‘A greener economy will not automatically be a fairer one’

“The country’s move towards a greener economy is often presented by policymakers, international development institutions and energy transition strategies as achieving two objectives: lower carbon emissions and more jobs,” says Dr Jessika Bohlmann, a senior lecturer at the University of Pretoria.

“[Our study found] Some sectors and groups of workers are gaining ground, but others risk being left behind,” she adds. “South Africa’s commitment to a just energy transition implies that workers and communities affected by structural change should not bear disproportionate costs. But justice is not only about protecting workers in declining sectors – it’s also about ensuring that new opportunities are broadly accessible.”

For the study, the researchers combined South Africa’s labour force survey data with occupational information that identifies green occupations. This was used to track green employment trends and examine which sectors and workers benefit most from the transition.

The researchers developed a method to classify green employment in South Africa, combining the country’s occupational classification system – which groups jobs according to tasks and skills – with international data linking specific work activities to environmental sustainability.

These jobs include work directly connected to renewable energy, energy efficiency, environmental management, waste reduction and sustainable finance.

Findings and implications

Their findings showed that the share of green jobs has increased gradually, from 12.4% in 2022 to 14.8% in 2024. The researchers found that green jobs are concentrated in a handful of sectors: in utilities, particularly electricity and water; mining, including environmental rehabilitation and renewable energy components; construction, especially green buildings and energy-efficient infrastructure; and in finance, where jobs are being created through sustainability reporting and environmental, social and governance investment activities.

“These patterns reflect where regulation, investment and policy signals have been strongest,” Dr Jessika explains. “Government-led initiatives act as major catalysts. Examples include renewable energy procurement and environmental compliance requirements, including stricter environmental governance. This forces firms to invest in greener technologies and compliance measures, creating a demand for environmental, technical and engineering roles. Sustainable finance initiatives are also shaping labour demand.”

Other sectors show far less green penetration, while the demographic profile of green employment also revealed important patterns.

“Green jobs are more likely to be held by younger workers, located in the formal sector, associated with moderate levels of education, including post-secondary or technical qualifications rather than highly specialised professional degrees,” Jessika Bohlmann says. “They’re also dominated by men. Gender disparities are noticeable, suggesting that green growth doesn’t automatically translate into inclusive growth. Without policy intervention, existing inequalities may simply be reproduced within new sectors.”

The study highlights four policy implications:

• Education and training: “If the education and training system doesn’t respond quickly enough, skill shortages could limit job creation.”
• Sectoral depth: Expanding the transition into manufacturing, services and small-scale enterprises could broaden employment effects. This requires coordinated industrial, energy and trade policy, the researchers say.
• Informal workers must not be ignored: “Waste pickers, small-scale recyclers and informal repair services already contribute to environmental sustainability. Integrating and supporting these workers through policy and municipal systems could strengthen both environmental and social outcomes.”
• Robust methods to identify and track green employment must be developed: “South Africa’s statistical system could also improve the measurement of green employment. Better data would allow policymakers to monitor the employment effects of the transition more accurately.”

The study shows that the transition is already reshaping South Africa’s labour market.

“But the process is uneven and path-dependent,” Jessika adds. “It reflects where incentives exist, where investment flows and where regulatory frameworks create demand. If policymakers want the green transition to reduce unemployment and inequality, design matters. A greener economy will not automatically be a fairer one. Ensuring that it requires deliberate, coordinated action.”