RenewableEnergyandJobsAnnualReview2023H2H2millionjobsin2022millionjobsH2in2022millionEDIjToItOhNbsInCollaborationwithin2022thEDITIONwww.irena.org©IRENA2023Unlessotherwisestated,materialinthispublicationmaybefreelyused,shared,copied,reproduced,printedand/orstored,providedthatappropriateacknowledgementisgivenofIRENAasthesourceandcopyrightholder.Materialinthispublicationthatisattributedtothirdpartiesmaybesubjecttoseparatetermsofuseandrestrictions,andappropriatepermissionsfromthesethirdpartiesmayneedtobesecuredbeforeanyuseofsuchmaterial.ISBN:978-92-9260-552-0Citation:IRENAandILO(2023),Renewableenergyandjobs:Annualreview2023,InternationalRenewableEnergyAgency,AbuDhabiandInternationalLabourOrganization,Geneva.ABOUTIRENAABOUTILOTheInternationalRenewableEnergyAgency(IRENA)isanintergovernmentalTheInternationalLabourOrganizationorganisationthatsupportscountriesintheirtransitiontoasustainableenergyistheUnitedNationsagencyforthefutureandservesastheprincipalplatformforinternationalco-operation,aworldofwork.Webringtogethercentreofexcellence,andarepositoryofpolicy,technology,resourceandgovernments,employersandworkersfinancialknowledgeonrenewableenergy.IRENApromotesthewidespreadtodriveahuman-centredapproachadoptionandsustainableuseofallformsofrenewableenergy,includingtothefutureofworkthroughbioenergy,geothermal,hydropower,ocean,solarandwindenergy,intheemploymentcreation,rightsatwork,pursuitofsustainabledevelopment,energyaccess,energysecurityandlow-socialprotectionandsocialdialogue.carboneconomicgrowthandprosperity.www.ilo.orgwww.irena.orgACKNOWLEDGEMENTSUndertheguidanceofRabiaFerroukhi,thisreportwasauthoredbyMichaelRenner,CeliaGarcía-BañosandArslanKhalid(IRENA).HydropowerjobsestimatesarebasedonstatisticsprovidedbyDennisAkande(IRENA)andmodellingcontributedbyMaximilianBanning(GWS).IRENAexpressesgratitudeforvaluablecontributions(Chapter4)madebycolleaguesattheILO,includingCamilaPereiraRegoMeireles,CasperEdmonds,JoseLuisViverosAñorveandMoustaphaKamalGueye,aswellasDianaJunqueraCuriel(IndustriALL).TheauthorsalsothankDivyamNagpal(IRENA),IRENAnationalfocalpointsforcountrydataandRenataGrisoli(UNDP)fordataonBrazil’sbioethanolworkforce.Forfurtherinformationortoprovidefeedback,gotopublications@irena.orgDownloadfromwww.irena.org/publicationsDISCLAIMERThispublicationandthematerialhereinareprovided“asis”.AllreasonableprecautionshavebeentakenbyIRENAtoverifythereliabilityofthematerial.However,neitherIRENAnoranyofitsofficials,agents,dataprovidersorotherthird-partycontentprovidersprovideawarrantyofanykind,eitherexpressedorimplied,andtheyacceptnoresponsibilityorliabilityforanyconsequenceofuseofthepublication.TheinformationcontainedhereindoesnotnecessarilyrepresenttheviewsoftheMembersofIRENA.ThementionofspecificcompaniesorcertainprojectsorproductsdoesnotimplythattheyareendorsedorrecommendedbyIRENAinpreferencetoothersofasimilarnaturethatarenotmentioned.ThedesignationsemployedandthepresentationofmaterialhereindonotimplytheexpressionofanyopiniononthepartofIRENAconcerningthelegalstatusofanyregion,country,territory,cityorarea,ortheauthoritiesthereof,orconcerningthedelimitationoffrontiersorboundaries.FOREWORDWearepleasedtopresentthiseditionofIRENA’sRenewableenergyandjobs:Annualreview,thetenthintheseriesandthethirdproducedincollaborationwiththeInternationalLabourOrganization(ILO).Thereportembodiestheintersectionofouragencies’respectivemandates-namelytheenergytransitionanddecentworkforsocialjustice-anddiscusseskeyopportunitiesandchallengesforworkers,employers,communitiesandpublicpolicymakers.Thisyear’sreportfindsthatrenewableenergyemploymentworldwidehascontinuedtoexpand-toanestimated13.7milliondirectandindirectjobsin2022.Wecanexpectthecreationofmanymillionsofadditionaljobsinthecomingyearsanddecades,providedthateducationandskillsdevelopmentprogrammesareappropriatelyexpanded,workforcedevelopmentprogrammesareputinplace,andlabourmarketsrespondtoevolvingneeds.Nevertheless,challengesabound.Today’srenewableenergyjobsareconcentratedinarelativelysmallnumberofcountries,reflectingtheunevengeographicfootprintofequipmentmanufacturingandcapacityinstallations.Thedetailandqualityofavailabledatavariesamongcountriesandbetweenthedifferentrenewableenergytechnologies,andinformationonjobqualityandworkforcediversityremainssparse.Yet,witheacheditionofthisseries,weshedmorelightontheseaspects.Renewableenergyandotherenergytransitiontechnologiesareattractinggrowinginvestment;butevenasspendingrisesandinstallationsexpand,newchallengesemerge.Climatechange,technologicaladvances,shiftsindemographicsandtheglobaleconomicoutlook,aswellasotherkeydevelopmentsmaybringaboutadverseeffectsforemployment.Whileeachcountryrightfullyaspirestoderivesocio-economicbenefitsfromtheenergytransition,globalsolidarityisvital,ashumanityconfrontsnotonlyrisingdangersfromclimatechangebutalsodeepsocialandeconomicdivides.Theenergytransitionrequiresurgentcollectiveactiontoreducerelianceonfossilfuelsandtowardscleanenergy;butitalsomustensurethatallpersonshaveaccesstobasichumanneedsandsecurityofmodernenergy.Wecalluponpolicymakerstoensurethattheuncertaintiesanddisruptionsinherentinthetransitionareminimised,andthateffortsaremadetoclosesocialprotectiongapsinthetransformationprocess.Thisyear,inJune,theInternationalLabourConferencereaffirmedtheurgencyofactiontoadvanceajusttransitiontoachievesocialjustice,decentworkandpovertyeradication,andtotackleenvironmentalandclimatechange.Duringdiscussions,representativesofgovernments,workersandemployersendorsedthe2015GuidelinesforaJustTransitionasthecentralreferenceforpolicymakingandbasisforaction.Itiscriticalthatnewjobsprovideadequatewagesandhighstandardsofoccupationalsafetyandhealth.Fundamentalprinciplesandrightsatworkmustbeupheldandworkers’voicesheard.Itisessentialthatcommunitieswhoselivelihoodsnowdependonfossilfuelsbeofferedastakeinthenewenergysystemthroughretrainingandeconomicrevitalisationstrategies,whereverfeasible.Itisalsovitalthatwomenhaveequalaccesstotrainingandcareerpathsinanindustrythathistoricallyhasbeenheavilymale-dominated;thatjobsbecreatedforyouthintherenewableenergysector;andthatethnicminoritiesandothervulnerablecommunitiesbewelcomedintoaworkforcethatreflectsthediversespectrumofmodernsocieties.ThiswillnotonlyenabletherenewableenergyindustrytoFrancescoGilbertF.Houngbotapamuchwiderpoolofhumantalent,thusminimisingorLaCameraDirector-Generalavoidingfutureskillgaps;itwillalsoadvancethegoalofcreatingamorefair,equitableandtrulysustainableworld.Director-GeneralThereismuchtodo,butweareenthusiasticandconfidentthatwecanachievetheseaspirations.InternationalRenewableInternationalLabourEnergyAgencyOrganization3TABLEOFCONTENTSForeword..............................03Abbreviations..........................07MessagefromtheDirectoroftheKnowledge,PolicyandFinanceCentre.....08Abouttheseries........................09KEYMESSAGES.......................10INTRODUCTION........................124©Hryshchyshen/istockTABLEOFCONTENTSCHAPTER1CHAPTER3RENEWABLEENERGYEMPLOYMENTINDUSTRIALPOLICYINITIATIVES...........61BYTECHNOLOGY..........................163.1ThegeographyofsolarPVandwind1.1Solarphotovoltaic....................181.2Wind..............................22equipmentmanufacturing............621.3Hydropower........................243.2Industrialpolicyinitiativesamidanew1.4Liquidbiofuels......................261.5Othertechnologies..................27geopolitics.........................651.6Decentralisedrenewables.............303.3Criticalmaterials,economicdevelopment1.7Thefutureofenergytransitionjobs....35andcommunityrights................70CHAPTER2CHAPTER4RENEWABLEENERGYEMPLOYMENTINSELECTEDCOUNTRIES.................37PERSPECTIVESANDACTIONSFOR2.1Leadingcountries...................40AJUSTTRANSITION......................722.2Othercountries.....................554.1Governments’perspectivesandactions...734.2Employerperspectivesandactions.....764.3Labourunionperspectivesandactions...77CHAPTER5THEWAYFORWARD:MULTIPLYINGCHALLENGESDEMANDNEWTHINKING.....79References................................845FiguresTablesFigure1EvolutionofglobalrenewableenergyTable1DirectjobsinKenyanmini-gridemploymentbytechnology,development.........................312012-2022.........................13Table2EstimateddirectandindirectjobsFigure2Globalrenewableenergyemployment,inrenewableenergyworldwide,bybytechnology,2022................17industry,2021-2022(inthousands).....39Figure3SolarphotovoltaicemploymentTable3Employedpersonsbyselectedin2022:Toptencountries...........19occupationsintheUnitedStateseconomy,2022.......................47Figure4Womeninthesolarphotovoltaicsectorcomparedwithothersectors....21Table4SolarphotovoltaicgeneratingandmanufacturingcapacitiesinSoutheastFigure5Windemploymentin2022:Asia,2022...........................56Toptencountries...................23BoxesFigure6Hydropowercapacityinthetoptencountries,2022....................24Box1SolarPV:Agenderperspective........20Figure7HydropoweremploymentBox2Employmentinheatpumps...........28(directjobs),bycountry,2022.......25Box3Women–KeytoskillingtheenergyFigure8Liquidbiofuelsemploymenttransition............................46in2022:Toptencountries...........26Box4GendergapsinSpain’senergyFigure9EmploymentintheEuropeantransitionindustries...................53heatpumpsector,2022.............29Box5Policyelementstoensureplentiful,Figure10Distributionoflabourrequireddecentjobs...........................74alongthevaluechainforpico,microandminihydroplants.........32Figure11Distributionofskillsrequiredforpico,microandminihydroplants.....33Figure12Renewableenergyemploymentinselectedcountriesandregions......38Figure13Solarphotovoltaicmoduleproductionbycountry/region,2008-2022........62Figure14ILOguidelinesforajusttransition:Aframeworkforaction.............73Figure15Holisticpolicyframeworkforajustandinclusiveenergytransition......836©PitukLoonhong/istockAbbreviationsALMMApprovedListofModelsandManufacturers[India]APPAAsociacióndeProductoresdeEnergíaRenovables[Spain]BCDbasiccustomsduty[India]BUSABusinessUnitySouthAfricaCCScarboncaptureandstorageCDIConfederationofDanishIndustryCRESChinaRenewableEnergySocietyDOEUSDepartmentofEnergyEUEuropeanUnionEU-2727MemberStatesoftheEuropeanUnionFTEfull-timeequivalentGDPgrossdomesticproductGMGGreenMini-GridFacilityProgramme[Kenya]GWgigawattGWthgigawattthermalGWECGlobalWindEnergyCouncilILOInternationalLabourOrganizationIRAInflationReductionAct[UnitedStates]IRECInterstateRenewableEnergyCouncil[UnitedStates]ITJInstitutoparalaTransiciónJusta[Spain]JETIPJustEnergyTransitionInvestmentPlankWkilowattMWmegawattO&MoperationsandmaintenancePLIproduction-linkedincentive[India]PVphotovoltaicSAREMSouthAfricanRenewableEnergyMasterplanSDGSustainableDevelopmentGoalSTEMscience,technology,engineeringandmathematicsUSDA-FASUSDepartmentofAgricultureForeignAgriculturalService7RENEWABLEENERGYANDJOBS:ANNUALREVIEW2023MESSAGEFROMTHEThiseditionofRenewableEnergyandJobsmarksthe10thDIRECTOROFTHEanniversaryoftheseries.ItisalsothefinaloneproducedunderKNOWLEDGE,POLICYmyguidance,withadedicatedandtalentedteam.TheideaANDFINANCECENTREforthisseriesdatesbacktotheearlyyearsofIRENA.Fromtheverybeginning,weinsistedthattheenergytransitionisacomplexundertakingthatneedstobeapproachednotonlyfromatechnologicalangle,butfromaholisticperspectivethatexaminesthesocioeconomicdimensionandanalysesthearrayofpoliciesneededforgeneratingvaluealongthesupplychainandcreatingaskilledworkforce.Whentheagencywasfoundedin2009,informationontheemploymentimpactsofrenewableenergywasextremelyscarceandmostlyofananecdotalnature.Thejobsdimensionwashardlyinthepubliceye.Accordingly,theinitialeditionsofourreportwerefocusedonidentifyingandmarshalingexistingdatasourcesandsupplementingthemwithourowncalculationsandestimates.Overtime,wewereabletoclosemanygaps,andprovidegreaterbreadthanddepthofcoverage.Weareproudthatourworkhasbroughtgreatervisibilitytothisdimensionoftheenergytransition–andstirredgrowinginterest,whichhasledtomoreandbetterdatabecomingavailable.Excitingworkremainstobedone.Overtheyearsourfocushasbroadenedtoencompassqualitativeemploymentaspects,workforcediversity,andtherequirementsofajusttransition.ThejobsreviewseriesisnowpartofastapleofIRENAreportsonthesocioeconomicsofrenewablesandtheenergytransition.Theyincludeanalysesofthegenderperspectiveandassessmentsofopportunitiesforcountriestoleverageandenhancetheirlocalcapacities.Andinadditiontoourworkoncurrentrenewableenergyjobs,oursocioeconomicmodelingofenergytransitionpathwaysto2030and2050sketcheshowemploymentcouldexpandinthefuture,withtherightlevelofpolicyambitioninplace.IforgeaheadinmycareerwiththefirmbeliefthatIRENAhassignificantlybroadenedthehorizonofmanyintheenergyworld.AsIbidfarewelltotheAgency,Iamconfidentthatbothmycurrentteamandthosejoininginthefuturewillpersistentlyprioritiseplacingpeopleattheheartoftheongoingenergytransition-andthattheworldwillfollowsuit.thEDITIONRabiaFerroukhithDirectorKnowledgePolicyandEDITIONFinanceCentre8ABOUTTHEIRENARENEWABLEENERGYANDJOBSSERIESRenewableenergydevelopmentnotonlychangesthemixofenergysourcespoweringtheworld’seconomies,butalsocreatesjobs,buildseconomicvalueandenhanceshumanwellbeing.TheIRENARenewableenergyandjobsseriesquantifiescurrentemploymentinthesector,examiningdifferentrenewableenergytechnologiesworldwideandinselectedindividualcountries.Theanalysisconsidersavarietyofpublicandprivatesectorpolicycontexts,includingthoserelatedtodeployment,industrialpolicy,skillbuilding,labourmarketmeasuresandothers.Whileavailablequalitativeinformationaboutrenewableenergyjobs,suchaseducation,skillrequirementsorworkforceattributes,remainslimited,theseriesassertsthatdecentjobsareamustfortheenergytransition.Thisisthetentheditionoftheseries,andthethirdproducedincollaborationwiththeInternationalLabourOrganization.Followinganinitialstandalonereportin2013,IRENAlaunchedthisseriestoprovideregularupdatestoitsassessmentofrenewableenergyemploymentworldwide.Eacheditiondiscussesthelatestavailabledataandhighlightsspecificaspects,suchasemploymentintheenergyaccesscontext,thegenderequitydimensionortherequirementsofajusttransition.TheseriesispartofIRENA’sextensiveanalyticalwork,ongoingsince2011,onthesocioeconomicimpactsofarenewables-basedenergytransition,includingemploymentcreation;leveragingofdomesticcapacitiesalongtherenewableenergyvaluechain;women’sparticipationintherenewableenergysectorwithinthecontextofcreatingadiverseworkforce;educationandtrainingopportunities;andthemodellingofenergytransitionpathwaysto2050withregardtojobs,grossdomesticproductandabroadmeasureofwelfare.Thisworkishighlightedonthebackcoverofthisreport.AnnualreviewsofemploymentinrenewablesRenewableEnergyandJobsDecember20132011201220132014201520162017201820192020202120222023ThesepublicationsandIRENA’scomprehensiveresearchonsocio-economicimpacts–allofwhichisshowcasedonthebackcover–canbeaccessedbyvisitingwww.irena.org/Publications.9KEYNUMBERSGlobalrenewableenergyjobsin2022,upfrom12.7millionin13.72021.Closetotwo-thirdsofalljobsareinAsia,whereChinamillionaloneaccountsfor41%oftheglobaltotal.Solarphotovoltaic(PV)jobsin2022;amongrenewable4.9energytechnologies,solarPVisthefastest-growingsector,millionaccountingformorethanone-thirdofthetotalrenewableenergyworkforce.Womenhold40%ofthesejobs.Directjobsinhydropowerin2022,2.3%morethanin2021.2.5Operationandmaintenancerepresentalmosttwo-thirdsofmillionthedirectjobs,30%ofthejobsarerelatedtoconstructionandinstallation,andabout6%areincomponentmanufacturing.Jobsinbiofuelsin2022,mostlym2ill.io5nintheagriculturalsupplychain.Windpowerjobsin2022.ChinaandEuropelead,although1.4thegeographyofcomponentproductionisbecomingmillionincreasinglydiverse.10©Goodboy/istockKEYMESSAGESDECENTRALISEDRENEWABLES:Decentralisedsolutionsprovidereliablepowerandemploymentinremoteareas.Small-scalehydropower,forinstance,requiresanywherefrom17000person-days(forapicoplant,whichaverages5kilowatts[kW]),toabout64000person-days(fora50kWmicroplant),toover160000person-days(fora500kWminiplant)forinitialplanningandequipmentprocurementandmanufacturing,installation,connection,ongoingoperationandmaintenance,allthewaytoeventualdecommissioning.MILLIONSOFADDITIONALJOBS:Employmentcanbeexpandedsubstantiallyincomingyearsanddecadeswithacomprehensiveandambitiouspolicymix.INDUSTRIALPOLICY:Vulnerabilitytoglobalsupplychaindisruptions,alongwithgeopoliticalrivalries,isdrivinganewinterestinindustrialpolicymeasurestobuildandstrengthenlocalcapacitiesandsecurerelatedjobcreationbenefits.WORKFORCEDEVELOPMENTANDDIVERSITY:Educationandtrainingmustbeexpandedtopreventthewideningofskillgaps.Theymustbepairedwitheffortstotaptalentamongunder-representedgroups,includingwomen,youthandminorities.AJUSTTRANSITION:Labourrightsandsocialdialogueareindispensableforanenergytransitionthatproducesjustoutcomesandsecuresworkers’prospects.SYSTEMICCHANGE:Achievingtheenergytransitioninamannerconsistentwithclimatestabilityrequiresmuchfasterrenewablesdeployment,inturncreatingmorejobs.Italsodemandsbroader,systemicchange–movingbeyondthepursuitofendlesseconomicgrowthincompatiblewithplanetarylimits.11thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONRENEWABLEENERGYJOBSIntroductionThistentheditionofRenewableenergyandjobs:Annualreviewoffersthelatestsetofglobalrenewableenergyemploymentestimates,whicharebasedonIRENA’sownmethodologiesandcalculations,aswellasalargearrayofreportspublishedbygovernmentagencies,industryassociations,non-governmentalorganisationsandacademicexperts.Thereportexaminestherenewableenergyemploymentlandscapeasof2022globallyaswellasforselectedcountries.Againstthebackdropofinvestmentanddeploymenttrendsandavarietyofpolicycontexts,itdiscussesjobnumbersaswellasjobqualityandworkforcediversityinthecoresegmentsoftherenewableenergysupplychain.Thekeyfindingofthiseditionisthattheglobalrenewableenergysectoremployed13.7millionpeopledirectly1aswellasindirectly2in2022.3Thenumberhasbeengrowingoverthepastdecade,from7.3millionin2012(seeFigure1),thanksmainlytosolarphotovoltaic(PV),bioenergy,hydropowerandwindpower.4Thesocio-economicmodellingundertakenforIRENA’sWorldEnergyTransitionsOutlookseriesindicatesthatthelarge-scaleinvestmentrequiredtoputtheworldonaclimate-safepathwaywouldcreatemanymillionsofadditionaljobsinthenextdecades.1Directemploymentreferstoemploymentgenerateddirectlybycoreactivities,withouttakingintoaccounttheintermediateinputsnecessarytomanufacturerenewableenergyequipment,orconstructandoperatefacilities.Thesedirectlyinvolvedindustriesarealsocalledrenewableenergyindustries(sectors).2Indirectemploymentincludesemploymentintheupstreamindustriesthatsupplyandsupportthecoreactivitiesofrenewableenergydeployment.Workersinsuchpositionsmayproducesteel,plasticsorothermaterials,orprovidefinancialandotherservices.Theseindustriesarenotdirectlyinvolvedinrenewableenergyactivitiesbutproduceintermediateinputsalongthevaluechainofeachrenewableenergytechnology.3Dataareprincipallyfor2022,withsomedatafor2021andsomeinstanceswhereonlyinformationfromearlieryearsisavailable.Thedataforhydropowerincludedirectemploymentonly,whereasdataforothertechnologiesincludebothdirectandindirectemploymentwhereverpossible.4ThejobsnumbersshowninFigure1fortheperiod2012-2021reflectthefiguresreportedinearliereditionsofthisseries.IRENAdoesnotrevisepreviousyears’estimatesinlightofinformationthatmaylaterbecomeavailable.12INTRODUCTIONFigure1Evolutionofglobalrenewableenergyemploymentbytechnology,2012-2022Millionjobs140.640.430.71Solar0.77120.251.371.40photovoltaic2.370.180.823.44Bioenergya0.180.800.821.254.290.162.49100.190.200.940.240.8301.1.8511.161.172.182021Windenergy12.70.230.761.161.96Solarheating/1.082.0580.501.033.581.99cooling0.220.832.042.162.063.583.520.892.213.18Hydropowerb60.753.051.662.992.882.74Othersc42.504.902.403.093.373.683.753.9822.272.492.771.360202220122013201420152016201720182019202013.7Total7.38.59.510.010.110.511.111.512.0aIncludesliquidbiofuels,solidbiomassandbiogas.bDirectjobsonly.c“Others”includesgeothermalenergy,concentratedsolarpower,heatpumps(groundbased),municipalandindustrialwaste,andoceanenergy.Thecontinueddevelopmentofrenewableenergy–andthusemploymentinthesector–isinfluencedbyamultitudeoffactors:notably,cost-competitivenessvis-à-visotherenergytechnologies;theebbandflowofinvestments;theresultingsizeofnationalandregionalmarkets;theavailabilityofrequiredinputs(componentsandrawmaterials)andtheexistenceofaskilledworkforce.Theseareshapedbycorporatestrategiesandanarrayofpublicpolicymeasures(incentivesandregulations)intendedtofacilitatethescale-upofdeployment,buildviablesupplychainsandtrainworkers.Policychangescouldtriggerasurgeinactivityorcouldleadtodecisionstodeferinvestments,inturncausingemploymenttofluctuate.13thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONFollowinglargelystagnantspendinglevelsintheyearsbetween2015and2020,annualrenewableenergyinvestments(includingprivatecapitalandpublicspending)rosefromUSD348billionin2020toUSD499billionin2022–againof43%.Thebulkoffundswenttothesolarandwindindustries,whosecombinedshareofoverallrenewableenergyinvestmentsrosefrom82%in2013toastunning97%in2022.Themajorityoffundsaredirectedtothepowersector,withend-usesectorsaccountingforonly10%(IRENA,2023a).Itislittlesurprise,then,thatsolarPVandwindpowerhavebeenthemostdynamicrenewableenergytechnologies,showingstronggrowthinbothcapacityandjobs.Wherejobsarecreateddependsonthegeographicfootprintofequipmentmanufacturingandcapacityinstallations,aswellastheinputsofrawmaterials,semi-manufacturedcomponentsandservicesalongthevaluechain.Labourrequirementsdependonthescaleofprojects.Labourintensitytendstodeclineastechnologiesmature,learningcurvesaremastered,automationrises,andtheuseofnewtechnologieslikeartificialintelligence(AI)advances.Worldwide,some295gigawatts(GW)ofrenewableelectricitywereinstalledin2022,withcumulativecapacityreaching3372GW.Renewablehydroremainsthelargestcontributorwith1256GW,althoughonly20GWwereaddedin2022.SolarPVandwindadded191.5GWand74.7GW,respectively,withcumulativetotalinstalledcapacitiesof1047GWand899GW.Cumulativebioenergypowercapacityisat149GW,withabout7.6GWaddedin2022(IRENA,2023b).Thecumulativesolarthermalcapacityattheendof2022was542gigawattsthermal(GWth),correspondingto774millionsquaremetresofcollectorarea.Thenetincreaseof19GWth(27millionsquaremetres)wasasmalleradditionthaninthepreviousyear;strongercontributionsfromEuropeanmarketscouldnotcounteractadeclineintheChineseandIndianmarkets(WeissandSpörk-Dür,2023).Globalliquidbiofuelproductionappearedtobeupslightlyin2022,at6%,comparedwith162billionlitresin2021(REN21,2023).©CharlieChesvick/istock©Jenson/shutterstock.com14INTRODUCTION©SweetBunFaactory/istock©photoschmidt/shutterstock.comHalfoftheworld’snewwindpowercapacityand45%ofsolarPVcapacitywereinstalledinChina(IRENA,2023b).ChinawasfollowedbytheUnitedStates,Brazil,theUnitedKingdom,Germany,SwedenandFranceinwindcapacityinstallation,andtheUnitedStates,India,Brazil,theNetherlandsandGermanyinsolarPVcapacityinstallation(IRENA,2023b).Annualcapacitydeploymentdoesnotnecessarilycorrelatecloselywithequipmentmanufacturingorshipments.Employmentdynamicsinthesedifferentvaluechainsegmentscanthusdivergesubstantially.Forexample,therewerefarmorePVmoduleshipmentsgloballyin2022,272GW,thanreportedinstallations(WoodMackenzie,2023a).Asofmid-2023,EuropeanPVpanelinventoriesamountedtoabout40GWofcapacity,roughlyequaltotheamountnewlyinstalledinEuropein2022.Thiscouldriseto100GWbyyearend,givenlabourshortagesandotherinstallationbottlenecks(RystadEnergy,2023).Thisreportisorganisedasfollows:Section1presentsemploymenttrendsbymajortechnology.Section2discussesjobfindingsinseveralleadingcountriesandforseveraladditionalcountriesindifferentregionsoftheworld.Section3highlightsthechangingpolicylandscaperegardingequipmentmanufacturing,whichovertimewillaffectthegeographyofjobcreationinrenewableenergy.Section4revisitsatopicthathasbeenexploredbypreviouseditionsofthisreport:theneedforajusttransition,withafocusontheperspectivesandactionsofgovernments,businessesandlabourunions.Section5emphasisesthatafasterenergytransitionwillleadtogreaterjobcreation,butunderscorestheneedfornewthinkingagainstthebackdropofmultiplyingglobalchallenges.15RENEWABLEENERGYANDJOBS:ANNUALREVIEW2023CHAPTER1RENEWABLEENERGYEMPLOYMENTBYTECHNOLOGYThissectionpresentsemploymentestimatesforsolarphotovoltaic(PV),wind,hydropowerandliquidbiofuels.Otherrenewableenergytechnologies,includedinFigure2employfewerpeople,andtheinformationavailableonthemistypicallylessdetailed.Foranygiventechnology,equipmentmanufacturing,constructionandinstallation,andoperationandmaintenance(O&M)arethemainvaluechainsegments,besidesarangeofsupportservices.©DanielBalakov/istock16CHAPTER1©PeopleImages/istock©PeopleImages/istockFigure2Globalrenewableenergyemployment,bytechnology,2022Solar4902photovoltaicLiquidbiofuels24902485Hydropower1400Windenergy779Solidbiomass712309Solarheating/241cooling152Biogas14980Heatpumps271GeothermalenergyOthersCSPMunicipalandindustrialwasteTide,waveandoceanenergy0500100015002000250030003500400045005000Jobs(thousands)Note:CSP=concentratedsolarpower;"Others"includejobsnotbrokendownbyindividualrenewableenergytechnologies.17thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION4.9millionjobs1.1SOLARPHOTOVOLTAICYetanotherrecordwassetin2022–withtheadditionof191.4GWofsolarPVcapacityworldwide,upfrom141.2GWin2021.Chinaaccountedfor45%oftheseinstallations,or86GW,andwasfollowedbytheUnitedStates,IndiaandBrazil.TheNetherlands,Germany,Japan,Spain,AustraliaandtheRepublicofKorearoundedoutthetopten(IRENA,2023b).ChinaishometothevastmajorityofglobalsolarPVmanufacturing,supportedbycomprehensiveindustrialpolicies.Thecountryretainsacommandingpositionacrossthesupplychain,fromingotsandwaferstocellsandmodules.SoutheastAsiahasbecomeanimportant,butmuchsmaller,productionandexporthub,whereastherestoftheworldhasamarginalshareinthesupplychain.Europe’sPVimportssurgedduringthefirsthalfof2022duetotheUkrainecrisisandsubsequenteffortstoreducerelianceonoilandgasimports.However,installationratestrailedduetoshortagesofinvertersandskilledlabour,whichsubsequentlyslowedimportsduringthesecondhalfoftheyear.India’smoduleimportsdeclinedsignificantlyafterthefirstquarterof2022onceitsbasiccustomsdutytookeffect.InBrazil,arushofinstallationswastriggeredbyanimpendinglawimposingagridfeeonsmall-scaledistributedprojects(Chen,2023).AccordingtotheUnitedStates(US)DepartmentofEnergy(USDOE,2022),1GWofproductioncapacity(forcrystallinesilicon[c-Si]modules,whichaccountforabout90%ofallmanufacturedmodules)couldgenerateanywherefrom1085jobsto2020directjobsacrossthefullvaluechain.IRENAestimatesglobalsolarPVemploymentat4.9millionin2022,upfromabout4.3millionin2021.OfthetenleadingcountriesshowninFigure3,fourareinAsia,twoareintheAmericasandthreeareinEurope.Together,thetoptenaccountedforalmost4.1millionjobs,or85%oftheglobaltotal.Asiancountrieshost73%oftheworld’sPVjobs,reflectingtheregion’scontinueddominanceofmanufacturingandstrongpresenceininstallations.TheremainingjobswereintheAmericas(11.5%ofalljobs),Europe(11%;withEuropeanUnion[EU]memberstatesaccountingfor10.6%)andtherestoftheworld(4.8%).©xijian/istock18CHAPTER1Figure3Solarphotovoltaicemploymentin2022:ToptencountriesMillionjobs56%2.82.7ofPV2.6jobs2.5Top10:85%ofPVjobs0.30.20.10ChinaIndiaUnitedStatesBrazilJapanVietNamPolandGermanySpainAustraliaChinaaccountedforabout56%ofPVemploymentworldwide,orsome2.76millionjobs.EmploymentinPVintheUnitedStatesreached264000jobsin2022.PVemploymentinEuropewasestimatedat540000in2022ofwhich517000jobswereinEUMemberStates.India’stotalsolarjobsareestimatedtobeat281400.On-gridsolarisestimatedtohavegenerated201400jobs,withanother80600inoff-gridsettings.IncreasingsolarPVinstallationsinBrazilboostedemploymentinthisindustryto241000jobs.Japanaddedlesscapacityin2021thanthepreviousyear.IRENAestimatesitsworkforceat127000.Women’srepresentationishigherintheworkforceforsolarPVthanforotherrenewableenergytechnologies(seeBox1).19thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONBox1SolarPV:AgenderperspectiveIRENA’ssocio-economicworkseekstoclosetheinformationgapregardinggenderintherenewableenergyindustry.InthemostrecentreportintheseriesAGenderPerspective,IRENAassessedthechallengesfacedbywomenworkinginthesolarphotovoltaic(PV)sector.Theassessmentconsideredbothmodernmarketsandenergyaccessscenarios.Thestudy,thethirdintheseries,obtainedprimarydatafromindividualsandorganisationsinthesolarPVsectorbymeansofaglobalonlinesurvey(IRENA,2022a).Theanalysisshowedthatwomenrepresent40%ofthefull-timepositionsinthesolarPVsector,almosttwiceasmuchasinthewindortheoilandgassectors(21%and22%,respectively).ThesolarPVsectorexceedswomen’saverage32%shareacrossthebroaderrenewableenergysectorbutfallssomewhatshortoftheshareofwomenemployedintheoveralleconomy(seeFigure4).Women’srepresentationacrosssolarPVjobrolesisuneven.Theyaremostfrequentlyhiredforadministrativepositions,wheretheirsharereaches58%.Meanwhile,womenrepresentedcomparativelysmallshares,32%ofSTEM(science,technology,engineeringandmathematics)positionsand35%ofnon-STEMtechnicalpositions(suchaslawyersorprocurementexperts).Further,womenhold38%ofothernon-technicalpositions(e.g.marketing,sales,distribution,productassemblyorinstallation).Thebetterperformanceinthiscategoryislargelyduetooff-gridsolar,whichhasmultiplepositionsandinitiativestargetingwomen.Thismayalsoinfluenceleadershipcomposition,withwomenaccountingfor30%ofmanagerialjobs.However,womenrepresent17%ofthetotalseniormanagementrolesinthesolarPVindustry.Effectiveactionsareneededtoeasewomen’sentryintotheindustryandimprovetheircareerprospectsandprogression.Creatinggenderawarenessisessentialtofullyunderstandthecomplexityofthebarriersfacedby©GCShutter/istock©BasilicoStudioStock/istock20CHAPTER1women.Further,nationalpoliciesareneededtocreatesaferspacesandbetterworkplacepractices,policiesandregulations.Also,womenneednetworksandsystemstosupporttrainingandmentorshiptoenablefullutilisationoftheirtalents.IRENAwillcontinuetoworkforreducingbarriers,fosteringinclusivityandempoweringwomentoactivelyparticipateandexcelinthesector.Furthermore,IRENAisfullycommittedtomainstreaminggenderconsiderations,integratinggenderequalityandequityintoitspolicies,programmesandinitiatives.Prioritisinggenderequalityandpromotingdiversityintherenewableenergysectorfostersamoreequitableandsustainablefutureforall.Figure4WomeninthesolarphotovoltaicsectorcomparedwithothersectorsWomen’sshare17%insolarPV30%32%Senior35%management38%Management58%STEMOthernon-technicalOthertechnicalAdministration010203040506070Jobs(%)Average21%22%45.9%women‘s...inwindenergy...inoilandgas...economy-wideshare...40%...insolarPVSource:IRENA,2022a.Note:PV=photovoltaic;STEM=science,technology,engineeringandmathematics.21thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION1.4millionjobs1.2WINDIn2022,thewindenergysectorinstalled74.6GWofcapacity,19%belowthepreviousyear’sand33%slowerthantherecordpacein2020.ExceptforSwedenandFrance,newcapacityadditionsinallleadingcountrieswerebelowthatinthepeakyear.Chinaretainedtheleadwithclosetohalfofglobaladditions,faraheadoftheUnitedStates,Brazil,theUnitedKingdom,Sweden,Türkiye,Germany,India,FranceandSpain(IRENA,2023b).Globalemploymentinonshoreandoffshorewindremainedsteadyat1.4millionjobsin2022.Windemploymentwasconcentratedinarelativelysmallnumberofcountries.Chinaaloneaccountedfor48%oftheglobaltotal,followedbyAsia(representing55%),Europe(representing29%),theAmericas(representing16%)andAfricaandOceania(representing0.7%).ThetoptencountriesshowninFigure5togetheremployed1.23millionpeople.FouroftheseareinEurope,fourinAsiaandtwointheAmericas.Therecentphenomenonofrisingcostsofinputshasledoriginalequipmentmanufacturerstoreinforceeffortstooutsourcesomecomponentproductiontolow-wagecountries.Thiswillcontributetochangingtheindustry’sgeographicmake-up.Onaverage,installationof1GWofonshorewindcapacitycouldcreate130000jobsindevelopment,constructionandinstallationoverafive-yearperiodand12000jobsannuallyduringthe25-yearO&Mphase(GWEC,2022).Meanwhile,thegreatercomplexityofcomponentslikefoundations,substations,cablesandinstallationvesselscreateshigherlabourrequirementsforoffshorewindfarmsthanonshoreinstallations.©Eloi_Omella/istock©pixdeluxe/istock22CHAPTER1Figure5Windemploymentin2022:ToptencountriesMillionjobs0.7490.6%ofwindjobs0.5Top10:0.488%ofwindjobs0.30.20.10ChinaGermanyUnitedUnitedStatesKingdomBrazilIndiaFranceSpainNetherlandsDenmark©iantfoto/istock23thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION2.5millionjobs1.3HYDROPOWERHydropowerremainsattheforefrontoftherenewableenergylandscape,boastingaglobalcapacitysurpassing1255GWasof2022.Thisfiguretranslatestoanimpressive37%oftheglobaltotalrenewableenergycapacity.TotalinstalledhydropowercapacityexceedsthatofwindandsolarPV,althoughannualadditionsaremuchsmallernow–some20.5GWin2022.AsshowninFigure6,China,Brazil,CanadaandtheUnitedStatesareamongthekeyactorsinthissector(IRENA,2023b).Toassessjobnumbersinhydropower,IRENAusesanemployment-factorapproachcoupledwithnational-leveldataforselectcountries.ConsideringdatarevisionssincethepreviouseditionoftheAnnualReview,thelatestreportestimatesthatabout2.49millionindividualsweredirectlyemployedinthesectorin2022,2.3%morethaninthepreviousyear.Consistentwithearlierfindings,O&Mrepresenttwo-thirdsofthedirectjobs,30%ofthejobsarerelatedtoconstructionandinstallationactivities,andabout6%areincomponentmanufacturing.TheremainingfractionpertainstoO&Mservices,whichrepresentthesmallestproportionoftheworkforce.Chinacontinuestodominateinhydropoweremploymentwitha35%shareoftheglobaltotal.India(secondtoChinawitha19%share),followedbyBrazil,VietNamandPakistan,areamongthetopfive(seeFigure7).Figure6Hydropowercapacityinthetoptencountries,2022MW400000350000300000250000200000150000100000500000ChinaBrazilaitedFederationIndiaJapanCanadRussianStatesNorwayVietNamTürkiyeUnSource:IRENA,2023b.24CHAPTER1Figure7Hydropoweremployment(directjobs),bycountry,202217.3%Restofworld35.3%China18.8%India1.4%Canada1.6%1.8%Türkiye1.9%2.3%Ethiopia2.7%Russian4.2%Federation5.1%Colombia7.8%UnitedStatesPakistanVietNamBrazil©DanielBalakov/istock25thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION2.5millionjobs1.4LIQUIDBIOFUELSAtotalof162billionlitresofliquidbiofuelswereproducedgloballyin2021(returningto2019levelsafteradeclinein2020,withbioethanolcontributing106billionlitres,biodieselabout46billionlitresandhydrotreatedvegetableoil[renewablediesel]addingcloseto10billionlitres)(REN21,2023).AccordingtopreliminaryestimatesbytheUSDepartmentofAgriculture’sForeignAgriculturalService(USDA-FAS),outputamongtheworld’sleadingbiofuelproducerswasupslightlyin2022.Asinearlieryears,theUnitedStates,BrazilandtheEuropeanUnionwerethedominantethanolproducers.EUmembersledinbiodieselproduction,followedbyIndonesia,BrazilandtheUnitedStates.IRENAestimatesworldwidebiofuelemploymentin2022at2.5million,mostlyinfeedstockoperations.LatinAmericaaccountsfor42%ofallbiofueljobsworldwide,whileAsia(principallySoutheastAsia)accountsfor37%.ThemoremechanisedagriculturalsectorsofNorthAmericaandEuroperepresentsmalleremploymentshares(15%and6%,respectively).Thetoptencountriestogetheraccountforabout94%ofglobalestimatedemployment(Figure8).Figure8Liquidbiofuelsemploymentin2022:ToptencountriesMillionjobs0.90.834%ofbiofueljobs0.7Top10:0.694%0.5ofbiofuelsjobs0.40.30.20.10BrazilIndonesiaUnitedStatesColombiaThailandMalaysiaChinaPhilippinesIndiaPoland26CHAPTER1©MailsonPignata/istock©andreswd/istockIntheUnitedStates,360000peoplewererequiredfordirectandindirectlabourinbiofuelfeedstockandprocessingoperationsin2022.Inthe27EUMemberStates,biofuelcreatedanestimated148300jobsin2021(upfrom141600jobsin2020)(EurObserv’ER,2023).TotalbiofuelsproductionintheEuropeanUnionwasrelativelyunchangedin2022(USDA-FAS,2022e).Employment,therefore,mayalsobeassumedtohaveremainedatthe2021level.Manycountrieshavelabour-intensivefeedstockoperations,withinformalandseasonalemploymentintheagriculturalsupplychain.Brazilremainstheworld’slargestemployerinliquid-biofuel-relatedoperations(about856000jobs),andissecondonlytotheUnitedStatesinbiofuelproduction.OthercountriesestimatedtohavesizeablebiofuelworkforcesincludeIndonesia(619000),Colombia(186700),Thailand(97100),Malaysia(66600)andthePhilippines(44900).1.5OTHERTECHNOLOGIESAsFigure2indicates,otherrenewableenergytechnologiesemployfarfewerpeoplethansolarPV,wind,hydropowerandbiofuels.Theindustriesthatmanufactureandinstallthesetechnologiesarefarlessdynamic.Formostofthemtheavailableinformationabouttheiremploymentimpactsisrelativelyscarce.Assessmentsforemploymentimpactsofheatpumps,forexample,areavailableonlyforsomecountries.Box2providesasummaryofavailableinformation.27thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONBox2EmploymentinheatpumpsChina,Japan,theUnitedStatesandEuropearethemajormarketsforheatpumps.Globalheatpumpsalesgrew11%in2022,drivenbydevelopmentsinEurope,whererisingenergypricesandsupportiveinstallationpoliciesaredrivingupsales(REN21,2023).ThreemillionunitsweresoldinEuropein2022.Thisis38%morethanin2021,doublethesalesvolumein2019andthreetimesasmanysalesasin2016(RosenowandGibb,2023).Basedonasurveyofitsmembers,theEuropeanHeatPumpAssociationestimatesthatin2022,about116000peoplewereemployedinthisgrowingsectorinEuropeancountries(seeFigure9).About66000peoplewereemployedinmanufacturing,36000ininstallationsand15000inmaintenanceservices(EurObserv’ER[2023]providesamuchhigherjobnumber[some377300in2021],althoughthisincludesemploymentinair-sourcepumpsandair-conditioningequipment).ThelargestnumberofEuropeanheatpumpjobsarefoundinFrance,ItalyandGermany,whichtogetherrepresentjustoverhalfoftheEuropeantotal(NowakandWestring,2023).AlargeportionofinstallationscentresonEuropean-madeheatpumps.Thiscreateslocaljobs,althoughrecentdemandgrowthhassurpassedlocalmanufacturingcapacitiesandraisedrelianceonimports(EurObserv’ER,2023).CompaniesannouncedplansforinvestmentsofmorethanEUR5.5billioninnewEuropeanmanufacturingfactories(REN21,2023).InChina,theheatpumpindustryprovidedemploymentopportunitiesforasimilarnumberofpeopleasinEurope,some118000in2022(CHPA,2023).Basedonasurvey,©DmytroTomson/istock©mali/istock28CHAPTER1thisfigureincludesproduction,salesdistribution,installation,andafter-salesservice.Thenumberscoverair-to-waterheatersandwater/ground-to-waterheatpumps,butexcludeair-to-airheatpumps,i.e.airconditioning.Some28000peopleproducedequipmentand20000peopleproducedcomponents.Salesandinstallationservices,includingsales,logistics,installation,andafter-sales,providedemploymentopportunitiesfor71000people,about60%ofthetotal.TheChinaHeatPumpAllianceforecaststhattheheatpumpindustrycouldprovideemploymentopportunitiesfor400000peopleby2030inChina.IntheUnitedStates,theEnergyandEmploymentReportestimates6465jobsrelatedtoground-sourceorgeothermalheatpumpsin2022.Thefigureforair-sourceheatpumpsismuchhigher,at64641(USDOE,2023).Figure9EmploymentintheEuropeanheatpumpsector,2022Thousandjobs300002500020000150001000050000Source:NowakandWestring,2023.29FranceItalydherlandsFinlandSpainGermPolanNorwayDenmanyNetSwitzarkSwedenerlandUnitedKAustriaRestingdomofEuropethRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION1.6DECENTRALISEDRENEWABLESFollowingtheCOVID-19–inducedactivityslumpin2020(whenjust340megawatts[MW]wereinstalled),theoff-gridsectorrebounded,adding690MWofnewcapacityin2021and1400MWin2022(IRENA,2023b).Amongvariousemergingtechnologies,decentralisedrenewableenergyhasemergedasaviablesolutiontoprovidereliableandcleanpowertocommunities,especiallyinremoteareas.Beyondtheenvironmentalbenefits,thisdecentralisedapproachcreateslocaljobsandexcellentopportunitiesforpromotingdiversity.Thissectiondiscussesjobandlivelihoodimplicationsformini-grids(oftenbasedonsolarPV),small-scalehydropowerandcleancookingsolutions.1.6.1Mini-gridsMini-gridswillplayanincreasinglyimportantroleinclosingexistinggapsinenergyaccess,especiallyinremoteruralareas.In2010,therewereabout500mini-gridinstallationsinSub-SaharanAfrica.Whilethenumberhasrisensignificantly,toover3000installationsatpresent,furtheraccelerationisneeded.Accordingtooneestimate,morethan160000mini-gridsarerequiredtoaddressaccessneeds(WorldBank,2023).Kenyafeaturesprominentlyintheregion,havingdeployedasignificantshareofAfrica’smini-grids.TheInternationalLabourOrganizationhasundertakenanassessmentoftheemploymentimpactsoftheEU-fundedGreenMini-Grid(GMG)FacilityProgrammeinKenya,whichconsistsof33sites,principallysolarPVbased.Foratypicalmini-grid,thestudy(Oyuma,GameandLieuw-Kie-Song,2023)assumesthatthedesignandfeasibilityphasetakesonemonthofworkandtheconstructionphasetakesanothermonth,engaging,respectively,7and104workers.Thistranslatesinto0.7and8.8full-timeequivalent(FTE)jobs,respectively,foratotalof9.5FTEjobs,nearlyallheldbymen.Mostofthejobsareunskilled;almosthalfoftheconstructionphasejobspayanaveragedailywageofKES500(USD4.69),5comparedwithKES1600(USD15.025)forwiringwork,andKES2700(USD25.355)forfieldengineersandhouseholdmappers,forexample.ForO&M,thestudyestimatesanadditional2.8FTEjobs.Forthe33sitesunderGMG,thestudyalsoestimatedindirectandinducedemploymentat652jobs(thesearenotnecessarilyFTEjobs)inagriculture,manufacturingandservices.Womenaccountforabout20%ofthetotal.BasedonaverageinvestmentcostsofEUR195275persiteandcostsperconnectionofEUR688,thestudyestimatedthatforeveryEUR1millioninvested,58FTEjobscouldbecreatedannually.Table1summariseskeyfindingspertainingtodirectjobsatpresentanddirectjobsiffuturemini-gridtargetsarerealised.5AverageexchangerateofUSD1=KES106.488in2020,whenthestudywasconducted.ItshouldbenotedthattheexchangevalueoftheKenyanshillinghasdeclinedsignificantlysincethen.BySeptember2023,1USDequalled146KES.30CHAPTER1©MiaronBilly/istock©SebastianNoethlichs/shutterstock.comTable1DirectjobsinKenyanmini-griddevelopmentAveragemini-gridsiteParametersFTEJobsFor33GMGsitesaFutureconnectiontargetsJobsindesignandfeasibilityphase(temporary)0.7Jobsinconstructionandcommissioningphase(temporary)8.8Jobsinoperationsandmaintenancephase(permanent)2.8Totaldirectjobs(temporarypluspermanent)12.3Permanentjobs92TemporaryJobs314Totaljobs(temporarypluspermanent)406Estimatedjobscreatedif35000householdsservedb1439Estimatedjobscreatedif1.1millionhouseholdsserved45100Source:Oyuma,GameandLieuw-Kie-Song,2023.Notes:aThenumberofsitesthatweredevelopedunderPhase2oftheGMGprogramme.bItisestimatedthat117mini-gridsitesareneededtomeetthisgoal.FTE=full-timeequivalent;GMG=GreenMini-Grid.31thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION1.6.2Small-scalehydropowerSmall-scalehydropowersystemsoffernumerousbenefitsforlocalcommunitiesandtheenvironment.Theynotonlyprovideelectricitybutcouldalsosupportirrigationservicesandconnectcommunitiestothecentralgrid.Theyalsomakeitpossibletosellexcesspower,creatingopportunitiesforadditionalincomegeneration.Inthisway,theyhelptransformlocaleconomiesandgenerateinclusivegrowthbyempoweringruralwomentoparticipateintheseactivities.Further,community-basedhydromini-gridsincentiviselocalcommunitiestorestoreandmaintainsurroundingwatersheds,contributingtoenvironmentalsustainability.Theimplementationvaluechainofsmall-scalehydropoweroffersplentyoflocaljobopportunities.Jobscanbecreatedduetofeasibilitystudies,planningandprocurement,andequipmentmanufacturing,toinstallationandconnection,O&M,andeventually,decommissioning.AccordingtoIRENA’slatestLeveraginglocalcapacityanalysis(IRENA,2023c),asmall-scalehydropowerplantrequiressubstantiallabourtoimplement.Forinstance,apicohydroplant(averaging5kW)requiresover17000person-days,amicrohydrofacility(50kW)requiresapproximatelyRENEWABLE64000person-daysandaminihydrosystem(500kW)requiresmorethan160000person-ENERGYBENEFITSdays.6Amongallvaluechainsegmentsforasystem,themajorityoflabourisneededforLEVERAGINGLOCALCAPACITYFORSMALL-SCALEHYDROPOWERO&Mworkoverthesystem’slifetime.ThisO&Mworkaccountsfor94%,87%and78%oftotalperson-daysforpico,microandminihydro,respectively(seeFigure10).6Person-daysreflecttheamountofworkdonebyonepersonworkingfull-timeforoneday.Figure10Distributionoflabourrequiredalongthevaluechainforpico,microandminihydroplants1%1%1%7%3%1%2%12%1%3%1%77%9%5kW94%50kW87%500kWOperation&maintenancePlanning&procurementFeasibilityManufacturingConstruction&installation17345person-days63920person-days163780person-daysTOTALSource:IRENA,2023d.Note:kW=kilowatt.32CHAPTER1Theaboveworkmostlyrequireslowtomoderatetechnicalskills(seeFigure11),whicharetypicallyreadilyavailableinacountry’sworkforceorcanbedevelopedthroughcertificationprogrammesorvocationaltrainingcentres.Byemployinglocaltalent,small-scalehydropowerprojectscontributetolocalcapacitydevelopmentandskillenhancement.Connectingrenewableenergysupplywithincome-generatingactivities,knownasproductiveenduses,hasthepotentialtoboostproductivity,increaseincomes,createlocalemploymentandcatalyseruraleconomies.However,translatingenergyaccessintolivelihoodimprovementsrequiresinvestinginasocialecosystemthatfosterstechnologysolutionstailoredtothespecificneedsoflocalcommunities.Thisinvestmentshouldincludefinancing,capacityandskilltraining,marketaccessandcross-sectorpolicysupporttofullyrealisethebenefitsofdecentralisedrenewableenergysolutions.Thehardwarerequiredforsmall-scalehydropowercanbemanufacturedlocally.Thiscreatesopportunitiesforlocalskillbuildingandfosteringenterprisedevelopment.However,costlyinternationalstandardsoftenhinderlocaldevelopersfromcompetingforprojects.Donor-fundedinternationalprogrammesmustencouragetheinvolvementoflocalexpertsinsteadofrelyingsolelyonforeignserviceproviders.Fullrealisationofsmall-scalehydropower’sbenefitsandmaximumdomesticvaluecreationrequirepoliciesandmeasurestoprioritisecommunitycapacityenhancementalongthevaluechainandthepromotionofsocialacceptance.Asthesectorcontinuestogrow,thedemandforskilledworkersininstallation,maintenance,entrepreneurshipandcommunityengagementwillincrease.Theexpansionofthedecentralisedrenewableenergyjobmarkethasapositivemultipliereffect,benefitinglocaleconomies,reducingpovertyandfosteringsocialdevelopment.Figure11Distributionofskillsrequiredforpico,microandminihydroplants0.3%0.3%2%2.4%4%4%8%7%12%5kW93%50kW88%500kW79%LowandmidskillsAdministrativeNon-STEMSTEMSource:IRENA,2023c.Note:kW=kilowatt;STEM=science,technology,engineeringandmathematics.33thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION1.6.3Renewables-basedcookingsolutionsAchievinguniversalaccesstocleancookingsolutionsisapressingglobalchallenge.Traditionalcookingmethods,suchasopenfiresandinefficientstoves,notonlycontributetoindoorairpollutionbutalsohaveseverehealth,environmentalandsocio-economicimplications.Renewables-basedcleancookingsolutions,includingbioethanol-based,biogas-based,electricity-drivenandmodernbiomass-basedsolutions,presentasignificantopportunitytoaccelerateprogresstowardsSustainableDevelopmentGoal7andoffersubstantialjobopportunities.StudiesshowthatcountriessuchasKenyahadabout700FTEjobsinthebioethanolsectorin2019,whilethebiogassectoremployed800peopleandtheelectriccookingsectoremployed200(Leeetal.,2021).Thepotentialforanincreaseinjobsnumbersinthecleancookingsectorissubstantialifrenewable-basedsolutionsweretoreplaceliquidpetroleumgas.Currently,thesector,includingliquidpetroleumgas,isestimatedtoprovideapproximately19000direct,formaljobs.Thereisalsopotentialfor15000–35000directbutinformaljobs.VietNam’sbiogasprogrammedeployedover180000biodigestersbetween2003and2020,creating2500jobsintheconstructionandservicessectors(SNVandEnDev,2021).Trainingandskilldevelopmentisacriticalelementoflocaljobcreationinthecleancookingsector,whichinvolvesmanufacturers,installersandO&Mproviders,aswellassmallholderfarmerswherefeedstockisneeded(e.g.bioethanolsupplychains)(IRENA,2023d).Leeetal.(2021)alsoshowedthatwomen’sinvolvementinthesectorislimited,representingonlyabout20%ofthenon-managerialworkforce,duetothephysicallydemandingnatureofthesejobs.However,therearemorewomenmanagersinthecleancookingsector.Forbiogas-basedsolutions,aboutone-thirdofmanagersarewomen,asharethatrisestoone-halfforbioethanol-basedandelectricity-poweredcookingsolutions.Accordingtothestudy,companiestypicallyexpressastrongdesiretoinvolvewomeninmanagerialrolesandintheresearchanddevelopmentofproducts.Thecleancookingsectorthuspresentsauniqueopportunitytobridgeboththeskillandgendergap(Leeetal.,2021).©bodom/shutterstock.com©Rasid/istock34CHAPTER1©MagnificalProductions/istock©MykolaPodhodzhay/istock1.7THEFUTUREOFENERGYTRANSITIONJOBSWhilethisannualreviewprimarilyfocusesontherenewableenergysectoritself,severalcloselyintertwinedsolutionsofescalatingsignificancesignificantlycontributetotheemergenceofjobopportunitiesorthedynamicsoftheemploymentmarketanditsrequirements.Amongthem,energyefficiencymeasuresrepresentapivotalfacet.Further,thedevelopmentofgridtransmissionanddistributionnetworkswillbecrucialinunfoldingtheenergytransition,asistrueforflexibilityinnovations,energystorageandhydrogentechnologies,amongothers.Theshifttowardssustainableenergysourcesfostersincreasedeconomicengagementandredirectsfinancialendeavoursfromfossilfuelstowardssectorsinvolvedintheenergytransition.IRENA’sWorldEnergyTransitionsOutlookpresentsa1.5°C-compatibletrajectorythatisconsistentwiththeParisAgreementonClimateChange.ThemacroeconometricmodellingframeworkunderlyingIRENA’s1.5°Cpathwaycapturestheeffectsofandfeedbackloopsfordifferentclimateandenergytransitionpolicies,includingtheirimpactsongovernmentrevenuestreams,spending,anddistributionalandsocialimpacts.The2022editionoftheOutlookindicatedthatiftheworldfollowsIRENA’s1.5°Cpathway,employmentintheenergysectorcouldgrowto139millionjobsby2030,withrenewablesaccountingfor38.2millionandotherenergytransitiontechnologiesfor74.2million(IRENA,2022b).Thesenumbersarederivedfromsocio-economicmodellingofIRENA’s1.5°Cscenario,whichrepresentsacomplexsetofinvestmentsandpoliciesthatcandrivetheneededchangeintheenergysector.However,IRENA’sworkhasconsistentlyemphasisedthatthetransitionhassocio-economiceffects(GDP,employment,andsocialwelfare)farbeyondtheenergysector,acrosstheeconomyatlarge.Theseimpactsareshapedbyanarrayofpolicies,anditiscriticalthatoutcomesmaximisebenefitsforpeoplewhileminimisinguncertaintiesandadjustmentburdens.Someofthekeypoliciesincludecarbonpricing,fossilfuelsubsidyreduction,highergovernmentspendingonsocialinfrastructures,andinternationalcollaboration.Theforthcomingvolume2ofWorldEnergyTransitionsOutlook2023,alsoexplorestheimpactsofchannelingrevenuesfromwealthtaxestowardssocialinvestments,andpresentstheimpactoffairwagestoworkersinmineralminingindustriesindevelopingoremergingeconomies(IRENA2023a,forthcoming).35thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION©Hispanolistic/istockAstheglobaltransitiongainsmomentum,itbecomesincreasinglyevidentthatgovernmentsneedtoproactivelyestablishrobustpoliciestofosterthewidespreadimplementationandseamlessintegrationofrenewabletechnologies.Prioritisingthecultivationofaskilledworkforceremainsimperative,alongsideagrowingemphasisonthecalibreoftheseemploymentpositions.Further,itiscriticalthatpolicymakersconceiveanoverarchingframeworkthatencompassesaspectrumofmeasures,includingindustrialstrategies,labourmarketpolicies,socialsafetynetsandinitiatesforpromotingdiversityandinclusivity(seeSection4).Moreover,thelandscapeoflabourisundergoingaparadigmshiftasautomationincreasesinthemanufacturingsector.Thistransformationisrecalibratingemploymentdynamics,reducingtraditionalworkforcedependencieswhilesimultaneouslygeneratingdemandfortheskillsetsrequiredtoprogramandoperateautomatedsystems.Whilethistransitionmightentailjobdisplacements,thepositionsthatemergefromitareanticipatedtobeofhigherquality,demandingadvancedskills.Ensuringlow-incomeindividuals'accesstotheserolesshouldbeatoppriority.Meetingthehumanresourcecapacitychallengetofilltheseenergy-transition-relatedrolesrequiresarobustscalingupofeducationandtrainingprogrammes.Italsocallsforstrategicmeasurestocultivateaninclusiveandgender-balancedtransitionworkforce.Byembracingthesemulti-facetedapproaches,theenergytransitioncanacceleratethemovetoamoreequitableandempoweredworkforce.36RENEWABLECHAPTER2ENERGYEMPLOYMENTINSELECTEDCOUNTRIESThissectiondiscussesemploymentestimatesacrossseveralcountries.Asinpreviouseditions,theprincipalfocusisoncountriesleadinginequipmentmanufacturingandinstallation–China,Brazil,India,theUnitedStatesandtheEUmembers.ThesecountriesarehighlightedinFigure12,withmoredetaileddatainTable2.Later,thesectiondiscussesafewothercountries.Overall,thebulkofrenewableenergyemploymentisinAsiancountries,whichaccountedfor62%ofalljobsin2022.Whilegeopoliticsandrestrictivetradepoliciesareincreasinglyinfluencingpolicymakingontheproductionanddeploymentofrenewableenergyequipment,thejobslandscapeisalsoaffectedbycorporatedecisionmakingonproductionhubsandoutsourcing.©undefinedundefined/istock©xavierarnau/istock37thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION©FrameStockImage/istock©JacintoMadrid/istockFigure12RenewableenergyemploymentinselectedcountriesandregionsChinaThousandjobsEuropeanUnion5548UnitedStates1640994282IndiaRestofAsiaRestofEuropeBrazil9881922320Restof5461400Africa80AmericasOceania13.7millionjobsin2022Disclaimer:Thismapisprovidedforillustrationpurposesonly.AnyboundariesandnamesshowndonotimplyanyendorsementoracceptancebyIRENA.38CHAPTER2Table2Estimateddirectandindirectjobsinrenewableenergyworldwide,byindustry,2021-2022(inthousands)SolarPVWorldChinaBrazilUnitedIndiaEuropeanLiquidbiofuels49022760241States282lUnion(EU27)nHydropowera2490856e35Windpower248555194264f466517Solidbiomassb,c140087668360g40148Solarheatingandcooling681415883Biogas77919566h19319Geothermalenergyb712557140012685354Concentratedsolarpower30916047i38152n.a.98847Total8087n.a.59.48.6j713720dn.a.55548994k1534eNote:Thefigurespresentedinthetablearetheresultofacomprehensivereviewofprimarynationalentitiessuchasministriesandstatisticalagencies,andsecondarydatasourcessuchasregionalandglobalstudies.Emptycellsindicatethatnoestimateisavailable.“n.a.”indicatesnotapplicable.Thecolumnvaluesmaynotadduppreciselytototalsduetoroundingoff.a.Directjobsonly.b.Powerandheatingapplications.c.Traditionalbiomassnotincluded.d.Includes27000jobsinwastetoenergyandabout240500jobsinheatpumps(118000jobsinChina,116000inEU-27countries,andabout6500intheUnitedStates).e.Includesaroughestimateof200000indirectjobsinequipmentmanufacturing.f.Includesjobsinallsolartechnologies,butprincipallyPV.g.Includes296529jobsinethanoland63180jobsinbiodiesel.h.USDOE(2023)estimate,including54595jobsintraditionalhydroand11677jobsinlow-impacthydro.TheUnitedStatestotaldoesnotincludeanestimated8333jobsinpumpedhydro(energystorage).i.Includeswoodybiomassfuels(34164jobs)andbiomasspower(12850jobs).j.Figureisfordirectemploymentingeothermalpower.k.Includes122481jobsintechnologiesnotindividuallyseparatedinthetable,suchassolarheatingandcooling,geothermalheat,heatpumpsandothers.Solarheatingandcoolingarealsoincluded(butnotreportedseparately)intheSolarFoundation’sestimateforallsolartechnologies;thereisthusslightdoublecounting.l.Includes201400jobsingrid-connectedsolarphotovoltaic(PV)and80600inoff-gridsolarPV.m.SolarPV,windandhydropowerjobsarefor2022.Jobsforothertechnologiesarefor2021.39thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONChina2.1LEADINGCOUNTRIES5.55millionjobsCHINA’srenewableenergyemploymentgrewfrom5.37millionin2021to5.55millionin2022.Thecountry’spre-eminenceinsolarphotovoltaic(PV)employmentreflectsitsstrongpositionasthedominantequipmentmanufactureraswellasitscommandingpositionincapacityinstallation.AlthoughlowlabourcostsareafactorinChina’ssuccess,itislargelyduetoinfrastructureprovisionandindustrialpolicies,whichsupportedthedevelopmentofanintegratedsupplychainofunrivalledproportions.AccordingtotheChinaPhotovoltaicIndustryAssociation,thecountryproduced827000tonnesofpolysilicon,357GWofsiliconwafers,318GWofcellsand289GWofsolarmodulesin2022.Itsexportsroseby80%toUSD51billionwhencomparedyearoveryear,reflectingstrongglobaldemand(Joshi,2023).Europereceivedthebulkofmoduleexports(86.6GW),withsmallervolumesgoingtoAsiaPacific(28.5GW),theAmericas(24.8GW),theMiddleEast(11.4GW)andAfrica(3.4GW)(Chen,2023).Regardingdeployment,Chinaadded86GWofsolarPVcapacityin2022,anotherrecordandequivalentto45%ofworldwideadditions.Meanwhile,inwind,additionsof37GWfellsignificantlyshortoftherecordcapacityadditionin2020andevenofthesmalleradditionsin2021.Theseinstallationsnonethelessrepresentedhalfoftheglobaltotal(IRENA,2023b).AccordingtoestimatesbytheChinaRenewableEnergySociety(CRES,2023),thecountryemployed2.76millionpeopleinsolarPVin2022,about80000morejobsthanin2021.Theemploymentimpactsofgrowingmanufacturinganddeploymentaresomewhatcounterbalancedbyrisingautomation,whichdiminishestheindustry’slabourneeds.Manufacturingactivitiesaccountedforanestimated1.8millionjobs,andconstructionandinstallationtogetherwithoperationandmaintenance(O&M)accountedfor918000jobs.Inthewindsector,Chinaadded32.9GWofonshorecapacityin2022–slightlymorethanintheyearbefore(whentheexpirationofasubsidyslowedconstructionactivity),butstilllessthanhalfoftherecordcapacityaddedin2020.Offshorecapacityadditionprogressedsignificantlyslowerin2022thantheyearbefore,withnewinstallationsof4.1GWcomparedwith17.4GW(IRENA,2023b).Althoughgridlimitswillcontinuetoconstraindevelopments,China’s2060carbonneutralitytargetwillpushfurtherwindgrowth(Li,2022).Since2008–2010,Chinesewindcompanieshaveestablishedalargesupplychainprimarilyforservingthedomesticmarket.Duetosubstantialinvestmentsandstrategicindustrialpolicymaking,Chinacanbenefitfromunmatchedeconomiesofscaleandhasbecometheworld’slargesthubfortheproductionofkeycomponentsandrawmaterialprocessing.Thistranslatesintosubstantialcostadvantages.Forexample,reportsindicatethatChinesewindfirmscouldmanufactureturbinesatapproximately60%ofthecostoftheircompetitors(Barnard,2023).40CHAPTER2“Completedandfirm”windturbineordersfilledbyChinesemanufacturersdoubledbetween2020and2021to50.7GW,andfurthergrewby18%,to59.8GW,in2022(WoodMackenzie,2023b).Thebulkofproductionisforthelargedomesticmarket.Meanwhile,themarketdynamicsarechanging,andfavourablecostandprofitmarginsoverWesterncompetitorsareleadingChinesemanufacturerstolookmoretowardsexportmarkets.Bothcompetitionandco-operationwithEuropeanmanufacturersareexpectedtogrow.Besidesexportsales,ChinesecompaniesarebuildingorplanningtobuildmanufacturingplantsinIndia,Brazil,SpainandtheUnitedKingdom(RenandDiao,2022;Diao,LiandWang,2022).AccordingtoWoodMackenzie’sestimates,Chinaisplanningtoadd17GWofnewbladecapacityin2023–2024toservebothdomesticandforeigndemand.ThisisinsharpcontrasttoWesternmarkets,wheremanufacturersstrugglingwithlowdemand,risingcostsandlowprofitabilityareoutsourcingcomponentproduction(Lico,2022b).AccordingtoCRES(2023),theChinesewindindustryemployedanestimated681000peoplein2022,upfrom654000in2021.Manufacturingaccountedfor234000ofthesejobs,constructionandinstallationrepresented276000andO&Maccountedfor171000.Inhydropower,globalcapacityadditionsin2022werepredominantlyinChina,whosehydropowersectoremployedabout927200peopledirectly,asperIRENA’sestimates.Solarheatingandcoolingwereestimatedtohavehad557000directjobs,downfrom636000jobsin2021.Concentratedsolarpowerrepresentedanother59400jobs,roughlythesameasin2021.Geothermalheatandpowerhad87000jobs,alsoupslightlyfrom2021.Bioenergytechnologiesaccountedfor410000jobs,upfrom386000in2021.Ofthistotal,240000jobswereinequipmentmanufacturingand170000inO&M(CRES,2023).China’sfuelethanolproductionremainedbelowthe2019peakvalue,butbiodieseloutputreachedanotherrecord(USDA-FAS,2022f).China’sbiofuelssectorisestimatedtohaveemployed55000peoplein2022,upmarginally(CRES,2023).41©WengenLing/istock©mali/istockthRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONBrazilBRAZILhadanestimated1.4millionrenewableenergyjobsin2022.Biofuels,withanestimated856200jobsin2022,remainedthesingle-largestemployerin1.40millionjobsrenewableenergy,althoughjobnumbersdeclinedslightlyfromthepreviousyear.Biodieselproductionwasestimatedat6.37billionlitresin2022,downabout6%from2021.InNovember2021,themandatorybiodieselblendinvehiclefuelshadbeenreducedfrom13%to10%giventheincreasedcostofsoybeans(theprimaryfeedstock)(USDA-FAS,2022a).IRENAestimates282400biodiesel-relatedjobsinBrazilin2022,downfrom343500theyearbefore.7Themostrecentavailableemploymentestimateforbioethanolisfor2021,at344500jobs(MTE/RAIS,2023),8alongwithanapproximate200000indirectjobsinequipmentmanufacturing.Brazil’sestimatedsugarcane-basedethanoloutputrosebyabout8.5%in2022.Applyingthispercentagechangetoemploymentwouldsuggestsome573800ethanol-relatedjobsin2022.Mostethanolisproducedfromsugarcane,butcornethanolproductionisexpanding,rising37%in2022(USDA-FAS,2022a).BrazilrankedfourthinnewsolarPVcapacityinstallationin2022,afterChina,theUnitedStatesandIndia.Itadded9.9GW,tobringthecumulativeinstalledcapacityto24GW(IRENA,2023b).ABSOLAR(2023)reportedevenhigherfiguresandfoundthat29%ofcumulativePVcapacityasof2022wasincentralisedgenerationfacilities,downfrom76%in2018.ThebulkofPVexpansionoverthepastfewyearshasbeenindistributedgeneration.TheBraziliandevelopmentbanksBNBandBNDESaretheprincipalsourcesoffinanceforlarge-scalePV.Altogether,some42.4GWofnewsolarPVprojectswereauthorisedbetweenMarch2022andFebruary2023,ofwhich4.9GWwereunderconstructionbymid-2023and7.5GWwerealreadyinoperation(Greener,2023a).Brazilremainsheavilydependentonimportsof(predominantlyChinese-made)PVmodules.Importsforbothlarge-scaleanddistributedprojectsrosefrom4.8GWin2020to10.4GWin2021andsoaredto17.8GWin2022(Greener,2023b).Employmentisthuscreatedprincipallyinsales,installationsandO&M,whicharetypicallyhandledbysmallenterprises.IRENAestimatesabout241100jobsinBrazil’ssolarPVsectorin2022.Thisisadramaticincreasefrom131000jobsin2021,reflectingthefactthatcumulativedeploymentinthelabour-intensivedistributedsegmentalmostdoubled.Braziladded1.78millionsquaremetresofsolarwaterheatingcapacityin2022,just2%belowtheimpressiverecordsetin2021(ABRASOL,2023).IRENAestimates41100jobsinsolarwaterheating.9Inthewindindustry,4GWofcapacitywereaddedin2023,upsomewhatfrom3.8GWin2021(ABEEÓLICA,2023).Brazilrankedthirdinwindcapacityadditionintheworld,afterChinaandtheUnitedStates(IRENA,2023b).IRENAestimatesthecountry’swindworkforceatabout67700people,primarilyinconstruction,followedbyO&M.107Thecalculationisbasedonemploymentfactorsfordifferentfeedstocks(DaCunha,GuilhotoandDaSilvaWalter,2014).The2022sharesoffeedstockrawmaterials,principallysoybeanoilandanimalfat(beeftallow),arederivedfromUSDA-FAS(2022a).8In2021,about167900workerswereengagedinsugarcanecultivationinBrazil,and176700workedinalcoholandethanolprocessing.9Thisestimateisbasedontheassumptionthatemploymentchangesmirroredthechangeininstallations,thusapplyinga2%declinetoABRASOL’s2021estimateof42000jobs(Johann,2022).MercantilEnvironmental(2023)mentionsafigureof50000jobsbutdoesnotexplainhowitwascalculated.10ThiscalculationisbasedonemploymentfactorspublishedbySimasandPacca(2014).42CHAPTER2TheUNITEDSTATEShadcloseto1millionrenewableenergyjobsin2022,includingUnitedabout406700jobsinbiofuels,biomasspowerandwoodybiomassfuels;about263900StatesinsolarPV;almost122500invariousrenewableheatingandcoolingtechnologies;11about66300inhydropower12and8600ingeothermalpower.Inaddition,butnotincluded0.99millionjobsinthisreport,about251500jobswerecreatedforvariousenergy-transition-relatedtechnologies.13USDOE(2023)furtherestimatesthatenergyefficiencyemployedabout2.2millionpeoplein2022,upby50500overthepreviousyear.14ThepassageoftheInflationReductionAct(IRA)inAugust2022triggeredannouncementsofnewcleanenergyinvestments.BetweenAugust2022andtheendofJuly2023,overUSD270billioninutility-scaleinvestmentsandinvestmentsin83neworexpandedutility-scalemanufacturingfacilitieswereannounced,withapotentialof29780newjobs.Theyinclude52solarPVfactories;17windfacilities;and14utility-scalebatterystoragesites(AmericanCleanPower,2023).In2022,theUnitedStatesinstalledanestimated17.6GWofsolarPVcapacity,itssecond-highestcapacityadditionafterthe19.2GWinstalledin2021(IRENA,2023b).Theindustryfacedsupplychaindisruptionsduetoananti-circumventionprobeannouncedinMarch2022(affectingPVcellsandmodulesimportedfromCambodia,Malaysia,ThailandandVietNam)andtheenforcementofthe“UyghurForcedLaborPreventionAct”,whichledtothemonths-longdetentionofmanymoduleshipmentsfromtheXinjiangUyghurAutonomousRegion(Groom,2022).©Frolphy/istock©SDIProductions/istock11Thisfigureincludessolarthermal,geothermal,biomass,heatpumpsandothertechnologies.12Thisfigureincludes11677jobsinlow-impacthydroand54595jobsintraditionalhydro.Therearealso8333jobsinpumpedhydro,whichare,however,notincludedhere(USDOE,2023).13Thisfigureincludesjobsinbatterystorage(72923jobs,ofwhich13600inbatterymanufacturing),smartgrids(24916jobs),microgrids(19845jobs),othergridmodernisation(20794jobs)andelectricalvehiclecharging(113001jobs)(USDOE,2023).14Theenergyefficiencycategoryincludesappliances;heating,ventilationandair-conditioning;waterheaters;electronicgoods;windows,roofingandinsulation;commercialequipment;andlighting.43thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONAccordingtotheNationalSolarJobsCensus2022,USsolaremploymentrosetoalmost264000jobsin2022,3.6%morethanin2021.15Developmentsweremixedindifferentmarketsegments.Forutility-scaleprojects,thepaceofinstallationsslowed,withthelossofanestimated6000jobs.However,employmentinresidentialsolar,whichreliesmoreondomesticmodules,soaredby40%,with9500jobsadded.In2022,twooutofthreesolarjobs(orabout171600jobs)wereintheinstallationandprojectdevelopmentsegments,withanother33400jobsinmanufacturing,30600jobsinsalesanddistribution,and28200jobsinO&Mand“other”activities(IREC,2023).Jobcreationhasnotkeptpacewithinstallationsinrecentyears.Thisreflectsgrowinglabourproductivityandinstallationswithafocusontheutility-scalesegment.Themorelabour-intensiveresidentialsolarsegmentaccountsfor55%ofjobsbutjust28%oftotalcapacity(IREC,2023).In2022,onlyabout10%ofUSsolarworkersbelongedtoaunion–noimprovementoverearlieryears.Womenaccountedfor31%ofallUSsolarjobsin2022(upfrom29%thepreviousyearand27%in2017).Withashareof9%ofsolarjobs,AfricanAmericansarelessrepresentedintheworkforcethantheirshareofjobsacrosstheentireUSeconomywouldsuggest.Bycontrast,LatinosandLatinas,at22%ofjobs,andAsians,at9%,areabovetheirrespectivenationalshares.Alittleoveraquarter(27%)ofthesurveyedsolarfirmshadstrategiesforhiringmorewomen(comparedwith31%inthepreviousyear),andjust12%(upfrom8%)tookstepstoincreaseLGBTIQ+16hires(IREC,2023).Inthewindindustry,USblademanufacturingcapacitydroppedby63%between2021and2022,from8.3GWtojust3.1GW.Over2000workerswerelaidoffasaresult(Lico,2022b).InOctober2022,GeneralElectricCo.announcedthatitwouldlayoff20%ofitsonshorewindworkforceintheUnitedStates,alongwithotherworkersinLatinAmerica,theMiddleEastandAfrica(SinghandHampton,2022).USdomesticproductionwasreplacedwithgrowingimportsfromMexicoandIndia,withsmallervolumescomingfromSpainandBrazil,andmuchreducedvolumesfromChina.Corporateoutsourcingstrategiesseektoleveragethelowerwagelevelsinmanyofthesecountriesinanenvironmentwherelabourandmaterialcostshaveincreased.Manufacturingandassemblylabouraccountsfor35%ofthecostoffibreglassblades,17atypicalbladerequiresmorethan2000hoursoflabourinputs(Lico,2022b).©JonRegh/shutterstock.com©KristiBlokhin/shutterstock.com15TheInterstateRenewableEnergyCouncil(IREC)includesonlysolarworkerswhospendatleasthalfoftheirworkinghoursonsolargoodsandservices.Bycontrast,theUnitedStatesEnergy&EmploymentReport(USDOE,2023)pegssolarPVemploymentat346143in2022,upfrom333887in2021.Thisincludesallemployeesengagedwithsolartechnologies,regardlessoftheshareoftimetheyspentonsolarrelatedwork.16LGBTIQ+standsforlesbian,gay,bisexual,transgender,intersex,queer/questioning,asexualandmanyotherterms(suchasnon-binaryandpansexual)(ILO,2022).17However,fibreglassisexpectedtobeincreasinglyreplacedbycarbonfibre,giventhelatter’sadvantagesinweight,strengthandflexibility.Labourrepresentsmerely11%ofcarbonfibrecosts,comparedwith52%formaterialandenergy,and37%forcapitalcosts(Lico,2022b).44CHAPTER2ButthelocalcontentbonusincludedaspartoftheIRAmayencourageareopeningofsomefactories.Also,subjecttoorderconfirmationsandpublicfunding,Vestas,SiemensandGeneralElectricCo.intendtobuildnewturbinecomponentfactoriesinColorado,NewYorkandNewJersey(Kessler,2023;Woods,2023).In2022,only7.8GWofwindcapacitywasinstalledintheUnitedStates,alittlemorethanhalfoftheover14GWaddedeachin2020and2021(IRENA,2023b).Still,thenumberofwindpowerjobsin2022wasestimatedat125580,upfrom120164in2021,givengrowingO&Mneeds.Foronshorewindemployment,thelargestsegmentwasconstruction,witha36%share,followedbyprofessionalandbusinessservices,witha26%share.Foroffshorewind,suchservicesaccountedfor48%,followedbyconstruction,witha32%employmentshare(USDOE,2023).Biofuelsisestimatedtohave359700jobsintheUnitedStates.Totalbiofuelproductionin2022remainedbelowthe2018peaklevelof68billionlitres.Ethanoloutputroseslightlyfrom2021,butbiodieselvolumescontinuedtodecline.Input-outputmodellingsuggeststhatbioethanolmayhaveemployed296500personsin2022intheUnitedStates,including78800directlyand217700indirectlyintheagriculturalsupplychain(ethanolrepresentsalmost40%oftheentirecountry'scorncrop;alargeshareoftheindustrialagriculturesystemisthusinvolvedinproducingthisoutput).Thetotalnumberofjobsincludescloseto30000export-relatedpositions(Urbanchuk,2023).Biodieseloutputfellto6.14billionlitresin2022,down5%from6.5billionlitresin2021(USEIA,2023).IRENAestimatesthenumberofbiodiesel-relatedjobsatabout63200in2022,downfrom66650in2021.AcrosstheUSenergysector,11%ofworkerswereeitherrepresentedbyaunionorcoveredunderaprojectlabouragreementorcollectivebargainingarrangement.Whilequitelow,itwashigherthanthe7%acrosstheprivatesectoreconomywide(USDOE,2023).Unionisationoffersarangeofbenefits,includinghigherwagesandbenefits.Some46%ofunionisedemployersofferedorrequiredworkplacediversityand/orinclusiontraining,morethandoublethe22%shareamongnon-unionisedemployers.Theywerealsomorelikelytohavespecificstrategies,policiesorprogrammesforincreasingthenumberoffemale,minorityandLGBTIQ+hires.Farfewer(29%)oftheunionisedemployersfoundit“verydifficult”toattractworkersthannon-unioncompanies(48%)(USDOE,2023).RewiringAmerica(Griffith,CalischandLaskey,2020),anon-profitorganisation,estimatedthattheUnitedStateswillneedanadditional1millionelectricianstohelpinstallsolarpanels,heatpumps,electricvehiclechargingstationsandothertechnologiestomeettheclimategoalsestablishedundertheIRA.Reachingthatgoalrequirestappingintoabroaderpoolofpeople,and,inparticular,overcomingthebarriersfacedbywomenintheindustry(seeBox3).45thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONBox3Women–keytoskillingtheenergytransitionAstheworldembracesrenewabletechnologiesandmoresustainablepractices,jobopportunitiesintheelectricalindustrywillmultiply,especiallyforskilledelectricians.DatafromtheUSBureauofLaborStatistics(BLS,2023a)showthatabout21%ofcurrentlyactiveelectricianswillreachretirementageinthenexttenyears,whereasthedemandforelectricianscouldgrowby7%,resultinginnearly80000jobopeningsperyear.ThatestimatedoesnotevenyetaccountforallthenewincentivesincludedaspartoftheInflationReductionAct–rebatesforsolarpanels,electricalpanels,heatpumps,stoves,cars,etc.–nordoesitconsiderthepossibilitythatdemandmightsoariflocalgovernmentskeeppushingtoelectrifybuildings(Pontecorvo,2023).Theevolvinglandscapeintheelectricalindustrycallsforurgentmeasurestoattractfreshtalentandinvestincomprehensivetrainingprogrammestomeetfuturedemand.Women,largelyunderrepresented,atonly2%(seeTable3),canplayapivotalroleinthistransformation,bringingmuch-neededdiversityandinnovationtoamale-dominatedfield.©AuthenticImages/istock©DanielBalakov/istock46CHAPTER2However,achievinggenderequalityandempoweringwomenintheelectricalsectorrequireaddressingcriticalissueslikeharassmentandabuse,whicharerifeinthefield(Preston,2021).Cultivatingasafeandrespectfulworkplaceisessentialtoattractandretainwomenintheindustry.Further,increasingvisibilityofwomen’scontributionsandcombatingexclusionarypracticesinunionswillhelpremovebarriersandprovidemoreopportunitiesforwomentoadvanceintheircareers.Activelypromotinganinclusiveandsupportiveworkingenvironment–thatfightsagainstharassment,advocatesforvisibility,dismantlesexclusionarypracticesandsupportscaregivers–canhelpthewomenintheelectricalsectorunlocktheirfullpotential,enablingthesectortosecureaprosperousfuture(Renwick,2023).Table3EmployedpersonsbyselectedoccupationsintheUnitedStateseconomy,2022OccupationsTotaljobsShareof(thousands)women(%)Allemployment15829146.8Professionalandrelated3874956.5Electricalandelectronicsengineers2968.1Naturalresources,142605.7construction,andmaintenanceofwhich:Constructionandextraction84274.2Roofers2085.0Carpenters12823.5Electricians9182.2Plumbers,pipefitters,steamfitters6101.1ofwhich:Installation,maintenance,andrepair48534.2Electricalpower-lineinstallersandrepairers1191.5Source:BLS,2023b.47thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONIndiaINDIAhadanestimated988000renewableenergyjobsin2022.Hydropower,withsome466000jobs,wasthelargestrenewablesemployer,followedbysolarPV,whichhad0.99millionjobs282000peopleinvolvedwithon-gridandoff-gridsystems.Otherrenewablesrepresentedfarsmallernumbers.Indiaadded13.5GWofsolarPVcapacityin2022,upfrom10.3GWin2021.Bothvalueswerenewrecordssetbythecountry(IRENA,2023b).India’sdomesticmoduleproductioncapacitygrewfrom10.4GWin2021to24.7GWin2022,althoughactualproductiondidnotkeeppaceandcapacityutilisationdeclinedfrom36%to28%(WoodMackenzie,2023a).WhileIndiaremainsheavilyreliantonimports,itsownsolarmoduleexportsin2022morethanquintupled,benefittingfromUSimportrestrictionsimposedonChineseproducts(Guliaetal.,2023).Basedonanemploymentfactoranalysis,IRENAestimatesthatIndiahad201400jobsingrid-connectedsolarPVin2022,up47%from2021.Roughly80000peopleworkinoff-gridsolar.Infiscalyear182022,India’ssolarindustryadded52100jobsinprojectdevelopment(predominantlyinconstructionandinstallation).Utility-scalesolaraccountedfor83%ofaddedsolarPVcapacity,withatotalof72700jobs(upfrom42900in2021).Rooftopsolaremploymentincreasedto65400jobsfrom43000jobs,whilewindemploymentgrew,ataslowpace,to26100jobs(from25500)(CEEW,NRDCIndiaandSCGJ,2023;Tyagietal.,2022).ThesefiguresarelowerthanIRENA’sestimatessincetheyexcludeindirectjobs,jobsinoff-gridsolarapplicationsandjobsinequipmentmanufacturing.Indiaranksfourthintheworldincumulativewindpowergeneratingcapacity,although2022wasanotherslowyear,withjust1.9GWadded,comparedwiththepeakinstallationof4.1GWin2017(IRENA,2023b).Thewindenergysectoraddedonly600newjobsinconstructionandinstallation.Indiahas10–12GWofdomesticannualwindturbinegeneratormanufacturingcapacity(GWEC,2023),indicatingthepotentialforagrowthindomesticinstallationsandexports.IRENAestimatesthattheIndianwindsectorhad40000jobsin2022,ofwhichO&Mrepresentedalmosthalf.PreetiM/istock©UmeshNegi/istock18India’sfiscalyearrunsfrom1Aprilto31March.48CHAPTER2CountriesinEUROPEhadatotalof1.8millionrenewableenergyjobs,ofwhichaboutEU-271.6millionwereinthe27EUMemberStates(EU-27).1.60millionjobsIRENAestimatesEuropeanwindpowertohavehad402000jobsin2022,ofwhich319000wereinEU-27.Thecontinent’stotalwind-generatingcapacityreached240GWin2022,witharecord18.6GWnewlyadded.TheEU-27installedthebulkofthisnewcapacity,(15.7GW)foratotalof204.1GW(IRENA,2023b).Meanwhile,thepicturewaslessencouragingformanufacturing.AccordingtotheGlobalWindEnergyCouncil(GWEC,2023),newwindturbineordersdeclinedby47%,reflectinggrowingcompetitionfromnon-Europeansuppliersandhighlevelsofuncertainty.AlthoughEuropeanmanufacturersremainindustrytechnologyleaders,operatinglossesledtojobcuts.Forexample,inthefallof2022,SiemensGamesaannouncedthatitwouldcut2900jobs,including800inDenmark,475inSpainand300inGermany.Thecompanyemploysabout27000peopleworldwide(Lee,2022).Lossesresultedfromthecombinedeffectsofsupplychaindelays,risingcostsforkeymaterialsandotherinputs,andlengthywindfarmpermittingprocesses(Hodgson,2023,2022).Turbinepricesaretypicallysetlongbeforetheiractualdelivery.In2020and2021,costsweredeclining,butsubsequentlyrosesharply;manufacturershavebeenunabletopasstherisingcostsontoprojectdevelopers(Woods,2023).Further,thereisgrowingcompetitionfromChinesemanufacturers,whichhavebenefitedfromastablepolicyframeworkathomeandarenowincreasinglyturningtheirfocustoexports.ChinesecompaniesalreadyhaveastrongpresenceinsupplyingturbinecomponentsusedbyWesternfirms(Reed,2022).InthesolarPVsector,Europeasawholeaddedabout37.7GWin2022,asignificantgainoverthe27.3GWaddedin2021–whichinitselfwasanewrecord(IRENA,2023b).TheEU-27membersrepresented36GWand25.7GW,respectively,ofthetotal.The2022EUSolarJobsReport(SolarPowerEurope,2022)estimates465600full-timeemployeesin2021,upfromabout357000in2020.Thisincludesabout205000directjobsand261000indirectjobs,inmaterialprocessingandlogistics.Closeto80%ofthetotal,or367000jobs,wereinthedeploymentsegment.Bycontrast,manufacturingemployedonlyabout44200people,withanother40000employedinO&M,and14000wereemployedindecommissioningandrecycling.Withinmanufacturing,thebulkofemploymentrelatestoinverterproduction(about31000jobs),whereasemploymentformodulesandpolysiliconismuchsmaller,andemploymentfortheproductionofcellsandingots/wafersismarginal(SolarPowerEurope,2022).GivenPoland’sstrongfocusonlabour-intensiveresidentialrooftopsystems–whichrequirethreetimesasmuchlabourasutility-scaledeployments–SolarPowerEuropebelievesthatthecountry’ssolarPVsectorhad113000jobsin2021,upfrom90000in2020.OtherleadingcountriesincludeGermany(about86900jobs),Spain(65600),theNetherlands(36400),Greece(33700),France(33200)andItaly(24300).Allofthemhavegainedsignificantlyinemploymentoverthepreviousyear,reflectingthegrowthofnewdeployments(SolarPowerEurope,2022).49thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONUnderchangedeconomicandpoliticalconditions,companiesandgovernmentsarerediscoveringindustrialpolicyasaprimeareaforactiontoadvancecriticalsocietalobjectives.Inlate2022,theEuropeanCommission–inabidforgreaterEUself-relianceandinsupportofacceleratedsolardeployment–launchedaSolarPhotovoltaicIndustryAlliancetoachieve30GWofannualsolarmanufacturingcapacityacrossthevaluechainby2025.Theallianceisintendedtodevelopanactionplanonissuesincluding,amongothers,innovation,industrialsupplychain,rawmaterials,financeaccess,circularityandsustainability,andskills,andwillseeparticipationfromindustry,researchcentres,consumerassociationsandnon-governmentorganisations.TheapproachispatternedoninitiativessuchastheBatteryAllianceandtheEuropeanCleanHydrogenAlliance(EuropeanCommission,2022a,2022b),andcomesinthecontextofgrowingeffortsintheUnitedStatesandIndiatoattractcorporateinvestmentinlocalmanufacturing(TaiyangNews,2022).Asisthecaseinotherpartsoftheworld,buildingorreconstitutingadomesticsolarPVmanufacturingindustry,includinginparticularingotandwafercapacities,isasteepchallengeforEurope.Asgloballeaders,Chinesecompaniesderivestrongcompetitiveadvantagefromtheirmuchgreaterscalesofproduction(FuhsandEnkhardt,2023).SolarPowerEuropeprojectsthatundera“mediumscenario”,EUsolarPVjobscouldgrowtoabout530000by2026,19anddoublethatfigureunderamoreambitiouspathwayto2030.Butastheorganisationpointsout,thiswilldependnotonlyonaconcertedindustrialstrategybutalsoonboostingskillingandworkforcedevelopmentefforts,includingeffortstobetterconnectjobseekerswithcompanies’requirements.AccordingtoEurObserv’ER(2023),theEuropeanbioenergysectorhasthelargestemploymentshare,withatotalof549200people.Solidbiomass(forheatingandelectricity)hadaworkforceofapproximately353800in2021.Another148300wereemployedforbiofuelsand47100forbiogas.TheuseofsolidbiomassintheEU-27rosesubstantially,reachingpeaklevelsin2021.Over95%ofEU’ssolidbiomasssupplyneedismetdomestically,translatingintosignificantlocalemploymentinfeedstockoperations.ThelargestemployersinthisregardwerePolandandGermany,withover40000jobseach,followedbyFrance,theNetherlands,SwedenandItaly(eachwithover20000jobs)(EurObserv’ER,2023).EthanolfuelproductioninEU-27rosetonewpeaksof5.2billionlitresand5.35billionlitresin2021and2022,respectively.Meanwhile,biodieseloutputinbothyearsremainedslightlybelowthatinthe2020peakyear,atabout19billionlitres(USDA-FAS,2022e).However,substantialbiofuelproductioncapacitiesstillremainidle.EurObserv’ER(2023)estimatedabout148300biofuel-relatedjobsinEU-27in2021,upfrom141600jobsin2020.Giventhatoverallbiofuelproductionwasslightlyhigherin2022,itstandstoreasonthatemploymentthatyearalignedcloselywiththe2021value.EUbiofuel-relatedjobsin2021werepredominantlyincountrieswithvastagriculturalareas(Polandwith21400jobs,Romaniawith17800jobs,Hungarywith17000jobsandSpainwith13500jobs)andamongthebiggestconsumers–France(18800jobs)andGermany(12400jobs).19Thisscenarioexpects34GWinannualcapacityadditions.Foracomparison,theEuropeanUnioninstalled36GWin2022.50CHAPTER2AmongtheEU-27members,newsolarPVinstallationsinGERMANYroseto7.3GWin2022,continuingasteadyupwardtrendaftermultipleyearsofmuchslowercapacitygrowth.Thepictureisquitedifferentforwind.Followingrecordinstallationsin2017,of6.1GW,thepacehasslowed,with2.5GWaddedin2022,eventhoughitrepresentedanuptickfromjust1.6GWin2021(IRENA,2023b).Windadditionsareaffectedbyatime-consumingpermittingprocessandrestrictivesitingrulesinsomeofGermany’sfederalstates.The2022EUSolarJobsReport(SolarPowerEurope,2022)estimatedGermany’sdirectandindirectsolarPVemploymentin2021atabout86900FTEs.BundesverbandSolarwirtschaft(BSW,2023)providesafigureof55000directjobsin2023,reflectinggrowinginstallationactivity.IRENA’sestimatessuggestthattheindustrysupportedcloseto94000jobsin2022.Germanwindenergyemploymentdeclinedfrom167600jobsin2016to122100jobsin2019,followedbyamodestrecoverytoapproximately139000jobsin2022.Theslowpaceofnewcapacityinstallationsalsomakesithardertosustainasizabledomesticmanufacturingindustry.Bioenergy–biofuels,biomasspowerandbiogas–remainsakeyemployerinGermany,with78000jobsin2022.Thejobsnumberhas,nevertheless,declinedoverthepastcoupleofyears.Geothermalenergy(13200jobs)andhydropower(4700jobs)aremuchsmalleremployers.TherequiredsolarandwindenergyexpansioninGermanyinthecomingyearswillneedsome216000additionalskilledworkersinrenewablessuppliesandsupportfunctions.Skillshortagesspecificallyencompasselectricians,heatingandair-conditioningtechnicians,andinformationtechnologyspecialists.Greaterrecruitmentofwomenandretrainingworkersfromotherfieldscouldhelpaddressthechallenge(InstitutderdeutschenWirtschaft,2022).Germany’smetalworkers’union,IGMetall,inconcertwithheating,electrical,carpentryandothertradeassociations,pointstoalackof190000skilledworkersinenergytransitionfieldsandanenergyrenovationbacklogforover19millionresidentialbuildings.Policymakerswillhavetoboostthecapacitiesofvocationalschoolsandothereducationalinstitutionsandensurethatvocationalandacademiceducationpathsholdequalvalue.InOctober2022,theGermangovernmentapprovedanewskilledlabourstrategy,whichincludesmeasurestohelpcompaniesandbusinessesattractandretainskilledworkers(Meza,2022).©FrederickDoerschem/istock51thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONIn2021,renewableenergymaderemarkablestridesinSPAIN,significantlycontributingtothenationaleconomyandjobmarket.AccordingtoastudybytheAsociacióndeProductoresdeEnergíaRenovables(APPA,2022),therenewableenergysectorcontributed1.6%ofgrossdomesticproduct(GDP).Thesectorprovidedemploymenttoanestimated111409workers.SolarPVinstallationswitnesseda59%increaseinemploymentopportunities,especiallythosefocusedonself-consumption.Further,otherrenewabletechnologiessuchaswind,solarthermalandmarine,alsomadepositivecontributionstojobcreation.Allofthisresultedinanoverallimpressivenetgaininemploymentopportunitiesofalmost20%comparedwiththepreviousyear(APPA,2022).Meanwhile,inanewstudyconductedincollaborationwiththeNaturgyFoundation,theSpanishJustTransitionInstitute(ITJ)estimatesthattheenergytransitionhascreatedover152000jobsoverthepastsevenyears(2015–2022).Butimportantly,thestudypointsoutthatwomenrepresentedjust18.2%ofthesector’sworkforcein2021,amarginalincreaseof1.2%over2012,almostadecadeearlier.Also,thesectorshareremainssignificantlybelowwomen’srepresentationacrosstheentireeconomyin2012,whenwomenconstituted47%oftheoverallworkforce(Martínezetal.,2023).Thestudyalsoidentifiesgendergapsintechnicaloccupations(seeBox4).©JulyAlcantara/istock©ZibaPhotoMedia/istock52CHAPTER12Box4GendergapsinSpain’senergytransitionindustriesAccordingtoafirstfullassessmentoftheSpanishlabourmarket,womenhadfouroutof10ofthenewjobslinkedtotheenergytransitionintheperiod2015-2021.Fromalowstartingpoint,femaleemploymentgrewmuchfasterthanmaleemploymentinthevarioussubsectorsoftheenergytransition.Whilepositive,theevolutionoverthelastdecadeisstillveryslow.Womencontinuetobeunder-representedinessentialtechnicalfieldsrelatedtotheenergytransition,bothintermsofuniversityprogrammesandvocationaltraining.Ofalluniversitygraduatesin2020,only11%werewomenmajoringinscience,technology,engineeringandmathematics(STEM)fields,comparedwith36%ofmengraduatinginthesefields.Thegapismorepronouncedinvocationaltraining,where7.9%ofwomenareengaged.Womenworkingincleanenergyprimarilyholdadministrativepositions,whereastechnicalpositionsremainmaledominated.Genderparityinenergytransitionemployment,whosecurrentlackindicatesadeepandpersistentgap,wouldrequire265yearstoachieveatthecurrentpaceofprogress.Additionalanalysisshowsthatthegenderwagegapintheenergytransitionsectoriscomparativelylesspronouncedthanintheoveralleconomy,withwomenearning6%lessthanmen,asopposedtoa14%nationalwagegap.Accordingtothestudy,womenintheSpanishenergytransitionsectorareoftenfoundtobeoverqualifiedfortheirpositions.Further,thestudyshowsthatwomenoccupiedlessthan20%ofthejobscreatedintherenewablemarketacrosstheEuropeanUnionin2020.Sadly,nocountryintheregionmanagedtosurpassthe30%threshold.Overall,thesefindingshighlightthepressingneedtoaddressgenderdisparitiesintheenergytransitionindustrybypromotingwomen’sparticipationintechnicalfields,fosteringgenderbalanceinvariousrolesandensuringequalpayforequalwork.Onlythroughconcertedeffortscanthesegapsbebridgedtocreateamoreequitableandinclusiveenergytransitionworkforce.Source:Martínezetal.,2023.53©SolStock/istock©FranVila/istockthRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONAccordingtomodellingestimatesbyEurObserv’ER(2023),in2021,FRANCEhadabout24900peopleengagedinsolid-biomass-relatedjobs,18800inbiofuel-relatedjobsand14500inwind-power-relatedjobs.Thiswasachangebysmallmarginsover2020.ButthenumberofjobsrosedramaticallyinsolarPV,from3600to23300,reflectingafasterpaceofinstallations,whichalsocontinuedinto2022.Thepaceofwindcapacityadditionshasbeenrelativelyslow,dueinparttoslowpermittingprocesses.Franceaddedjust1.3GWofcapacityin2021butgatheredspeedthereafter,installingarecord2.4GWin2022,foracumulativetotalof21.1GW(IRENA,2023b).AdetailedassessmentbyFranceÉnergieÉolienneandCapgemini(2022)suggeststhattheEurObserv’ERwindjobsestimateisratherconservative.Accordingtothisstudy,therewere25460directandindirectwind-relatedjobsattheendof2021,up12.8%overthe22600jobsin2020.Ofthetotaljobs,33%wereinplanninganddevelopment,followedby28%inengineeringandconstruction,22%incomponentmanufacturingandtheremaining17%inO&M.Closeto30%ofallwindjobsareinthecapitalregionaroundParis,theÎle-de-France,wheremuchofthedesignandplanningworktakesplace.Fiveotherregionshaveanatleast10%jobsshareeach(togetheraccountingfor56%ofalljobs).Offshorewindaccountsfor6200jobs,aquarterofallwindjobs,andtheseareprimarilyinNormandyandPaysdelaLoire.InMarch2022,thegovernmentandindustrymadeanoffshorewindpact(Pacteéolienenmer)tocreate20000offshorejobsby2035,withaviewtoachievingatleast50%localcontent.RegardingregionsoutsidetheEuropeanUnion,theOffshoreWindIndustryCouncil(OWIC,2023)reportsthattheUNITEDKINGDOM’swindpowerworkforcegrewto32257in2022,up4%fromthepreviousyear.Thisnumberincludesabout17400directjobsand14900indirectjobs.OWICforecaststhatjobscouldgrowto88500in2026,asseveralprojectsareinstalled.By2030,theworkforcecouldgrowto104400ifthecurrentdeploymenttargetof50GW(almostdoublethe2022capacity)isfulfilled.Some56300jobswouldbedirectand48100indirect.However,thisprojectedgrowthneedstobesupportedbyaskillstrategytobridgeshortagesofplanners,techniciansforhigh-voltageelectricalworks,engineers,turbinetechniciansandotherskilledpersonnel.Womenrepresent20.6%ofthecurrentworkforce,inchingupfrom16%in2019,18%in2020and19.3%in2021.Regionally,29%oftheUK’soffshorewindworkforceisinScotland,followedbyYorkshireandHumber(16.4%),London(15.2%)andtheNorthEastandNorthWestregionsofEngland(about11%each).Theremainingpartsofthecountryhavemuchsmallershares.©ShaunWilkinson/istock©lucentius/istock54CHAPTER2AstudybyRobertGordonUniversity(2022)arguesthatsignificantinvestmentsareneededtosecureandexpandrenewableenergyjobs.Themostambitiousoffourscenariosto2030entailsGBP17billionininvestmentsinmanufacturinganddeploymentofwind,hydrogen,andcarboncaptureandstorage.Withskilltransferabilityrelativelyhigh,closeto14000oilandgasworkersmayneedassistancewithreskillingandskillcertificationintransitioningtorenewables.Anotherstudy(Platform,2022)examinesthecleanjobcreationpotential(inoffshorewind,hydrogenelectrolysersandenergyefficiencyretrofitting)infourareasineasternScotlandandEnglandthatnowhavesignificantoil-and-gas-relatedemployment:AberdeenandAberdeenshire,FifeandTayside,TynesideandTeesside.Itfindsthatby2032,theseareascouldhavebetween97800and138900jobs,ofwhich30500–38300wouldbeinoffshorewind.ThereportnotesthattheUnitedKingdomhassofarcreatedfeweroffshorewindjobsthanexpected,mostlybecausecomponentslikefoundations,20towers,nacellesandothersarelargelyimported.Newlyopeningfactoriessignalthebeginningsofabiggerdomesticsupplychain,andpublicinvestmentcouldreinforcethisasthepipelineofprojectsexceedsoperationalcapacitieseightfold.2.2OTHERCOUNTRIESInWestAsia,TÜRKIYE’snewsolarPVcapacityinstallationsreachedanewrecordof1.6GWin2022,butwindadditionswereatlessthanhalfthepacein2021(IRENA,2023b).Akeyobjectivehasbeentoboosttheshareofrenewableenergyequipmentproduceddomestically.Türkiyehasadoptedtariffsandanti-dumpingrulestolimitimports,anditofferstaxincentivesfordomesticmoduleproduction.Thecountrynowhasmorethan60modulecompanies.Further,anumberoflargecompaniesinindustriessuchastextilesaresettingupmoduleproductionlinestosupplytheirownneeds(Gifford,2023).IRENAestimates26000solarPVjobsand13000windenergyjobsinTürkiye.InEastAsia,JAPAN’scumulativesolarPVcapacityreached78.8GWin2022.Thisisthethird-largestcapacityofanycountryworldwide,butnewadditions(4.6GW)continuetobesubstantiallybelowtherecordof7GWachievedin2019(IRENA,2023b).IRENAestimatessome127000solarPVjobsin2022,21whenforeign-producedmodulesaccountedfor90%oftotalshipments(JPEA,2023).Japanhasabout4.4GWofwindcapacity.Almostallofitisonshoreandisgrowingslowly.ThecountryrecentlyestablisheditsoffshorewindpresenceinDecember2022(IRENA,2023b).Japanadoptedagoalof10GWofwindcapacityby2030and30–45GWby2040,witha60%localcontentshareby2040.Input-outputanalysissuggeststhatreaching7GWby2030couldcreate54000jobs(ofwhich20000aredirectand34000indirect)intheconstructionofwindfarms,andreaching36GWby2040couldcreate69000jobs.O&Mcouldhaveabout4560jobsby2030andcloseto18000jobsby2040.However,appropriatemeasureswillberequiredtotrainanadequatenumberofpeopleintherequiredskills(RenewableEnergyInstitute,2022).55thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2022EDITIONAmongSoutheastAsiancountries,VietNam,MalaysiaandThailandareleadingsolarPVcellandmodulemanufacturersandexporters.TheyhavealsoinstalledthelargestPVgeneratingcapacitiesintheregion,togetherwiththePhilippines.ThePVfootprintremainsmuchsmallerintherestoftheregion(seeTable4).Malaysia,asakeymodulemanufacturinghub,ishometonearly45000solarPVjobs,whereasdomesticinstallationshaveremainedlimited.ForThailand’ssolarPVmanufacturingsector,IRENAestimatesemploymentopportunitiesatover29000people.Table4SolarphotovoltaicgeneratingandmanufacturingcapacitiesinSoutheastAsia,2022PVgenerationPVmanufacturingcapacity(GW)capacity(MW)PolysiliconWaferCellModule18474VietNam3060–12.51429.65Thailand1933–6.2Malaysia162511–9.3513.9Philippines–0.8Singapore572–1.223.63.7Cambodia456–2.2Indonesia29112–0.4Myanmar103–2.05LaoPDR–1.82.9–34––1–1––––Sources:IRENA,2023b(generatingcapacities);YuandDong,2023(polysilicon);WoodMackenzie,2023a(othermanufacturingcapacities).Note:GW=gigawatt;LaoPDR=LaoPeople’sDemocraticRepublic;MW=megawatt;PV=photovoltaic.©colemanphotgrapher/shutterstock.com56CHAPTER2VIETNAMisamajormanufacturerandexporterofPVcellsandmodules.Itscellproductioncapacityrosefromjust50MWin2013to12.5GWin2021,whilemoduleproductioncapacityincreasedfrom110MWto29.65GWoverthesameperiod.Moduleoutput,meanwhile,soaredfrom22MWto11.4GW(WoodMackenzie,2023a).However,domesticdeploymentshavefluctuateddramatically.FollowingamassivesurgeinPVinstallations,newadditionsin2021cametoastandstillduetopowertransmissionbottlenecks,andin2022,at1.8GW,werestillmuchsmallerthanin2019and2020(IRENA,2023b).Thegovernmentnoweyesaddingonly4GWby2030,althoughdistributedsolarPVcouldgrowsignificantlysinceitisnotsubjecttogridconnectionlimitations(WoodMackenzie,2023c).Withadecreaseininstallations,VietNam’ssolarPVworkforcedeclinedtoabout115000jobsin2022,accordingtoIRENAestimates.Thejobswerepredominantly(69%)inmodule,cell,inverterandwafermanufacturing.VietNam’swindadditionswerestillstrongin2021,at3.6GW,butslowedconsiderablyin2022,to0.5GW(IRENA,2023b).IRENAestimatesthatVietNammayhave9000windjobs.Indonesia,Malaysia,ThailandandthePhilippinesarelargebiofuelproducers.Despiterisingpalmoilpricesin2022,INDONESIAmaintainedits30%biodieselblendingmandate.Continuedsubsidiesandtaxincentivesforflexible-fuelvehicleswereexpectedtoboostdomesticconsumptionby10%overthatin2021.ExportsremainlimitedduetoexportleviesandEUimportpoliciesimposingsustainabilitycriteria.Productionwasestimatedtorisetoarecord10.3billionlitresin2022,up8%over2021(USDA-FAS,2022c).Basedonanemploymentfactorcalculation,IRENAestimatesbiodieselemploymenttohaverisento619000jobsin2022,upfrom574000in2021.Thisfiguremaynotnecessarilyrepresentfull-timeandformalemployment,however.MALAYSIA’sbiodieselproductionin2022wasprojectedat1.15billionlitres,thethirdstraightyearofdeclineand35%belowthe2019peak.Lessthanhalfofthecountry’sproductioncapacityisutilised.Thegovernmenthadintendedtointroduceabiodieselblendingmandate(B20)in2020tocounterhighgasolineanddieselprices,butimplementationhadtobepostponedrepeatedlyduetoCOVID-19impacts,volatilityincrudepalmoilprices,politicaluncertaintyandfiscalconstraintsaffectingthegovernment’sabilitytoprovidebiodieselsubsidies.Exportsrose,butprospectsintheprimarymarketinEuropearedim,giventheEU’sdecisiontolimittheuseofpalmbiodiesel(USDA-FAS,2022d).IRENAestimatesthatthebiodieselsectoraccountedforabout66600jobsin2022,downfrom106200in2019.InthePHILIPPINES,ethanolandbiodieselproductionbothgrewsomewhatin2022.However,therehasbeennomovetorequirehigherblendrates(USDA-FAS,2023a).AnestimatebyIRENAsuggestsbiofuelsmayemploycloseto45000people.THAILAND’sethanolproductionremainsbelowthe2019peak,andbiodieseloutputhasdeclinedforthepastthreeyears.Totalbiofuelconsumptionfellby7.8%primarilyduetoreductionsinbiodieseluse,whichmorethanoffsetthegrowingethanoldemand.Thegovernmentreducedthemandatorybiodieselblendratefrom10%to7%atthebeginningof2022(USDA-FAS,2023b).IRENAestimates97100biofueljobsinThailandin2022,downfromarevisedfigureof115400in2021.57thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONInthePacific,AUSTRALIA’sgovernmentlaunchedtheAustralianEnergyEmploymentReportinJanuary2023,thecountry’sfirstnationalenergyworkforcesurveytoimproveunderstandingoftheneededpoliciesforjobandskilldevelopment,providesupportforenergytransitionpathways,generateasnapshotofworkforcediversity,andimproveworkforceplanningandindustryinvestment(DepartmentofClimateChange,Energy,theEnvironmentandWater,2023).ResearchersattheInstituteforSustainableFutureestimateAustralia’stransitionto82%renewableenergyinpowergeneration–thegovernment’saim–willrequireupto30000workerstobuildsolarandwindfarms,rooftopsolarandassociatedinfrastructureliketransmissionlines.Thesejobswillpredominantlybeinprojectdevelopmentandconstructionand,increasingly,inO&M.Adedicatedskillstrategyisrequiredtobuildthisworkforce,althoughtherealreadyareshortagesofengineers,electriciansandtransmissionlineworkerstoday(BriggsandLangdon,2022).Anotherstudy,commissionedbytheFutureBatteryIndustriesCooperativeResearchCentre(FBICRC,2021),findsthatthebatteryindustrycurrentlyemploysabout6000people,althoughmostlyintheminingoftheneededrawmaterials.Acontinuedfocusontheminingsegmentofthevaluechaincouldexpandthenumberofjobsto18700by2030.However,agreaterfocusonmaterialprocessing,batterymanufacturingandassembly,associatedservices,andend-of-lifereuseandrecyclingcouldsupport34700jobsinAustralia.TheAustraliangovernmentisactivelybuildingarenewableenergyworkforce.ThisincludestheconveningofaJobsandSkillsSummit,andcommissioningJobsandSkillsAustraliatoconductacapacitystudyfortheworkforceneededforacleanenergytransition.TheCleanEnergyCouncil,meanwhile,releasedareporttitledSkillingtheEnergyTransitionwithkeyrecommendationssuchasanticipatingworkforceneeds,bettercalibrationbetweenthehighereducationandvocationaltrainingsectorsandtheindustry,increasingthevisibilityofcleanenergyjobsandestablishingaTransitionAuthority(CleanEnergyCouncil,2023).©SteveTritton/shutterstock58CHAPTER2IntheWesternHemisphere,hydropowerassertsitsdominanceastheforemostemployerwithinCANADA’srenewablesector,sustainingasubstantialworkforceof28800indirectrolesandbolsteringanadditional15500jobsindirectlyin2020.IRENA’shydropowerestimates(seeSection1.3)suggestsover35000directjobsin2022.SolarPVrankednextwith13000individualsindirectpositionsthroughout2022.Thebioenergysectorwaspivotalinemployment,encompassingapproximately4700directjobs,ofwhich1300werespecificallyattributedtoliquidbiofuels.Trailingbehind,thewindsectorcontributed3600directjobs(EnergyandNaturalResourcesCanada,2023).MEXICOaddedcloseto1.2GWofsolarPVcapacityin2022,resultinginapproximately19000jobsinthesector.Thewindmarketwasrelativelystagnant,withonlyabout160MWadded(IRENA,2023b).Thecountry,however,hasbecometheprimarywindbladesupplierintheWesternHemisphere,withmanufacturingcapacitygrowingfrom2.1GWto2.6GWover2021–2022.TheUnitedStates’manufacturingcapacity,bycontrast,declinedfrom8.3GWto3.1GW,whilecapacitiesinBrazilandCanadastagnatedatacombined3.9GWoverthesameperiod(Lico,2022b).TheMexicanWindEnergyAssociationestimated6933windjobsin2021(themostrecentyearforwhichdatawereavailable),ofwhichmanufacturingaccountedforalmosttwo-thirds(AMDEE,2022).Amorevibrantdomesticmarketcouldcreatesome29000jobsbetween2022and2026,accordingtotheGlobalWindEnergyCouncil(GWEC,2022).NICARAGUA’spowergenerationsectorhasgrownremarkablyinrecentyearsduetosubstantialpublicandprivateinvestmentsatthenationallevel.Thecountryhasbeenabletomeetitspowerdemandthroughasubstantialimprovementinelectricitycoverageduetoexpandedinstalledcapacity.Therehasbeenasignificantpushforrenewablesourcesinthenationalenergymix.Inthepastdecade,thecountry’sinstalledrenewablecapacityincreasedfrom550MWto743MW(IRENA,2023b).Nicaragua’sprogresscanbeattributedtoitsabundantnaturalresourcesandstrategicgeographicallocation,butalsototheestablishedlegalframeworktofurtherencourageinvestments.Thisresultedin8400directjobsin2022acrossbiomass,geothermal,solarPV,windandhydropower.©CarlosAlvarez/istock59thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONInCOLOMBIA,ethanolandbiodieselproductionin2022wereestimatedtohavedecreasedto360millionlitresand700millionlitres,respectively,despiterisingtransportationfueldemand.Thiswasduetoadverseweatherconditionsandadecisiontoreduceblendmandates.Ethanolproductionfellforafourthconsecutiveyearandwasestimatedat24%belowthe2018peak.Meanwhile,biodieselproductionhadrisenyearafteryear,butfellslightlyin2022(USDA-FAS,2022b).Aroughemploymentfactorcalculationsuggeststhatamongthosederivingalivelihoodfrombiofuels(notnecessarilyfull-timeequivalents),about82000areinethanol-relatedjobsand104700inbiodiesel-relatedjobs.Thecombinedtotalof186700jobsisabout6%lessthanarevisedestimateof198150fortheyear2021.InSOUTHAFRICA,cumulativedirectemploymentthroughtheRenewableEnergyIndependentPowerProducerProcurementProgrammeisestimatedat69554job-years.Ofthat,some49422job-years,closetothree-quarters,areinconstruction,asectorthatoffersemploymentonlyforalimitedperiod,oftenlow-skilledjobs,withlimitedcross-linkstoothersectorsoftheeconomy.Theremainder,some20132job-years,wereinO&Mroles.Womenhaveamere16%shareinalljobs,thoughupfroma10%shareayearearlier.Morethan60%ofemploymentisintheNorthernCaperegion.TheEasternCapeandWesternCapetogetherhaveclosetoaquartershare,whereasnumbersaremuchsmallerelsewhere(IPPPP,2023).Asidefromdeployment-relatedjobs,SouthAfricahassomesolarandwindmanufacturingcapacity(whichisalthoughhamperedbyweakcompetitivenesswithforeignproducersandinsufficientandvariablelocaldemand)(USAIDandPowerAfrica,2022).©RocardoImagen/istock©Brothers91/istock60INDUSTRIALCHAPTER3POLICYINITIATIVESEquipmentmanufacturingforthesolarphotovoltaic(PV)andwindenergyindustriesishighlyconcentratedinafewcountries,asismuchoftheassociatedemployment.However,thesestructuresareinastateoffluxduetocorporatepoliciesseekinglocationswithlowlabourcostsforfactoriesandgovernmentpoliciestryingtolocaliseorre-localisemanufacturingoperations.ThissectiondiscussesthecurrentgeographyofsolarPVandwindequipmentmanufacturingandsketchesrecentindustrialpolicyinitiativesinseveralcountries,whichmaychangethegeographyofrenewableenergyemployment.©onumaInthapong/istock61thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION3.1THEGEOGRAPHYOFSOLARPVANDWINDEQUIPMENTMANUFACTURINGGlobalannualsolarPVmoduleproductionhasmultiplied38-foldoverthepast15years,growingfrom7.2GWin2008to271GWin2022.Productionjumpedfrom193GWto271GWin2022alone.Meanwhile,itisworthnotingthatalargeportionofcapacitysitsidle;lessthanhalfhasbeenutilisedinrecentyears,downfromasmuchas83%in2017(WoodMackenzie,2023a).Evenmorethanisthecaseforinstallations,thecentreofgravityinmanufacturingshiftedfromEuropetoChina,withobviousimplicationsforwherejobsarecreated.InsolarPVmanufacturing,China’sshareofglobalmoduleproductiondoubledfrom39%in2008to78%in2022.WhileChinacontinuestoexpanditsownmanufacturingcapacity,traderestrictionsadoptedinpastyearshaveledChinesemanufacturerstoinvestinmodulefactoriesinSoutheastAsiathatessentiallyassembleChinese-madePVcellsforexport(YuandDong,2023).SoutheastAsia’sshareofglobalmoduleproductionrosefrom2%to11%in2020(butfellto8%in2022).Onlyminimalmanufacturingistakingplaceinotherregionsoftheworld.Europe’sshareplungedfrom30%to0.5%over2008-2022,Japan’sdroppedfrom11%to0.2%andthatoftheUnitedStatesdroppedfrom6.8%to1.7%(seeFigure13)(WoodMackenzie,2023a).Chinaholdsanevenmoredominantpositioninwafer,cellandpolysiliconproduction,with97%,84%and83%,respectively,oftheglobalproductionin2022(YuandDong,2023).Figure13Solarphotovoltaicmoduleproductionbycountry/region,2008-2022YearChina2022SoutheastAsia2021OtherAsia2020UnitedStates2019Europe2018Restoftheworld2017Undefined201620155010015020025030020142013201220112010200920080GigawattofannualmoduleproductionSource:WoodMackenzie,2023a.62CHAPTER3©KhoSzeKiat/istockNotwithstandingrisingtradetensions,thevalueofChina’ssolarPVexports(mostlymodules,withEuropeastheprincipalbuyer)grew64%in2022,fromUSD32billiontoUSD52billion.Thisreflectsthecountry’sdominantpositionandthefactthatitsmodulesareupto57%moreaffordablethanthoseproducedintheUnitedStatesorEurope.China’sprincipalcostadvantageliesinitslowermaterialcosts;whilelabourcostsarealsolowerinChina,theycontributeonlyabout10%orsotooverallcosts(YuandDong,2023).Regardingwindequipmentmanufacturing,Chinesefirmshaveprimarilyproducedfortheirownsizabledomesticmarket,whereasEuropeancompanieshavedominatedmarketsoutsideofChina.Globalcompetitionis,however,settogrow,andthiswillstronglyaffectthegeographyofjobcreationintheindustry.Costpressureswilllikelyleadtoincreasedautomationinblademanufacturing,affectinglabourrequirements(Lico,2022b).Globalordersfor“completedandfirm”windturbinesgrewfromabout64.4GWin2020to104.8GWin2021,decliningslightlyto100.9GWin2022.Chinesemanufacturersmanagedtoincreasetheirshareofglobalordersfrom39%in2020to59%in2022.Allothercompaniessawareductionin2022,from54.1GWto41.1GW(WoodMackenzie,2023b).Chinesefirmsbenefitfromstablelong-termpoliciesanddemandcertaintyathome,andtheyhavesignificanteconomiesofscalealongthesupplychainsegments(Lico,2022a).Meanwhile,Europeanfirms,whichhavelongbeenthetechnologyfrontrunners,arefacingseveralpressures,including,amongothers,risingrawmaterialcosts,skyrocketinglogisticscostsandportcongestion,higher-than-expectedcostsofdevelopingnewturbinesandlingeringCOVID-19impacts(Lico,2022a).Inrecentyears,Europeanequipmentmanufacturershaveclosedlessprofitableplantsandoutsourcedproduction,especiallyofblades,22tolow-wagecountries(suchasBrazil,India,MexicoandTürkiye)(Lico,2022a,2022b).22Onlyathirdofonshorebladesandhalfofoffshorebladesworldwidewereproducedin-housebyoriginalequipmentmanufacturersin2021,downfrom50%and80%,respectively,adecadeearlier(seeLico,2022b).63thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONAtthesametime,anincreasingnumberofcountrieshaveadopteddomesticcontentrequirementstoincentiviseormandatetheestablishmentoffactoriesontheirownterritories,servingdomestic,regionalorglobalmarkets(David,2021).Forgearboxesandgenerators,IndiaandEasternEuropearepositioningthemselvesasalternativestodominantChinesesuppliers.AllEuropeansuppliersofdrivetrainshavesetupfactoriesinlow-wageAsiancountriesandinvestedinautomationtoreducelabourcosts(Lico,2022d).Chinaleadstheworldintermsofoverallwindmanufacturingcapacity.AccordingtotheGlobalWindEnergyCouncil(GWEC,2023),Chinahad60%oftotal163GWnacellecapacityin2022,followedbyEurope(19%),theUnitedStates(9%),India(7%)andLatinAmerica(4%).Chinaisaddingover60nacelleassembliestoabouta100alreadyinoperation(White,2023).Chinacommandsa60%sharealsoinblademanufacturing,followedbyEurope(14%),India(11%),andtheUnitedStatesandLatinAmerica(7%each).Thedistributionofothercomponentmanufacturingfollowsasimilarpattern,exceptgenerators,whereEuropestillretainsa22%share.Three-quartersofgearboxmanufacturingtakesplaceinChina,withtherestdividedbetweenEuropeandIndia(GWEC,2023).Meanwhile,supplychainsfortowersarefragmented,withover240factoriesin30countriesownedby100differentsuppliers(Lico,2022c).However,growingregionalisationreflectshighlogisticscostsforevertallertowersandisreinforcedbytariffsandlocalcontentrules.Corporateoutsourcingstrategiesaredrivenbycostcontrolobjectivesamidrisingcompetitionandongoingglobaloversupply.Chinesemanufacturers(whichsupplied87%ofoffshoretowersin2021)benefitfromlowersteelcostsbesidessignificantscaleadvantagestogainanedgeoverUSandEuropeansuppliers.Between2017and2020,EUtowerproductiondropped10%,whileimportsfromChinaincreasedby54%(Lico,2022c).Thispromptedgovernmentstoimposetariffs23anddomesticcontentrequirements.Foronshoretowers,tariffsledtoashiftinsupplychainstowardsIndonesia,thePhilippines,theRepublicofKoreaandVietNam.©7postman/istock©hudiemm/istock23TheUnitedStatesimposedhightariffsontowersimportedfromSpainandVietNambutmuchlowertariffsontowersimportedfromCanada,Indonesia,Malaysia,theRepublicofKoreaandIndia(seeLico,2022c).64CHAPTER3©LaurenceDutton/istock©energyy/istock3.2INDUSTRIALPOLICYINITIATIVESAMIDANEWGEOPOLITICSPolicymakingregardingtheglobalrenewableenergysupplychainlandscapeisshiftingduetoagrowingconcernthatrelianceondistantsupplychains–whichinvolveahandfulofdominantplayers–entailsvulnerabilitytodisruptionssuchaspandemicsandotherdisasters.Divergingnationalstrategiesandcorporateobjectives,tradedisputesandgeopoliticalrivalrieshaveaddedtoasenseofupheaval.Indeed,thenarrativehaschangeddramatically.Justafewshortyearsago,thedominantviewwasthatsolarPVpanelandcomponentmanufacturingwasessentiallyacommoditybusinessthatwasbestoffshoredtocountrieswithlowwagesandothercostadvantages.Whileoutsourcingtolow-wagelocationscontinues,therisinggeopoliticsoftheenergytransitionhasgeneratedanewdeterminationto“re-shore”,“near-shore”or“friend-shore”agreatershareofmanufacturingcapacities,aswellascriticalmaterialsupplies(IRENA,2023e).Inabidtobuildandstrengthenlocalcapacities,governmentsarere-embracingpreviouslydisavowedindustrialpolicymeasures(besidestariffsandnon-tariffimportrestrictions,whichhavealreadyincreasinglybeenadoptedinrecentyears).Suchpolicies,whichentailbothincentivesandmandates,mayinclude,amongothermeasures,localcontentrequirements;manufacturingclusters;taxcredits,subsidies,grantsandloanguaranteesformanufacturing;publicresearchanddevelopmentfunds,andtechnologytransferpolicies;inexpensiveelectricityandland;andthecreationofmarketdemand.Writinginabroad,economy-widecontext,Mazzucato(2022)hasarguedthatgovernmentsshould“raisethebar”onexpectationsfromtheprivatesectorinreturnforpublicfunding.Shesuggestsfourtypesofconditionsforpublicprocurement,grants,loansandtaxincentives:broadaffordabilityandequitableaccess;socialandenvironmentalstandards;adequatesharingofroyalties,equityorintellectualpropertywiththegovernment;andaprohibitionoftheuseofpublicfundsforsharebuybacks.65thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONChinahassuccessfullypursuedabroadarrayofindustrialpoliciesforseveralyears,buildingafullyintegratedwindandsolarmanufacturingindustry.Morerecently,othercountriesarealsoprioritisingeffortstolocaliseorregionaliseportionsofthesupplychaintoreduceenergysecurityvulnerabilitiesandalsocaptureagreaterportionofthesocio-economicbenefitsoftheenergytransition.Japan,theUnitedStates,theEuropeanUnion,IndiaandSouthAfrica,amongothers,haveannouncedindustrialpolicyinitiativestostimulatedomesticmanufacturingandbecomemorecompetitivevis-à-visChinesesuppliers.Meanwhile,itisworthnotingthatcurrentindustrialpolicyinitiativeswillnotfundamentallychangetherenewableenergymanufacturinglandscapeforsomeyears,sincethatrequiressubstantialtimeandresourcestoestablishtheneededcapabilitiesatthenecessaryscale.Chinawillthuscontinuetohostmostrenewableenergyjobsfortheforeseeablefuture.Further,insolarPV,ChinahintedinJanuary2023atitspossibilityofimposingexportrestrictionsonwafer,siliconandingotcastingtechnologies,complicatingothercountries’planstoexpandtheirsolarmanufacturingcapabilities(MartinezandPierce,2023).Amongthecountriesthathaveannouncedindustrialpolicyinitiatives,Japanseekstoestablishitsownmanufacturingbaseforoffshorewindthroughits“ProgrammeforPromotingInvestmentinJapantoStrengthenSupplyChains”(GWEC,2023),whichwillmandatedeveloperstoworkwithlocalcompaniesanddemonstratelocalandnationaleconomicbenefits.Thesetwodimensionswillaccountforone-fifthofthecombinedbidscoresunderthecountry’sfirstoffshoretender(Diao,LiandWang,2022).India’sindustrialpolicyeffortshavefocusedonsolarPV.AsshownbyGargandJain(2022),IndiansolarPVdevelopershavepreferredlow-costimportstodomesticproducts,andsolarmanufacturerspayhigherinterestratesthanprojectdevelopers.India’ssolarmanufacturingthuslagsglobaltechnologydevelopmentbythreetofiveyears.ThecostofcapitalandelectricityrendersdomesticproductionuncompetitivewithChina.Thecountrycontinuestorelyheavilyonnotonlycellandmoduleimports,butalsoimportsofmaterialslikeglass,encapsulantfilm,backsheetsandaluminiumframing,aswellasthemachineryneededforcellandmoduleproduction.Thisrendersthecountryvulnerabletosupplychaindisruptionsandpricefluctuations,asexperiencedin2020–2021(Guliaetal.,2023).TheIndiangovernmenthastakenseveralactionstoaddressthissituation.Besidestariffs(abasiccustomsduty,BCD),non-tariffimportrestrictions(theApprovedListofModelsand©IMImagery/shutterstock.com©WengenLing/istock66CHAPTER3Manufacturers,ALMM)anddomesticcontentrequirements,itimplementedaproduction-linkedincentive(PLI)schemeforsolarPVmanufacturinginApril2021(Guliaetal.,2023).TheBCDisimposedonmoduleimports(40%)andcellimports(25%).Meanwhile,Indianmodulemanufacturersrelyheavilyonimportedcells,eventuallypayingheftyBCDfees.TheALMMlistsover70approveddomesticmanufacturers.However,inMarch2023,thegovernmentdecidedtodeferitsimplementationuntil2024whenthelimitedavailabilityofhigh-quality,high-wattagemodulesfromdomesticfirmsaddedsubstantialdelaysinthecompletionofsolarprojects.ThePLIprovidessomeUSD2.26billioninfundstostimulatedomesticmanufacturing.IttriggeredadoublinginnameplatecapacityforPVmodulesin2022–2023,to38GW.Whileonly50–60%ofthisispresentlyoperational,capacityisexpectedtoexpandfurtherto110GWby2026.Cell,ingot/waferandpolysiliconproductioncapacity,however,remainsmarginalornon-existent(Guliaetal.,2023),withmoduleandcellproductionbeingthefocusofPLIfunding(YuandDong,2023).Anestimated41200jobsinplantoperation–onaverage,some1050jobspergigawatt–couldbecreatedifthegovernment’splantoexpandsolarPVmanufacturingcapacitysucceeds.24However,therehastobeaskill-buildingstrategytoaddressthelackofpeoplewithknow-howofinstalling,commissioningandoperatingsuchplants(Guliaetal.,2023).InJune2023,newsmediareportedonadraftproposalforanewPLIincentive,whichwillofferINR216billion(USD2.63billion)25insubsidiesover2023–2030.Theschemewilltargetcompaniesestablishingmanufacturingcapacityof50gigawatthoursofbatteryenergystoragesystemsforthepowergrid,anditishopedthatthesubsidieswillreduceimportdependence.Theproposedplanmandatesthedomesticgenerationofatleast90%ofthevalue(Parkin,2023).IntheUnitedStates,theAugust2022InflationReductionAct(IRA)providessignificantincentivesforrenewables,includingdomesticmanufacturing.Existingtaxcreditsforsolarandwindwereextendedto2024(GWEC,2023),afterwhichtheywillbereplacedwithaCleanElectricityInvestmentCredit(fundedtothetuneofUSD50.9billionuntil2031)andaCleanElectricityProductionCredit(USD11.2billion)forspecifiedrenewableenergyandstoragetechnologies.Theobjectivewillbetoreduceannualgreenhousegasemissionsfrompowergenerationto75%of2022levels.AnAdvancedManufacturingProductionCredit(USD30.6billion)isavailableforthedomesticproductionofsolarandwindenergycomponents,inverters,batterycomponentsandcriticalminerals(Bhutada,2023).Toqualifyfora“domesticcontentbonus”payment,atleast40%oftheoverallmining,productionormanufacturingcostofallproductsinland-basedcleanenergyprojectsorfacilitiesaswellastheircomponentsmustoriginateintheUnitedStates(alowerthresholdof20%appliestooffshorewindprojects).Thisthresholdwouldincreaseto55%after2025.IronandsteelusedinprojectsmustbemanufacturedentirelyintheUnitedStates.Importantly,theIRAalsoimposeswageandapprenticeshiprequirementsasconditions24Thisentails3200polysilicon-relatedjobs(16GW),10875ingot/wafer-relatedjobs(29GW),6825jobsincellproduction(55GW)and20300jobsinmoduleassembly(58GW)(GargandJain,2022).25AverageexchangerateofUSD1=INR82.18inJune2023.67thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION©alvarez/istock©alvarez/istockforsomeoftheincentives(WhiteHouse,2023).Foracompanyundertakingaprojectlargerthan1MWtoreceivethefull30%investmentorproductiontaxcredit,itmustpayconstructionlabourerseitheratorabovethelocalprevailingwage.Andwithaviewtopromoteworkforcedevelopment,itmandatesqualifiedapprenticestoaccountfor12.5%ofworkhoursin2023(increasingto15%from2024)(IREC,2023).TheIRAtriggeredannouncementsof16neworexpandedwindpowermanufacturingfacilities,18newsolarmanufacturingfacilitiesand8newgrid-scalebatterystoragemanufacturingfacilities,withapotentialofnearly14000manufacturingjobs(GWEC,2023).InsolarPV,52GWofnewmodulemanufacturingcapacity(9GWcurrentlyinplace)and20GWofcellcapacity(noneexistingatpresent)havebeenannouncedsincethepassageoftheIRAbutwillnotbefullyoperationaluntil2025or2026(MartinezandChopra,2023).WhileEuropehasastrongindustrialbaseforwind,thecontinenthasverylimitedPVmanufacturingcapacity,whichisfallingfarshortoftheannualdemand.TheEuropeanUnionhad19GWofpolysiliconmanufacturingcapacity,5GWofmodulemanufacturingcapacityand1–2GWofwaferandcellmanufacturingcapacityin2022(YuandDong,2023).InMarch2023,theEuropeanCommissionproposedaGreenDealIndustrialPlan.ThiswasmotivatedbyChina’sdominantpositioninsolarPVmanufacturingandinmineralscriticaltotheenergytransition,aswellasbyinitialconcernsthatsubsidiesofferedbytheUSIRAmaydiscriminateagainstforeigncompaniesandwoulddrawrenewableenergyandelectricvehiclemanufacturersacrosstheAtlantic(Chazan,2023).TheCommission’sobjectiveistoscaleupcleantechnologymanufacturingintheEuropeanUnion,sothattherelated26manufacturingcapacityapproachesorisabletofulfil40%ofthedeploymentneedsby2030.Onekeymeasureisastreamliningofregulationstospeedupprojectpermitting.Anothermeasureisarelaxationofstrictrulesgoverningstateaidforcapitalinvestmentsinlow-carbonprojects(CarbonBrief,2023).26TheCommission’slistofeight“strategicnet-zerotechnologies”includessolarpowerandsolarthermal,onshoreandoffshorewindpower,batteriesandenergystorage,heatpumpsandgeothermalenergy,elec-trolysersandfuelcells,sustainablebiogas/biomethane,carboncaptureandstorage,andgridtechnologies.68CHAPTER3AproposedNet-ZeroIndustryActsetsnon-bindingmanufacturingcapacitytargetsandrequiresmemberstatestoapplynon-pricecriteria(environmentalsustainability,energysystemintegrationandsupplychainresilience)toauctionprocurementmechanisms.27TheNet-ZeroIndustryActalsoincludesmeasurestobuildaskilledworkforce(EuropeanCommission,2023a).ACriticalRawMaterialsActaimstoincreasetheEU’scapacityfordomesticsourcingandrefinementofsuchmaterials,diversifyimportsandincreasethe“circularityandsustainability”ofrawmaterialuse.ItaimstospeeduppermittingprocessesandmeetaquarteroftheEuropeandemandforstrategicrawmaterialsthroughdomesticmining(10%,upfrom3%atpresent)andrecycling(15%)(Bourgery-Gonse,2023).Meetingthesetargetswillnotbeeasyandmayclashwithenvironmentalprotectionobjectives(Noyan,2023).AEuropeanCriticalRawMaterialsBoardwouldbeestablishedasanewcentralpurchasingagency(EuropeanCommission,2023b).InSeptember2022,Germany’sMinistryforEconomicAffairsandClimateAction(BMWK,2022)proposedcreatingaEuropeanPlatformforTransformationalTechnologies“todevelopandpromotetheEU’sindustrialproductioncapacitiesinfivestrategicallyimportanttechnologies–windenergy,solarPV,electrolysers,electricitygridsandcables,andheatpumps–largeandsmall”(TaiyangNews,2022).Further,theministrydecidedtofundastudyonthefeasibilityofrestoringacompletesolarPVsupplychaininEurope,includingmaterials,manufacturing,researchanddevelopment,andaworkforcewiththerequisiteskillsets(Hutchins,2023).InSouthAfrica,thegovernmentrespondedtothehighimportreliancebyreleasingadraftSouthAfricanRenewableEnergyMasterplan(SAREM)forpubliccommentinmid-2023.TheMasterplan,whichisbasedonacollaborationamonggovernment,industryandlabour,seekstofosterindustrialdevelopmentandjobcreationthroughvaluechainlocalisationforsolar,windandbatterystoragetechnologies.SAREMacknowledgesthatprioreffortstobuildindustrialcapabilitiesforrenewableenergyhavesofaryieldedmixedresultsduetostop-startprocurementcycles,localcontentrulesthatwerenotwellalignedwithrealities,andinconsistentpolicies.IndustrialpolicymeasuresproposedunderSAREMincludefinancialandnon-financialinterventionstosupportthegrowthofblack-ownedandblack-managedbusinesses(BlackIndustrialistProgramme);preferential-rateloanstosupportdomesticmanufacturers(ManufacturingCompetitivenessEnhancementProgramme);andlocaldevelopmentfinanceinstitutions’supportinenhancingindustrialcapabilitiesandstimulationofinvestmentthrougheffortstoreduceinfrastructurecosts(CriticalInfrastructureProgramme)(DTIC,2023).27InJanuary2022,new“StateAidGuidelinesforClimate,EnergyandEnvironment”hadalreadyallowedgovernmentstoincludeupto30%non-pricecriteriainselectingwinningauctionbids.Theproposedactnowdefinesthesecriteria(GWEC,2023).69thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITION©Masmikha/shutterstock.com©sykono/GettyImages3.3CRITICALMATERIALS,ECONOMICDEVELOPMENTANDCOMMUNITYRIGHTSBesidesbuildingorstrengtheningindustrialcapacity,policiesalsohighlightthe“criticalmaterials”neededtoproducesolarpanels,windturbinesandotherenergytransitiontechnologies.Countriesstrivetosecureaccesstosuppliesastheyincreasinglycompetetogainanadvantageintheracetowardsbuildingcleanerenergyeconomies(IRENA,2023e).AshighlightedbyarecentFinancialTimesreport,thisrepresentsasharpturnaround:“Fordecades,developedeconomiesshunnedthesesortsofindustrialactivities,contenttooffshoretheenvironmentaldamagetothedevelopingworldwherecostswouldalsobelower”(White,2023).However,thisnewraceforresourcesmaynotoffermuchinthewayoflastingsocioeconomicbenefitsforresource-richcountriesinAfrica,AsiaandLatinAmerica.Atpresent,manydonotpossessthecapacitytorefinerawmaterialsintoprocessedinputs.Theriskisthattheywilloncemoreberelegatedtotheroleofcommoditysuppliers,dependentonunpredictablecommoditymarketsforpricesettingandunabletocreatejobsandvaluefurtherdownstream.Therealsoneedtobesafeguardstoensurethattheraceformaterialsdoesnottranslateintoaracetothebottom,intermsofenvironmentaldegradationandburdensimposedonworkersandlocalcommunities.InJanuary2023,severalorganisationsjointlylaunchedanAfricaRenewableEnergyManufacturingInitiativetoscaleupmanufacturingcapabilitiesonthecontinentandcreatesubstantialemployment.Doingsowouldrequiresustainedeffortsinskilltrainingandcareerdevelopmentforengineers,techniciansandothers,besidesmeasurestoattractmanufacturersandincubateAfricanmanufacturingprojects(BloombergPhilanthropies,2023).ArelatedreportbySustainableEnergyforAll(SEforALL,2023)identifiescountrieswiththehighestfeasibilityforsuchanapproach.Thereportsuggeststhatamongthekeysuccessfactorsaresufficientdemand,manufacturingscale,politicalstability,appropriatepoliciesandregulations,traderelationswithChina(astheleadingforceinthesectorandwithstrongforeigndirectinvestmentintheregion),supportinginfrastructureandtheabilityto70CHAPTER3export.TheAfricanDevelopmentBankhaslaunchedan“IndustrialiseAfrica”initiativetosupportsuchefforts,providingUSD300millioninfinancing(SEforALL,2023).Anumberofresource-richcountriesareseekingtoexertgreatercontrolovermineralscriticaltotheenergytransition.Theobjectiveistoretainahighershareofthesocioeconomicbenefitsandavoidbecominglockedintotheroleofrawmaterialsuppliers.AccordingtoananalysisoftheOrganisationforEconomicCo-operationandDevelopment(OECD,2023),thenumberofexportrestrictionsoncriticalrawmaterialsworldwidegrewfivefoldsince2009.ThePlurinationalStateofBoliviaandMexicohavenationalisedtheirlithiumindustries,whileZimbabweintroducedabanonrawlithiumexports(StottandBryan,2023).Indonesiahassince2014bannedexportsofunprocessednickeloreandsucceededinattractingforeigndirectinvestmentforbuildingadomesticsmeltingindustry.Thecountryalsorestrictedexportsofbauxite,analuminiumprecursor,andabanoncopperconcentrateexportsistotakeeffectin2024(Hook,DempseyandNugent,2023).IndonesiaandtheDemocraticRepublicofCongohavealsoadoptedexportrestrictionsonmaterialsusedinlithium-ionbatteries(Crooks,2023).IntheDemocraticRepublicofCongo,asecondcoppersmelterisunderconstruction(Hook,DempseyandNugent,2023).Inearly2023,Chile’sgovernmentannouncedplans–subjecttoCongressionalapproval–tonegotiateamajoritystakeinthecountry’stwoexistinglithiumprojects.Thenegotiationistobethroughthestate-ownedcompaniesCodelcoandEnamiinitiallyandlaterthroughaproposednationallithiumcompany.Policyobjectivesincludedevelopinglocalvaluechains,increasingwealthretainedwithinthecountryandestablishingstricterenvironmentalrulesconcerningthewater-intensiveprocessneededtoextractlithiumfromsaltflats.Theenvironmentalrulesaretobeestablishedinconsultationwithlocalcommunities(GovernmentofChile,2023).Chileisofferingpreferentialpricesforlithiumcarbonatetofirmsinvestingindomesticvalue-addedprojects.ExamplesofsuchfirmsincludeChina’sBYD,whichplanstobuildalithiumcathodefactorythatcouldemploy500people(Hook,DempseyandNugent,2023).InJune2023,Namibiadecidedtobantheexportofunprocessedmaterialsincludinglithium,cobalt,manganese,graphiteandrareearthssuchasdysprosiumandterbiuminordertoretainagreatershareofthewealthgeneratedfromtheiruse(Reuters,2023).Whilesteppingoutofarawmaterialsupplierrolecansupportacountry’snationaleconomicdevelopment,itrequiresmorethanindustrialpolicytoensureequitableoutcomesfromthisroletransition.Forexample,asnotedbytheBusiness&HumanRightsResourceCentre(PouheandGwanyanya,2023),violationsofcommunities’landrightsandlivelihoods(includinglackofconsultation,evictions,unjustresettlementsandinadequatecompensation),aswellasabusesoflabourrightsandhumanrightsviolations,havebeenrecordedaroundseveraltransitionmineralminingprojectsaswellassomerenewableenergyinstallations.Further,localprotestsandlawsuitshaveledtosomeplannedprojectsbeingsuspended.Meanwhile,betterapproachesandbusinessmodelsarebeginningtoemerge.PouheandGwanyanya(2023)argueinfavourofthreecoreprinciples:co-ownershipmodelsthatgeneratebuy-infromworkersandcommunities;humanrightsduediligenceandsocialprotection,withanemphasisonworker(re-)traininganddecentwork;andfree,priorandinformedconsentinnegotiationswithlocalpopulations,especiallyindigenouscommunities.71RENEWABLEENERGYANDJOBS:ANNUALREVIEW2023CHAPTER4PERSPECTIVESANDACTIONSFORAJUSTTRANSITIONPreviouseditionsofthisreporthaveemphasisedthatjobqualitymattersjustasmuchasjobquantity,andthatthetransitionfromafossil-fuel-dominatedenergysectortoacleanerenergyfutureneedstobejustandinclusiveinrelationtoworkersandcommunities.Thisoutcomerequiresnotonlyforesightandcomprehensivepolicies,butalsomeaningfulsocialdialogueinvolvinggovernments,privatecompaniesandbusinessassociations,labourunionsandotherstakeholders.Basedonitstripartitestructureinvolvinggovernments,businessesandorganisedlabour,in2015theInternationalLabourOrganizationdevelopedguidelinesforajusttransition(ILO,2015).AttheJune2023InternationalLabourConference,tripartiterepresentativesreaffirmedtheurgencyofactiontoadvanceajusttransitiontoachievesocialjustice,decentworkandpovertyeradication,andtackleenvironmentalandclimatechange.Theconferencedeclaredthat“Ajusttransitionpromotesenvironmentallysustainableeconomiesinawaythatisinclusive,bycreatingdecentworkopportunities,reducinginequalityandbyleavingnoonebehind”(ILO,2023).72CHAPTER4Toaccelerateandscaleuptheimplementationofthe2015guidelines,theInternationalLabourConferenceelaboratedacoherentandpracticalframeworkforactionbasedonfourbuildingblocks:(1)promotinginclusive,sustainableandjob-richeconomies;(2)advancingsocialjustice;(3)managingthejusttransitionprocessand(4)financingajusttransition(seeFigure14).Thissectiondiscussesperspectivesandactionsbythetripartitestakeholders.Figure14ILOguidelinesforajusttransition:AframeworkforactionPromotinginclusive,Macro-IndustryEnterprisesustainable,jobricheconomieseconomicandsectorpoliciesandgrowthpoliciespoliciesWhatAdvancingsocialjusticeSkillsOccupationalSocialHowManagingtheprocessdevelopmentsafetyandprotectionFinancingjusttransitionhealthActivelabourRightsSocialmarketdialogueandpoliciestripartismSource:ILO,2023.4.1GOVERNMENTS’PERSPECTIVESANDACTIONSSeveralcountrieshaverecognisedtheneedforajustenergytransitionandareleveragingthisuniqueopportunitytorebuildeconomicstructuresbygeneratingjobsandincome,promotingsocialjustice,restoringnaturalcapitalandreducingenvironmentalimpacts.Renewableenergyinvestmentscreatejobsinequipmentmanufacturing,installations,andoperationandmaintenance,whileenergyefficiencyprogrammesforbuildings,transportationandindustriescreatejobsinareassuchasenergyauditing,retrofittingandthemanufacturingofenergy-efficienttechnologies.Anumberofactionscanensurethatthetransitiontoacleanenergyfutureisjobsrichandjust(seeBox5).73thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONBox5Policyelementstoensureplentiful,decentjobs1Workforcetrainingandeducationinitiativestoequipworkerswiththeskillsneededforrenewableenergyjobs.2Justtransitionpoliciestosupportworkersandcommunitiesaffectedbythecleanenergytransitionthroughretrainingassistance,incomesupportandjobplacementassistance,aswellasassistancewithinfrastructuredevelopment,communityprojectsandeconomicdiversificationefforts.3Engagementwithlabourunions,industrystakeholdersandcommunityorganisationstodevelopcollaborativestrategiestoensurethatworkers’concernsandinterestsareaccountedforwhileplanningandimplementingcleanenergyinitiatives.4Greenjobcreationtargetsforaclearfocusonemploymentgenerationanddrivepolicyeffortstoachievethosetargets.5Localandregionaleconomicdevelopmentinitiativestopromotetheestablishmentofrenewableenergyindustries,attractcleanenergyinvestmentandfosterinnovationincleantechnologies.6Inclusivedecision-makingprocesseswithinputsfromdiversestakeholderstoaddresstheneedsandperspectivesofdifferentcommunitiesandpromotesocialequity.7Supportforsmallandmediumenterprisesasjobcreatorsthroughfinancialincentives,capacity-buildingprogrammesandprocurementpolicies.©klingsup/istock©fotografixx/istock74CHAPTER4Forexample,thegovernmentsofSouthAfricaandSpainhaveadoptedseveralpoliciesinthisvein.TheSouthAfricangovernment,aftersubmittingitsNationallyDeterminedContributiontowardsachievingtheParisAgreement’sgoalsin2021,launchedtheJustEnergyTransitionInvestmentPlan(JETIP),whichistobeimplementedbetween2023and2027.ThisplanoutlinesaUSD98billioninvestmentinrenewableenergy,electricvehiclesandgreenhydrogen,andincludesprovisionsforsocialandeconomicdevelopmentsuchasjobcreation,skilldevelopmentandcommunityempowerment.Whilethegovernment’spolicyonjustenergytransitionisstillevolving,itneverthelessreflectsthegovernment’sdeterminationtodiversifyitsenergymixandensurethatthetransitiontoalow-carboneconomycontributestoitseffortstotackleinequality,povertyandunemployment(ITJ,2022).Itiscrucialtorecognise,however,thatrelyingexclusivelyonfundingfromtheJETIPwillfallshortoffulfillingtheinvestmentneedsforafairtransitiontowardssustainableenergyforeachrecipient.SouthAfrica’sJETIPagreementwillcontributelessthan10%,totallingUSD8.5billion,infunding.Further,amere0.4%oftheoverallplannedamountunderSouthAfrica’sJETIPwillbeallocatedtoboosteconomicdiversification,innovationandskilldevelopment.Grantsconstitutejust4%ofthetotalJETIPfundingpackage,exposingSouthAfricatorisksrelatedtoprivatisation,whichcouldalsobeapplicabletootherbeneficiarynations(Gunfausetal.,2022;IRENAandCPI,2023).TheSpanishgovernmenthasintroducedasetofpoliciestooptimiseeconomicactivityandemploymentprospectsinthetransitiontoagreen,low-carboneconomy,whileminimisingpotentialnegativesocialandeconomicimpacts.KnownastheSpanishJustTransitionStrategy,thesepoliciesencompasscoreobjectives,whichincludeboostingcompetitivenessandaddressingsocialcohesionchallengesarisingfromtheeconomictransitiontowardsecologicalsustainability.Opportunitiesareintendedtobeaccessibleandequitableforwomen,vulnerablepopulationsandruralresidents,andlabourmarketstatusandtrendswithrespecttothegreentransitionarecloselymonitored.Further,thestrategypromotestheestablishmentofsectoralforumstofacilitatecollaborationandknowledgesharing.Specificplansforkeyeconomicsectorsentailthoroughanalysesofchallenges,opportunitiesandthreats,andtheformulationofnecessarymeasuresforasuccessfultransformation.ThestrategyalsoentailsanevaluationandenhancementofthecurrenttoolsandinstrumentsprovidedbytheGeneralStateAdministrationtosupportbusinesses.Thissupportincludes,amongotherfactors,provisionsforresearchanddevelopment,financing,loans,guaranteesandtraining.Further,theSpanishJustTransitionStrategyproposessuitablepoliciestosupportco-ordinatedeffortsamongvariousentities,includingtheGeneralStateAdministration,autonomouscommunities,localauthoritiesandsocialstakeholders.Thesepoliciesencompassindustrialsupport,researchanddevelopment,promotionofeconomicactivity,employmentandvocationaltraining.Lastly,thestrategyfocusesonminimisingadverseimpactsinvulnerableregionsthroughtheimplementationofJustTransitionAgreements.Itprovidestechnicalandfinancialsupportfortheexecutionoftheseagreements,asdemonstratedbytheUrgentActionPlan,whichtargetsregionsthatconfrontclosureofcoalminingandcoal-firedpowerplants(ITJ,2022).75thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONTobeeffectivelyimplemented,policieswillhavetobewellco-ordinated,includeallrelevantstakeholdersandbeadequatelyfinanced.Managingthetransitionprocesswillrequirecoherenceacrosspolicyareasandeffectiveinstitutionalco-ordinationtoplanandimplementchangesinaccordancewithevidence-basedmonitoringandevaluationframeworks.Achievingajusttransitionrequiresdeterminedpolicyactionthatputsahumanfaceonpoliciesandintegratesclimateandemploymenttargetsintoacoherentpolicyframework.Awell-designedandprogressiveclimateenvironmentalpolicycouldbebeneficialforemploymentandequitytargets.Atransitiontowardsclimateneutralitycangeneratenetemployment,althoughthisvariessignificantlyacrosssectors.4.2EMPLOYERPERSPECTIVESANDACTIONSEmployerandbusinessmembershiporganisationsplayacrucialroleindrivingtherenewableenergytransitionbyadvocatingforsupportivepolicies,promotinginvestmentincleantechnologies,andfacilitatingpartnershipsbetweenbusinessesandgovernments.Theseorganisationsunderstandthatarenewableenergytransitioncancreatenewbusinessopportunities,driveinnovationandsupporteconomicgrowth.Forexample,theUnitedStatesCouncilforInternationalBusinessparticipatesininternationalforumssuchastheUnitedNationsFrameworkConventiononClimateChangeandrepresentsbusinessinterestsinglobalclimatediscussions.TheCouncillaunchedtheinitiativeBusinessfor2030(n.d.)in2015tosupportthe2030DevelopmentAgendaandtheSustainableDevelopmentGoals(SDGs).Businessfor2030isaplatformtoshowcaseprivatesectoreffortsalignedwiththeSDGs,andfeaturesover200projectsofover50companiesinmorethan150countries.Theseprojectscontributeto89ofthe169SDGtargets.IntheUnitedKingdom,theConfederationofBritishIndustryhaspublishedreportsandpolicyrecommendationshighlightingrenewableenergy’seconomicbenefits.TheConfederationalsoengageswiththegovernmentandstakeholderstoadvocateforsupportivepoliciesandregulatoryframeworks.Ithascreatedseveraltoolkitsincludingbestpracticesandpracticalinformationforitsmembercompanies.Thetoolkitscovertopicslike“howtocreateacultureofsustainabilityinyourbusiness”(CBI,2023)and“howyourbusinesscantakeactionandseizenetzeroopportunities”(CBI,2022).TheNationalBusinessAssociationofColombia(AsociaciónNacionaldeEmpresariosdeColombia,ANDI)collaborateswithgovernmentagencies,industrystakeholdersandcivilsocietytodevelopstrategiesthatsupportrenewableenergyadoptionandprovidesbusinesseswithguidanceandresourcesrelatedtosustainablepracticesandcleanenergyadoption.In2014,itlaunchedtheBiodiversityandDevelopmentInitiative,whichaimsforgreatercomprehensivebiodiversitymanagementinthecountrythroughfosteringcollaborationamongbusinesses,institutionsandlocalgroupsaswellasinvestment(ANDI,2023).InSouthAfrica,theBusinessUnitySouthAfrica(BUSA)advocatesforpoliciesandregulationssupportingthegrowthofrenewableenergysectors.BUSAalsocollaborateswithindustrystakeholderstodevelopskilltrainingprogrammesandpromotejobcreationinrenewableenergy.Inthedomainofsustainableenergyandinfrastructure,BUSA’s76RENEWABLEENERGYANDJOBS–ANNUALRECVIHEAWPT2E0R234specificobjectivesinclude,amongothers,publicconsultationsforaco-ordinatedhighlevelroadmapofallpendingenergylegislationandpolicies;finalisationoftheIntegratedEnergyPlanandtheIntegratedResourcePlanwithplanningtransparency;andcontinuingtheRenewableEnergyIndependentPowerProducerProcurementProgramme(BUSA,2023).TheConfederationofDanishIndustry(CDI2016)supportsknowledge-sharingplatformsandprovidesresourcestohelpbusinessesmakearenewableenergytransitionthatisfairandinclusiveforworkers.TheCDIactivelyparticipatedinthenegotiationsanddiscussionsthatledtothe2018DanishEnergyAgreement,whichoutlinesthecountry’senergyandclimategoals,includingacommitmenttotransitioningtorenewableenergysourcesandmitigatinggreenhousegasemissions.TheCDIwascrucialinadvocatingforpoliciesandincentivesthatsupportandencouragecleanenergyinvestmentsandfacilitatethetransitionforbusinessesandworkers.4.3LABOURUNIONPERSPECTIVESANDACTIONSLabourunionscontendthatinvestingincleanenergytransitiontechnologieswillnotinherentlyguaranteethecreationandsustainabilityofgoodjobs.Unionshaveconcernsabouttheprogressonajusttransitionindifferentcountriesandthelackofunioninvolvementintheprocess(IndustriALLGlobalUnion,2021).Whilesocialdialogueexperiencesvaryfromcountrytocountry,fundamentally,ajusttransitionispossibleonlywithsocialdialogueandawell-organisedworkforce.Transitionswillbechallengingbutnotimpossible,andworkersmustbeassuredofajusttransitionforthem,theirfamiliesandcommunities.Togaininsightsonthefutureprospectsofenergysectorworkersandaddressunions’concerns,theIndustriALLGlobalUnion,theInternationalTradeUnionConfederationandLONorwaylaunchedtheInitiativeforaJustTransitionintheenergysectorin2022.TheInitiativehad121participantsfromunionsin32countriesandinvolvedinformationexchangeregardingthefutureofworkintheenergysectorandonwaysinwhichworkerscouldtransferjobsintheoilandgassupplychaintotherenewablessector.©thelamephotographer/shutterstock.com©GCShutter/istock77thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONUnionsandexpertssharedinformationonjobs,skills,markets,investmentsandemissionsfortechnologiessuchashydrogen,carboncaptureandstorage,offshorewindandotherrenewables,alternativefuelsandenergyservices.Asubsequentreport(IndustriALLGlobalUnion,InternationalTradeUnionConfederationandLONorway,2022)offeredconclusionsandrecommendations.Aseriesoftenworkshops28withexpertsfromtheInternationalRenewableEnergyAgencyandtheInternationalEnergyAgency,energysectorunionsandnationallabourconfederationswasheldbetweenAprilandOctober2022.Theworkshopsfocusedontheimplicationsofnetzeroforenergysectorjobs.Participantsexchangedinformationonemergingtechnologies,whatthetransitionlookslikeindifferentpartsoftheworld,aswellasunionstrategiesforensuringgoodjobsandajusttransition.TheUSProjectLaborAgreement–signedbetweenNorthAmerica’sBuildingTradesUnionsandtheDanishoffshorewindcompanyØrsted–isagoodexampleofpossibilitiesforrenewablessectorworkers.TheProjectLaborAgreementwasforØrstedtoconstructitsUSoffshorewindfarmsusingaunionisedworkforce.TheNationalOffshoreWindAgreementcoversallØrstedcontractorsandsubcontractorsthatwillconstructoffshorewindfarmsalongtheAtlanticcoast.Theagreementisacommitmenttobuildinfrastructurethatwillreducecarbonemissionsandcreatehigh-wageunionjobs.Itcanbeamodelfortheentirerenewableindustryaswellasforotheremergingtechnologies,wherelabourstandardsandenvironmentalperformancegohandinhandandwherethegoalofgreenjobsbeingunionjobsbecomesreal.AccordingtoØrsted,USoffshorewindprojectscouldcreatesome80000directjobsplusmanythousandsofindirectjobsinmanufacturing,maritimework,logisticsandcleanenergytechnology(Ørsted,2022).ThetrainingandotherprovisionsoftheProjectLaborAgreementwillhelpgenerateaworkforcecapableofbuildingcomplexoffshorewindenergyinfrastructure.ØrsteditselfhascommittedUSD23milliontobolsterexistingeffortsorestablishnewprogrammesforpreparingUSworkersforoffshorewind.©CharlieChesvick/istock28Theworkshopscoveredthefollowingtopicsandgeographies:hydrogen,onshoreandoffshorewind,batteryandsolarphotovoltaic,carboncaptureandstorage;EuropeandtheAmericas;andAustralia,Indonesia,Iraq,Japan,NewZealand,Nigeria,SouthAfricaandSpain.78THEWAYCHAPTER5FORWARD:MULTIPLYINGCHALLENGESDEMANDNEWTHINKINGThistentheditionofRenewableenergyandjobsdocumentsthecontinuedgrowthofrenewableenergyemployment,withjobnumbersestimatedtohavegrownfrom7.3millionin2012to13.7millionin2022worldwide.Thejobsarepredominantlyinafewcountries–Chinainparticular,butalsoBrazil,IndiaandthemembersoftheEuropeanUnion–whichrepresentthemajorityofcapacityinstallationsandplaykeyrolesinequipmentmanufacturing,aswellasengineeringandvariousservices.Atpresent,jobsareunevenlydistributedbetweenmenandwomen,and,aspointedoutinpreviouseditions,thequalitativeaspectsofrenewableenergyjobs,includingwages,occupationalsafetyandhealth,jobsecurityandrightsatwork,demandgreaterattention.Renewableenergyinvestmentshavenoticeablyincreasedinvolumeinrecentyears.Furtheracceleratingthepaceimpliesthatinthecomingyearsanddecades,millionsofadditionaljobswillbecreated.However,thisrequiresarangeofaccompanyingmeasures,forexample,increasedeffortstoexpandeducationandskill-buildingprogrammes;retrainingofworkersfromfossilfuelindustries;andgreateropportunitiesforwomen,youthandminoritiestojointherenewableenergyworkforce.79thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONWeareonahighwaytoclimatehellwithourfootontheaccelerator.UNSecretary-GeneralAntónioGuterresCOP27,7November2022Achievingtheenergytransitioninamannerthatallowshumanitytomeeturgentclimateandenvironmentalprioritieswillrequiresignificantlyacceleratedinvestmentsandinstallations.Progressremainshighlyinadequate.Infact,itisnotanexaggerationtosaythat,fornow,theworldisexperiencinganenergyaddition–withrenewablesforminganotherlayerontopoftheexisting,fossil-fuel-dominatedsystem–ratherthantheneededenergytransition(Hickel,2022).Asteadystreamoffreshscientificassessmentsandmorefrequentextremeweathereventslendever-greaterurgencytoafundamentaltransformation.Yet,geopoliticaltensions,traderowsandsupplychaindisruptionshaveledgovernmentstobecomeincreasinglypreoccupiedwithshoringupenergysupplies,includingtheveryfossilfuelsourcesthathumanityhaspledgedtoweanitselfoff.Corporationsandgovernmentscontinuetolooktoeconomicgrowthastheremedytomanychallenges.Yetanever-expandingeconomyrequiresevergreaterenergysupply,makingthetransitionevenmorechallenging.Andtherecannolongerbeanydoubtthatendlessgrowthisnotpossibleonaplanetwithfiniteresourcesandcapacitytoabsorbcarbonandpollutants.TheEarthisalreadysendingunmistakablesignalsofincreasingdistress.Thelatestscientificassessmentofnineplanetaryboundaries(Richardsonetal.,2023)findsthatsixofthemhavealreadybeencrossed.29Persistingwiththecurrentapproachwillworsenthesituation,threateningacascadeofrisingcalamities.Adestabilisedclimatesystem,widespreadbiodiversitylossandoverburdenedterrestrialandmarineecosystemsformthegreatestthreatstohumanity’swell-beingandindeeditslong-termsurvival(Hickel,2022).29Inadditiontoclimatechange,theyconcernbiosphereintegrity,landsystems,freshwater,biogeochemicalflows,andnovelentities.Theremainingthreeboundariesouroceanacidification,atmosphericaerosolloading,andstratosphericozonedepletion.Richardsonetal.(2023).80CHAPTER5Theeraofglobalwarminghasended;theeraofglobalboilinghasarrived.UNSecretary-GeneralAntónioGuterres27July2023©PeopleImage/istockAlso,giventhewide–andgrowing–disparitiesinwealthandhumandevelopmentbetweenandwithincountries,itisclearthatthecurrenteconomicapproachhasfailedtobringaboutuniversalwell-being.Studiesshowthatevenforthosewhoaremateriallywelloff,growthinmaterialconsumptionpastacertainpointdoesnotleadtogreaterhappinessandoffersdiminishingreturns.Butmaintainingthecurrenteconomicmodelunderconditionsofgrowingclimateandenvironmentalconstraintsexposesthepoorerportionsofhumanity–principallypeopleintheGlobalSouth–totheeffectsofacceleratingresourcedepletionandrendersthemincreasinglyvulnerabletoclimateshocks.IRENA’sworkhaslongemphasisedtheimportanceofensuringtheenergytransitiondeliversbroadsocio-economicbenefits,sothatpeoplecanhaveatangiblestakeinit,inturnsecuringpopularandpoliticalacceptance.Theenergytransitionneedstobeembeddedwithinbroadersystemicchangesthataimtoensurealevelofhumanwell-beingatlowerlevelsofenergyandmaterialthroughput,advanceequityamongcountriesandcommunities(overcominghistoricaldisparities),andaligneconomieswithclimateandresourceconstraints.Socially,economicallyandpolitically,thistransformationisanunavoidableyetmostcomplextask.Theincreasinglyevidentlimitsandcontradictionsofconventionaleconomicsandgrowth-basedparadigmshavegivenrisetoanincreasinglyvibrantdiscussionofworkableconceptsandapproachesforamorejustandinclusivetransitionandtoallowhumanitytolivewithinplanetaryboundaries.Forclosetoacentury,GDPhasbeentheacceptedyardsticktomeasureprogress,butitsuffersfromwell-documentedshortcomingsandpitfalls–forexample,theinclusionofactivitiesthatdonotcontributetowell-beingwhileexcludingothers(suchasunpaidwork,mostoftencarriedoutbywomen)thatdo.ModificationsoftheGDP,orfull-blownalternativessuchasBhutan’sgrossnationalhappinessindex,maymeasuretheeconomyandhumanwell-beingmoreaccuratelyandcouldfacilitateadifferentsetofsocio-economicpolicies(Hickel,2022).81thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONWeneedarenewablesrevolution,notaself-destructivefossilfuelresurgence.UNSecretary-GeneralAntónioGuterres06February2023©LoredanaSanguiliano/shutterstock.comWealthycountriesthathaveconsumedthebulkoftheworld’senergyandmaterialswillhavetoreducetheirclaim.Greaterefficiencycanhelp,butexperienceshowsthatthe“reboundeffect”–costreductionsfromimprovementsinefficiencyallowconsumerstobuymoreoftheimprovedproductorincreasedemandforotherproducts–preventsanylastingreductionofoverallconsumptionvolumes.Thereisthusaneedtoscrutinisefundamentalproductionandconsumptionpatternsandmakeanevenstrongerdistinctionbetweenhumanneedsandwants.Doingsocouldcreatethespaceneededbypeoplewhocurrentlyconsumelessthanwhatisneededforsustainingadecentlife.Alessconsumption-intensiveeconomywouldimplyashiftinemploymentawayfromtheextractivesectorandmanufacturingofdisposablegoodstowardsrecycling,refurbishingandremanufacturingactivities.Energysectoremploymentwouldbelessextensivethanunderaconventionaltrajectory.Societiesmaythusneedtoexplorenewapproaches–suchastheconceptofauniversalbasicincome–tomakepeople’sincomeslessdependentonunsustainablepractices.Humanityfacesabroad,andpotentiallyconflicting,setofobjectives.Forone,thereisaclearneedforasignificantlyrapidtransitionawayfromfossilfuels,inlightofthegrowingclimatecrisis.However,renewedconcernaboutenergysupplysecurityrunshighand,tosomeextent,mayreinforcefossilfuelreliance.Further,hundredsofmillionsofpeopleneedtobeprovidedimprovedenergyaccess,tofulfilthepromiseofSustainableDevelopmentGoal7.Thisconcernsnotjustaneedformoreamplesuppliesbutalsoforcleanerenergy.Narrowingthevastchasminenergyconsumptionlevelsbetweenrichandpoorcountriesalsorequiresre-thinkingtheexcessiveenergyuseinconsumersocieties.Yetsocio-economicinequalitiesandpocketsofenergypovertyaregrowingevenwithinrichersocieties.Uncertainsocio-economicprospectsmaystrengthentheappealofpoliticalforcesthatfavourparochialapproaches,inturnweakeningglobalsolidarityanddiminishingprospectsforcooperationinpursuitofsharedgoals.Itiscriticaltoensurenotonlythatfossilfuel-reliantworkersandcommunitieshaveaviableperspectiveinanewenergysystem,butalsothatwomen,youth,minoritiesandmarginalisedgroupsaregivenequal82CHAPTER5opportunities.Lastbutnotleast,theenergytransitionitselfmustproceedinamannerthatsafeguardsecosystems,aconcernthatrangesfromtheminingandprocessingofcriticalrawmaterialsallthewaytohowrenewableenergyequipmentishandledattheendofitsusefullife.Yet,thegrowingurgencyoftheenergytransitioncouldtranslateintotremendouspressuretoextractenergytransitionmineralsasquicklyaspossiblewhilesideliningenvironmentalconcernsandlocalcommunityinterests.Thispanoplyofgoalsandinterestsmaybedifficulttoreconcile,especiallyinacontextofgrowinggeopoliticalrivalrythatrendersglobalco-operationmoredifficult.Itisataskthatcannotbelefttomarketsifjust,inclusiveandsustainableoutcomesaretobemorethanaslogan.Prioritiesmustbedeterminedinopendebateandpolicydecisionsmustbeguidedbysocialdialogue.Governmentsandotherstakeholderswillhavetoplayaproactiveroleintransformingeconomicsystems,reinforcinganargumentthathasunderpinnedIRENA’sstapleofsocio-economicreports:policymakingmustbeinspiredbyaholisticframeworkthatconsiderstechnologicalaspectsinconjunctionwithsocial,economicandenvironmentalpriorities(seeFigure15).Figure15HolisticpolicyframeworkforajustandinclusiveenergytransitionDEPLOYMENTINTEGRATINGENABLINGSTRUCTURALHOLISTICPOLICIESPOLICIESPOLICIESCHANGEGLOBALANDJUSTPOLICYTRANSITIONFRAMEWORKPOLICIESENERGYPLANETSOCIETYECONOMYSource:IRENA,2022b.83thRENEWABLEENERGYANDJOBS:ANNUALREVIEW2023EDITIONReferencesABEEÓLICA(2023),“InfoWindBrazil”,InfoWindno.30,BUSA(2023),“Affordable,reliableandsustainableenergyandAssociaçãoBrasileiradeEnergiaEólica,23February,https://infrastructure(technology,waterandroadtransportation)tomeetabeeolica.org.br/energia-eolica/dados-abeeolica/.currentandfutureneeds”,BusinessUnitySouthAfrica,www.busa.org.za/4-affordable-reliable-and-sustainable-energy-and-ABRASOL(2023),“ProduçãoeVendasdeSistemasdeinfrastructure-technologywater-and-road-transportation-to-meet-AquecimentoSolar:Base2022”[ProductionandSalesofSolarcurrent-and-future-needs/.HeatingSystems:Baseyear2022],AssociaçãoBrasileiradeEnergiaSolarTérmica,https://abrasol.org.br/wpcontent/uploads/2023/04/Businessfor2030(n.d.),“Ourimpact”,www.businessfor2030.Pesquisa-de-Producao-e-Vendas-de-2023-ano-base-2022.pdf.org/progress.ABSOLAR(2023),“SolarPVenergybenefitstoBrazil”,CarbonBrief(2023),“Q&A:HowtheEUwantstoracetonet-zeroinfographic,AssociaçãoBrasileiradeEnergiaSolarFotovoltaica,with‘GreenDealIndustrialPlan’”,17March,www.carbonbrief.2May,www.absolar.org.br/en/market/infographic/.org/qa-how-the-eu-wants-to-race-to-net-zero-with-greendeal-industrial-plan/.AMDEE(2022),“WinddevelopmentinMexicohasanimportantlocalandregionaleconomicfootprint”,AsociaciónMexicanadeCBI(2023),“Toolkit:HowtocreateacultureofsustainabilityinEnergíaEólica,May,https://amdee.org/el-viento-ennumeros.html.yourbusiness”,ConfederationofBritishIndustry,20March,www.cbi.org.uk/articles/toolkit-how-to-create-a-culture-of-AmericanCleanPower(2023),CleanEnergyInvestinginAmerica,sustainability-in-your-business/.AmericanCleanPowerAssociation,Washington,DC,August2023,https://cleanpower.org/wpcontent/uploads/2023/08/CleanEnergyCBI(2022),“Toolkit:HowyourbusinesscantakeactionandseizeInvestingReport_digital.pdf.netzeroopportunities”,ConfederationofBritishIndustry,22June,www.cbi.org.uk/articles/toolkit-how-your-businesscan-take-ANDI(2023),“TemasAmbientales2023”[EnvironmentalIssuesaction-and-seize-net-zero-opportunities/.2023],AsociaciónNacionaldeEmpresariosdeColombia,www.andi.com.co/Home/Pagina/1053-temas-ambientales-2023#CDI(2016),TheGlobalGoalsandOpportunitiesforBusiness,biodiversidadydesarrollo.ConfederationofDanishIndustry,Copenhagen,Denmark,www.danskindustri.dk/DownloadDocument?id=90486&docid=90565.APPA(2022),“AvancedelestudiodelimpactomacroeconómicodelasenergíasrenovablesenEspaña2021”[ProgressofthestudyCEEW,NRDCIndiaandSCGJ(2023),“India’sexpandingcleanofthemacroeconomicimpactofrenewableenergiesinSpain2021],energyworkforce:2022update”,CouncilonEnergy,EnvironmentAsociacióndeEmpresasdeEnergíasRenovables,Madrid,www.andWater;NaturalResourcesDefenseCouncilIndiaandSkillappa.es/wpcontent/uploads/2022/11/Avance_Estudio_Impacto_CouncilforGreenJobs,February,www.indiaenvironmentportal.Macroeconomico_Renovable_2021.pdf.org.in/files/file/renewable%20energy%20employment%20jobs%202023.pdf.Barnard,M.(2023),“China’spurchasingpoweradvantage&Wright’sLawmeanitsgreeninvestmentsgoalotfurther,”CleanTechnica,Chazan,G.(2023),“FranceandGermanyclaimassurancesfrom30January,https://cleantechnicacom.cdn.ampproject.org/c/s/USovergreensubsidies”,FinancialTimes,8February(requirescleantechnica.com/2023/01/30/chinas-purchasing-power-advantagesubscription).wrights-law-mean-its-green-investments-go-a-lot-further/amp/.Chen,R.(2023),“China’smoduleexportshithighin2022”,InfoLinkBhutada,G.(2023),“BreakingdowncleanenergyfundingintheConsulting,3February,https://infolink-group.com/energy-article/InflationReductionAct”,DecarbonizationChannel,21February,solar-topic-Chinas-module-exports-hit-high-in-2022.https://decarbonization.visualcapitalist.com/breakingdown-clean-energy-funding-in-the-inflation-reduction-act/.CHPA(2023),中国热泵产业发展报告2023[Chinaheatpumpindustryreport],ChinaHeatPumpAlliance,Beijing.BloombergPhilanthropies(2023),“NewAfricaRenewableEnergyManufacturingInitiativewillhelpunleash1.2terawattsofrenewableCleanEnergyCouncil(2023),CleanEnergyAustraliaReportenergy,createupto14millionjobs,andincreaseGDPbyoversix2023,CleanEnergyCouncil,Melbourne,Australia,https://assets.percentby2050”,pressrelease,17January,www.bloomberg.org/cleanenergycouncil.org.au/documents/Clean-Energy-Australia-press/new-africarenewable-energy-manufacturing-initiative-will-Report-2023.pdf.help-unle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