9 GOVERNANCE AMID THE TRANSITION TO RENEWABLE …
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for developing a balanced and sustainable industry—and not one where
unemployment arises anew once installations are complete.
Globally, increased investment in decarbonized energy systems has led
to sustained employment increases: the International Renewable Energy
Agency (IRENA) estimates 7.3 million jobs created from renewables in
2012, increasing up to 11 million new jobs in 2018. 57 One-third of these
jobs are in solar photovoltaics, primarily in China, with bioenergy and
wind power combining to make up the remainder of non-hydro renewables employment. These improvements have already been realized in
several states across the MENA, where even small-scale renewables investments have increased the share of non-fossil energy while simultaneously
providing much-needed employment in the country. In Egypt, the first
of 41 planned plants of the Benban solar complex opened in 2019 and
employs 650 people; construction of the entire complex is expected to
require more than 10,000 workers, and 4,000 for operations and maintenance activities. In Iran, the modest solar photovoltaic industry employs
roughly 13,500 workers and the wind sector employs 7,100, despite only
accounting for 0.2% of electricity generation. Scaling up installations to
levels currently seen in countries such as Germany and China—where in
2015 renewables provided 370,000 and 3.4 million jobs, respectively 58 —
would not only boost high-skill jobs but also require labor for large-scale
construction. The latter are particularly critical for providing a solution to
unemployment among non-educated youth.
This is directly relevant to the fossil-dependent countries, who for
decades have struggled with unemployment—which, in part, is a direct
consequence of their reliance on fossil industries. The oil and gas sector,
for example, is a highly capital-intensive industry, one which requires very
little labor. In the United States, the top global oil producer at 3.3 billion
barrels per year, the oil industry only employs roughly 170,000 people.
Not only that, but fossil fuel dependency actively crowds out jobs in other
sectors. This is one aspect of the economic resource curse. Fossil exports
cause exchange rates to work against exporters in non-fossil sectors such
as agriculture, manufacturing, and services (i.e., the ‘Dutch Disease’) and
governments over-invest in fossil extraction at the direct cost of investing
in non-fossil segments of the economy. 59 Shifting away from fossil dependence thus provides a net benefit in terms of national employment, even
if this turn is not directed toward decarbonized industries.
251
for developing a balanced and sustainable industry—and not one where
unemployment arises anew once installations are complete.
Globally, increased investment in decarbonized energy systems has led
to sustained employment increases: the International Renewable Energy
Agency (IRENA) estimates 7.3 million jobs created from renewables in
2012, increasing up to 11 million new jobs in 2018. 57 One-third of these
jobs are in solar photovoltaics, primarily in China, with bioenergy and
wind power combining to make up the remainder of non-hydro renewables employment. These improvements have already been realized in
several states across the MENA, where even small-scale renewables investments have increased the share of non-fossil energy while simultaneously
providing much-needed employment in the country. In Egypt, the first
of 41 planned plants of the Benban solar complex opened in 2019 and
employs 650 people; construction of the entire complex is expected to
require more than 10,000 workers, and 4,000 for operations and maintenance activities. In Iran, the modest solar photovoltaic industry employs
roughly 13,500 workers and the wind sector employs 7,100, despite only
accounting for 0.2% of electricity generation. Scaling up installations to
levels currently seen in countries such as Germany and China—where in
2015 renewables provided 370,000 and 3.4 million jobs, respectively 58 —
would not only boost high-skill jobs but also require labor for large-scale
construction. The latter are particularly critical for providing a solution to
unemployment among non-educated youth.
This is directly relevant to the fossil-dependent countries, who for
decades have struggled with unemployment—which, in part, is a direct
consequence of their reliance on fossil industries. The oil and gas sector,
for example, is a highly capital-intensive industry, one which requires very
little labor. In the United States, the top global oil producer at 3.3 billion
barrels per year, the oil industry only employs roughly 170,000 people.
Not only that, but fossil fuel dependency actively crowds out jobs in other
sectors. This is one aspect of the economic resource curse. Fossil exports
cause exchange rates to work against exporters in non-fossil sectors such
as agriculture, manufacturing, and services (i.e., the ‘Dutch Disease’) and
governments over-invest in fossil extraction at the direct cost of investing
in non-fossil segments of the economy. 59 Shifting away from fossil dependence thus provides a net benefit in terms of national employment, even
if this turn is not directed toward decarbonized industries.