By 2050, the energy transition will generate 40 million more jobs in the energy sector, with renewables alone adding 18 million jobs worldwide, according to a new report by the International Renewable Energy Agency (IRENA) just before the COP28 in Dubai.
The report said that under the 1.5°C pathway that meets the Paris Agreement goals, the world could see an average yearly rise in GDP of 1.5 per cent by 2050.
“I echo the COP28 Presidency’s call for a global renewable energy target as a practical step to implement the Paris Agreement. But policymakers have predominantly concentrated on the technological facets of the energy transition, often overlooking its socio-economic implications,” said Francesco La Camera, director-general of IRENA.
He also said that the energy transition offers great opportunities for boosting the global economy, but the world needs to address the persistent inequality.
While employment in the renewable sector is predicted to increase threefold overall by 2050, jobs in the sector are not evenly distributed among regions.
By 2050, Asia is predicted to account for 55 percent of all renewable jobs worldwide, with the Americas and Europe coming in second and third, respectively, at 14 percent and 12 percent. It stated that only nine percent of the jobs would be in Sub-Saharan Africa.
The report also said that Africa’s GDP per capita is projected to double, with resource-rich nations on the continent likely to experience accelerated growth, potentially widening regional disparities.
However, emerging economies such as India and China are on the brink of substantial expansion, which could potentially transform the global economic order.