The severity of climate crisis reached a new peak in 2023, making it the hottest year on record.  In a historic move during the UN climate summit COP28 in November last year, global leaders acknowledged for the first time in 30 years that the climate crisis is intrinsically linked to the reliance on fossil fuels which led to a unified commitment to transition away from fossil fuels towards renewable energy sources, and to strengthen climate policies and environmental, social, and governance (ESG) reporting standards.

The International Labour Organization has indicated that this shift, underpinned by the adoption of effective green policies, could result in the creation of up to 24 million new jobs globally by 2030. For businesses, this transition necessitates the integration of green skills and climate knowledge into their workforce, as these capabilities are essential for driving the shift towards a low-carbon economy and achieving the United Nations’ Sustainable Development Goals (SDGs). 

According to the LinkedIn Global Green Skills Report 2023, the demand for green skills is set to surpass the available talent pool, with postings for green jobs showing a growth of over 15% in 2023 from the previous year. With the ongoing global initiative to eliminate the use of fossil fuels, the urgency for green skills in the workforce is expected to increase even more rapidly. However, businesses face a significant challenge: prioritizing the development of green skills has not been at the forefront for many organizations until recently.

For instance, a report by PwC indicates that the financial services sector in the United Kingdom is lagging in bridging the green skills gap, which hampers the shift towards sustainable financial and business models. Additionally, there is a noticeable shortage of job candidates equipped with the necessary skills to assist companies in transitioning towards sustainability, complicating the recruitment of suitable candidates.  Furthermore, in Africa, despite its abundant renewable energy resources, fertile lands, and vast natural reserves, coupled with a youthful population where over 70% are under 30, there exists a glaring gap in knowledge and awareness about the green job market among the young workforces. This gap is further widened by insufficient collaboration between educational institutions and the job market, along with ambiguous routes to acquiring the needed training and qualifications. These issues collectively pose a risk to preparing the workforce adequately for the green economy.  

Moreover, new research by the BCG Henderson Institute highlights a critical shortage of green energy workers equipped with right skills in the right place to advance global decarbonization efforts.  BCG estimates that the green economy will face a shortfall of 7 million skilled workers by 2030, particularly in solar, wind, and biofuels technologies crucial for the energy transition. This implies that failure to close this gap could result in a 0.1°C increase in global temperatures, further delaying the deployment of renewable energy sources necessary for reducing carbon emissions.

So, what now? 

In response to climate change, every profession has the potential to contribute towards a greener future. The transformation towards environmental sustainability becomes truly impactful when embraced across all sectors of business. 

• It’s crucial for companies to pioneer the development of jobs focused on environmental sustainability and offer the necessary training to a diverse range of individuals. This approach not only broadens the pool of talent capable of propelling an eco-friendly economy but also cultivates a sustainable ethos within the organization. 

• Offering professional development opportunities, such as apprenticeships that provide a deep understanding of sustainability principles and develop specific skills needed in various industries, is vital for this shift. Now is the moment for corporations to invest in their employees, arming them with the green competencies essential for thriving in the evolving landscape of sustainability.  

• The role of governmental action in fostering the growth of green talent from the outset cannot be overstated. Policy reform and the introduction of more green training avenues, including apprenticeships and intensive training programs, are necessary. These efforts will ensure that young individuals gain early exposure to careers in sustainability, equipping them with the confidence and expertise to pursue environmentally focused professions.  

• For employers, small businesses, in particular, can benefit from collaborating with professional training organizations to gain insights into the requirements of a green economy. Such partnerships can aid in the creation of bespoke training programs that effectively upskill employees, readying them for the demands and prospects of a sustainable future. 

The opportunity for a collaborative effort among local governments, industry stakeholders, educational institutions, employers, and policymakers is evident. By working together, they can establish clear pathways to “green skills” for both existing workers and the younger generation, nurturing a workforce equipped to address the environmental challenges of our era.