The Impacts of Skills Shortages on Global Power Sector Emissions

The study warns that failing to meet 40-80% of new labour demand for the energy transition could result in a shortfall of 6 million workers by 2030, leaving renewable capacity 10% below targets and driving power sector emissions 12% above 2030 pledges. Such a delay could shift the sector's warming pathway from 1.7°C to 2.4°C. The research identifies ageing populations, education gaps, and slow worker transitions from fossil fuels as primary constraints, and proposes the Labour Market Transition Potential Index to evaluate national workforce mobilisation potential.

• Tripling global renewable power capacity by 2030 may require the power generation sector workforce to grow from 12.5 million workers in 2021 to 47 million by 2030, with a focus on manufacturing, installation, and operation.
• If only 20 to 60 percent of new labour demand is met, a shortfall of up to 6 million workers by 2030 could leave global renewable generation capacity nearly 10 percent below pledged targets.
• A slower renewable rollout due to labour shortages could drive power sector emissions 12 percent above 2030 pledges and more than double them by 2045, potentially shifting the sector from a 1.7°C warming pathway toward 2.4°C.
• Workforce availability is constrained by ageing populations, low labour force participation, limited inward migration, and education systems that fail to keep pace with demand, especially in developing countries.
• Transitions from fossil fuel to renewable energy sectors are limited by mismatches in timing and location, insufficient retraining support, and differing job characteristics, despite overlapping skill sets.

APA

NewClimate Institute (2025). The Impacts of Skills Shortages on Global Power Sector Emissions. http://www.newclimate.org/resources/publications/the-impacts-of-skills-shortages-on-global-power-sector-emissions

Chicago

NewClimate Institute. The Impacts of Skills Shortages on Global Power Sector Emissions. 2025. http://www.newclimate.org/resources/publications/the-impacts-of-skills-shortages-on-global-power-sector-emissions.

Wikipedia

{{cite report |author=NewClimate Institute |title=The Impacts of Skills Shortages on Global Power Sector Emissions |date=9 October 2025 |url=http://www.newclimate.org/resources/publications/the-impacts-of-skills-shortages-on-global-power-sector-emissions |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2025impacts, author = {{NewClimate Institute}}, title = {{The Impacts of Skills Shortages on Global Power Sector Emissions}}, institution = {NewClimate Institute}, year = {2025}, month = oct, url = {http://www.newclimate.org/resources/publications/the-impacts-of-skills-shortages-on-global-power-sector-emissions}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }