In this report we present findings from a systematic review of international literature on low carbon job creation, quality, and skills.
Watch a short video summarising the report here:
The net employment impacts of a 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. This report therefore addresses the following research question:
How many jobs can be created by policy support for investment in low carbon energy and energy efficiency compared to supporting fossil fuel incumbents?
The review identifies a variety of approaches used to estimate the quantity of low carbon energy job creation. It finds that much greater standardisation of methods would be desirable in order to compare how many jobs can be created by policies supporting low carbon energy and energy efficiency, both at a project scale and a wider societal level. Our findings also underline a relative lack of metrics and data measuring quality, skills, and geographic distribution of low carbon job creation, and these should be priority areas for further research.
Key findings:
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 investment in domestic construction projects such as insulation retrofits or building renewables could be more effective at creating jobs than fossil fuel generation.
Renewable energy was found to create three times as many jobs per £million invested as compared to fossil fuels, and for energy efficiency this rises to a fivefold increase.
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.
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.
Green skills supply and demand, including access to and provision of training and apprenticeships, will need to be carefully co-ordinated with policies supporting green job creation.