Uruguay: Leveraging Partnerships to Create Green Jobs and Ensure a Just Transition
Summary
Uruguay transitioned its electricity generation to 98% renewable sources by 2019 through the Energy Policy 2005–2030, significantly increasing wind power capacity and creating over 11,000 jobs in the renewable energy sector by 2018. This transition was supported by tripartite social dialogue involving the government, employers, and unions, as well as technical assistance from the International Labour Organization (ILO). While the shift successfully retired fossil-fuel plants with minimal worker impact through early retirement, it introduced challenges including the privatization of the electricity sector and a reliance on foreign manufacturers for renewable energy equipment.
Key insights
- Uruguay achieved a 98% share of electricity generation from renewable sources by 2019, driven largely by wind power, which saw capacity increase 68-fold between 2010 and 2019 and grew from 1% to 30% of total generation in that period.
- The renewable energy sector's employment grew to more than 11,000 workers by 2018, an increase of approximately 2,600 since 2013. A 2016 assessment estimated that this sector represented about 19% of the country's total 44,108 green jobs.
- The transition involved the retirement of fossil-fueled plants—including 170 MW between 2014 and 2015 and another 405 MW in 2015 and 2016—which was managed through negotiations with the national trade union center (PIT-CNT) and the energy workers’ union to prevent negative worker impacts via early retirement.
- Uruguay piloted the ILO's just transition guidelines through the ILO Green Initiative starting in 2016, funded by Sida and the ILO, and supported by UNDP and GIZ. This effort included a tripartite steering committee and national dialogues to define strategies for green job creation.
- The transition has faced challenges, including concerns over the privatization of the electricity sector, lost public revenue due to investor incentives, and a lack of domestic production for renewable energy equipment, which remains dominated by foreign manufacturers.
Cite the original document
- APA
- World Resources Institute (2021). Uruguay: Leveraging Partnerships to Create Green Jobs and Ensure a Just Transition. https://www.wri.org/snapshots/uruguay-leveraging-partnerships-create-green-jobs-and-ensure-just-transition
- Chicago
- World Resources Institute. Uruguay: Leveraging Partnerships to Create Green Jobs and Ensure a Just Transition. 2021. https://www.wri.org/snapshots/uruguay-leveraging-partnerships-create-green-jobs-and-ensure-just-transition.
- Wikipedia
- {{cite report |author=World Resources Institute |title=Uruguay: Leveraging Partnerships to Create Green Jobs and Ensure a Just Transition |date=1 April 2021 |url=https://www.wri.org/snapshots/uruguay-leveraging-partnerships-create-green-jobs-and-ensure-just-transition |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldresourcesinstitute2021uruguay, author = {{World Resources Institute}}, title = {{Uruguay: Leveraging Partnerships to Create Green Jobs and Ensure a Just Transition}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/snapshots/uruguay-leveraging-partnerships-create-green-jobs-and-ensure-just-transition}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated