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Irena Report Forecasts 40 Million New Jobs from Energy Transition

According to a new Irena research, the energy transition will create an additional 40 million employment in the energy sector by 2050.

A new report from the International Renewable Energy Agency (Irena) anticipates that the energy transition will generate an additional 40 million jobs in the energy sector by 2050. 

Of these, 18 million jobs are projected to emerge within the renewables industry globally. The findings were released ahead of the UN Climate Conference COP28 in Dubai.

Socio-Economic Implications of the Energy Transition:

Irena’s report highlights the socio-economic implications of the energy transition, emphasizing the potential for an average annual GDP increase of 1.5% by 2050 under the 1.5°C pathway aligned with the Paris Agreement. 

Francesco La Camera, Irena’s director-general, underscored the need for policymakers to consider the socio-economic facets of the energy transition alongside technological advancements.

Addressing Climate Concerns and Economic Inequality:

Global concerns about escalating greenhouse gas emissions and resultant temperature shifts have spurred a global shift towards green energy solutions. 

This move aims to limit temperature increases within the 1.5°C threshold. While the energy transition offers economic potential, La Camera stressed the importance of mitigating persistent economic disparities across regions.

Regional Distribution of Renewable Jobs:

The report forecasts a tripling of employment in the renewable sector by 2050 but notes disparities in job distribution. 

Asia is projected to hold 55% of global renewable jobs, followed by Europe (14%) and the Americas (13%). However, Sub-Saharan Africa is expected to have only 9% of these jobs.

Potential Global Economic Reshaping:

Irena’s report highlights regional growth disparities and predicts potential shifts in the global economic landscape. 

While Africa’s per capita GDP is anticipated to double, resource-rich countries may witness faster growth, contributing to regional inequalities. 

Meanwhile, emerging economies like India and China could significantly influence global economic dynamics.

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