An Analysis of Employment Effect of Projected Clean Energy Transition in India

Now it is a well-known fact that climate change is no longer a possibility. The whole world is experiencing the brunt of the change. Climate change is affecting agricultural labourers due to crop uncertainty. Moreover, the influx of climate refugees has seen an increase in labour force in some areas. The change in agricultural patterns also affects the industries which depend on agriculture for raw materials. Thus employment for the youth in this changing scenario is also in a state of flux. As tighter environmental regulations speak about cleaner production, the production system is going to be changed. This will lead to the shutdown of many existing production units while many others will shift their technologies. Such a change will make many jobs redundant while many new jobs will be created. The young job market aspirants must have clear sense of this change to prepare themselves for the new types of jobs created. People losing their job due to shut down of polluting units need to reskill themselves for the new types of jobs coming up using climate-friendly methods of production. Firms all over the world are now striving to get environmental, social, and governance (ESG) ratings. The study attempts to estimate the quantum of employment generated when the Indian economy moves more towards an era of clean energy. Thus the possibility of youth employment rises if proper skills are adopted. It is imperative that a transition towards sustainable development will essentially include renewable energy as a major source of power. This calls for more skills to be generated among the youth suitable for the renewable energy sector. In addition to that, reskilling is necessary for the workers currently engaged in the non-renewable power sector so that they can shift to the renewable sector when the situation demands so. Without a steady and concerted effort towards skill development in renewable energy technologies, a fast transition towards skill development will be halted or delayed due to a lack of skilled manpower.