Renewable energy jobs saw record growth in 2023, led by China and solar PV

At a glance

“Renewable energy and jobs: Annual review 2024,” by Michael Renner, Celia García-Baños and Arslan Khalid. International Renewable Energy Agency (IRENA) and International Labour Organization (ILO), October 2024. 

This report reveals a significant rise in global renewable energy jobs, which climbed to 16.2 million jobs in 2023 — an 18 per cent increase from the year before. It tracks job growth across key sectors, including solar, wind, biofuels, and hydropower, with solar photovoltaic (PV) now accounting for 7.1 million jobs. China dominates the landscape, accounting for nearly half of all renewable jobs, with notable contributions from the U.S., Brazil, and the EU. These findings highlight the crucial role of renewable energy in driving a just and sustainable transition. Expanding renewables not only creates jobs but also stimulates economic growth and reduces fossil fuel reliance — essential steps to mitigate climate change and limit global warming to 1.5 C. This report underscores the need for a skilled workforce to support this transition effectively.

Key findings

• Significant growth: Global renewable energy jobs reached 16.2 million in 2023, up from 13.7 million in 2022, and is expected to create millions more jobs this decade.
• Leading sector: Solar photovoltaic (PV) jobs grew by 45 per cent year-over-year to reach a total of 7.1 million positions. The sector now accounts for 44 per cent of total renewable energy employment.
• Major player: China dominates the global renewable job sector with 7.4 million jobs, 46 per cent of the global total.
• Steady breeze: Wind power employment increased to 1.5 million jobs, driven by contributions from China, Europe, and the U.S.
• Key contributors: Biofuels supported 2.8 million jobs globally, with Brazil and Indonesia as key leaders.
• Notable decline: Hydropower jobs declined to 2.3 million in 2023 due to slower global capacity additions.

Take a look

Bigger picture

The data in this report illustrates the potential for clean energy to drive sustainable economic growth while reducing dependency on fossil fuels. This transformation is vital for mitigating climate change and fostering resilience in both developed and developing regions. It also gives policymakers a powerful economic and social argument to support the energy transition.

The report also reveals significant regional disparities in renewable energy employment, with China leading the way. Countries like Brazil and India are making strides, but regions such as Africa and Southeast Asia remain underrepresented despite their vast renewable resources. Addressing these gaps is essential for ensuring a just energy transition that benefits all countries and communities, highlighting the need for increased investment in renewable technologies globally.

Looking forward, the report stresses the importance of skills development to support this rapidly growing workforce. As renewable technologies evolve, a diverse and well-trained workforce will be necessary to meet emerging challenges. Policymakers, governments, and private stakeholders must prioritize education and training initiatives, especially in underserved areas, to ensure inclusivity and equity in the transition to sustainable energy. This proactive approach will enhance job creation while empowering communities to participate fully in the global shift towards a greener economy.

Challenges and opportunities

Key barriers to energy transition progress identified in the report:

• Policy uncertainty: Inconsistent policy frameworks hinder long-term renewable energy investments. Policymakers must establish stable, supportive policies to encourage project development.
• Financing constraints: Limited access to capital, particularly in developing countries, restricts the growth of renewable energy projects. Enhanced financial mechanisms and partnerships are essential for attracting public and private investments.
• Skills shortages: The renewable energy sector faces a significant shortage of skilled workers, especially in technical roles. Robust education and training programs are needed to reskill existing workers and prepare the next generation.
• Supply chain issues: Manufacturing delays and material shortages, particularly in solar PV and wind sectors, impede progress. Investment in local supply chains and policies promoting domestic production can alleviate these bottlenecks.
• Geographical disparities: New energy jobs are predominantly created in regions like China, leaving areas such as Africa and Southeast Asia underrepresented. Strengthened international collaboration is needed to support underserved regions.
• Social equity challenges: Workers in traditional energy sectors face displacement risks during the transition. Implementing social policies that prioritize reskilling and protect labour rights is crucial for a just transition.

To address these challenges, the report recommends:

• Enhancing education and training: Education systems should prioritize STEM and vocational training to cultivate a skilled workforce for the renewable energy sector. Governments must integrate renewables into curricula and incentivize industry-led training initiatives.
• Advancing energy storage technologies: Innovations in energy storage, including battery technologies and thermal systems, are critical for grid reliability as renewable penetration increases. Policymakers should support R&D and deployment of these solutions.
• Scaling decentralized energy solutions: Off-grid systems, particularly in rural Africa and Asia, offer significant potential for expanding energy access. Collaboration among governments, NGOs, and private companies can accelerate deployment.
• Strengthening international co-operation: Increased cross-border partnerships are necessary for sharing technology and expertise, particularly between developed and developing nations. This co-operation can help build local capacity and bridge the renewable energy divide.
• Improving industrial policies: Countries should adopt policies that promote domestic manufacturing of renewable components, reducing supply chain risks while boosting local job creation.
• Aligning with climate goals: To meet global climate targets, governments must integrate energy transition objectives into broader economic planning, setting ambitious renewable energy targets and investing in clean infrastructure aligned with international agreements like the Paris Accord.

In their own words

While markets can be helpful in driving technological change, the global common good is not their primary motivation; therefore, there are trade-offs between an energy transition path that is driven by the pursuit of shareholder profits and one that is inspired by a people- and planet-centric vision.

Renewable energy and jobs: Annual review 2024 by Michael Renner et al, International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO), October 2024.

Final thoughts

While the report emphasizes energy job growth in established markets, it lacks a comprehensive analysis of emerging economies that could play a pivotal role in the global energy transition. As industries across various sectors increasingly adopt sustainable practices, collaboration between governments and stakeholders will be crucial to ensure equitable access to clean energy and jobs that benefit all communities.

This report highlights the critical role of renewable energy in achieving global climate goals and fostering economic growth. It underscores that the transition to clean energy is not only vital for reducing greenhouse gas emissions but also presents significant job creation opportunities. However, it could benefit from a deeper exploration of hard-to-decarbonize sectors, such as heavy industry and transportation, where challenges remain in integrating renewable solutions.

Download the full report originally published by the International Renewable Energy Agency (IRENA) on Oct. 1, 2024.