Channeling investments into renewables and energy efficiency could create three to five times more jobs than fossil fuels worldwide, indicating that reaching a net zero economy would potentially yield a net benefit on job creation, according to UK Energy Research Centre (UKERC).
The study found that for every £1 million invested, renewable energy creates three times the number of jobs compared to fossil fuels, while energy efficiency investment can unlock five times as many jobs as coal, oil or gas.
“Overall, policy support for, and investment in, low carbon energy (including renewables) and energy efficiency can deliver more jobs than gas or coal power generation.
“At least in the short to medium term, policies supporting investments in domestic construction projects such as insulation retrofits or building renewables could be more effective at creating jobs than fossil fuel generation.”
Report
Referencing a number of studies from other international sources, the authors assessed the number of jobs which can be created by policy support for investment in low carbon energy and energy efficiency compared to supporting fossil fuel incumbents.
Although the study provided evidence indicating that jobs created by the green energy industry was limited, it cited UK statistics showing there were 200,000 people working in the sector in 2019, and that, based on projected trends, that figure was likely to rise to 552,300 by 2050.
In particular, it stressed that “widespread opportunities exist for jobs that would be needed across the country such as energy efficiency improvements and the delivery of low carbon heat solutions”.
Calls for Nationwide Energy Efficiency Drive
Reverberating the widespread calls across the UK green economy in the wake of high cost of living amid the Russia-Ukraine war, the authors called for a nationwide energy efficiency drive, which they stated could deliver a major jobs boost throughout the country.
“There is also a need for a new nationwide programme of energy efficiency and heat decarbonisation retrofitting in UK buildings which could help to stimulate ongoing, countrywide demand for low carbon jobs over several decades.”
Report
Alluding to a 2010 review of direct, indirect and induced employment factors over technology lifetimes in the US and Europe, the authors said there was high job creation potential for solar PV at 0.87 job-years per annual GWh produced, compared to 0.17 and 0.14 job-years/annual GWh for wind and nuclear power respectively, and 0.11 job-years/annual GWh for natural gas and coal generation. The equivalent value for energy efficiency is 0.38 job-years/annual GWh saved the report found.
That said, authors of the report noted that “overall, a shift to renewable energy generation from fossil fuel based or nuclear sources may deliver an increase in jobs, on both a gross and net basis”.
Furthermore, the report reveals that, the net employment of renewable energy or energy efficiency investment account both for jobs that are created, as well as jobs that might be displaced in other parts of the economy as a result of the investment.
However, the researchers admitted that further research is needed on the quality of jobs available in the green energy industry. “It is desirable that a low carbon transition should create quality jobs, which are characterized in the literature in terms of adequate wages and employee rights, fulltime employment, safe working conditions, and permanent rather than temporary jobs.”
For long-term job opportunities, especially for those involved in projects such as smart meter installation also requires “further exploration”, as well as careful coordination of policies on green skills training and apprenticeships, the report recommends.
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