Clean energy and quality job creation

EU’s Leadership in Clean Energy Transition and the Importance of Human Capital

With the Green Deal and its REPowerEU agenda, the EU is a front runner in the global clean energy transition. This transition not only addresses environmental concerns but is also vital from a social perspective and ensuring access to affordable energy for all.

Last year, the EU topped the rank in terms of global renewable energies deployment, together with China and before the US. Wind and solar energy represented 22% of the EU’s electricity production, overtaking natural gas for the first time.

The Need for a Strong Industrial Base in the EU

However, such a leadership in renewable energy is not matched by an equally strong position in the manufacturing of net-zero energy technologies. The question of how to secure a strong industrial base in the EU in this fast-growing sector and ensure our strategic autonomy without creating new dependencies is a top priority.

The Importance of Human Capital

In this debate, there is one factor that is often neglected: the importance of human capital. The 2023 Competitiveness of Clean Technologies Report just released by the European Commission gives us a stark reminder.

The EU will need to create 3.5 million new quality jobs in the renewable energy sector to meet its targets. This means more than doubling the existing workforce.

Employment in the EU’s renewable energy sector reached 1.5 million in 2021, a 12% growth compared to 2020, outpacing employment growth in the overall economy. But the job vacancy rate in clean energy manufacturing doubled between 2019 and 2023, creating significant skills shortages.

Energy and manufacturing are among the sectors with the highest training needs in terms of technical and job-specific skills, with over half of the workforce in need of upskilling. Something must be done to invert this trend.

The European Year of Skills

Launched in May 2023, the EU is celebrating the European Year of Skills. A year dedicated to shifting towards a culture of continuous training and a year dedicated to boost implementation of skills policies across the EU.

Under the EU’s Pact for Skills, we have set in motion several public-private partnerships to upskill and reskill our labour force, especially in digital, green and technical areas. These partnerships bring together employers, trade unions, public employment services, regional authorities and others to identify what skills are needed in different sectors of the economy and to make pledges to provide training.

So far, the pact has more than 1,500 members, with 18 large-scale partnerships in place. Members of the pact have invested around €160 million into training activities so far, with two million people already having benefitted.

The EU needs to create 3.5 million quality jobs in renewable energy

EU Funds and Strategic Planning

EU funds are playing a pivotal role in Europe’s skills revolution. Overall, EU funds comprise around €65 billion to invest in skills programmes. The National Energy and Climate Plans also offer a useful tool for member states for the strategic planning of energy-related skills.

Earlier this year, the European Commission put forward the Green Deal Industrial Plan and the Net-Zero Industry Act. Both will boost the EU’s competitiveness by accelerating permitting, facilitating funding access and enhancing skills development in the EU.

Reskilling and Upskilling for Gender Equality

A Skills Academy set up in 2022 by the European Battery Alliance is already coordinating reskilling at European level, providing high-quality training across member states to meet the demand for around 800,000 skilled workers needed in this growing sector. Through the Net-Zero Industry Act, other net-zero sectors will follow suit.

Reskilling and upskilling should particularly be attentive to attract more women to the sectors. The EU’s energy sector is facing a persistent gender employment gap with only 26.6% of the workforce in the electricity, gas, steam and air conditioning supply sector made up of women in 2022. Investments into the skills of the workforce should thus be tailored to increase participation of women in these new clean-tech jobs, starting with campaigns in schools to get more girls to take STEM subjects.

Investing in People for a Clean Energy Future

The clean energy transition offers an unprecedented opportunity for quality job creation. To reap the benefits for our workers, we need to invest heavily in people. Now it’s time for EU member states to think forward and put in place sustainable active labour market policies to ensure that, in years to come, Europe will have the scientists, engineers, installers and all other skilled workers needed to build its clean energy future.

Nicolas Schmit is European Commissioner for Jobs and Social Rights. Kadri Simson is European Commissioner for Energy.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 7: Affordable and Clean Energy

The article discusses the EU’s leadership in renewable energy deployment and the need to ensure access to affordable energy for all.

SDG 8: Decent Work and Economic Growth

The article highlights the need to create new quality jobs in the renewable energy sector, address skills shortages, and promote gender equality in the energy sector.

SDG 4: Quality Education

The article mentions the European Year of Skills and the importance of upskilling and reskilling the labor force through public-private partnerships.

SDG 5: Gender Equality

The article emphasizes the need to attract more women to the clean energy sector and increase their participation in clean-tech jobs.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 7.2: Increase substantially the share of renewable energy in the global energy mix

The EU’s leadership in renewable energy deployment, with wind and solar energy representing 22% of the EU’s electricity production, addresses this target.

Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men

The need to create 3.5 million new quality jobs in the renewable energy sector aligns with this target.

Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training

The doubling of the job vacancy rate in clean energy manufacturing between 2019 and 2023 highlights the need to address skills shortages and provide employment opportunities for young people.

Target 8.8: Protect labor rights and promote safe and secure working environments for all workers

The persistent gender employment gap in the EU’s energy sector and the need to increase women’s participation in clean-tech jobs relate to this target.

Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education

The European Year of Skills and the focus on upskilling and reskilling through public-private partnerships align with this target.

Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership

The emphasis on attracting more women to the clean energy sector and increasing their participation in clean-tech jobs relates to this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions several indicators that can be used to measure progress towards the identified targets:

• Renewable energy represented 22% of the EU’s electricity production, indicating progress towards Target 7.2.
• The need to create 3.5 million new quality jobs in the renewable energy sector indicates progress towards Target 8.5.
• The doubling of the job vacancy rate in clean energy manufacturing between 2019 and 2023 indicates a skills shortage and the need to address Target 8.6.
• The gender employment gap in the EU’s energy sector, with only 26.6% of the workforce being women, indicates the need to address Target 8.8.
• The focus on upskilling and reskilling through public-private partnerships and the European Year of Skills indicates progress towards Target 4.3.
• The emphasis on attracting more women to the clean energy sector and increasing their participation in clean-tech jobs indicates progress towards Target 5.5.

4. SDGs, Targets, and Indicators