Clean Energy Investments Driving Global Job Creation, Finds Study

Clean Energy Investments Driving Global Job Creation, Finds Study Photo: Pexels

Investment in the manufacturing of clean energy technologies, especially solar PV and batteries is expediting the process of creating new jobs and employment opportunities, according to a new report published by International Energy Agency. The agency said that investments related to clean energy technologies have become a powerful economic driver globally.

The global investment in the manufacturing of five key clean energy technologies – solar PV, wind, batteries, electrolyzers, and heat pumps – rose to USD 200 billion in 2023, an increase of more than 70% from 2022 that accounted for around 4% of global GDP growth.

IEA report stated that spending on solar PV manufacturing more than doubled last year, while investment in battery manufacturing rose by around 60%. As a result, solar PV module manufacturing capacity today is already in line with what is needed in 2030 based on the IEA’s net zero emissions scenario. Around 40% of investments in clean energy manufacturing in 2023 were in facilities that are due to come online in 2024.

Clean energy manufacturing is still dominated by a few regions. China, for example, is currently home to more than 80% of global solar PV module manufacturing capacity. However, the report finds that the manufacturing of battery cells could become less geographically concentrated by the end of this decade. The report also stated if all announced projects are realised, Europe and the United States could each reach around 15% of global installed capacity by 2030.

New data and analysis based on plant-level assessments of more than 750 facilities indicate that China remains the lowest-cost producer of all clean energy technologies. Battery, wind, and solar PV manufacturing facilities are typically 20% to 30% more expensive to build in India than in China, and 70% to 130% more in the United States and Europe.

Last year, India recorded an estimated 988,000 renewable energy jobs in 2022, with hydropower leading as the top employer with 466,000 jobs. Solar photovoltaic (PV) followed closely, engaging 282,000 individuals in both on-grid and off-grid systems. The country witnessed a significant uptick in its solar capacity, adding 13.5 GW of solar PV in 2022, a rise from 10.3 GW the previous year, marking new record installations for India.