One million new people joined the renewable energy industry globally in 2022, according to new figures from the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO).
Given the growing importance of generating clean electricity for countries around the world, it’s unsurprising to see the renewables market grow at such a rapid pace. In fact, the pace is so fast that the number of people working within the renewable energy industry has almost doubled within the past decade – with 13.7 million people in 2022 vs 7.3 million in 2012.
The report found that renewable energy is attracting increasing investment, leading to job creation in a growing number of countries. However, as in previous years, most of the jobs are concentrated in a few states, notably China, which accounts for 41% of the global total.
Brazil, European Union (EU) countries, India and the United States of America were among the others. Together they represent the majority of global capacity installations and play key roles in the manufacturing of equipment, engineering and associated services.
The United Kingdom has also seen significant job growth in the renewable energy sector – with a report from PwC last year estimating that renewable energy jobs were growing four times faster than the rest of the UK market. According to the Office for National Statistics’ latest figures, which were released in February 2023, around 247,400 people work in the renewable energy sector in the UK, that’s up from the 207,800 reported in February 2022.
It’s thought that the UK market could see more growth in the coming years, with the lifting of the onshore wind ban likely to have a notable impact. However, many have grown concerned about the Government’s commitment to the industry, with recent announcements by the Government potentially leading many investors to reconsider the UK as a reliable source of investment. Pair this with the recent failure to secure any new offshore wind during the most recent Contracts for Difference auction, and it’s easy to see the bumps in the road ahead for the renewable industry in the UK.
Solar continues to lead the renewables industry
Despite the UK’s recent woes, the global market is faring much better – bolstered by the recent explosion in investment that has mostly targeted solar. In fact, of the $358 billion of investment the renewable industry received globally in the first half of 2023, $239 billion of it went to solar, marking a staggering 43% rise compared to the first half of 2022.
That investment is also reflected in jobs. Solar photovoltaics (PV) was once again the largest employer in 2022, according to IRENA’s stats, reaching 4.9 million jobs, more than a third of the total workforce in the renewable energy sector. Hydropower and biofuels had similar numbers of jobs as in 2021, around 2.5 million each, followed by wind power with 1.4 million jobs.
Francesco La Camera, IRENA Director-General, noted that, “2022 was another outstanding year for renewable energy jobs, amid multiplying challenges. Creating many more millions of jobs will require a much faster pace of investments in energy transition technologies. Earlier this month, the G20 leaders agreed to accelerate efforts to triple global renewables capacity by 2030 aligned with our recommendations ahead of COP28. I call on all policy makers to use this momentum as an opportunity to adopt ambitious policies that drive the needed systemic change.”
Gilbert F. Houngbo, ILO Director-General, added, “To seize the significant opportunities to attain full, productive and freely chosen employment, social inclusion and decent work for all during these complex transitions, there is a need to develop and implement specific policies for inclusive macroeconomic growth, sustainable enterprises, skills development, other active labour market interventions, social protection, occupational safety and health and other rights at work, and find new solutions through social dialogue.”
