Beyond Megawatts: Why Clean Energy’s Real Test Is Creating Jobs, Skills and Better Livelihoods

The clean-energy transition could become a major engine for youth employment, entrepreneurship and development, but gaps in skills, finance, mentorship and practical experience remain major barriers. Governments, development partners and businesses must link renewable-energy investment with workforce training, youth-led enterprises and inclusive policies to turn expanding energy markets into lasting economic opportunities.

The global clean-energy transition is creating new industries and jobs, but its success will depend on whether young people can gain the skills, finance and opportunities needed to participate. The United Nations Development Programme (UNDP) and youth platform Goodwall, drawing on engagement with more than 58,000 young people across more than 180 countries, argue that sustainable energy should be treated not only as a climate and infrastructure priority but also as a strategy for employment, entrepreneurship and development.

The opportunity is significant. Around 655 million people globally still lack electricity, while renewable-energy employment reached about 16.6 million jobs in 2024, up from 7.3 million in 2012. Solar photovoltaic energy alone accounted for roughly 7.2 million jobs. With around 1.2 billion people aged 15–24 worldwide, governments have an opportunity to connect expanding clean-energy markets with the employment needs of a large young workforce.

Green Jobs Are Growing, but the Pathway Is Still Broken

Young people are interested in sustainable energy, but many struggle to see how that interest can become a career. In the UNDP-Goodwall initiative, 55,314 participants completed the full learning journey, while 74% of follow-up survey respondents said they wanted to explore clean-energy careers.

The problem is therefore not simply generating interest. Young people reported gaps in technical skills, practical experience, mentorship, professional networks, finance and information about available opportunities.

Governments should respond by connecting energy strategies with employment and education policies. Technical and vocational education and training institutions can develop programmes around solar installation, battery storage, clean cooking, smart grids and energy efficiency. Universities and schools can introduce sustainable-energy knowledge earlier, while companies can provide apprenticeships and workplace experience.

This is particularly important as artificial intelligence, automation and data analytics become more important in managing modern energy systems.

Clean Energy Can Power Jobs Far Beyond the Energy Sector

The report shows that sustainable energy can produce development benefits far beyond electricity generation. Reliable power supports agriculture, healthcare, education, manufacturing, telecommunications and the digital economy.

In agriculture, electricity can power irrigation, processing and cold-storage facilities, helping farmers reduce losses and increase productivity. Solar-powered water systems can also reduce the burden of water collection. Women and girls globally spend around 250 million hours every day collecting water, highlighting how energy infrastructure can generate important social benefits.

Energy inequality nevertheless remains severe. Renewable capacity in 2024 averaged about 1,224 watts per person in high-income economies, compared with just 34 watts in low-income countries. Sub-Saharan Africa accounts for approximately 86% of the world's population without electricity access.

For international development partners, this means energy programmes should go beyond financing infrastructure. Renewable projects can include local employment targets, workforce training, technology transfer, entrepreneurship programmes and support for small businesses so that more economic value remains within developing economies.

Governments Must Turn Energy Investment Into Economic Opportunity

Almost 90% of surveyed young participants recognised the importance of government in advancing sustainable energy. Yet very few viewed the public sector itself as a potential career destination.

That gap matters because governments need skilled professionals to regulate electricity markets, design renewable-energy policies, manage public investment and negotiate with private developers.

Financing presents another challenge. Clean-energy projects in the Global South can face financing costs two to three times higher than comparable investments in advanced economies. Governments, multilateral development banks and development finance institutions can help reduce these costs through concessional loans, guarantees, blended finance and stronger regulatory frameworks.

Decentralized energy also offers opportunities. Solar mini-grids, community systems and charging hubs can expand electricity access while creating markets for local installers, technicians and entrepreneurs.

Clean cooking represents another potentially large employment opportunity. More than 2.1 billion people still rely on polluting cooking fuels, while Sub-Saharan Africa could require more than 460,000 clean-cooking workers by 2040.

Private Investors Need Talent as Much as Technology

For private companies and investors, the expanding renewable-energy economy offers opportunities in solar power, batteries, digital grids, clean cooking, electric mobility and energy-related digital services. But shortages of skilled workers could become a serious commercial risk.

Companies that cannot find qualified technicians, engineers and managers may face higher costs, delayed projects and maintenance problems. Private-sector participation in apprenticeships, certification programmes and partnerships with universities and vocational institutions should therefore be viewed as an investment rather than simply corporate responsibility.

UNDP and Goodwall propose four priorities: developing the next generation of sustainable-energy entrepreneurs, connecting online learning with offline mentorship and practical experience, involving young people in national energy dialogues, and addressing priority skills and knowledge gaps.

The message for policymakers, development partners and investors is clear: success cannot be measured only by renewable capacity installed. The stronger test is whether clean-energy investment creates skilled workers, competitive businesses, better livelihoods and new opportunities in communities that need them most.