2.1 Lack of robust measures to characterise and project the future energy workforce in Australia

To meet the requirements of the Paris Agreement, the global energy system must reach net zero emissions by 2050.3 The nature of this energy system transformation involves changes to how energy is produced, how it is distributed and how it is used. This kind of transformation involves significant shifts in employment and skills development in the energy sector. To begin approaching this challenge, Australia needs to understand its current position in comparison to where it needs to be by 2030 to deliver net zero by 2050. This opportunity assessment sought to identify a pathway to manage development of the workforce by breaking down the energy sector workforce needs, the skills and training gaps, and by identifying the role innovation can play in the transition.

In 2002, the NSW Government’s then Sustainable Energy Development Authority (SEDA) managed a nationwide survey on direct and indirect employment in renewable energy and energy efficiency. Based on the survey data, SEDA developed estimates of the total economic and employment contribution of the clean energy industry.

Since the SEDA surveys, there has been no systematic, nationwide study undertaken of employment in clean energy (defined as renewables and energy efficiency). The Australian Bureau of Statistics (ABS) has released estimates of annual direct full time equivalent (FTE) employment in renewable energy activities in Australia since 2015, covering the period 2009/10 to 2018/19. However, this is primarily based on employment factors and publicly available data (Australian Bureau of Statistics, 2020a); it is not based on industry surveys and does not include energy efficiency employment or indirect employment.

Various industry bodies and independent agencies have undertaken studies that cover different aspects of employment in the clean energy industry in Australia – see Appendix 2. However, only one of these, the 2020 Clean Energy Council study (Briggs et al., 2020), incorporated an industry survey, and that survey was limited to the renewable energy sector.

While these studies have taken important steps to understanding the contributions of the clean energy industry in Australia, they are not a substitute for systematic tracking of the sector. The lack of robust, systematic, comparative annual/ biennial data on clean energy employment means that it is not possible to adequately track its contribution to employment and the Australian economy over time. Further, this prevents a deeper understanding of the current energy workforce and the training and standards required to support its growth and transition.

The data that has been produced does, however, identify the clean energy sector as important, both as an employer and economic contributor, and shows that it is growing significantly. Systematic data collection such as the surveys conducted in the U.S. and UK could inform policies that impact on the sector, support coordination, planning and investment, and help to identify and address skills and labour gaps.

3 Net zero emissions is defined as the sum of low, zero or negative emissions activities across the economy resulting in no net increase in greenhouse gas emissions being added to the atmosphere.