Investigating the Energy Transition’s Job Creation Promise in Coal-Producing Countries: South African case study

Introduction

As the global community works to transition towards the increased use of cleaner energies, it is critical to ensure that no one is left behind. In this regard, there are several groups of workers that could be disproportionately affected by the energy transition, including coal miners. This blog investigates whether the energy transition’s job creation promise will truly be fulfilled in relation to coal miners that bear the risk of unemployment due to the transition. 

What is the energy transition?  

The energy transition involves the global community’s shift from the use of fossil fuels to largely relying on clean and renewable energy sources. These renewable energy sources include, inter alia, wind, solar, geothermal, and hydropower. It entails moving away from how energy is currently “produced, distributed, and consumed”. The energy transition is a result of the need to tackle the issue of climate change by reducing CO2 emissions and pollution. Climate change negatively impacts both people and other living beings on earth, such as animals and plants. Examples of such negative impacts include, inter alia, droughts, extreme rainfall, and wildfires. This in turn leads to threats such as damaged ecosystems, the spread of diseases, affected food security, endangered livelihoods, and loss of lives. It is therefore vital that the climate crisis be addressed. Simultaneously, the transition must be conducted in a fair and equitable manner. Resultantly, within the energy transition discourse, the concept of a “just” energy transition has emerged. 

The Just Energy Transition explained 

The just energy transition refers to the idea that “it is not just about ending the era of fossil fuels, it is about doing so in a fair way”. The transition should not negatively impact the environment, society, livelihoods, and jobs. For the transition to be just, certain factors must be considered. These include the socio-economic impacts on employees and communities of shutting down fossil fuel power plants. If there is to be a shift away from the use fossil fuels, what will happen to the employees in these industries? For instance, a move away from the use of coal would not only impact coal workers, but also the larger communities whose local economies depend on coal production. The next section of this blog investigates the energy transition’s job creation promise and uses South Africa as a case study. 

Will the new clean energy-related jobs benefit fossil fuel sector workers without formal qualifications? 

Energy transition discourse often argues that the jobs lost due to the energy transition will be replaced by clean energy jobs. For instance, it has been stated that the energy transition will result in significant job creation in the energy and associated sectors. However, in terms of skill sets, these jobs do not necessary align with the fossil fuel jobs that will be lost. This is especially in relation to semi-skilled workers, and this is elaborated further below. 

In a 2024 Research Report conducted by several parties in South Africa including the country’s Department of Higher Education and Training, it is stated that the hydrogen economy will require professionals such as engineers, technicians, and specialists, as well as managerial employees, with the least amount of occupations being elementary-level. Statistics such as these raise concern in a coal-producing country like South Africa, where most of the coal-mining workers work in semi-skilled roles. 

It is therefore clear that the idea of job creation in the just energy transition is not clear-cut. Although jobs will be created, they may not necessarily target semi-skilled workers in fossil-fuel related jobs such as coal miners. Reskilling and upskilling are essential, although this too is not clear-cut. Clean energy policies and laws should clearly state how the most affected workers are going to be absorbed into the energy sectors’ workforces. If this is not possible, plans for changes in sectors of employment for affected fossil fuel workers should be considered. “A transition that does not find alternative jobs for displaced workers will not be socially and politically acceptable”. 

Conclusion

It is evident that emerging clean energy sectors create several jobs. However, most of these jobs require highly skilled personnel. It is therefore not enough to expect citizens to stand on the promise that these sectors will bring new jobs with them. Governments must develop specific strategies tackling how affected workers without formal qualifications in the fossil fuel sectors are going to be absorbed into the new clean energy sectors or transferred to other sectors of employment. For instance, one such strategy could entail offering tax incentives to organisations that hire former fossil fuel workers.