Job growth in renewable energy versus fossil fuels

  • The renewable energy sector is expected to grow to 24 million jobs by 2030.
  • Asia accounts for 62% of global employment in renewable energy, with China leading the way.
  • The solar sector is the largest generator of employment, followed by bioenergy and wind energy.

Renewable energy

It can be said that renewable energies create more jobs than fossil fuels, to be more exact about 10 million people worked in the renewable energy sector in 2016.

These data have been obtained in the report of Renewable Energy and Employment of the International Renewable Energy AgencyKnown as IRENA, providing the latest employment figures in this sector and an overview of the factors affecting this job market in the course of the 13th meeting of the IRENA Council.

The director of the agency, Adnan Z. Amin He said: “Falling costs and enabling policies have consistently boosted investment and employment in renewable energy worldwide since IRENA's first annual assessment in 2012, when just over five million people were employed in the sector." He added: "Over the past four years, for example, the total number of jobs in the solar and wind sectors has more than doubled".

This can be clearly seen in the following graph.

As Amin highlighted, the Renewable energy directly supports broader socio-economic goals, with job creation becoming a central component of the global energy transition.

As the scales continue to tip in favor of clean energy, it is estimated that The number of jobs in the sector could reach 24 million by 2030. This growth not only would offset losses in the fossil fuel sector, but could also become a major global economic driver.

Jobs by region and country

What is green employment and what does it consist of?

In terms of geographical distribution, the majority of renewable energy jobs are located in China, Brazil, the United States, India, Japan and Germany. In 2016, China recorded a 3,4% more employees in renewable energy, reaching 3,64 million people.

Asia, as a whole, represents the 62% of total jobs globallyThis is a trend that has remained constant, and is expected to continue with the transfer of installation and manufacturing activities to that region, particularly to countries such as Malaysia and Thailand, which have become global manufacturing centres for photovoltaic solar systems.

In the case of United States, photovoltaic solar energy has been the sector that has generated the most employment. During 2016, jobs in the solar industry grew by 24,5%, and one of the most notable figures is that solar jobs in the United States grew 17 times faster than the country's overall economy.

At the other end of the spectrum, in Japan and the European Union, there were declines in jobs associated with renewable energy, mainly attributed to the reduction in the installation of new solar plants.

The wind sector has also experienced significant growth, with 1,2 million jobs generated by the new facilities, representing an increase of 7% over the previous year.

Finally, bioenergy is another of the key sectors in job creation. China, the United States, India and Brazil are the main markets in this area, with employment in biofuels standing out (1,7 million), biomass (0,7 million), and biogas (0,3 million).

Africa's development and its challenges

The African continent has also begun to benefit from the growth of renewable energy. Currently, it is estimated that there are 62.000 jobs related to clean energy in Africa, with 75% of them concentrated in South Africa and the north of the continent.

The potential for growth in Africa is huge, and in some countries with adequate resources, investments in renewable energy have spurred job creation in manufacturing and installation of large-scale projects. In addition, in rural areas where traditional power grids do not reach, small-scale solar installations are bringing sustainable access to electricity, improving the quality of life for communities and fostering economic development.

Dr Rabia Ferroukhi, Director of Knowledge, Policy and Finance at IRENA, noted that solar mini-grid solutions are enabling rural communities to overcome traditional obstacles and transition to a more decentralized and sustainable energy generation model.

Comparison with jobs in fossil fuels

jobs in renewable energy vs fossil fuels

The fundamental difference between jobs generated by renewable energy and fossil fuel sectors is that the former create more jobs per unit of energy producedIn fact, it is estimated that jobs in renewables are more than five times greater compared to fossil fuels.

Despite the reduction in jobs in sectors such as oil, gas and mining, renewables continue to demonstrate their capacity to generate employment, and do so on a recurring basis. For example, in 2015, while the fossil fuel sector lost more than 280.000 jobs, renewables created 400.000 new jobsBy 2050, renewables are expected to reach up to 84% of total energy sector jobs, while fossil fuels would contribute only 11%.

This increased job-creating capacity is due, in part, to the labor-intensive nature of installing and operating renewable plants, compared to more mature industries such as oil and gas.

There is no doubt that employment in the renewable energy sector has a promising future and is constantly growing. The positive trend, supported by public policies and the increasing adoption of these technologies, should continue with the aim of reducing our dependence on fossil fuels, improving global economic conditions and promoting job creation in key regions of the world.