Energy Transition Risks: Fossil Fuel Sector Workers Face Job Displacement

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Adi Ahdiat 18/11/2022 11:20 WIB

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According to the IEA, the energy transition will create 14 million new jobs in renewable energy and encourage 5 million workers to shift from the fossil fuel sector.

Number of Workers in the Global Fossil Fuel Sector (2019)

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Number of Workers in the Global Fossil Fuel Sector (2019)

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Hundreds of countries worldwide are committed to the energy transition, shifting from fossil fuels to renewable energy. This commitment is expected to reduce carbon emissions, thereby mitigating the risks of climate change.

However, the energy transition's impact extends beyond the environment, encompassing significant social and economic consequences, particularly in employment.

"The energy transition will create 14 million new jobs in renewable energy by 2030 and encourage 5 million workers to shift from the fossil fuel sector," stated the International Energy Agency (IEA) in its September 2022 World Energy Employment report.

According to the IEA report, in 2019, approximately 21.6 million people worked in the fossil fuel sector globally. The largest employer was oil supply, with 8 million workers.

Coal supply employed 6.3 million, natural gas supply 3.9 million, and fossil fuel-based power plants 3.4 million.

The IEA assesses that skilled workers in oil and gas supply possess transferable skills applicable to the energy transition.

"Skilled petroleum engineers are highly sought after for geothermal energy development. Chemical engineers in oil and gas processing can also apply their expertise to green fuel and hydrogen energy production," the IEA stated.

However, workers in coal supply and fossil fuel power plants are deemed less likely to transition to renewable energy.

"The majority of coal sector workers are miners, making them more vulnerable to the energy transition," said the IEA.

"We estimate that approximately 20% of workers in global coal-fired power plants risk job displacement in the clean energy transition. Jobs in oil and gas-based power plants are also at risk," it continued.

Despite this, the IEA believes that workers manufacturing power plant turbines remain employable during the energy transition.

"Construction or manufacturing workers can utilize their skills in designing turbines for hydrogen-based power plants or other renewable energy sources," the IEA stated.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Energy Transition Risks: Fossil Fuel Sector Workers Face Job Displacement

Energy Transition Risks: Fossil Fuel Sector Workers Face Job Displacement

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Energy Transition Risks: Fossil Fuel Sector Workers Face Job Displacement

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