIESHOLISTICGLOBALPOLICYFRAMEWORKECONOMYENERGYSOCIETYPLANETSource:(IRENA,2022a).Itisimportanttoconsiderhowbroadercommunitiesareaffectedbythetransition,includingsecondaryimpactsonindirectjobs,education,andhealthcare.Countriesandregionswillneedrobustindustrialpoliciesaftercarefullyassessingwhoisaffectedandhowcostsandbenefitsaretobeshared.Thiswillrequiremeasuringandunderstandingthenumbersofaffectedworkers,includingthosewhoareemployedintheinformalsectors,andpossibleopportunities.Greentechnologytransferisalsocritical.Intheshortterm,localplansareneededforregionsreliantoncoal(asthefirstfossilfuellikelytobephasedout)wheretheeffectsofthefadingindustrywillbefeltmostacutely.Industrypolicyshouldbuildonexistingskillsandterritorialadvantagesandgobeyondtheenergysectorwithconcreteplanstodiversifytheeconomyanddeveloplocalopportunities.Investmentsinmineremediationwillgeneratejobsandcreateahealthyandattractiveenvironmentforthelocalcommunity.Theremightbeopportunitiestouseexistinginfrastructuretodeveloprenewableenergyprojectsorcapitaliseontransferableskillstosupportnewandemergingindustries(e.g.solarandhydrogen).However,inothercases,economicdiversificationwillbeneeded,involvingothersectorsintheplanningprocess.Again,theseplansshouldbedevelopedinconsultationwithalltheactorsinvolved.23Section1Anenergytransitionthatworksforpeopleandtheplanet1.4NEWDEVELOPMENTMODELSCOMPATIBLEWITHCLIMATE,ECOLOGICALANDSOCIALSUSTAINABILITYEschewingfossilfuelsisessential,butisitenough?Itisquestionablewhetherthedominanteconomicmodelofgrowth,deregulation,linearresourceuseandtrendstowardsprivatisationareoptimalforachievingclimateobjectivesandajustenergytransition.Relyingtooheavilyonmarketmechanismstodrivethetransitionmaynotdelivertheresultsweneedinthetimeframewehaveleftforlimitingglobaltemperatureriseto1.5°C.Someactivitiesessentialforaclimate-safeworld–forexamplenature-basedsolutions–donothavevalueinthemarketandneedtobesupportedthroughothermeans.Thesameholdstrueforthecreationofasocialsafetynetforworkersduringthetransition.Mosteconomicsystemsarehybrid,andmostcountrieshavemechanismsfordealingwithelementsthatdonotneatlyfitmarketdynamics.Solutionsexistbutrequirescalingupandfurtherdevelopmentinareasthatwerepreviouslynotconsidered.Thisleadstothebroaderdiscussiononenergydemocracy.Ashiftawayfromcentralisedfossilfuel-basedsystemscouldbetransformative,facilitatingbroaderparticipationandmoreequitablesharingofbenefitswiththerightconditionsinplace.Inaddition,countriesandcommunitieshavedifferentiatedresponsibilitiesandcapacitytoact,aswellasvaryingcircumstancesandstartingpoints.Asaresult,equityconsiderationsbetweenandwithincountries,aswellasbetweentheglobalNorthandSouth,arecentraltojusttransitionapproaches.Countriesatdifferentstagesofdevelopmentfacedifferentchallenges.Industrialisedregionswithhighcarbonfootprintsneedtoreimaginetheworldofworkwithinplanetaryboundaries.Optionsincludeareductioninconsumption,increasedenergyefficiencyandcircularity.Regionswithlowenergyaccess,ontheotherhand,requirehigherconsumptionofenergyandmaterialstoimprovelivingconditionsfortheircommunities.Theenergytransitioncanbepivotalformoderneconomicdevelopment.Developingandemergingeconomieshavetheopportunitytoleapfrogthetraditionalfossilfueldevelopmenttrajectoryandmovedirectlyontoarenewableenergypathway.However,thispresentsconsiderablechallenges,asasignificantamountofinvestmentandinfrastructureisrequired,whichcountriesmightlack.Inadditiontohavingaccesstogreentechnologies,anenablingenvironmentmustalsobecreated.Ifsupportisavailableandappropriatepolicyframeworksareimplemented,thispathwayhasbenefitsforsocialandeconomicdevelopment:increasingaccesstoenergyforthosewhodonotcurrentlyhaveit;improvinglivelihoodsbyensuringamorestableenergysupply;enablingindustrialisationandtechnologicaltransition;andofferingpotentialbenefitsforemployment,healthandwomen’sempowerment.Newjobscanbecreatedinrenewableindustriessuchaswind,solarandgreenhydrogen,andassociatedsectorssuchastransport,energyefficiencyandinfrastructure.Somehavesuggestedthataglobalpublicgoodsapproachisneeded(UnitedNations,2023).Inthecaseoftheenergytransition,forexample,intellectualpropertyrightscouldbemodifiedtoremovebarrierstorenewableenergytechnologytransfer.Section2Creatingdecentjobs25“Decentworksumsuptheaspirationsofpeopleintheirworkinglives.Itinvolvesopportunitiesforworkthatisproductiveanddeliversafairincome,securityintheworkplaceandsocialprotectionforfamilies,betterprospectsforpersonaldevelopmentandsocialintegration,freedomforpeopletoexpresstheirconcerns,organiseandparticipateinthedecisionsthataffecttheirlives,andequalityofopportunityandtreatmentforallwomenandmen.”(ILO,2023b)Thissectionfocusesonelementsthatconstituteadecentjobandhowtoupholdthesestandardsintheevolvingenergysectorastheenergytransitionunfolds.Asdiscussedpreviously,newjobsmustbedecentjobsifthetransitionistogainthefullsupportofthelabourmovement.Theimportanceofthistopicwasrecognisedinthe2015negotiationsofthe2030SDGs.SDF8isto“promotesustained,inclusiveandsustainableeconomicgrowth,fullandproductiveemploymentanddecentworkforall”,andtheconceptisincludedinthetargetsofmanyotherSDGs(UN,2015).ThedistinctionshouldbemadebetweenthelargelyformalenergysectorintheglobalNorth,andtheglobalSouthwherealargeproportionofworkersareininformalorprecariousemployment(ILO,2019a).Ajusttransitioninthelatterincludesformalisingworkingarrangementstoprotectthelivelihoodsofthoseinfossilfuelindustriesthataresettodeclineandensuredecentjobsinemergingenergytransition-relatedjobs.Assomeindustriesgainimportance,theywillalsofacegrowingdemandsforupholdinglabourstandardsandsafety,forexampleintheminingofcriticalmaterialsneededforrenewablesandstoragetechnologies.Precariousandinformalemploymentisanimmenseglobalissuealready,andeffortsshouldbemadetosupportthemostvulnerableworkerswhoareinnopositiontobargainforbetterconditionsontheirown.IntheglobalNorth,theconventionalfossilfuels-basedenergysectorhasbeenheavilyfocusedonminingandtheutilitysector.AsthiscentralisedenergysystemshiftstoamoreDRE-basedsystem,therisksoflowerlabourstandardsinapotentiallylessunionisedworkforceneedtobecomprehensivelyaddressed.Asignificantportionoftherenewableenergyindustryisfoundinsectorssuchassolarrooftopinstallation,thatmayprovidejobsthataretemporaryandlesssecure.Thereisareasonabledesireamongstworkersthatthetransitionshouldprovidecomparablejobsintermsofqualityandsalaryforthoseaffectedbyclosures(IndustriAll,2022).Inaddition,giventhespatialmisalignments,increasinglabourmigrationwillbeoneoftheconsequencesoftheenergytransition.Whilethispresentsopportunitiesforpeopletoimprovetheirlivelihoods,itmustbeacknowledgedthatmigrantworkers,especiallythosewhoareundocumented,willmorelikelybesubjectedtoexploitationandinsecureworkingconditions.Theserisksmustbeproperlyaddressed,includingtheuseofgender-responsivesolutions,asmigrantwomenfacedifferentchallengesandvulnerabilities(UNWomen,2020).262.1ENSURINGDECENTJOBSMEANSTHATALLVOICESMUSTBEHEARD:SOCIALDIALOGUEANDPARTICIPATIONAswasrepeatedlyemphasisedduringtheconsultation,underpinningjustandinclusiveenergytransitionsissocialdialogue,whereworkersrepresentedbylabourunionscancommunicatetheirneedsandengageincollectivebargaining.Socialdialogueiscriticaltoenablebroaderconsensusandbuy-in.Employers,workers,communitiesandhistoricallymarginalisedpeoplemustallhaveaseatatthetablewhendiscussingthetransition,andbeinvolvedindecisionsaffectingtheirlivelihoods,includingrelocation,training,andsafetynets(suchasbenefitsforearlyretirement).Equityandbroadstakeholderparticipationareenablersofbroaderconsensus,whichinturnfacilitatedeeperandfastermitigation(IPCC,2022a).Socialdialoguecanbetrilateral,involvinggovernments,employersandworkers,orbilateralbetweenlabourandmanagement.Socialdialogueencompassesallformalandinformalpracticesofnegotiation,consultationandinformationexchangeonissuesrelatedtoeconomicandsocialpolicy.TheØrstedcasestudy(Box4)isanexampleofsuchcollaboration(Ørsted,2022).BOX4ØRSTEDANDNABTUPARTNERSHIPØrsted-aninternationalrenewableenergycompanyleadinginoffshorewindpower-andNorthAmerica’sBuildingTradesUnions(NABTU)establishedapartnershipwiththeambitionofcreatingaframeworkdesignedtofacilitatethetransitionofUSunionconstructionworkersintotheoffshorewindindustry.Asaresultofthepartnership,ØrstedandNABTUannouncedaProjectLaborAgreement-theNationalOffshoreWindAgreement(NOWA)-toconstructØrsted’soffshorewindfarmswithanAmericanunionworkforce.Afirst-of-its-kindintheUnitedStates,theNOWAsetstheindustrystandardfromtheoutsetandraisesthebarforworkingconditionsandequity,injectshundredsofmillionsofdollarsofmiddle-classwagesintotheAmericaneconomy,createsapprenticeshipandcareeropportunitiesforcommunitiesmostimpactedbyenvironmentalinjustice,andensuresprojectswillbebuiltwiththesafestandbest-trainedworkersinAmerica.TheNOWAcoversallofØrsted’scontractorsandsubcontractorsthatwillperformoffshorewindfarmconstructionfromMainetoFlorida(offshoreWIND.biz,2022).27Section2CreatingdecentjobsThereisacriticalneedforenablingpoliciesandconditionsthatfacilitatelabour-inclusiveplanningprocesses.Thisentailslong-termpartnershipsbetweengovernments,industriesandlabourunions;andlocal,regionalandinternationalsocialdialogueprocedurestoguidethetransitionprocess.Enablingconditionsinclude:Clearprocessesthatsetouthowthesocialdialogueoutcomeswillbeincorporatedintodecisionmakingatallstages,leadingtobindingagreementsthatareenforceable.Establishingownershipoftheprocess-workersmustbeinvolvedindecisionmakingabouttheirlivelihoodsandbegivenopportunitiestomakeinformedchoices.Decisionmakersshouldavoidmakingassumptionsaboutwhatworkers’individualneedsmightbe,asthiscangeneratediscontentandsocialdisruption.Transparency-questionsconcerningthetypeandlocationofjobs,orotherrelevantfactorssuchaslocaleconomicstimulation,mustbeopenfordebateandconsiderationthroughtransparentsocialdialogueplatforms.Inregionswhereeffectivesocialdialoguehastakenplace,andwithincompaniesthathavecollectivebargaining,thetransitionhasbeenmuchsmoother-whichisinthebestinterestsofallinvolved.Additionally,itisimportanttoinvolvelocalcommunitiestoenhancesocialacceptanceandsupportforthetransition,aswellastoensurethebenefitsaresharedlocally.Communitiescanalsoprovidevaluableinsightsintotheirneeds,prioritiesandconcerns,whichcaninformprojectsandinitiativesthatreflecttheuniquecharacteristicsandchallengesofeachcommunity(Box5illustratesAcciona’sapproach).BOX5ACCIONA’SSOCIALINITIATIVESACCIONAEnergíaisaglobalenergycompanyoperatingexclusivelyinrenewabletechnologiesformorethan30years.Itprioritisessocialinitiativesthatcreatelocalvalueandareidentifiedthroughsocialdialogueandparticipation.AspartofitsSocialImpactManagementmodel,thecompanyorganisescommunityround-tablediscussionstolistentotheneedsandprioritiesofthecommunitieswhereitoperatesand,onthisbasis,acustomisedsocialactionplanisdrawnup.ThepurposeofthesediscussionsistoprovideinformationontheprojectbeingdevelopedbyAcciona,toopencommunicationchannelsand,aboveall,toreachaconsensusonthesocialinvestmentinitiativestoimplement.Theeventsareusuallyattendedbylocalsocialandculturalassociations,socialcentresandsomelandownersandnearbyresidents.Forinstance,in2022atitsphotovoltaicplantinBolarque(Cuenca,Spain),residentsdecidedtocarryoutaprojecttorevitalisethelocaloliveoilco-operative,whichwasindifficulty.Asocialenterprisewithexpertiseinruralareas,Agrovidar,washiredbyACCIONAEnergíatoprovideadiagnosis,developastrategyandbusinessplan,andimplementimprovementmeasures.Aspartofthestudy,Agrovidarsurveyedallmembersoftheco-operativeandpeoplefromthemunicipalitytoassessperceptionsoftheco-operative.Theresultantmeasures,collectivelyagreedwiththefarmers,includetheoreticalandpracticaltrainingsessionsaimedatimprovingoliveoilproductionandacommunicationplantoimprovebranding.Animpactmeasurementstudyisbeingcarriedoutandasignificantimpactonprofitabilityandtheemploymentgeneratedbytheco-operativehasalreadybeenobserved.282.2WORKINGWITHDIGNITYANDFAIRNESS:FUNDAMENTALHUMANANDLABOURRIGHTSEveryindividualdeservesaworkplacethatrespectsfundamentalhumanandlabourrights.ILOinternationallabourstandardssetoutbasicprinciplesandrightsatwork(ILO,2019b).UNGuidingPrinciplesonBusinessandHumanRightsestablishtheresponsibilityofbusinesstorespectinternationallyrecognisedhumanrights(UnitedNations,2011).Ingeneral,decentworkshouldprovideequalopportunities,opportunitiesforpersonaldevelopment,fairincome,jobsecurityandsafeworkingconditions.Workersshouldfeelsafetoorganisethemselvesandexpresstheirconcerns.Employersareultimatelyresponsibleforimplementingtheseprinciples.Astheworldtransitionsawayfromfossilfuels,structuraladjustmentsneedtobecarefullymanagedtoensureincomesecurityandfairtreatmentofaffectedworkersinthemostvulnerablesectorsandregions.ILOdefinesemploymentsecurityas"theprotectionofworkersagainstfluctuationsinearnedincomeasaresultofjobloss"(ILO,2023c).TheidealpromotedbyILOisuniversalsocialprotectionasahumanright.Itisimportanttohaveafinancialsecuritysysteminplaceforthosewhoarelosingtheirjobsandunabletofindnewones,suchasunemploymentbenefits,pensionsandearlyretirementplans.Atpresent,however,socialprotectionpoliciesandcapacityvarywidelyacrosscountries.Morethan4billionpeople-aroundhalfoftheworld’spopulation-lackanysocialprotection(ILO,2021).Itistheresponsibilityofgovernmentstocreateenablingpoliciesandconditionstorectifythisproblem.Thechallengesofcontractworkersandthoseintheinformalsectorrequireparticularattention,astheyarelikelytobeinamorevulnerablepositionthancompanyworkers.Businesses,incollaborationwithlabourrepresentatives,canactivelydevelopinternalpoliciessupportingwell-beinganddignityatwork,asillustratedinBox6(ENEL,2022).Respectinghumanrights,ofcourse,extendsbeyondlabour.Indevelopingrenewableenergyprojects,companiesmusttakecaretorespecttherightsoflandholders,indigenouspeoplesandotherstakeholders.Priorinformedconsultationandconsentshouldbeatthecentreofplanningprocesses.29Section2CreatingdecentjobsBOX6ENEL“STATUTODELLAPERSONA”TheEnelGroupoperatesinmorethan30countries,bringingenergytomillionsofpeople.Renewableenergyaccountsforanincreasingshareofitstotalcapacityandcurrentlystandsattwo-thirds.In2022,EnelsignedtheStatutodellaPersonatogetherwithtradeunionsinItaly,namelyFILCTEM,FLAEIandUILTEC.Thisinitiativefocusesonthreeareas,namely:"well-being,participationandproductivity,inordertopromotetheprotectionofdignityatwork,inclusiveness,themeasurementofproductivitytakingintoaccountthehumanfactor,work–lifebalanceandflexibility,aswellastheconstructionandsafeguardingofaprejudice-freeenvironment"(Syndex,2023).Italsoenvisagesknowledgeandcontinuouslearningbasedona“life-longlearning”model.Employeeswillhaveaccesstotraining,professionalrefreshercoursesandapprenticeships.Therewillbeanelementoffemaleempowermenttoencouragetheselectionofscientificdisciplines(science,technology,engineering,andmathematics,STEM).Anotheraspectissafetycultureandbehaviour.Thiswillinclude"theex-anteandex-postanalysisofaccidentrisks,theidentificationofthemostinnovativetechnologiesforaccidentprevention,theempowermentofworkersandthestrengtheningofthesafetyculture,includingthroughtheinvolvementofthesuppliernetwork"(Enel,2022).Section3Buildingtheworkforceofthefuture31“Workforcedevelopmentremainsanessentialcomponentoftheenergytransitionthatshouldbeaddressedinthecontextofabroadpolicyframeworkcomprisingindustrialpolicies,educationandskillstraining,labourmarketpolicies,enterprisedevelopment,diversityandinclusionstrategies,regionalrevitalisationandsocialprotectionmeasures,basedonsocialdialogue.”(IRENAandILO,2022)Theenergytransitionwilltransformtheworldeconomy,creatingmillionsofnewrenewableenergy-andtransition-relatedjobs(e.g.ingreenhydrogen,digitalisation)whilealsocallingforthemainstreamingofgreenskillsandcompetenceswithinexistingoccupations.Educationandworkforcetrainingmustbeprioritised,notonlytoreskillthecurrentworkforceandbuildthepipelineoffutureenergyworkers,butalsotoempowerthepublicandensurethatworkersinallsectorscanflourishinanet-zeroeconomy.Asdescribedinthefirstchapter,thejobslostinfossilfuelsectorswillnotnecessarilybereplacedbyjobsintherenewableenergysector–opportunitieswillbecreatedinenergyefficiency,siteremediationorentirelynewfields,buildingonlocalstrengthsorrespondingtolocaldemands.Theenergytransition,combinedwithothertrendssuchasdigitalisation,automationandthemovementtowardacirculareconomy,willbringprofoundchangestotheskillsandoccupationsthatwillbeinhighdemandinthecomingyears.Arenewables-basedenergysystemwillbearlittleresemblancetothecurrentsystembasedonfossilfuels.Tomaintainthemomentumofthetransitionandminimisedisruption,itisimportanttoidentifytheskillsthatwillbeneeded:technical,managerial,digitalandsoforth.Thereiscurrentlyamismatchbetweentheskillsneededforagreeneconomyandtheavailabilityofskilledworkerstomeetthatdemand.Improvingalignmentrequireslong-termplanningthatanticipateschangesintheenergylandscape,andintheprocessidentifiesexistingskillswithintheenergyworkforceascomparedtotheskillsmostlikelytobeneededinfuture.Ifgovernments,industry,educationalinstitutionsandtradeunionscollaborateinthisplanning,theoutcomesaremorelikelytobesuccessful.Initiativesthatfacilitatethisco-ordinationcancontributetoskill-matchingeffortsforbettersocialoutcomes.3.1SKILLS,EDUCATION,ANDTRAININGIRENAprojectsthatby2030therewillbearound85millionenergy-relatedjobs,requiringextensiveskillingandworkforcedevelopment(IRENA,2022a).Addressingskillsshortagesmustgobeyondthepowersectorbyalsobuildingboththetechnicalandsoftskillsvitaltotheenergytransitioninareassuchasheatingandcooling;greenhydrogenproductiontechnologyandinfrastructure;electricvehiclemanufactureandinfrastructure;digitalisation;energystorage;innovation;andentrepreneurship.Itmustalsoaddressskillsspecifictobothutility-scaleanddecentralisedsolutions.Havingahighereducationdegreeisnotapreconditionforworkinginthenewenergyeconomy;therewillbeopportunitiesatalllevelsofeducationandpracticalskills.Thereisaparticulardemandforindividualswithhigher-leveltrainingintheSTEMfields,butalsothosewithgenericskillsetsandfewerformalskillssuchasinconstruction.Forexistingenergyworkers,training,vocationalandeducationalprogrammes(includingon-the-jobtrainingandapprenticeships)andotherprofessionaldevelopmentcanbeofferedinarelativelyshortperiodoftime.Forfutureworkers,thereisaneedtocreatetailoredprogrammesaswellastotransformexistingcoursesanddisciplinesbymainstreamingandintegratingtherequiredskills.Inthecaseofoccupationsrequiringregulatedprofessionallicensure,suchasskilledtradespersonsandprofessionalengineers,thereislikelytobetheopportunitytobringlicensingrequirementsinlinewithemergingskillingpriorities.32Educationalinstitutionsshouldworkinclosecollaborationwithgovernments,industriesandtradeunionstoensurethatcurriculaandcertificationprogrammesareinlinewiththerequirementsofthechangingeconomy.Specificrecommendationsinclude:•Whereverpossible,captureandcapitaliseonthepreferencesandtransferableskillsofworkerscurrentlyemployedinfossilfuels.Wherecompaniesarediversifyingintorenewables,theyshouldprioritisein-housetrainingfortheirworkers.Data-drivenapproachesareneededforagoodunderstandingofrequirementsatthelocalandregionallevels.•Youngpeople,womenandminoritiesrepresentacriticaltalentpool.Skillsandeducationshouldequipthemtorespondtofutureneeds.Thisiscoveredinmoredetailinthefollowingsection.•Trainingprogrammesshouldnotbedictatedfromthetop,butadaptedtolocalcircumstancesandcoupledwithinvestment.Workersshouldbepresentedwithmeaningfulchoicesandadequateconditionstocompletethetrainingintermsoftiming,location,accessibilityandfunding.Trainingshouldleadtoviableemploymentopportunities.•Thespecificrealitiesanddemandsforskills,educationandtrainingofsmallandmedium-sizedenterprises(SMEs),aswellasmicroandinformalenterprises,willbedifferentfromthoseoflargeenterprisesandneedtobetakenintoaccountinplanningexercises.•Trainingforcommunitiesisessentialtomaintainthecontinuityofcommunityrenewableenergyprojectsaftertheimplementationperiod.Thisisnecessarytoavoidthereturntotheuseofkeroseneandotherdirtysourcesofenergy.•Employersinparticularhaveanimportantroletoplayinskillsdeliveryandmanyalreadyengageintrainingforcurrentandpotentialworkers.Buildingpublic–privatepartnershipsforskilldeliverycancontributetoenhancedskillsstandards,learningqualityandaccesstospecialistequipment,aswellasinnovativefinancingforskilling.•Astechnologiesandsystemsadvance,newerskillswillbeneeded,forwhichcontinuousvocationalandprofessionaldevelopmentprogrammesmayhavetobedesigned,developedanddelivered.•Transitioningfromfossilfuel-basedsystemswillrequirelearningandunlearningpractices,aswellasaddressingresistancetochange.•Theteachingofclimatechangeandbasicenergyknowledgeatschoollevelshouldbesupportedasitwillhavelong-termeffectsonthefuturelabourforceanditsdiversity.•AsdiscussedinSection4,socialsupportandfinancialcompensationshouldbeavailableforthoseinatransitionperiodorabletotakeearlyretirement.Developingjointstrategiesandroadmaps,asinthecasestudypresentedinBox7,canhelpensurethesuccessoftheseefforts(IndustriAll,2021).33Section3BuildingtheworkforceofthefutureBOX7SKILLS2POWER–BUILDINGSKILLSINTELLIGENCEINTHEELECTRICITYSECTORThefour-yearprojectto“StrengthentheroleofnationalsocialpartnersandVET(vocationaleducationandtraining)providerstobuildskillsintelligenceintheelectricitysector”–alsoknownastheSkills2Powerproject–cametoasuccessfulclosein2021(IndustriAll,EPSU,Eurelectric,2021).Itspurposewastodevelopconcretejointstrategiesforskilling,upskillingandreskillingworkersintheelectricitysectorinFrance,Italy,Spain,HungaryandSweden.Itwasco-ordinatedbytheEuropeansocialpartnersfortheelectricitysector–theEuropeanPublicServiceUnion(EPSU),IndustriAllEuropeanTradeUnionandEurelectric–andtheSpin360consultancy,whichservedasatechnicalpartner.Nationalcapacity-buildingworkshopssupportedthedevelopmentofnationalroadmapsforeducationandskillsintheelectricitysector.Throughouttheproject,anumberofkeythemesemerged,summarisedinthefollowingrecommendationsthatnationalstakeholderscanfollow:1.Encouragecontinuousandcomprehensivedialogueamongthevariousstakeholderstostrengthenskillsintelligence,anticipatetrendsinlabourmarketandskillneeds,andfacilitatetheplanningofthecorrespondingVETsupply.2.Addressavariedandfragmentedtrainingofferbysettingupaunifiedinterface,platformordatabasewhereallsectoralcoursesaremappedoutandlisted.Thisshouldalsointegratecomplementaryinformationderivingfromtheindustryitself(skills,competencies,professionsetc.).3.Gainaco-ordinatedunderstandingfromcompaniesofthetypeofskillsandcompetenciestheyarelookingfor.Here,theroleofaco-ordinatingauthorityatthestrategicorsectoralleveliskey.4.Tacklethefinancialburdenbycreatingarepositoryofavailableregional,nationalandEuropeanfunds.Here,theroleofthegovernmentisimportantinproposingaplanforskillsdevelopmentandfinancingforthesector.5.Attractanewskilledworkforceandlearnfrombestpracticesinothersectors.Learnandco-ordinatewithotherindustriesaswellasreflectingonstrategiestomakethesectormoreattractivebyimprovingtools,humanresourcestrategiesandsynergiesbetweencompaniesandtrainingproviders.6.Considertheregionalandnationalcoverageoftheseactions,assomecountriesfollowamorenationwidestrategy,whereasothersprefermoreautonomyattheregionallevel.(IndustriAll,2021)343.2WORKFORCEDIVERSITYOpportunitiesshouldbeaccessibletoallregardlessofeducationallevel,socio-economicbackground,ethnicityandgender.Thebenefitsofamorediverseandinclusiveworkforceintheenergysectoraremanifold.Itiswelldocumentedthatcompanieswithpoliciesaimedatpromotingdiversityperformbetterandhaveaccesstoabroadertalentpool(McKinsey&Company,2020).Adiverseworkforcerepresentativeofitscommunityisalsobetterplacedtomeettheneedsofallcommunitymembers,contributingtofairersocieties.Thisisofparticularimportanceintheenergysector,giventhatitprovidesanessentialservice.Earlyexposuretoenergy-relatedcareerpathwayswillplayanimportantroleinbuildingadiversetalentpipeline.Effortstocreateaninclusiveworkforcemustextendbeyondtheworkplaceitselfandleverageopportunitiestoengagediversestudentsstillineducationandtraining.GenderWomenarecurrentlyunderrepresentedintheenergysector,andmostacutelywhenitcomestoSTEMpositionsandseniormanagementjobs.Theirparticipationishigherintherenewableenergysector–accountingforone-thirdofallrenewableenergyjobs)comparedwith22%intheoilandgasindustry,asshowninFigure5(comparabledataarenotavailableforthecoalsector,butitisdoubtfulthepercentageofwomenwouldbehigher)(IRENA,2022c).Figure5Women’sshareintheenergyworkforceAllrenewableenergyOilandgasWindSolarPV0%20%40%60%80%100%economy-wideaverage45.9%45.9%21%21%22%22%40%40%32%32%REMorepositively,theDREsectorhascreatedsubstantialjobopportunitiesforwomen,oftenmirroringtheirshareintheoveralllabourforce(PowerforAll,2022).DREenablestheparticipationoflesseducatedwomeninruralareas.However,asthesectortransitionstomoreadvancedsystems,thereisariskthatthesewomenmightbeleftout.Inaddition,womencontinuetobeunderrepresentedinlabourunions,bothinmembershipandleadershippositions(ILO,EU,UNWomen,ITUC,2020).Withtargetedpolicyinitiatives–includingatthecompanylevel–theshareofwomenemployedinrenewableenergyjobscoulddramaticallyincrease.Women,unfortunately,facebothconsciousandunconsciousbiasesthatcanresultinbarrierstoentryandprogressupthecareerladder.Inordertofullyengagewomen,governmentsandcompaniesneedtobeawareofthechallengeswomenfaceandmakeadjustmentsthatcatertotheirneeds.Theymustprotectwomen’srightsandguaranteethemequaljobopportunitiesandwagescommensuratewiththeequivalentworkdonebymen.Box8illustratesaninnovativeinitiativetoempowerthefemaleworkforce(GWEC,2023).Source:(IRENA,2022c).35Section3BuildingtheworkforceofthefutureBOX8WOMENINWIND-GLOBALLEADERSHIPPROGRAMMEANDEMPOWERINGTHEFEMALEWORKFORCETheGlobalWindEnergyCouncil(GWEC)andGlobalWomen’sNetworkfortheEnergyTransition(GWNET)launchedtheWomeninWindGlobalLeadershipProgrammein2019withamissiontoadvancetheroleofwomenasagentsofchangeintheglobalenergytransition,inlinewithSDGs5and7,andtocontributetoamorejust,innovativeandprosperoussociety.WomeninWindservesasamultidimensionalprogrammeincludingmentorship,learninganddevelopment,webinars,astudytourandanonlinestorytellingcampaign.Theprogrammeisdesignedtoacceleratethecareersofwomeninwindpower,supporttheirpathwaytoseniorleadershipandfosteraglobalnetworkofknowledge-sharing,inclusionandempowerment(IRENA,2020c).Thevalueprovidedinthisprogrammeallowswomentoaddressthebarriersandconstraintsthattheyfaceintheworkforcethroughguidedmentorship.Thiscanbeextremelypowerfulinenablingwomentopursuecareerswithasequitablechancesasthoseoftheircounterparts.WomeninWindrepresentsthevoiceofwomeninthewindsectoratinternationalforasuchastheUNFCCCandIRENA.36Acommitmenttogendermainstreamingisoneofthemosteffectivewaysthatgovernmentscansupportandpromotegenderequality.Governments,togetherwithsocialpartners,should"promoteequalityofopportunityandtreatmentforwomenbyendinggender-biasedpractices"andeliminatingviolenceandharassmentintheworldofwork,amongothermeasures.Theyshouldalsofosterequalandinclusiveemploymentpoliciesand"equaltreatmentinrecruitment,promotionandtraining"intheindustry(ILO,2022b).Inaddition,gender-disaggregateddatashouldbecollectedandstatisticsandresearchdisseminatedtoguideajusttransition.Businessesandotherorganisationscan:•Establishbetterworkplacepractices.•Adoptpoliciesandregulationstoincreasetransparency(forinstance,improvedhiringpracticescouldincludesalariesonjobadvertisements).•Ensuregender-blindpromotions.•Enforceequalpay(eliminatingthepaygap).Workplacescanalsoofferparentalleavebeyondtheminimumrequiredbynationallaw,forexample,orfacilitateflexiblearrangements,includinghybridwork,telecommuting,remotework,condensedworkweeks,flexitime,part-timework,shiftworkandjobsharing.Thisisparticularlyappropriateforworkerswithcaringresponsibilitiesandduringchildbearingyears.Networksandsystemstosupporttrainingandmentorshipcanbeaneffectivetooltoensurewomengrowtheirskillsandgainnewperspectivesontheirlifeandcareeropportunities,includinginSTEMfields.ElectricianandinstallationskillsareexpectedtobethemostindemandintheDREsector.Thereisaneedfortargetedskillsdevelopmentprogrammesthatrecognisethesefutureneedsintheenergysector,aswellasinterventionstoensurewomenhaveequitableaccesstotrainingandthosejobs.Box9providesagoodexampleofhowthiscanbeimplementedinpractice(Iberdrola,2022a).Fundamentally,itwillbenecessarytochangethemindsetsurroundinggender-stereotypedrolesbothintheworkplace(e.g.technicaljobsareformen)andbeyond(e.g.womenareinchargeofcaringduties).Womenarealreadyactiveandtakingleadershippositionsinthefieldandtheirexamplecouldbeshowcasedtopromotemoreopportunitiesforwomen.Misperceptionsinthisregardshouldbeaddressedataveryearlyage,wellbeforethetimewhenstudentsbeginthinkingabouttheirprofessionalfutures.37Section3BuildingtheworkforceofthefutureBOX9SCHOOLOFELECTRICIANSFORWOMENIberdrolaisaworld-leadingpowerutility,committedtopromotingthepresenceofwomenincareersrelatedtoSTEM.Thecompanybelievesthat,throughtraining,overtimewomenwilloccupypositionsofleadershipwhich,untilnow,havebeenoccupiedmainlybymen.Forexample,in2019itsBraziliansubsidiaryNeoenergiaestablishedaSchoolofElectriciansuniquelyforwomen,withtheaimofencouragingfemaleentryintothisfieldandgiventheirlowenrolmentintheoriginalmixedschool.Initially,thecompanyanticipatedthatthemajorchallengewouldberecruitingwomenwhowereinterestedintrainingforacareeraselectricians,historicallyamale-dominatedsector.So,thecompanylookedfortherightchannelswithstateandnationalreachtohelpadvertisetheprogramme,workingwithcommunityorganisationstoattractandretaininterestedcandidates(e.g.bycollaboratingwithcelebrityinfluencers,non-profitpartnershipsinlocalcommunitiesandfamousmusicians).Apartnershipwiththestategovernmenthelpswomenobtainadrivinglicence,therebyremovingapotentialbarrier.Inaddition,informationsessionswereorganisedforwomenalreadyworkingforthecompanytosharetheirexperiences.TrainingprogrammecoursesweresetupinconjunctionwithFAT/SP(FoundationforTechnologySupportSãoPaulo)andSENAI(NationalServiceofIndustrialTraining),oneofthebiggestnetworksforprofessionaltraininginLatinAmerica.ThecoursesareavailableinSãoPaulo(SP),Bahia(BA),Pernambuco(PE),RioGrandedoNorte(RN)andDistritoFederal(DF).Thisapproachhelpedtoprovidetheinstructionandcurriculumneededtoensurethatwomenfeltengagedandincluded.Thecompanyalsostartedamentoringprogrammewithvolunteeremployeestomaintainstudentengagementwiththecompany.HavingincreasedthenumberofwomeninthepowersectorthroughtheSchoolofElectricians,therewasaneedtoreassuremaleemployeesthatthewomenwerenotcompetingwiththem.LeadershipfromtheCEOwascritical,andheemphasisedhisbeliefthattheprogrammewouldleadtoanoverallpositiveculturalshiftforthecompany.Giventhatthoseinthefieldoperateatheightsandliftheavyobjects,thecompanyhasalsodefinedspecificinternalregulationstoensuresuitableworkingconditionsareprovidedduringpregnancyandforthosereturningaftermaternityleave.Thecourses,whicharefreeandtakearoundsevenmonths,preparewomentogainemploymentwithinenergydistributioncompanies(atNeoenergiaandothercompanies).Theyincludebasictrainingforelectricalpowerdistributionnetworkelectricians.Uponcompletionofthecourse,studentsareabletoworkontheelectricalpowersysteminde-energisedstructuresofupto13.9kV.IndistributionnetworksinthenortheastandinBrasília,thescopeincludesmaintenanceandcommercialservices,withaworkloadof480hours.InSãoPaulo,inadditiontomaintenanceandcommercialservices,studentsalsolearnaconstructionmodulewithatotalworkloadof774hours.Trainingonregulatorystandardsisprovidedinallschools(basicNR10,NR10-SEPandNR-35).Withsupportsystemsinplacetorecruitandretainwomen,thecompanyplanstohavemixedclassesinthenextcohortattheSchoolofElectricians.Thiswillensuretheclassroomenvironmentreplicatestheactualworkingenvironmentforemployeesofbothgenders.In2022,giventheimportanceoftheSchoolofElectriciansforwomen’sinclusionintheworkforce,theBoardapprovedtwoenvironmental,socialandgovernanceobjectivestobeachievedby2030-forwomentoaccountfor35%orgraduatesfromthecourseand12%ofprofessionalelectriciansatNeoenergia.Since2019morethan18000womenhaveappliedtojoinand3300womenhaveattendedtheinformationsessions.AsofDecember2022,atotalof637womenhadbeencertified,60%ofwhomhadalreadyjoinedIberdrola’sworkforce,whilstafurther182wereintheprocessofbeingcertified.TheprogrammehasbeenrecognisedbyUNWeEmpowerasanexampleofgoodpractice.38YouthEquippingyoungpeoplewithskillsforaclimate-safefuturewillbeessentialtodrivetheenergytransition.Ifwewanttobuildathrivingrenewable-energyeconomy,earlyeducationshouldcreateawarenessandmotivation,withtimethenecessaryskillstaughtduringlateryears.Atpresentthereisaconsiderablemismatchbetweencoursesbeingtaughtandwhatisneededinpracticeontheground.Thetrainingandjobswillhavetobemadeattractivetodrawyoungpeople’sattentionandforthemtojointherenewableenergyworkforce.TheEnergyTransitionSkillsProject,developedbyStudentEnergyinpartnershipwithØrsted,lookedintowhatismostimportantforyoungpeopleacrosstheworldwhenpursuingajob.Whenrankingtheirtopthreepriorities,44.5%ofrespondentschosepurposeofwork,44.4%chosesalaryandcompensation,and42.3%choseopportunitiesforgrowth.Respondentsnamedlackofawarenessofexistingjobopportunities,lackofavailableentry-levelpositions,andlackofaccesstoskillstrainingastheirkeybarriers.Themajoritybelievedthatskillstrainingprogrammes,internshipsandwork–learnopportunitieswouldhelpthemtopursuethecareeroftheirchoice.ThemajorityofrespondentsthoughtthataSTEMbackgroundwasapreconditionforworkingintheenergytransition.Thismisconceptionshouldbeaddressed,asdiversebackgroundsandawidevarietyofskillsetswillberequiredingreeneconomy(StudentEnergy,2023).Educatorsinparticularhaveanimportantroletoplayinreachingyoungpeople.Theycaninstiltheknowledge,valuesandskillsinyoungpeopletodrivetheenergytransition.TheEnergyTransitionEducationNetworkwasestablishedwiththeobjectiveofpreparingeducatorstoaccomplishthisundertaking,asdescribedinBox10(IRENA,2022d).39Section3BuildingtheworkforceofthefutureBOX10THEENERGYTRANSITIONEDUCATIONNETWORKTheIRENA-ledEnergyTransitionEducationNetwork,anewmulti-stakeholderpartnership,workstobuildthecapacityofteachers,lecturersandtrainerstodelivereffectiverenewable-energylearningtotheirstudents.TheUnitedNationsEducational,ScientificandCulturalOrganization(UNESCO),TeachforAll,theUnitedNationsInternationalChildren’sEmergencyFund(UNICEF),theInstituteofElectricalandElectronicsEngineersandtheHigherEducationandSustainabilityInitiativeareamongthefoundingpartners.Thenetworkwillprovideeducatorswiththetools,capacityandinnovativepracticestoenablethemtointegraterenewableenergyintotheirteachingpractices(IWW,2022).Greenskillstrainingandeducationshouldbeaccessible,affordableandattractive,withaclearcareerpathway.Itiscriticaltoidentifywhatjobswillbeneededsothattargetedtrainingthatisconnectedtojobopportunitiescanbeprovided.Bothformalandnon-formaleducationandtrainingactivitieswillbeneeded.Box11describesagoodpracticeexampleofreachingvulnerableyouth(Iberdrola,2022b).BOX11IBERDROLAANDUNICEFALLIANCEIn2022IberdrolaandUNICEFlaunchedaninnovativeinternationalalliancetoempower,trainandincreasetheemployabilityofyoungpeopleinvulnerablesituationsinSpain,BrazilandSomalia.Thealliancepromotestrainingandemploymentofyoungpeopleinvulnerablesituationsinsectorsofthefuture,suchasthenewgreeneconomyandtheenergytransition.Withthisalliance,Iberdroladrivesthe"GenerationUnlimitedglobalinitiative,launchedbytheUnitedNationsGeneralAssemblyin2018andledbyUNICEF,whichseekstoconnectmillionsofyoungpeoplearoundtheworldwithopportunitiesfortraining,empowerment,employmentandsocialentrepreneurship"(Iberdrola,2022b).InSpain,IberdrolasupportsGenerationUnlimitedSpain,athree-yearmulti-stakeholderpartnershipledbyUNICEFSpain,formedbytheprivateandpublicsectors,civilsocietyentities,academiaandyouthrepresentatives.Thisallianceaimstoimprovepoliciestowardsmoreinclusiveemployment,jobcreationandinnovationinthepublicandprivatesectors.Iberdrolaprovidesknowledge,experience,innovation,andfinancialandhumanresources.Itundertakesthedesignandstrengtheningofthetrainingprogrammes,aligningthemwiththeactualneedsofthegreensector,involvingcompaniesandactorsalongitsvaluechain,andincorporatingchangesincorporatepoliciesformoreinclusiveemployment.Socialentities,experiencedinthevulnerabilitycontext,accompanythetrainingofyoungpeopletoprovidethemwiththenecessarycapabilitiesandresources.Theinitiativehasstartedinthesolarenergysectorwithtrainingandinternshipsintheinstallationandmaintenanceofphotovoltaicpanels.Ithasenabledcompaniestodiscovertalented,committedandenthusiasticyoungpeopletojointheirteams,helpingtoaddresstheskillsgapwithinthegrowingmarket.In2022trainingcourseswereestablishedincollaborationwithsevensocialentities,resultingintheparticipationof62youngpeoplewhoarecurrentlyinthehiringprocesswithvariouscompaniesinSpain.40Earlytrainingopportunitiescanactasacatalyst,enablingyoungleaderstomakechangesintheircommunities(Box12).Buildingyoungpeople’scapabilitiesisessentialnotonlytobridgetheskillgapsfortheenergytransition,butalsotoenablethemtoparticipatein,andadvocatefor,theenergytransition.BOX12GOODPRACTICESFORYOUTHINCLUSION,TRAININGANDQUALITYJOBS–SPOTLIGHTONESTHERWANZAEstherWanzaexperiencedirregularaccesstopowerandrelatedchallengesduringherchildhood,drivinghertopursueanundergraduatecourseinrenewableenergy.Aftergraduationshediscoveredshehadnotgainedtheskillsneededforacareerinenergy.Inresponse,shecontinuedtoexpandherknowledgethroughonlinelearningandbyparticipatingininitiativessuchastheSDG7YouthConstituency,YouthSustainableEnergyHub,IRENAStudentLeadersProgramme,MicroGridAcademyandAfricaFellowshipforYoungEnergyLeadersamongothers.Thesehavenotonlybuilthertechnicalabilitytoimplementprojectsfocusedonacceleratingenergyaccess,buthavealsohelpedhertocontributetotheenergytransitionagenda.Estherco-foundedRaynowEnergy,whichinstalleda3kWpsolarphotovoltaicsysteminJujaFarmHealthCentreandwasfurtherselectedtoperformenergyneedassessmentsinfouradditionalhealthcentresinoff-gridareasofKenyaundertheRenew-ABLEAgainstCovidInitiativebytheRes4AfricaFoundation.In2020theenergystart-upreceivedtheMicroGridYoungTalentoftheYearAward.Besidestheseaccomplishments,shehasalsoparticipatedindifferentmentorshipprogrammesincludingthePeopleCentreAcceleratorprogrammebyGWNETandSEforALLandtheTechwomenFellowship,whichenabledhertoperformherroleasanEnergyBusinessMentoratEnergy4Impact.Shesupportedover300womenbyofferingbusinessandtechnicaladviceandhelpingthemtodevelopbusinessesinthecleancookingandoff-gridsolarvaluechains.Althoughpowerisbecomingmoreaccessible,theimpactismuchlesssignificantinareasthatareaffectedbyclimateinactionduetoalackofknowledgeandskillsaroundhowtoutiliselocallyavailableresourcestocombatclimatechange.Providingfree,globallyaccessibleenergyeducationresources,skillsdevelopmentandcapacitybuildingprogrammes,andfosteringaglobalcommunityofyouthcangoalongwayinnotonlyachievingajustenergytransition,butalsoensuringintergenerationaldiversityoftheworkforce.Thisrequirescollaborationbetweengovernments,academiaandtheprivatesectorthroughtheprovisionofplacementopportunitiesinvariousofficesforgraduatesandscholarshipsandmentoringforstudents.Estherenvisionsafutureintheenergysectorwhere,equippedwiththerightskills,youngpeoplecanplayacriticalroleinrespondingtoclimatechange.41Section3BuildingtheworkforceofthefutureEthnicminorityandindigenouscommunitiesClimatechangedisproportionatelyaffectsthepoorest.Theconceptofenvironmentalandclimatejusticecallsforfairallocationofburdensandbenefits,representationindecisionmakingandconsiderationofdiverseculturesandperspectives(IPCC,2022b).Workersinpoorercommunities–oftenethnicminoritiesandindigenouspeople–tendtodothemostdangerousworkinthefossilfuelindustriesandtheyandtheircommunitiessufferthegreatesthealthconsequencesasaresult,asillustratedinBox13(UN,2021).BOX13:PETROCHEMICALPLANTSINLOUISANA,UNITEDSTATES:"CANCERALLEY"LOUISIANATheareainthesouthernstateofLouisianaalongthelowerMississippiRiverreferredtoas“PlantationCountry”withenslavedAfricansforcedtoworkisnowknownasCancerAlley.Itisanindustrialpowerhousewithalmost150oilrefineries,plasticsplants,andchemicalfacilities.TheseindustriesledtowaterandairpollutionwithdetrimentaleffectsonthemostlyAfricanAmericanresidentssuchascancer,respiratorydiseases,andotherhealthproblems.Thisillustratestheexistingenvironmentalracismthreateninganumberofhumanrights,notablytherighttoequalityandnon-discrimination,therighttolife,therighttohealth,righttoanadequatestandardoflivingandculturalrights.Whilesustainableenergywouldalleviatemanyhealthandenvironmentalproblems,fossilfuelindustriesarepresentlythelifebloodofmanypoorercommunities.Theenergytransitionmustnotdisadvantagetheworkersintheseindustries–indeedtheyshouldshareinthebenefitsandopportunitiesaffordedbythetransition.Policyandco-ordinationareneededatthenationallevel,whileatthesametimethevalueoflocalknowledgeandparticipationmustberespected.Theirneedsandconcernsmustbeidentifiedearlyonandtheyshouldbeinvolvedatthecentreofaction.Giventhelandintensityofvariousrenewableenergysectors,theperspectivesofindigenouspeoplesmustreceivespecialattention,particularlywheretheyhaveautonomousrightswithinnationalgeographicalboundaries.Theirviewsarelikelytodifferonefromanotherdependingonlocalcircumstancesandsocio-economicconditions,butmustbefullyrespectedinanydiscourseonjusttransition.Unfortunately,researchbytheStockholmEnvironmentInstituteshowsthatthisisnotalwaysthecase.Forexample:“IndigenousPeoplesinremotebutminerallyrichregionsarenotpartofdecisionmakingregardingthedesiredrenewableenergytransitiontoaddressthedeepeningclimatecrisisyetsufferfromtheincreasingdemandsofcriticalmineralsessentialforthetransitiontohappen.Animportantconcernforthemaretheimpactsofongoingminingandthesharingofthebenefitsderivedfromtheextractionofmineralresourcesintheirlands.”(StockholmEnvironmentInstitute,2023)RespectfortheUNGuidingPrinciplesonBusinessandHumanRightsmustbeupheldatallstagesofplanningandprojectdevelopment.Section4Mobilisingfinanceforajustenergytransition43“Adoptingajusttransitionlenstoassessingandaddressingsocialandeconomicimplicationsoftheclimatetransitionallowscapitalproviderstoeffectivelynavigatethetransitionchallenge,mitigatetheinherentrisksandbenefitsfromemergingbusinessopportunities”(ILO,2022c)“Thescaleofthechallengeclearlyrequiresdoingthingsdifferently–anewfinancialarchitectureisneededtoaddressthischallenge.Alongsidethefinancecommitmentsofdevelopedcountrygovernments,whichmustbemetandexpanded,financialinstitutionsandmultinationalcorporationshaveanimportantroleinclosingthefinancinggapindevelopingcountries.Theseshouldhelptocreateeffectiveincentivesandstrongerpartnershipswithgovernments,multilateraldevelopmentbanks(MDBs)anddevelopmentfinanceinstitutions(DFIs)thatwillneedtobetterusetheresourcesandtoolsattheirdisposal.Theinvestorsattheforefrontofunlockingthisenormouscleaninvestmentopportunitywillbepositionedtohelpbuildneweconomiesofprosperityandgrowth”(UN,2022)WearecurrentlynowherenearthelevelofinvestmentneededtotransformoureconomiesandsocietiestoachievethegoalsoftheParisAgreementandSDGs.AccordingtoIRENAandCPI’slatesteditionoftheGloballandscapeforrenewableenergyfinance(IRENAandCPI,2023),althoughglobalinvestmentinenergytransition-relatedtechnologiesreachedarecord-highofUSD1.3trillionin2022,itremainsatlessthanone-quarterofannualinvestmentneededbetween2023and2030accordingtoIRENA’sWorldEnergyTransitionsOutlook2023(IRENA,2023a).Globalinvestmentinrenewableenergy(atUSD0.5trillionin2022)islessthanone-thirdoftheaverageinvestmentneededeachyearbetween2023and2030andinvestmentinoff-gridrenewables(atUSD0.5billionin2021)isfarshortoftheUSD15billionneededannually(includingmini-grids)between2021and2030(ESMAPetal.,2022)tomeetSDGs.Moreover,cleanenergyinvestmentisnotinherentlydeliveringatransitionthatisjust.Morethan85%ofglobalrenewableenergyinvestmentin2022servedlessthanhalfoftheworld’spopulation,whiletheotherhalfremainsseverelyunderserved.Tacklingtheclimatecrisisinaninclusivewayandachievingthedevelopmentagendaby2030requireinternationalco-operation,includingtheflowofpublicfundsfromtheGlobalNorthtotheGlobalSouth.Butin2020financingfrombilateralandmultilateralbanksconstitutedlessthan3%ofglobalrenewableenergyinvestment,andlessthanone-thirdofthiswasprovidedintheformofconcessionalloansorgrants.Fortheremainder,financingwasprovidedatmarketrates(eitherfrompublicorprivatesources),meaningthatincontextswithhighinvestmentrisks–realorperceived–financingisprovidedathighrates.Thismeansthatthepoorestpeoplepaythemostfor(oftenbasic)energythatisessentialforsocio-economicdevelopment(IRENAandCPI,2023).Ajusttransitionrequirespublicfundsandaholisticpolicyframeworksthataddressstructuralmisalignments,inequalityandinstitutionalconstraints(IRENA,2022a).Publicfunds(domesticorinternationalthroughcollaboration)mustflowthroughintermediariessuchasgovernments,multilateralDFIsandbilateralDFIs(seeBox14),andglobalfundsusingavarietyofinstrumentsincluding:•Governmentspendingsuchasgrants,rebatesandsubsidies,capacitybuilding.•Debt,includingconcessionalfinancingandguarantees.•Equityanddirectownershipofassets(suchastransmissionlinesorlandtobuildprojects).•Fiscalpolicyandregulationsincludingtaxesandlevies,exemptions,accelerateddepreciationandregulationssuchaspowerpurchaseagreements(especiallywhenthetariffspaidtoproducers–inadditiontothecostofrunningthesystem–arelowerthanwhatiscollectedbyconsumersandthedifferenceispaidthroughagovernmentsubsidy).44Publicfundsarethereforeneededtofundpoliciesthatcreateanenablingenvironmenttoattractprivateinvestment,buildinfrastructureandprovidecapacitybuilding,educationandtraining(Figure6).JustEnergyTransitionPartnershipsareemergingasafinancingco-operationmechanismsupportingdevelopingcountrieswithhighdependencyonfossilfuels.However,someconcernsarebeingraisedregardingthesemodels,forexample,thereislimitedsupportforsocialandeconomicobjectives.InthecaseofSouthAfrica,thefundingismostlyprovidedintheformofloans,withlessthan4%asgrants,andskillsdevelopmenthasbeenallocatedonly0.2%(ThePresidency,RepublicofSouthAfrica,2022).Toachievesustainabledevelopmentandsharedprosperity,internationalcollaborationmustaddressstructuralmisalignmentsthathavecauseddistributionalchallenges,suchasdependenceonforeigncurrencyandconstraintsondefiningdomesticdevelopmentpathways.Internationalcollaborationcanhelpcountriestostrengthencapacityincriticalareassuchasinstitutionaldevelopment,economicstructures,socialcohesion,researchandinnovationtopromotesustainabledevelopmentandreduceinequity(IRENA,2022a).IRENAfacilitatesinternationalcollaborationbeyondconcessionalclimatefundingthroughtheClimateInvestmentPlatform,andtheEnergyTransitionAcceleratorFinancing(ETAF)Platform.Theseestablishedavenuesofclimatefinancearejustoneofmanynecessaryelementstoaddressinterconnectedglobaleconomicandsocialchallenges.IRENA’ssocio-economicfootprintassessmentsincludeananalysisofinternationalclimatecollaborationfinancialflows.Theyarepartofthebasketofpoliciesdesignedtosupporttransition-relatedpublicinvestmentandexpenditure(IRENA,2021,2022a);(IRENAandAfDB,2022).Underthisapproach,allcountriescontributetointernationalcollaborationflowsaccordingtotheirclimateequitycapabilityandresponsibility.Threepillarsdefinetheprincipalobjectives:•Anenabledenergytransitionpillartoaddresspotentialmisalignments.•Aninternationaljusttransitionpillartopromoteajustandinclusiveenergytransitionforfossilfuel-dependenteconomies.•Aninternationalclimateequitypillartopromoteafairerenergytransition.Suchfundscanimprovetheabilityoffossilfuel-dependentandclimate-vulnerableeconomiestoundertakedomesticsocialspendinganddecreaseinequality,thussmoothingtheneededenergytransitionadjustments.Withaprogressivepolicybasket(extensiveinternationalcollaboration),manycountrieswillbenefitfromthistransition–intheformofincreasedGDP,employmentandwelfare,especiallyindevelopingandemergingeconomieshighlydependentonfossilfuels–withoutanysignificantnegativeimpactsonanycountry,(IRENA,2022e,2023c;IRENAandAfDB,2022).Tosupportjustandinclusivetransitions,publicinvestmentneedstoprovidethenecessaryfundingforindustrialpolicymeasuresandregionalrevitalisationefforts;training,retrainingandskillcertificationprogrammes;comprehensivelabourmarketmeasures;andsocialprotectionprogrammesforthosewholosetheirjobintheenergytransition.Publicinvestmentneedstoguideandsteerthetransition,ensuringsocialacceptanceandbroadsupport.Itisimportanttonotethatfundsandfinancialinstrumentsshouldbeusedwithcautionsoastonotconcentratethebenefitsamongparticularplayersintheindustry,andinstrumentsshouldbedesignedinawaythatdistributesthebenefitsinanequitableandfairwayinaneconomy(IRENAandCPI,2023).45Section4MobilisingfinanceforajustenergytransitionFigure6Sourcesoffunds,intermediaries,instrumentsandpoliciesPotentialinstrumentsCategoriesofpoliciesIntermediariesSourcesoffundsGovernmentsNationalInternationalSOFIs/SOEs/nationalDFIsLocalbanks/microﬁnanceInstitutionsCo-operatives/foundations/NGOs/crowdfundingplatformsDirectinvestmentsingovernment-ownedassets,designingandfundingpoliciesInvestmentininfrastructurethatsupportintegrationofrenewablesintotheenergysystemSupportforlong-termenergyplanning,capacitybuildingandtraining,researchanddevelopment,technicalassistance,etc.PoliciestoaddressmisalignmentsandmarketfailuresGovernmentspendingincludinggrants,rebates,subsidiesDebtincludingexistingandnewissuances,creditinstruments,concessionalﬁnancing,guaranteesEquityanddirectownershipofassetsFiscalpolicyandregulationsincludingtaxesandlevies,exemptions,accelerateddepreciation,andregulationssuchasPPAsMultilateralandbilateralDFIsExportcreditagenciesGlobalfunds(e.g.GCF,JETP)CarbonﬁnanceplatformsInternationalandSouth-SouthcollaborationMacroeconomicpolicies(formulateandimplementﬁscal,monetaryandforeignexchangepoliciesthatimpactthedeliveryofpublicfunds)StructuralchangeandjusttransitionpoliciesEnablingpoliciesIntegratingpoliciesDeploymentpoliciesSource:(IRENAandCPI,2023).Theinvestmentflowsoftodaydefinewhichindustriesandjobswillemergetomorrow.Investmentneedstobealignedwithtrainingandeducationtobuildindustries,infrastructureandskillsthatmeetfutureneeds.Proactiveplanningisrequiredsothatfinanceisallocatedtodelivertheresultsmostbeneficialtosociety:adecisiveshiftawayfromfossilfuelsandajusttransitiontoarenewables-basedenergyfuture.Weneedinvestmentnotonlyinrenewabletechnologies,butalsoineducationandtraining,research,infrastructure,environmentalremediationandcommunitytransition(ILO,2022b).Governmentstogetherwithsocialpartnersshould:"facilitatetechnologytransfer,thesharingofgoodpracticesandpromotejusttransitionfinancingandothermeanstosupportsustainabledevelopmentprojects.Thisshouldbedonethroughinnovativepartnershipsandenhancedcollaborationatthenationalandregionallevelaswellasinternationalcooperation,includingtriangularandSouth–Southcooperation,bothamongcountriesthataredevelopingtheirindustryandamongthosethataretransitioningtorenewableenergysources"(ILO,2022b)Inaddition,someofthechallengesdelayingthealignmentofprivatefinancialflowswithjusttransitionobjectivesincludeinconsistentdefinitionsofsocio-economicrisksandimpacts,thelackofstandardisationofsocialmetrics,andlimiteddataonwhichtobaseinvestmentdecisions(ILO,2022c).AccordingtotheIPCC,inequalitiesinaccesstofinanceaswellasthephysicalimpactsofclimatechangeresultinaworseningoutlookforaglobaljusttransition(IPCC,2022).Ensuringnooneisleftbehindisnotonlyanethicalimperative–tacklingsystemicrisksofinequalityisfundamentaltogainingthepublicsupportessentialforaspeedytransition.46Internationalcollaborationshouldincludethetransferoffundsandknowledgeexchange.ThiscanalsobefacilitatedbyinternationalorganisationssuchasIRENAandtheILOwhoprovidetechnicalsupportonpolicyandfinanceinstrumentsforajusttransition.Forexample,IRENAmanagesTheEnergyTransitionAcceleratorFinancingmulti-stakeholderclimatefinanceplatform,whichfacilitatesfinancingforrenewableenergyprojectsindevelopingcountrieswiththeobjectiveofbolsteringsocialandeconomicdevelopment.BOX14THEROLEOFMULTILATERALBANKSINTHEJUSTTRANSITIONMultilateraldevelopmentbanks(MDBs)providedUSD82billioninclimatefinancein2021,withUSD51billiongoingtolow-andmiddle-incomecountries.Thelevelofcollectivefundingforfossilandcleanenergyfinanceislessclear,butenergywatchdogOilChangeInternationalcalculatesthatUSD4.6billioninfossilfuelinvestmentwasmade.TheEnergyPolicyTrackerputsthefigureataminimumofUSD3.10billionwithUSD13.15billiongoingtocleanenergy(EnergyPolicyTracker,2021).Whilecleanenergyreceivesmostfunding,thefactthatthereisanycontinuedinvestmentinfossilfuelsatallunderminesthegoalsoftheParisAgreement.NonethelessthereareencouragingsignsthatMDBsaremovinginapositivedirection.AtCOP27,MDBsissuedajointstatementthatsetsoutmainstreamingjusttransitioneffortsasoneofthepriorities.Thismeansincludingjusttransitionandsocialinclusionconsiderationsinrelevantpolicies,plansandprojects,andworkingtoadvanceinclusionandequalityofopportunityforwomenandvulnerablegroups(AfricanDevelopmentBanketal.,2022).Addressinginequalityisakeyconditionforasuccessfulenergytransition."Theimperativeofpromotingsocialjusticeshouldunderpinpoliciesthatprotectpoorerhouseholdsandshifttheburdentohigh-incomeearnerswhoareresponsibleformostemissions.Aprogressivecarbonprice,akintoaprogressiveincometax,couldaddresstheunderlyingincomeandenergyinequality"(ILO,2023d).Carbonpricing,inpractice,canleadtoaregressiveoutcome,giventhatlow-incomehouseholdswhospendahighershareoftheirincomesonenergyaredisproportionallyimpactedbythepriceincrease(IRENA,2022a).IRENA’sanalysisdemonstratesthatgreaterinternationalco-operationandprogressivepolicyandregulatorymeasureswillgenerategreatersocio-economicbenefitsfromtheenergytransition.Revenuesfromcarbonpricingcouldbeusedforenergybillrebatesandenergyefficiencyupgradesforlow-incomehouseholds,aswellasinvestmentinsocialprotection,skillsdevelopmentandeconomicdiversification.Forexample,theJustTransitionFundenvisagesupskillingandreskillingworkers,anddiversifyinglocaleconomiesintheterritoriesmostimpactedbythetransition(EuropeanCommission,2023).47RecommendationsThefollowingisalistofthemostimportantfindingsfromIRENA’sconsultationsoverthepasttwoyears:1.Strongerconsensusisneededona“net-zero”future:AsenvisagedbytheParisAgreement,anenergytransitionismeanttocreatealow-emission,circulareconomybuiltonsustainableenergybythemiddleofthecentury.Whilemanytradeunionsandbusinessesinenergyandotherindustriessupportthisvision,itisnotaforegoneconclusionthatalldo.Indeed,companiesthatstandtolose,apprehensiveoftherisksandwithsunkcosts,mayclingtothefossilfuelindustry.Thisalsoappliestosomelabourunionsbecausetheenergytransitionentailsjobuncertainty,orjobsinrenewablesmaynotnecessarilypayaswellasthoseinconventionalenergy.Moreeffortisrequiredtobuildastrongerconsensuswithandwithinthelabourmovementandprivatesectorthatbetteralignstheclimateagendaandtheinterestsofworkers.2.Holisticpolicyframeworksarerequired:AsspecifiedintheParisAgreement,provisionsforajusttransitionneedtobeintegratedintoclimate,energy,socio-economicandindustrialpolicies.Asastartingpoint,thereneedstobeamoreconsistentunderstandingandinterpretationofexpectationsregardingtheimplementationoftheILOJustTransitionGuidelines.Holisticpolicyshouldcreatethecertaintyneededbybusinesstomakelong-terminvestments,byestablishingambitioustargetsandestablishingthenecessaryincentives.IncludingthesepoliciesintheNationallyDeterminedContributions(NDCs)submittedtotheUNFCCCcouldhelpcreateasenseofinternationalaccountabilityforajusttransition.3.Theremustbeagreaterroleforsocialdialogueinshapingenergytransitionlabourpolicy:Morecanandshouldbedonetocreateenablingconditionsforsocialdialogueandtoincludeworkersandlabourunionsindiscussionsrelatedtonationallong-termdecarbonisationstrategies.Whilerecognisingtheimportantroleoftheprivatesectorinachievingaglobalenergytransition,equalweightshouldbegiventotheperspectivesofworkersasenergy,industrialandclimatepolicyandpublicinvestmentstrategiesarebeingshapedbygovernments.Inregionswheresocialdialoguehastakenplace,andwithincompaniesthathavecollectivebargaining,thetransitionhasbeenmuchsmoother.Giventhatmanyregionsandsectorsaremarkedbylowratesofunionisation,socialdialoguecanlookverydifferentdependingonthelocalcontext.Solutionsbuiltoncommongroundaspartoftransparent,inclusiveprocesseswillbefarmoredurableandarethereforefarmorelikelytosucceed.4.Thereneedstobeagreaterfocusonjobquality,notjustquantity:Muchoftheresearchonjobsinthecontextoftherenewableenergytransitionhasbeenfocusedonthenumberofjobsbeingcreated.Whileimportant,justasimportantifnotmoresoisthequalityofthosejobs.Aretheyprovidingadecentwage?Istherejobsecurity?Doworkersreceivesocialprotection?Isrelocationrequired?Aretherehealthrisks?Betterdata(whichareideallyvalidatedbytrustedthirdparties)areneededtoidentifyandanswertheseandotherquestions.Inaddition,greaterdataintelligenceandmoregranulardataareneededtoinformgovernmentandprivate-sectordecisions.Therenewableenergysectormustprovidedata-driven,realisticscenariosthataimhighbutdonotoverpromise.485.Absorptionoflostjobsmustfactorinnon-energysectors:Althoughitishighlylikelythattheenergytransitionwillcreatemorejobsinrenewables,energyefficiencyandassociatedinfrastructurethanwillbelostinfossilfuels,spatial,temporal,sectoralandskills-relatedmisalignmentswillneedtobeaddressed,asinanydeepstructuraleconomictransformation.Adjacentindustriessuchassteel,construction,wastemanagementandmanufacturingshouldbeincludedwhenplanningfortheenergytransitionandofferingaviable,comparablealternativethatlooksacrossthediversityofcountryorregionaleconomicactivity.Thiswouldoutlinewhichjobswillbeneeded,where,andinwhatsectors,andconsiderwhatskillsarerequired.Atthesametime,differentsegmentsoftheenergysectorwillhavedifferentkindsoftransitions.Currentenergysectorjobsvarygreatlydependingonendmarkets.Forexample,theskillsrequiredtoproducetransportfuelsaredifferentfromthoserequiredforcoal-firedpowergeneration,whicharedifferentfromthoseneededinthenaturalgassector.Asaresult,howtotransitionthosejobswillalsovary.6.Onesizedoesnotfitall–country-by-countryactionstrategiesareneeded:Notalltransitionswillbethesame,witheachcountryrequiringdifferentapproachesandtimeframesdependingonthenatureofitsenergysectorandotherfactors.Theexistingenergyprofileofeachcountrywillinfluencetheenergytransitionroadmapandjobmobility.Forexample,eachcountrywillbeuniqueintheavailableemploymentalternatives–whetherwithinoroutsidetheenergysector.What’strueforSpainwillnotnecessarilybetrueforPoland,forexample,andlikewisefromoneregionoftheworldtothenext.Asaresult,actionmustbecustomisedbycountry.Yet,whiletheneedforsharingtransferablelessonsandinformationonjobqualityiswellunderstood,thereremainsageneralabsenceofsufficientdataatthecountrylevel.Wemustalsoleverageexistingbestpracticesandlessonslearnt.Whilerecognisingthatthereisnoone-size-fits-allsolution,therearevaluableexamplesofcountriesthataremoreadvancedintransitioningthefossilfuellabourforce.Identifyingthecommonelementsofsuccessstoriesandsharingthemwithothernationalgovernmentswouldbeuseful,whilealsoexploring“solidarity”supportmechanismswherebycountriesfurtheralongthetransitionhelpbuildcapacityincountriesthatarejustbeginning.7.It’saboutcommunities,notjustenergyworkers:Whenacoalmineorcoal-firedpowerplantisclosed,ithasanimpactnotonlyonthosedirectlyemployed,butontheentirecommunity.Justtransitionsolutionsneedtotakeaholisticcommunity-basedapproachtoemploymentandensurethatnooneisleftbehind.Thisrequiresanticipatingclosureswellinadvance,doingregionaleconomicanalysis,andplanningaccordingly.Thesameholdstrueforeconomiesandsocietiesdependentonotherconventionalenergysources.Includingcommunitiesasvaluedstakeholdersintheenergytransitionwillcoveroneimportantaspectofensuringaninclusiveenergytransition.8.Businessneedsconsistent,enablingpolicyframeworksandalevelplayingfield:Morecanbedonetocreatealevelplayingfieldandbuildenablingframeworksforbusinessestoenactthejusttransitionprinciplesandtodrivetheeconomicopportunitiesforcreatingnewgreeneconomyjobs.Thisentailsgovernmentadoptingconsistentlong-termpoliciesforrenewablesandassociatedpowernetworks,aswellasrobustregulatoryframeworksandeffectiveauctioncriteria,allofwhichshouldreflectjusttransitiondemands.9.Trainingcanbridgetheskillsmismatch:Theskillsneededforafutureeconomypoweredbyrenewableenergywillvaryfromindustrytoindustry,andevenwithinthesameindustrytherequisiteskillsmaybeverydifferent(forexampleintheautomotiveindustry).Sufficientfinancialsupportisrequiredtoensurethatreskillingandupskillingareprioritisedtofosterentrepreneurshipandinnovation,whilststrengtheningresilienceinenterprise,includingmicro,49Recommendationssmallandmedium-sizedenterprises.Educationsystemsandprogrammes-includingschoolsanduniversities,andvocationalandtechnicaltraining,mustbeadaptedtoanticipatedfuturejobsandskillsdemand.Adequatetrainingmustinvolvebothpublicandprivatesectorsupportandincentives.Itshouldbenoted,however,thatforolderworkersthismaybemorecomplexandalternativesolutionsmustbefoundtopreventlossoflivelihoods.10.Informalworkcannotexcludesocialprotection:Targetedprotectionsarerequiredforinformalworkersinfossilfuelindustries,particularlyprevalentindevelopingcountries.Whilejobsinrenewableenergytendtohavehigherdegreesofformality,effortsarestillneededtoformaliseinformalworkarrangements,especiallyinmining,thecirculareconomyandbiomass.Concernsabouthealthandsafetyissuesintheseindustriesalsoneedtobeaddressed.Thiswillbemoreofanissueinsomegeographiesthanothers.Nationalpoliciesneedtobeimplementedtoprotecttheseworkers.11.Adeeperunderstandingofimpactsinlowenergyaccesssettingsisrequired:GiventhehundredsofmillionsofpeopleinAfrica,Asiaandelsewherewhostilllackaccesstoelectricityandcleancooking(renewableorotherwise),adeeperunderstandingisneededoftheenergytransitionanditsemploymentimpactontheselargelyruralcommunities,includingnotonlydirectjobs,butalsosocio-economicopportunitiesaffordedtothosecommunitiesgainingenergyaccessforthefirsttime.12.Effortsneedtobeorientedtowardsensuringgreaterworkforcediversity:Diversityiskeynotonlyoutofconsiderationforfairnessandinclusion.Ithasbeenevidencedthatitcontributestoamoresuccessfulperformanceintheworkplace.Thisconcernstheinclusionofwomen,minorities,marginalisedgroupsandyouth.Ifthesemisalignmentsarenotaddressed,theywillnotonlyslowtheenergytransition,butalsofurtherexacerbateexistinginequalities.Agenderdimensionshouldbeincludedinallenergytransitionstrategies.Inaddition,theoverlappingcharacteristicsofdisadvantage(e.g.genderanddisability)mightresultinnewvulnerabilitiessignificantlyprejudicingcertainsocialgroups.Takinganintersectionalapproachwouldavoidcreatingprejudiceagainstspecificsocialgroups.13.Weareallinthistogether:Internationalco-operation,collaborationacrossinstitutionsandcross-sectorco-operationwillallhelpsmooththeenergytransition.Knowledgesharingandlearningfromgoodpracticesiskey.IRENAandILOcollaborationprovidesanexampleofgeneratingandsharingknowledgeandbuildingnewpartnerships.14.Atransitionisimpossiblewithoutadequatefinance:Significantfundingisrequiredtoguaranteeajustandinclusiveenergytransition.Investment-drawnfrombothprivateandpublicsources-needstobealignedwithtrainingandeducationtobuildindustries,infrastructureandskillsforfutureneeds.Atpresent,insufficientfundsarebeingallocatedtoaddressthemyriadneedsdescribedinthisbrief.Intimesofeconomicinsecurity,thereisanunresolvedtensionbetweenaddressingimmediateneedsontheonehand,andfundingforlong-termclimatemitigationensuringdecentworkforallontheother.Redirectingfossilfuelsubsidieswouldbeanexcellentstartingplace.Nationalinterestsdrivepolicymaking,butinternationalinterests,withtheirbilateralandmultilateraldynamics,arecrucial.Oneofthelessonsoftheworld’sCOVID-19responseisthatmanygovernmentscanmobilisetremendousfinancialresourcesinpursuitofthegreaterpublicgood.Internationalclimatecollaborationfinancialflowscouldsupporttransition-relatedpublicinvestmentandexpendituretoboostdomesticsocialspendingandaddressinequalityinfossilfuel-dependenteconomies,low-incomecountriespursuingsustainabledevelopmentthroughtheenergytransition,andvulnerablecountriesfacingclimatechangeimpacts.ReferencesAfricanDevelopmentBanketal.,(2022),“COP27MultilateralDevelopmentBanksJointStatement”,EuropeanInvestmentBank,www.eib.org/attachments/press/cop27-mdb-joint-statement-en.pdf(accessed4March2023).BOGA(2022),“BeyondOil&GasAlliance”,https://beyondoilandgasalliance.org/(accessed28March2023).ENEL(2022),“ENEL,FILCTEM,FLAEIandUILTECsignthe'statutodellapersona"toenhancetherightsoftheindividualintheworkplace”,www.enel.com/content/dam/enel-common/press/en/2022-march/CS%20Statuto%20Persona_ENG.pdf(accessed27March2023).EnergyPolicyTracker(2021),“MultilateralDevelopmentBanksAnalysis”,MultilateralDevelopmentBanksAnalysis,www.energypolicytracker.org/institution_analysis/mdbs/(accessed27March2023).ESMAP,etal.(2022),Off-GridSolarMarketTrendsReport2022:Outlook,WorldBank,Washington,D.C.,https://documents1.worldbank.org/curated/en/099355110142233755/pdf/P17515005a7f550f1090130cf1b9f2b671e.pdfGWEC(2023),WomeninWindGlobalLeadershipProgram,www.gwec.net/women-in-wind/about-the-program/(accessed29March2023).Iberdrola(2022a),berdrola,committedtotheinsertionofwomeninscientificcareers,www.iberdrola.com/press-room/news/detail/iberdrola-committed-insertion-women-scientific-careers(accessed29March2023).Iberdrola(2022b),IberdrolaandUNICEFlaunchaninternationalallianceforthetrainingandemploymentofyoungpeopleinsituationsofvulnerability,www.iberdrola.com/press-room/news/detail/with-unicef-we-promote-an-international-alliance-for-the-training-and-employment-of-vulnerable-young-people(accessed29March2023).IEA(2022),WorldEnergyEmployment,InternationalEnergyAgency,Paris,www.iea.blob.core.windows.net/assets/a0432c97-14af-4fc7-b3bf-c409fb7e4ab8/WorldEnergyEmployment.pdf(accessed28March2023).ILO(2015),Guidelinesforajusttransitiontowardsenvironmentallysustainableeconomiesandsocietiesforall,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/@ed_emp/@emp_ent/documents/publication/wcms_432859.pdf(accessed27March2023).ILO(2019a),WomenandMenintheInformalEconomy:AStatisticalBrief,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---travail/documents/publication/wcms_711798.pdf51ILO(2019b),Rulesofthegame:nintroductiontothestandards-relatedworkoftheInternationalLabourOrganization,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/---ed_norm/---normes/documents/publication/wcms_672549.pdf(accessed27March2023).ILO(2021),WorldSocialProtectionReport2020–22Socialprotectionatthecrossroadsinpursuitofabetterfuture,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/@ed_protect/@soc_sec/documents/publication/wcms_817572.pdf(accessed27March2023).ILO(2022a),WorldEmploymentandSocialOutlookTrends2022,InternationalLabourOganization,Geneva,/www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_834081.pdf(accessed28March2023).ILO(2022b),Technicalmeetingonthefutureofworkintheoilandgasindustry,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---sector/documents/meetingdocument/wcms_863414.pdf(accessed29March2023).ILO(2022c),G20SustainableFinanceWorkingGroupInputPaperFinanceforaJustTransitionandtheRoleofTransitionFinance,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_848640.pdf(accessed27March2023).ILO(2023a),ConventionsandRecommendations,www.ilo.org/global/standards/introduction-to-international-labour-standards/conventions-and-recommendations/lang--en/index.htm(accessed27March2023).ILO(2023b),Decentwork,www.ilo.org/global/topics/decent-work/lang--en/index.htm(accessed27March2023).ILO(2023c),Employmentsecurity,www.ilo.org/global/topics/employment-security/lang--en/index.htm(accessed28March2023).ILO(2023d),Achieveingajusttransitiontowardsenvironmentallysustainableeconomiesandsocietiesforall,InternationalLabourConference,fithsessionwww.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_876568.pdf(accessed9August2023).ILO,EU,UNWomen,ITUC(2020),EmpoweringWomenatWork:TradeUnionPoliciesandPracticesforGenderEquality,InternationalLabourOganization,Geneva,www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---multi/documents/publication/wcms_760529.pdf(accessed29March2023).IndustriAll(2021),SkillspoliciesfortheelectricitysectordefinedasSkills2Powerprojectconcludes,www.news.industriall-europe.eu/Article/643(accessed29March2023).IndustriAll(2022),ReportEnergycrisis–anopportunityforunionstoachieveaJustTransitionforworkerssooner?,www.industriall-union.org/report-energy-crisis-an-opportunity-for-unions-to-achieve-a-just-transition-for-workers-sooner(accessed3May2023).Institutoparalatransicionjusta(2022),Spain,towardsajustenergytransition,Institutoparalatransicionjusta,Madrid,www.transicionjusta.gob.es/Noticias/common/220707_Spain_JustTransition.pdf(accessed27March2023).IPCC(2022a),ClimateChange2022MitigationofClimateChangeWorkingGroupIIIcontributiontotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,IntergovernmentalPanelonClimateChange,Geneva,https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_FullReport.pdf(accessed27March2023).IPCC(2022b),Climatechange2022:Impacts,adaptationandvulnerability-Summaryforpolicymakers,IntergovernmentalPanelonClimateChange,https://report.ipcc.ch/ar6wg2/pdf/IPCC_AR6_WGII_SummaryForPolicymakers.pdf52IRENA(2020a),Measuringthesocio-economicsoftransition:Focusonjobs,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/publications/2020/Feb/Measuring-the-socioeconomics-of-transition-Focus-on-jobsIRENA(2020b),Renewableenergyandjobs:Annualreview2020,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Sep/IRENA_RE_Jobs_2020.pdfIRENA(2020c),Windenergy:AGenderperspective,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Jan/IRENA_Wind_gender_2020.pdfIRENA(2021),Worldenergytransitionsoutlook:1.5°Cpathway,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/publications/2021/Jun/World-Energy-Transitions-OutlookIRENA(2022a),Worldenergytransitionsoutlook2022:1.5°Cpathway,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/publications/2022/Mar/World-Energy-Transitions-Outlook-2022IRENA(2022b),Off-gridrenewableenergystatistics2022,InternationalRenewableEnergyAgency,AbuDhabi,https://www.irena.org/Publications/2022/Dec/Off-grid-renewable-energy-statistics-2022IRENA(2022c),SolarPV:Agenderperspective,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/publications/2022/Sep/Solar-PV-Gender-PerspectiveIRENA(2022d),“IRENA’sNewNetworkAdvancesEducationonEnergyTransition”,www.irena.org/News/articles/2022/Nov/IRENAs-New-Network-Advances-Education-on-Energy-Transition(accessed29March2023).IRENA(2022e),Socio-economicfootprintoftheenergytransition:Japan,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/publications/2022/Sep/Socio-economic-Footprint-of-the-Energy-Transition-JapanIRENA(2023a),WorldEnergyTransitionsOutlook2023:1.5°CPathway;Preview,InternationalRenewableEnergyAgency,AbuDhabi,https://www.irena.org/Publications/2023/Mar/World-Energy-Transitions-Outlook-2023IRENA(2023b),Socio-economicfootprintoftheenergytransition:Indonesia,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/Publications/2023/Jan/Socio-economics-of-the-energy-transition-IndonesiaIRENAandAfDB(2022),Renewableenergymarketanalysis:Africaanditsregions,(p.318),InternationalRenewableEnergyAgencyandAfricanDevelopmentBank,AbuDhabiandAbidjan,www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Market_Africa_2022.pdfIRENAandCPI(2023),Globallandscapeofrenewableenergyfinance,2023,InternationalRenewableEnergyAgency,AbuDhabiIRENAandILO(2022),Renewableenergyandjobs:Annualreview2022,InternationalRenewableEnergyAgency,AbuDhabi,www.irena.org/publications/2022/Sep/Renewable-Energy-and-Jobs-Annual-Review-2022(accessed23March2022).ITUC,LONorway,IndustriAll(2022),JustTransitionandtheEnergySector2022roundup,IndustriAll,Geneva,www.admin.industriall-union.org/sites/default/files/uploads/images/FutureOfWork/JustTransition/v7_final_report.pdf(accessed28March2023).IWW(2022),J1.Greentechindustry&utilities,IWWEnvironmentalUnionistCaucus,www.https://ecology.iww.org/aggregator/categories/40?page=53(accessed9August2023).53ReferencesMcKinsey&Company(2020),DiversitywinsHowinclusionmatters,McKinsey&Company,London,www.mckinsey.com/~/media/mckinsey/featured%20insights/diversity%20and%20inclusion/diversity%20wins%20how%20inclusion%20matters/diversity-wins-how-inclusion-matters-vf.pdfoffshoreWIND.biz(2022),ØrstedandNABTUSign‘Historic’ProjectLaborAgreementforUSOffshoreWind,www.offshorewind.biz/2022/05/06/orsted-and-nabtu-sign-historic-project-labor-agreement-for-us-offshore-wind/(accessed9August2023).Orsted(2022),NationalOffshoreWindAgreement,www.us.orsted.com/news-archive/2022/05/national-offshore-wind-agreement(accessed28March2023).PowerforAll(2022),PoweringJobsCensus2022:TheEnergyAccessWorkforce,PowerforAll,SanFrancisco,www.powerforall.org/application/files/3016/6324/8657/Powering-Jobs-Census-2022-914.pdf(accessed27March2023).StudentEnergy(2023),Energytransitionskillsproject,StudentEnergy,Calgary,https://studentenergy.org/research/energytransitionskillsproject/Syndex,etal.(2023),ChallengesandopportunitiesforemploymentinthegassectorinthecontectoftheEuropeanenergytransition:Ensuringajusttransitionforworkers,www.euroga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