Ambitious German energy transition would generate more jobs than business-as-usual by 2050 - study

Total employment in Germany would be higher in 2050 with the implementation of an ambitious energy transition than in a business-as-usual scenario, says a study by the consultancy Prognos. The study, which defines an ambitious energy transition as one that aims to reduce greenhouse gas emissions by 95 percent, was commissioned by the Friedrich Ebert Foundation (FES), a German political foundation associated with the Social Democratic Party (SPD). The report estimates that some 43,000 more people would have a job in 2050 under such a transition, as compared with a scenario in which the current energy and climate policy framework continues without fundamental changes. The difference is small, but it shows that one does not have to choose between jobs and climate action, writes FES. While the fossil fuel sector will suffer heavy job losses, climate action technologies and services will benefit. By 2050, jobs in renewable energy, energy efficiency and climate-friendly mobility will rise to a share of 4.9 percent of total employment (from 2.9 percent in 2018) in the ambitious scenario. In 2018, 1.24 million people were employed in these sectors, says FES.

Efforts to curb climate change through a shift to clean energy will produce winners and losers, both among industries and regions. The FES study builds on findings made in the 2018 "Climate Paths" study by German industry association BDI. After balking at the Energiewende for many years, German industry has made a notable shift - embracing the energy transition with a new fervour.