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Energy transition and jobs – stories from Germany and the Vietnamese context
The renewable energy industry is growing strongly in many countries with the goal of transforming the energy sector towards greening. At the same time, an increasingly widespread awareness around the world is that economic development must be associated with sustainable and safe energy development.
This transition to sustainable energy is linked to a transformation of the world’s labor and employment markets. The 2023 report, published by the International Renewable Energy Agency (IRENA) and the International Labor Organization (ILO), shows that the renewable energy sector has created significant employment, reaching 12.7 million in 2022, a huge increase from 7.3 million jobs in 2012.
In Germany, a pioneer in setting policies and conditions for a fair energy transition and employment, the labor market has been undergoing major changes, mainly due to the impact of the climate targets set for 2030. Research conducted by the Federal Environment Agency in 2022 shows some clear shifts in the labor market, especially in the renewable energy sector. Between 2000 and 2021, the number of employees in the renewable energy sector increased significantly, reaching around 344,100 in 2021, about three times higher than in 2020. By 2030, the effects on the labor market will be even greater. Despite the high rate of job turnover and significant changes in the employment structure, the overall effects are positive, leading to an increase in the number of jobs. The labor market is expected to expand and create more jobs as industries change to meet climate targets.
To do this, Germany has policies to support both green industry labor groups and traditional energy industry labor groups to transition.
In Germany, the number of new jobs in the renewable energy industry is greater than the number of jobs lost in the traditional energy industry.
Like many other countries in the world, Vietnam is and has been carrying out the energy transition from a higher weight of renewable energy and a lower weight of traditional energy. In the future, many new jobs will be created in the renewable energy industry, but these positions require workers to have basic training and skills suitable for new technology, said Dr. Pham Ngoc Toan – Director of the Center for Analysis and Strategic Forecasting, Institute of Labor Science and Social Affairs.
Germany always accompanies the Vietnamese people
According to international and Vietnamese experts in the product “Vietnam’s Energy Transition – Opportunities and Challenges” (a book under a project co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development, implemented by the German International Cooperation Agency GIZ, and published by Thanh Nien Publishing House), Vietnam needs to consider possible policies for energy transition and job transformation in both the short and long term. First of all, it is necessary to create more “green jobs” with high priority. Next, it is necessary to improve the capacity of workers in the clean energy industry, especially in the field of rooftop solar power, supplementing knowledge and skills for the trained workforce. At the same time, retraining and professional development for workers from the fossil fuel industry, preparing for a green economy.
Experts also do not deny that to achieve these goals, there needs to be a concerted effort from all parties: the Government, ministries, businesses, educational and training institutions, and the transformation of the workforce itself. At the same time, sharing and support from international partners with experience from successful transformation models is essential.
Mr. Santiago Alonso Rodriguez, Counselor in charge of development, Embassy of the Federal Republic of Germany in Vietnam, said: “Vietnam should take advantage of international experiences to be at the forefront of the energy transition process. With a total investment portfolio of up to 1 billion Euros for development cooperation projects in Vietnam, the German Government has implemented many activities to support Vietnam in promoting the energy transition as well as the job transition. For us, all efforts are for the people of Vietnam. Through programs and projects that can aim at a green and fair job transition, the German Government hopes to help create suitable jobs and economic opportunities for the people of Vietnam.”
The practical training course “Installation of rooftop solar power systems in Vietnam” is sponsored by the German Government to prepare for the transition to employment. The program has the participation of 19 teachers from 8 Vietnamese colleges that are implementing vocational training courses oriented according to German standards.
