South Africa's move to green energy is creating new jobs, but the benefits are not spread evenly

The country's economy has historically been heavily dependent on coal. About 70% of its energy is generated from coal.. This makes it one of the most carbon-intensive economies in the world.

To reduce greenhouse gas emissions and modernize the energy system, the government is driving the transition towards renewable energy, improved energy efficiency and the development of low-carbon industries. This change is part of South Africa's commitment for a just energy transitionSupported by international partners through Just Energy Transition Partnership.

This change is unfolding in a context of persistently high unemployment. official rate Is 30%. Youth unemployment is particularly serious. In response, policy makers and international organizations have promoted green industrial development and investment in renewable energy as potential drivers of job creation and inclusive growth.

But the extent to which these opportunities will be distributed equally remains an open question.

South Africa's move towards a green economy is often presented by policy makers, international development institutions and energy transition strategies as achieving two objectives: lower carbon emissions and more jobs.

But does the data support this claim?

We are economists working on labor markets, structural change and just energy transitions. recently research paper We started answering the question. In the study we combined South African Labor Force Survey data with occupational information that identifies green occupations – those with environmentally related work activities. This allowed us to track green employment trends over time and examine which sectors and workers have benefited most from the transition.

Our research findings show that green jobs are indeed growing. However, the benefits are uneven. Some sectors and groups of workers are gaining ground. There is a risk of being left behind by others.

South African Commitment to a proper energy The transition implies that workers and communities affected by structural change should not bear disproportionate costs.

But justice is not just about protecting workers in declining sectors. It is also about ensuring that new opportunities are widely accessible.

Where are jobs being created and where are they not?

What counts as a “green job”?

One of the first challenges is to define what a green job is. According to the International Labor Organization, green jobs These are decent jobs that contribute to preserving or restoring the environment. They may be in traditional fields such as manufacturing and construction. Or they may be in newly emerging green areas such as renewable energy and energy efficiency.

In our research, we developed a method to classify green employment in South Africa. We combined South Africa's occupational classification system, which groups jobs according to tasks and skills, with international data linking specific work activities to environmental sustainability.

These jobs include work directly related to renewable energy, energy efficiency, environmental management, waste reduction and sustainable finance.

This approach allowed us to move beyond broad assumptions and measure where green employment is actually occurring in the labor market.

Our findings show that the share of green jobs gradually increases over time from 12.4% in 2022 to 14.8% in 2024. This shows that the transition to a green economy is underway. But this is not happening evenly across the economy.

Green jobs are concentrated in a handful of sectors:

• Utilities, especially electricity and water

• Mining, which includes environmental rehabilitation and renewable energy components

• Construction, especially green buildings and energy-efficient infrastructure

• finance. Jobs are being created here through sustainability reporting and environmental, social and governance investment activities.

These patterns show where regulation, investment and policy signals have been strongest. Government-led initiatives act as key catalysts. Examples include:

• renewable energy purchases

• Environmental compliance requirements – including strict environmental governance – force companies to invest in green technologies and compliance measures. This creates direct demand for environmental, technical and engineering roles.

• Sustainable Finance Initiative. These are shaping labor demand.

Other areas see much less green penetration.

The demographic profile of green employment also reveals important patterns. Green jobs are more likely to be:

• organized by youth workers

• Located in the formal sector; Informal workers are under-represented

• Affiliated with moderate levels of education (including post-secondary or technical qualifications rather than highly specialized vocational degrees)

• Domination of men. Gender disparities are notable.

This shows that green growth does not automatically translate into inclusive growth.

Without deliberate policy intervention, existing inequalities can easily be reproduced in new areas.

What needs to be done

Our findings highlight four policy implications.

First, the skills policy is central.

Many green jobs require specific technical or regulatory competencies. These range from renewable energy engineering and environmental auditing to sustainable finance and compliance expertise.

If education and training systems do not respond quickly, skills shortages could limit job creation. Additionally, workers who do not have access to training may be excluded.

Active labor market policies, vocational training reforms and targeted upskilling programs are therefore important.

Second, change requires regional depth.

Green employment is concentrated in a few industries. Extending the transformation to manufacturing, services and small-scale enterprises could have widespread employment impacts.

This requires a coordinated industrial, energy and trade policy. For example, localization strategies in renewable energy value chains can deepen job creation beyond installation and maintenance.

Third, informal workers should not be ignored. South Africa's informal economy employs millions of people. Yet green employment, as currently structured, is largely formal.

Waste pickers, small-scale recyclers and informal repair services already contribute to environmental sustainability. Integrating and supporting these workers through policy and municipal systems can strengthen both environmental and social outcomes.

Fourth, measurement matters.

Green transition is often discussed in aspirational terms. But policy making requires evidence.

Developing robust methods to identify and track green employment allows governments and stakeholders to monitor progress, assess distributional impacts, and adjust policy accordingly. Without data, the idea of ​​just change remains rhetorical.

The green economy can support employment with the right choices.

South Africa's statistical system could also improve the measurement of green employment. Statistics South Africa may include questions in the labor force survey that are based on environment-related work tasks, skills and training. It could also develop a national classification of green businesses and industries in line with international standards. Better data would allow policymakers to more accurately monitor the employment impacts of the infection.

Our findings do not weaken the case for green growth. On the contrary, they show that change is already reshaping South Africa's labor market. But this process is uneven and path-dependent. It shows where incentives exist, where investment flows occur and where the regulatory framework creates demand.

If policymakers want green transitions to reduce unemployment and inequality, design matters. A green economy will not automatically be fairer. Deliberate, coordinated action is needed to ensure this happens.

Darlington Mushongera, manager of research and development at the South African Qualifications Authority, contributed to this article.

written by jessica bohlmanResearch Specialist, Faculty of Economic and Management Sciences, University of Pretoria; Getrude NjokwePostdoctoral Fellow, University of Pretoria; Kehinde Oluwaseun OmotosoResearch Fellow, DST/NRF SARCHI Chair in Social Policy, College of Graduate Studies, University of South Africa, Pretoria, and Margaret Chitiga-MabuguDean of the Faculty of Economic and Management Sciences, University of Pretoria

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