Receive free Employment updates
We’ll send you a myFT Daily Digest email rounding up the latest Employment news every morning.
Politicians have long claimed that the pathway to achieving net zero is through job creation. The US president, Joe Biden, often emphasizes the link between climate and jobs, stating, “When I think climate, I think jobs.” This sentiment has been echoed by Sir Keir Starmer, the Labour opposition leader in the UK, who believes that the green transition can bring hope to communities impacted by deindustrialization in the 1980s.
I’ve always been skeptical of this optimistic narrative. While I don’t doubt its feasibility, I believe it will be a challenging endeavor that requires policymakers to acknowledge trade-offs they would prefer not to discuss. In recent weeks, the realities of this transition have become harder to ignore.
Why is achieving a win-win situation for workers and the planet so difficult? On paper, the challenge seems manageable. According to calculations by the IMF, the green transition would only require reallocating 1% of employment in advanced economies and 2.5% in emerging markets over the next decade. This is a less dramatic shift than the transition from manufacturing to services in the 1980s, which involved a 4% shift per decade. Additionally, “green” jobs tend to pay almost 7% more than “brown” jobs, providing an incentive for individuals to make the switch.
However, in reality, people don’t transition as easily as numbers on a spreadsheet. There are geographical disparities, with green jobs concentrated in capital regions and brown jobs located in regions with lower GDP per capita. Retraining is also an issue, as only 12% of individuals in brown jobs participate in lifelong learning or training compared to 19% in “neutral” and green jobs.
Delving deeper into specific sectors at the forefront of the green transition reveals further challenges. Industries such as energy, cars, and steel are adopting less labor-intensive processes, which benefits consumers but poses a threat to workers.
This month in the UK, the decarbonization deal for Port Talbot’s steelworks exemplified how the narrative around green jobs can turn sour. The government agreed to provide subsidies to Tata Group, resulting in the loss of 3,000 jobs due to the transition to an electric arc furnace. Unions criticized the decision, advocating for an alternative plan involving hydrogen that could have preserved jobs but at a higher cost and slower timeline. The government defended its decision, highlighting the additional 5,000 jobs secured through the agreement.
The attack line was clear, and Labour capitalized on it, accusing the Tories of spending taxpayers’ money to make workers redundant. While the government pledged funds for regeneration and retraining, communities like Port Talbot have heard similar promises before with limited results. The steel industry jobs in the area offer higher wages compared to other available positions, making the loss a significant blow.
In the US, the Biden administration has made efforts to ensure a just transition by offering additional incentives to clean energy companies that invest in former coal regions. However, concerns persist that these measures may not be sufficient. Furthermore, the clustering of new electric vehicle plants in states with lower labor standards and unionization rates has sparked discontent among unions.
Germany is exploring more innovative approaches, such as negotiating a four-day week for steel workers to address the decline in labor demand. The focus is on incorporating workers’ interests into the decision-making process, recognizing that difficult choices lie ahead.
The worst approach would be to exclude workers from these conversations and dismiss their concerns as climate change denial or populism. Failing to include workers only drives them away from supporting the green transition. As one steelworker in Port Talbot put it, some individuals simply prefer their job over the promises of a green future.
Sarah O’Connor is going on book leave and will be back in April 2024
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
