This article explores the key findings from IRENA’s report 2024 Renewable Energy and Jobs, examining how trends in renewable energy deployment and supply chain localization are influencing job creation both now and in the future. In the article you will find:
- Key factors for an inclusive energy transition and the trends in green jobs by sector, with a particular focus on concentrated solar power (CSP), geothermal energy and heat pumps.
- Analysis of regional trends in renewable energy job creation, with a special emphasis on China, the USA and Europe.
- Consideration on the policies required to ensure that green jobs in these sectors are not only abundant but also inclusive, sustainable and equitable.
Key factors for an inclusive energy transition
Achieving a sustainable energy future requires a comprehensive approach that addresses not only technological advancements but also the social, economic, and environmental dimensions of the transition. Key to this process are these essential factors that must be prioritized to ensure success and equity for all. These factors include:
- Skills development
A skilled workforce is fundamental to the success of the energy transition, particularly for young people who will play a leading role in shaping the future. Beyond making individuals more employable, education and training in new technologies are crucial for meeting climate goals. Lifelong learning and skill-building initiatives are essential for adapting to the changing demands of the green economy. - Diversity and inclusion
Women, especially in remote and underserved areas, can play a transformative role in scaling up renewable energy. However, beyond gender, there is a significant lack of data on the diversity of the workforce in most countries, making it difficult to assess the broader inclusivity of the renewable energy sector - A people- and planet-centric energy transition
The global shift to clean energy must be driven by public policies, private sector initiatives, and civil society actions that prioritize environmental, economic, and social sustainability. While markets can encourage technological progress, they are often motivated by profit rather than the global common good. As a result, there are trade-offs between profit-driven transitions and the need for a just, inclusive energy system that ensures widespread, equitable benefits for all. - International cooperation
Greater international cooperation is necessary to ensure that the socio-economic benefits of the energy transition, such as job creation, are more equitably distributed, particularly in marginalized regions. For instance, from 2000 to 2020, Africa received a mere 2% of the world’s total renewable energy investments, which amounted to USD 2.8 trillion (IRENA and CPI, 2023). Despite its abundant renewable resources, Africa continues to face significant energy access challenges and the need for sustainable jobs are urgently needed.
Global renewable energy employment trends
This figure provides an in-depth look at global employment by renewable energy technology in 2023, highlighting the leading sectors of Solar PV, liquid biofuels, hydropower and wind, which together dominate the job market in the renewable energy sector. While other technologies contribute to global employment, they remain smaller in scale, less dynamic and employ fewer people.
The global renewable energy employment in the geothermal sector, as shown in the graph above, is 160 thousand. This figure could increase if the full potential of geothermal energy were maximized. A study conducted by The European House Ambrosetti for Rete Geotermica estimated that the geothermal sector plays a key role in job creation, generating around 6,131 new jobs for every GW installed.
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The graph below illustrates the number of direct, indirect and induced jobs created by the investment required for 1 GW (in thousands).
Similarly, heat pumps, with 375 thousand global renewable energy jobs, are expected to see significant growth.
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Concentrated solar power: job creation and economic impact
CSP is a technology that, while smaller in scale compared to other renewable energy sources, has seen steady development since the 1990s. The early stages of CSP deployment occurred primarily in the United States and Spain, where parabolic trough and power tower technologies were first tested. By 2010, global CSP capacity began to grow significantly, reaching over 4 GW by 2014. Countries like China, Morocco and the UAE have been key players in the global rise of CSP, with the technology benefiting from government policies like auctions and feed-in tariffs. Spain’s early adoption and policy model also influenced CSP development in other nations, such as India and China. However, since 2019, growth in the CSP sector has slowed, with global capacity reaching 7 GW in 2023 (IRENA, 2024a).
The graphic below illustrates the distribution of labour and skills required along the value chain for the development of a CSP plant with a 100 MW capacity and 10-hour thermal energy storage (TES).
CSP presents strong job creation potential across its value chain, particularly in engineering, procurement, construction (EPC), operation and maintenance (O&M) and decommissioning. A CSP plant with 100 MW capacity and 10-hour thermal energy storage is estimated to require 1.16 million person-days across the value chain.
In addition to job creation, CSP can contribute to economic growth by enhancing grid flexibility and reliability. To meet Paris Agreement targets, CSP capacity must reach 196.7 GW by 2030 and 872.6 GW by 2050, requiring significant investments. This expansion promises energy security, job creation, and a more resilient energy grid (IRENA, 2024d, forthcoming).
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Heat pump sector: growth and job creation
The heat pump industry has seen significant growth in recent years, particularly in China, the United States, Europe, and Japan. Between 2020 and 2022, global sales of heat pumps rose from 84 GW to 111 GW. China led the market, with 35 GW sold in 2023, while sales in Europe, North America, and Japan saw a slight decline due to policy changes and other factors. Despite the slowdown, investments in heat pump manufacturing continued to surge, with global production capacity increasing from 120 GW in 2021 to 139 GW in 2022.
As demand for heat pumps grows, the sector is creating numerous jobs, particularly in manufacturing, installation, and maintenance. In Europe alone, approximately 169,000 people were employed in the heat pump industry in 2023. In China, the sector employed 133,000 people, and the industry is expected to grow substantially in the coming years, potentially reaching 400,000 jobs by 2030. With this growth, there is a rising need for specialized training and upskilling in trades such as plumbing, electrical work, and heating system installation.
Global growth in renewable energy employment
In total, the global renewable energy workforce reached 16.2 million jobs in 2023, a significant increase from 13.7 million in 2022. China continues to be the largest employer in the sector, with 7.4 million jobs, accounting for nearly half (46%) of global renewable energy employment. Other notable contributors include the European Union (1.8 million jobs), Brazil (1.6 million) and the United States and India, each with just over 1 million jobs.
The graphic below illustrates the distribution of renewable energy employment across selected countries and regions, showcasing the key global players in the sector.
While the following graphic provides an overview of the estimated direct and indirect jobs generated by various renewable energy industries worldwide in 2023.
In China, the heat pump industry employed approximately 133,000 people in 2023, with 40% of jobs in manufacturing and the remaining 60% in sales, installations, and services (CHPAlliance, 2023). The concentrated solar power (CSP) sector saw significant growth, employing 98,300 people, a sharp increase from 59,400 in 2022. This rise was mainly driven by new construction, which accounted for over half of the total jobs. Meanwhile, the geothermal heat and power sector offered 93,900 direct jobs in 2023, up from 87,000 the previous year, with most positions in operation and maintenance (O&M) for heating technologies (CRES, 2024).
In the United States, renewable energy continues to be a significant source of employment. In 2023, solar heating and cooling created 29,652 jobs and geothermal power contributed 8,870 positions, as reported by the US Department of Energy (2024b). Beyond these, the broader energy transition supported 147,322 jobs in various related sectors, and the energy efficiency industry alone employed about 2.2 million people. Overall, IRENA estimates that approximately 1.06 million people in the US were employed in renewable energy in 2023.
Europe remains a key player in the global clean energy transition, with its countries collectively among the top installers of renewable energy capacity. However, the ability to manufacture renewable energy equipment for domestic markets varies significantly across the region. The EU member states show a mixed picture in terms of production capacity. In 2023, Europe’s renewable energy sector employed 2.05 million people.
Policy recommendations for a successful energy transition
Achieving a successful energy transition requires strong coordination and coherence between policies related to energy, skills development and employment. By aligning these areas, we can avoid redundancy and ensure that efforts are focused and effective. This transition will demand active collaboration from governments, employers, workers, civil society and education and training providers. At the heart of these efforts lies social dialogue, which is crucial for creating and implementing effective energy strategies. A practical example of this approach is the Sectoral Human Resource Development (HRD) Plan on Renewable Energy in the Philippines, which demonstrates how coordinated action across different sectors can drive meaningful progress in the renewable energy space.
Conclusion
IIn conclusion, regional production and innovation in renewable energy offer a powerful opportunity to drive job creation and economic growth. However, a successful and sustainable energy transition goes beyond technological advancements. It requires an approach that invests in workforce training, encourages diversity and inclusion, and ensures that policies are aligned with broader environmental, social, and economic objectives. To make these opportunities available to all, governments and businesses must implement policies that prioritize equity, creating green jobs that are accessible to a wide range of communities.
Want to learn more? Read the full report here.
Interested in how Exergy’s cutting-edge technologies can support your business in achieving energy transition goals? Explore our geothermal, heat pump, and CSP solutions.
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