Green_Recovery_Storyboard_final_2021

Online course
Online course
The Role of Renewable Energy in Green
Recovery Programmes
© Renewables Academy (RENAC) AG

This copyrighted course is part of the series of online study programmes offered by the Renewables
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Table of contents
1 Introduction .............................................................................................................................. 4
1.1 Learning objectives of the course ...................................................................................... 4
1.2 Background ....................................................................................................................... 4
1.3 Course structure................................................................................................................ 5
2 The impact of crises on the renewable energy sector ............................................................... 6
2.1 The impact of economic crises on the energy sector .......................................................... 6
2.2 The impact on the power sector (existing plants) .............................................................. 7
2.3 The impact on the power sector (new plants) .................................................................... 8
2.4 The impact on renewable heating & cooling ...................................................................... 9
2.5 The impact on the renewable energy transport sector .................................................... 11
2.6 The impact on renewable energy investment .................................................................. 13
2.7 The impact on employment (in the renewable energy sector) ......................................... 15
2.8 The impact on supply chains and industrial policies ......................................................... 16
2.9 Chapter notes.................................................................................................................. 18
3 Green recovery programmes and renewable energy investment frameworks ....................... 19
3.1 Green recovery programmes and renewable energy investment frameworks ................. 19
3.2 Creating short-term stimulus via investment in energy transition technologies ............... 20
3.3 Trigger investment in clean energy network infrastructure.............................................. 21
3.4 Increasing national climate ambitions and raising renewable energy targets ................... 24
3.5 Conditional bailouts and their impact on investment in the energy transition ................. 25
4 Financing means & fiscal measures ......................................................................................... 27
4.1 Encourage institutional investment in renewable energy................................................. 27
4.2 Overcoming barriers for institutional investors ................................................................ 28
4.3 Promote green bonds for renewable energy ................................................................... 29
4.4 Strengthening green bonds ............................................................................................. 30
4.5 Using public finance strategically..................................................................................... 32
4.6 Offer green finance via development banks..................................................................... 33
4.7 Provide price signals and fiscal tools ................................................................................ 34
4.8 Reform fossil fuel prices .................................................................................................. 35
4.9 Chapter notes.................................................................................................................. 36
5 Green recovery programmes and employment opportunities ................................................ 37
5.1 Employment intensity of energy transition investment.................................................... 37
5.2 Net gains in employment by shifting towards renewable energy ..................................... 38
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5.3 Employment via RE technologies – the pivotal role of solar PV and bioenergy ................. 39
5.4 Employment factor of RE technologies – the pivotal role of distributed generation ......... 40
5.5 Seize renewable energy job-creation opportunities ......................................................... 41
5.6 Employment opportunities along renewable energy value chains.................................... 42
5.7 Demand for skills and job types ....................................................................................... 44
5.8 Enhance education and training, including technical and vocational programmes ........... 45
5.9 Assessing the need for re-skilling of fossil fuel workers .................................................... 47
5.10 Re-skilling workers from the fossil fuel industry............................................................... 48
6 Green recovery programmes and RE industrial policies .......................................................... 49
6.1 Developing renewable energy industries ......................................................................... 49
6.2 Regionalise renewable energy supply chains ................................................................... 49
6.3 Support national manufacturers via local content requirements ..................................... 50
6.4 Ease entry into the renewable energy value chain ........................................................... 52
6.5 Establish capacity development programmes .................................................................. 53
6.6 Support research & development (R&D), new strategies and industry clusters ................ 54
6.7 Policy recommendations ................................................................................................. 56
6.8 Chapter notes.................................................................................................................. 56
7 Green recovery and energy access policies ............................................................................. 57
7.1 The impact of COVID-19 on energy access ....................................................................... 57
7.2 The impact of economic downturns on energy access companies.................................... 58
7.3 Financing energy access and clean cooking...................................................................... 59
7.4 Energy access and livelihood support .............................................................................. 60
7.5 Energy access for health .................................................................................................. 61
8 Summary................................................................................................................................. 62
8.1 References (cited) ........................................................................................................... 63
8.2 Further reading (recommendations)..................................... ¡Error! Marcador no definido.
9 Additional glossary terms ....................................................................................................... 65
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1 Introduction
1.1 Learning objectives of the course
Learning objectives: Upon completion of this course, you should be able to
• describe some of the ways that economic crises impact the energy sector
• understand how economic crises intensify the urgency to expand the renewable energy sector
• explain why the transition to clean energy technologies can be an attractive part of economic
recovery packages, with many social and economic benefits
• give examples of key policy strategies that can be applied in green recovery packages
1.2 Background
The Stanford economist Paul Romer famously quipped, “a crisis is a terrible thing to waste”. He was
surely thinking how disruptive moments in history can bring massive changes, like those that have
arisen from the COVID-19 pandemic, and in doing so open opportunities for far-sighted investments
that will have longstanding impacts.
The recovery from our current COVID-19 crisis has the potential to be a green recovery, driven by an
increased uptake of renewable energy, energy efficiency and related energy transition measures. The
energy transition can be effectively incorporated into short-term stimulus and recovery plans, providing
a crucial link to medium- and long-term global climate and sustainability goals.
This online course is based on the International Renewable Energy Agency’s (IRENA) 2020 report on
green recovery measures, and offers practical advice around key investment and policy decisions that
can promote sustainable economic recovery and long-term growth.
While the IRENA report is focused on the COVID-19 pandemic context, the lessons learned, and the
policies recommended, are applicable to a broad range of economic and social disruptions, including
those related to climate change. Underlying this course, then, is an invitation to consider how the
policies and initiatives discussed can be applied in response to crisis more generally.
Building on the work of IRENA, this course will help participants understand how, by placing energy
transition at the centre of national recovery plans, governments can help offset the current economic
downturn – and likely future crises – while simultaneously making a meaningful effort to tackle the
climate crisis.
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Cover of the report “The post-COVID recovery: An agenda for resilience, development and equality
(IRENA, 2020)”
1.3 Course structure

The course outlines how and where investments and policy measures focused on the energy transition
can strengthen economic recovery, bolster sustainable development, and set the course for a fully
decarbonised system by the middle of this century.
Chapter 2 discusses the impacts of health and economic crises – manifested in disruptions in
production and supply chains, job losses, and income cuts - on different segments of the energy sector,
and on the renewable energy sector in particular.
Chapter 3 discusses renewable energy investment frameworks as an essential component of growth
for energy transition technologies, clean energy network infrastructure, and supporting policies.
Chapter 4 examines green recovery financing and fiscal measures, including institutional investments,
green bonds, public finance, price reforms, and other possibilities.
Chapter 5 looks more closely at employment opportunities within the energy transition along
renewable energy value chains, and the related skills development needs of the workforce.
Finally, chapters 6 and 7 discuss how various renewable energy industrial policies and energy access
policies can foster long-term sustainable socioeconomic development.
Throughout this course you will see reference to two frameworks, the TES (Transforming Energy
Scenario) and the PES (Planned Energy Scenario) adopted from IRENA, 2020. Briefly, the PES refers to
current plans for energy, reflecting government policies and the NDCs; the TES is a much more
ambitious scenario that reflects the changes that would be required in order to meet the goals of the
Paris Agreement, and specifically to keep global temperature rise below 2 degrees C. For a fuller
explanation see IRENA, 2020b, and section 5.2, below.
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2 The impact of crises on the renewable energy sector
2.1 The impact of economic crises on the energy sector
Learning objectives: Upon completion of this page, you should be able to
• understand how economic crises impact the fossil fuel sector
• explain global trends in the coal industry with regard to job creation
The global crisis instigated by the COVID-19 pandemic resulted in large reductions in consumption and
economic activity, due to travel restrictions, shutdowns, reductions in leisure activity, and reduced
commuting. These changes had a severe impact on the energy sector, with lower consumption leading
to reduced revenues and employment among energy suppliers.
The brunt of the impact of demand reduction for fossil fuels has been in transport and industry.
Globally, oil consumption fell about 5% in early 2020 as a result of lockdowns and reduced travel, and
was projected to be down almost 9% for the year (see figure). For economies that are highly dependent
on the extraction and sale of oil, the impact of this reduction in demand hits hard, and reverberates far
beyond the energy sector.
While the natural gas industry is less affected, the liquefied natural gas (LNG) sector is also under
pressure from falling prices and weak demand, since LNG represents the swing supply for many net
importers of natural gas.
The coal industry – which still plays a massive role in power generation in many countries – has also
dipped amid the energy demand reduction and other shifts triggered by the COVID-19 crisis. These
changes come on top of a long-standing dynamic of falling demand, as renewables and natural gas have
increased their share of the electricity market and investment globally.
A combination of lower electricity demand, increased generation from renewables and natural gas, and
declining export prospects led to the loss of some 12% of US mining jobs in early 2020 - even while coal
mines were declared an essential business. Coal-related power generation and employment is thus
likely to continue its downward slide beyond 2020 in many markets.
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Projected change in energy demand 2019-2020 (Source: IEA, 2020, p. 15)
2.2 The impact on the power sector (existing plants)

• describe the impact of economic crises (with lockdowns) on electricity demand in residential
markets
• outline some of the challenges faced by renewable power plants in liberalised markets
During times of economic slowdown, it is typical that energy demand tumbles as well. In several
countries under COVID-19 lockdowns, for instance, electricity demand has declined by more than 20%
(see figure). Despite higher residential demand, major cuts in commercial and industrial demand have
driven an overall downward trend in Europe and elsewhere.
Renewable power plants have close to zero marginal costs and thus it makes economic sense for
renewable electricity to be dispatched prior to fuelled electrical generation. This fact has led to an
increased share of renewable energy in the electricity mix as demand declines.
However, there have been some setbacks for renewable power plants. Those operating in liberalised
markets, without a price hedge, may be exposed to wholesale market risk and therefore face lower
prices for the electricity they sell. In other cases, output is sometimes unexpectedly curtailed – without
compensation – when demand for electricity falls.
Long term off-takers that buy up RE producer contracts (including FITs) were strained, especially where,
in response to economic disruptions, energy regulators and governments allowed consumers to delay
paying their utility bills. The consequent defaults on payments cascaded throughout the energy sector,
threatening some companies’ solvency and deterring new investment.
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Electricity demand decline in selected countries after lockdown, early 2020 (Source: IEA, 2020, p. 23)
2.3 The impact on the power sector (new plants)

• describe how upcoming solar and wind projects have been adversely impacted by the
pandemic
• outline the factors affecting new wind power projects as a direct consequence of the pandemic
In times of uncertainty and falling demand, energy projects that are planned or under development
often face delays. During the 2020 pandemic, solar and wind power projects, the most widely adopted
renewable technologies, absorbed the brunt of the pandemic’s impact on the sector, primarily in the
form of project delays.
Supply chain disruptions and restrictions on labour availability and construction activity affected the
wind industry in the first half of the year, leading analysts to revise their forecasts of global capacity
additions in 2020. Wood Mackenzie, for example, estimated that global onshore wind capacity
additions could be 15-20% lower than initially expected for the year – though the revised total, some
66.3 GW, is still higher than the 59 GW added in 2019. In India alone, 3 GW of solar and wind energy
projects faced postponements, largely due to disruptions in supply chains and labour availability.1
As a result of these delays, some projects risk missing deadlines to qualify for support or feed-in tariff
contracts, or even face contractual penalties. Some may face challenges to maintain financing.
Disruptions to the build-out process can even impact national strategies and targets for grid
development and modernisation.
1 Finally, more than 260GW of renewable energy capacity were added globally in 2020, beating earlier estimates and
previous record by almost 50%. Renewables, mostly from solar and wind, accounted for more than 80% of all new electricity
capacity added. The rising share of renewables is partly attributable to the net decommissioning of fossil fuel power
generation in Europe, across Eurasia (Armenia, Azerbaijan, Georgia, Russian Federation and Turkey) and North America, and
total fossil fuel additions fell to 60 GW in 2020 from 64 GW the previous year highlighting a continued downward trend of
fossil fuel expansion. Source: IRENA (2021), Renewable Energy Capacity Statistics 2021.
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Lockdown measures, permitting challenges, supply chain delays, the tightening of tax equity markets,
and even homeowners’ reluctance to spend, have also led to delays in the solar PV industry. In China,
the world’s most important producer of solar hardware, module production declined 20-25% in
January-February 2020. Temporary factory closures resulted in shortages of components and delays in
projects in other regions. This has provoked a rethinking of just-in-time supply chains and the
centralisation of solar PV production in a few countries, and has inspired discussions in several
countries around introducing measures to localise supply chains.
New and total installations for offshore wind in 2020 (GWEC Global Wind Report, 2021)
2.4 The impact on renewable heating & cooling

• explain why more ambitious targets and policies are needed to decarbonise the heating and
cooling sector
• identify some reasons why the renewable heating and cooling sector has been adversely
impacted by the pandemic
• explain how public investment and stimulus plans can support renewable heating and cooling
Renewable energy constitutes only a small fraction of the energy mix in end-use sectors such as heating
and cooling. Yet these sectors are responsible for around half of global energy consumption, and are
major contributors to fossil fuel use worldwide. Residential heating and cooling represent over 79% of
household energy consumption in Europe; in the industrial sector, over 70% of energy is used for space
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and process heating. Yet in 2019, the share of renewable energy in global heating applications
(excluding the traditional uses of biomass) was around 10% (though this was higher in Europe).
In addition to significant reductions in fossil fuel prices which encourage use of carbon-intensive heat
sources (fossil fuels are already directly subsidised in many parts of the world and indirectly subsidised
in a wider part of the world where fossil fuel prices do not account for environmental and other
socioeconomic externalities), the decarbonisation of the heating and cooling sector has been affected
by the current crisis due to the financial situation of potential investors, reduced activity in construction
and industry, and strained household and business finances. Moreover, as government turn their
budgets to other more pressing issues, public investments in infrastructure needed to enable the
transition (e.g., district heating and cooling networks) became less visible in government plans. In the
absence of supportive policies, some plans to switch to renewable or electric heating solutions (e.g.,
solar water heaters or biomass boilers, heat pumps) were postponed or cancelled.
However, the crisis also provides an opportunity to support a transition toward more renewable and
efficient technologies in these areas, and reaffirms the need for more ambitious and stronger policy
support to decarbonise heating and cooling through reduced fossil fuel consumption, increased energy
efficiency, and a switch to renewable energy.
The need for enabling policies is even more apparent in the wake of the global economic crisis, as the
benefits of a transition to cleaner, more sustainable heating and cooling solutions include attracting
investment, creating millions of new jobs and helping to drive a durable economic recovery.
Benefits of deploying renewable heating and cooling (Source: IRENA, IEA and REN21, 2020)
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2.5 The impact on the renewable energy transport sector
• explain how the pandemic has influenced consumers’ behaviour with regard to personal
mobility and electric vehicles (EVs)
• describe the impacts on biofuels of reduced demand for personal mobility
• comment on how the EV industry can be affected by economic crises
• consider how crises can encourage alternative transportation choices
With the demand for personal mobility falling significantly worldwide, the pandemic has had significant
impacts on the demand for biofuel (see figure). Reduced consumption of biofuel is a direct result of
lower global demand for gasoline, but biofuel demand is heavily dependent on whether blending
mandates are raised; in the EU, for example, an increase in blending somewhat tempers an expected
10% reduction in biodiesel demand.
Meanwhile, the market for electric vehicles (EVs) has stalled as consumers defer large purchases. Crises
like the pandemic can also cause major interruptions for the EV industry in the manufacturing and
supply chains. In China and South Korea, home to major manufacturers of EV batteries and other
components, COVID-19 lockdown measures significantly reduced production, with ripple effects
impacting the global automotive industry.
Affected companies include key EV players such as Nissan, Kia, BMW, Daimler, and Tesla. Many of these
companies shut down their automobile production facilities, at least temporarily, and some shifted
their focus to manufacturing of personal protective equipment.
Emerging from the crisis, however, as travellers return to the roads, and if public transportation
continues to be perceived as a health risk, more consumers may look to purchase new vehicles,
although data show a marked increase in cycling as a means of transportation – and this change could
last. In any case, the opportunity exists to implement appropriate policies to encourage people to opt
for EVs over fossil fuel driven vehicles in future.
One significant impact on the energy consumption of the transport sector that is worth mentioning is
reduced travel, especially that reducing unnecessary travel through behavioural policies is one of the
main pillars of the decarbonisation of transport. The resulting socioeconomic impacts in terms of jobs
and revenue losses (e.g., airline industry and its ripple effects on other industries) has brought at the
forefront the importance of policies to ensure the energy transition in transport leaves nobody behind.
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Global biofuels production 2017-2020 (Source: IEA, 2020, p. 93)
Increase in weekday bicycle activity in selected countries (Source: IEA, 2020, p. 68)
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2.6 The impact on renewable energy investment
• outline why emerging markets and developing economies (EMDEs) face reduced project
financing options for new RE projects
• explore the impacts of economic crises on markets and investments in renewable energy
A transformation of the global energy system, to ensure that is compatible with internationally agreed
climate and development objectives, will require a significant scale-up of energy investment. Efforts to
do so, however, generally stall in a crisis; not surprisingly, renewable energy investment fell in the first
quarter of 2020 due to the shock of the pandemic, down 2.6% from the same period in 2019.
Nevertheless, by the end of 2020, renewable energy investment had bounced back to record-high
levels, likely driven by the increasingly uncertainty around fossil fuel investment returns and ambitious
climate commitments and green recovery plans announced by governments around the world.
The financial impact of a crisis is often more severe in emerging markets and developing economies
(EMDEs) than in developed countries. Following the onset of the crisis, increased risk aversion and a
global liquidity crunch often result in unprecedented capital outflows from EMDEs. In 2020, foreign
capital flows to emerging markets were forecasted to decline by 53%.
In addition, the crisis is likely to be accompanied by a wave of credit downgrades, making it increasingly
difficult for borrowers from EMDEs to access international debt markets. The reduced project financing
options can lead to a decrease in new renewable energy development in EMDEs. Therefore, regulation
designed to attract investment is ever more relevant in countries that have a lower credit rating.
Foreign direct investment by region (Source: UNCTAD, 2021, p. 3)
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Early data on the COVID-19 crisis show that investments attuned to environmental, social and
governance concerns performed better and proved more resilient to volatility than conventional funds.
Such funds experienced only half of the decline observed for the S&P 500 overall, and have delivered
better returns during the crisis. The crisis has thus sharpened investors’ interest in sustainable and
resilient assets, including renewable energy.
Foreign direct investment in renewables and fossil fuels 2005-2020 (Source: IRENA, 2020, p. 35)
In financial markets, capital started moving towards more attractive investment opportunities in anticipation for
peak demand for fossil fuels and the development of new energy technologies. This contributed to the de-rating
of fossil fuel, with the share of the fossil-fuel-heavy energy sector in the US S&P 500 index falling, for example,
from 13% a decade ago to below 3%. In 2020, money flooded into renewable energy stocks; the S&P clean energy
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index was up by 138%, while the fossil-fuel-heavy S&P energy index was down by 37%.2
New energy vs. old energy: S&P Global Clean Energy and Energy Indices from January to December 2020
(Source: IRENA 2021, World Energy Transitions Outlook: 1.5°C Pathway Preview, p. 17)
2.7 The impact on employment (in the renewable energy sector)

• describe the impact of the pandemic on employment in the renewable energy sector
• consider how the impacts on employment in the solar PV sector are distributed globally
• identify the causes of project delays during the pandemic
Restrictions on travel and trade triggered by national efforts to curb the spread of COVID-19 have had
a major impact on employment throughout the economy. Within the energy sector, renewable energy
jobs have been affected as well, though less so than fossil fuel jobs. Although the pace of new
installations slowed in 2020, and was less than forecasted, the construction of most large-scale utility
projects was expected to proceed despite delays.
The solar PV industry is the largest employer among renewable energy technologies, with a third of
the total renewable energy jobs in 2018. In India, 70 000 people employed in solar plant construction
and maintenance face employment uncertainties due to delays of several months in project delivery.
In the United States, new solar capacity and associated jobs were expected to decline by around
37%.
The job impacts of a crisis can stem from multiple factors. These include disruptions in the supply of
equipment, components or raw materials due to factory shutdowns or border restrictions. In the
2* In the first months of 2021, there was a partial reversal of this trend. However, from January 2020 to March 9 2021, the
S&P global clean energy index was nevertheless up by 104% and the S&P 500 energy index was down 15%.
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pandemic, jobs linked to solar rooftop installations and off-grid solutions were particularly impacted
due to social distancing requirements and constrained household budgets. Jobs centred on the
operation of utility-scale wind and solar plants are less affected by the crisis, as they are largely
unaffected by these factors.
In addition to differential impacts along different segments of the renewable energy supply chain (see
2.8), there are also varying impacts for individual industries such as wind and solar.
Solar PV employment: Top 10 countries (Source: IRENA, 2020e, p. 10)
2.8 The impact on supply chains and industrial policies

• explain what is meant by the ‘ripple effect’ with regard to RE deployment
• describe the impact COVID-19 has had on different value chain segments in the RE sector
The COVID-19 crisis has brought severe disruptions to cross-border supply chains for the RE industry.
While the sector has generally been hit far less by the crisis than other energy sectors, events like
factory and mining shutdowns have led to supply chain disruptions – especially in China, which
accounts for half of the global wind power supply chain. When a critical part of the supply chain is
disrupted – be it silicon or circuitry or transportation – this can stall the fulfilment of subsequent
processes or products; the result is a “ripple effect” that can lead to a worldwide slowing down of
renewable energy deployment as the impacts of each disruption expand to reach more and more
markets.
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The crisis has affected renewable energy operations differently across segments of the value chain. The
effects have varied, as different countries and regions of the world were impacted by the pandemic at
different moments in time, and as their respective handling of the crisis proved more or less successful
in enabling economic activity to continue. The table here provides a characterisation of the relative
magnitude of impacts in the different segments, and some observations on the implications on
employment.
Although direct impacts on project planning are modest, as many staff can work remotely, there is
uncertainty surrounding the demand for new projects, component pricing, and the fate of tax credit
and other incentive schemes – factors that could slow or hinder the development of new projects and
have repercussions further down the supply chain.
Manufacturing of equipment has been more severely affected by pandemic measures, such as
lockdowns, that temporarily closed manufacturing plants for renewable energy technologies around
the world. Transport and logistics have also been adversely hit by a combination of lack of parts
availability, social distancing measures, and sometimes strict border controls.
Given that the construction of energy facilities is not considered an essential activity in many
countries, shutdowns and delays were common in areas heavily impacted by the virus. Small and
medium enterprises (SMEs) in the solar sector in particular are taking a hit. In the utility-scale segment
of the solar PV industry, the main consequences of lockdowns are construction delays.
Operation and maintenance activities are relatively unaffected by the pandemic. Since energy
generation is usually considered essential, power plant workers are typically exempted from decrees
to stay home.
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Impacts along the renewable energy value chain (Source: IRENA, 2020, p. 29)
2.9 Chapter notes

[1] https://ec.europa.eu/energy/topics/energy-efficiency/heating-and-cooling_en
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3 Green recovery programmes and renewable energy investment frameworks
3.1 Green recovery programmes and renewable energy investment frameworks
• discuss how the energy transition can be part of a recovery package
• summarise the key socioeconomic implications of the IRENA “Transforming Energy Scenario”
regarding cumulative energy sector investments
• recognise the scale of investment called for under the Transforming Energy Scenario
Investments in the energy transition can be an attractive part of a recovery package, boosting the
economy and creating good jobs following a crisis.
Investments can be scaled up rapidly through a comprehensive approach to ensure that necessary
supply chains, infrastructure and skills are in place. Short-term and longer-term opportunities can be
addressed to steer investment into the areas most needed for the transition to succeed. Such a holistic
vision can help governments tailor investments to meet a range of domestic policy agendas.
IRENA modelling indicates that today’s 11.5 million renewable energy jobs could grow to 29.5 million
by 2030 and to 42 million by 2050. However, it is critical that short- and long-term recovery goals be
aligned to also ensure conformity with climate stability goals. By 2023, a post-COVID-19 recovery
strategy could create 5.5 million more jobs in transition-related technologies under the Transforming
Energy Scenario than under the Planned Energy Scenario, including 2.46 million in renewables (see
figure).
Projected energy sector job changes under TES (IRENA, 2020, p. 13)
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These job projections are based on achieving an ambitious level of investment. The IRENA
Transforming Energy Scenario suggests that investments in renewable energy and energy efficiency
must grow to a cumulative USD 49 trillion between 2020 and 2030. Averaged over the period, this will
require around USD 4.5 trillion per year of climate friendly investment into renewable energy, energy
efficiency and low-carbon facilitating technologies – including enabling infrastructure such as power
grids and storage – over the period to 2030 (see figure). This annual investment represents nearly 5.4%
of global estimated GDP (2019), and is more than five times greater than the USD 825 billion invested
in these sectors in 2019.
Energy transition investment under TES, 2019-2030 (IRENA, 2020, p. 47)
3.2 Creating short-term stimulus via investment in energy transition technologies

• identify renewable energy technologies that can be scaled up most quickly
• describe the different options available for scaling up energy efficiency
• explain how green stimulus funds can support investments in transport, industry and buildings
The deployment of small, modular technology solutions (including rooftop solar PV, solar thermal
home systems, and heat pumps) can be scaled up relatively quickly, boosting employment and GDP in
a timely manner (see figure). Utility-scale solar PV, onshore wind and offshore wind take longer to
deploy, but make for an attractive investment, given their maturity, expanding supply chains and
relative ease of deployment.
Energy efficiency measures will be a core component of any green recovery package. The broad scope
of the concept includes both easy-to-accelerate measures (like rebates on light bulbs, and more
efficient appliances, motors and pumps) and big-ticket programmes, like deep energy efficiency
retrofits for existing buildings. In the latter case the complex tasks of engaging stakeholders and rapidly
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scaling up are challenging, especially in the short-term, though as such programmes accelerate, they
can draw in large volumes of investment over multiple years.
Investments in transport, industry and buildings also cover a wide range, but there are common
elements in direct uses of renewable energy (such as solar thermal water heaters and heat pumps) and
energy efficiency for industry and buildings that combine well together. Green stimulus funds can thus
be leveraged to encourage and stimulate higher levels of action among end users, such as by subsidising
key elements of larger retrofits.
The ongoing decarbonisation of power generation means certain electrification investments – such as
EV-charging infrastructure, and heat pumps in residential and commercial buildings and for low-
temperature heat in industry – have a role in accelerating benefits across sectors.
Jobs created through investment in heat pumps (Source: IEA, 2020, p. 83)
3.3 Trigger investment in clean energy network infrastructure

• explain why increased investment in physical infrastructure is crucial for economic recovery
programmes
• state how power sector infrastructure can be improved to handle growing amounts of variable
renewable energy (VRE) and related technologies
• discuss the investment targets of heating & cooling and transport infrastructure such as direct
renewable heat and green gases
• list some examples of financial support mechanisms for RE infrastructure development
Investment in physical infrastructure lies at the core of economic recovery programmes, providing far-
reaching economic stimulus while also signalling a commitment to the energy transition. Public finance
can also be used to attract private investment aligned with long-term plans and other enabling and
integrative policies, such as research and development (R&D). In building the clean network
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infrastructure, core segments that must be considered include power sector infrastructure, and
infrastructure for end uses (see figure).
Power sector infrastructure: Investment in this sector must be steered into grid enhancement and
upgrades at both the distribution and transmission levels. The electricity grid is already in need of
modernisation to enable it to handle growing amounts of variable renewable energy (VRE) and related
technologies, like batteries for storage. Network development plans should include deployment targets
for renewable energy in the mid- and long term. Moreover, additional investment in cross-country
interconnectors, smart grids, smart devices, demand side management, and digitalisation can pave the
way toward better integration of high shares of renewable energy. Smart charging of electric vehicles
(EVs), for example, can facilitate the integration of VRE by leveraging storage capacity and the growing
potential for flexibility in consumption patterns.
Heating and cooling and transport infrastructure: For heating and cooling, investments should target
the integration of direct renewable heat (e.g., geothermal) and green gases (e.g., green hydrogen).
Refurbishing existing networks for district heating and cooling, for example, or developing new ones
will require financial support and incentives, such as subsidies, grants and, tax credits for private-sector
utility providers, debt guarantees to minimise risk for potential investors, and concessional finance.
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New investment needs for renewable energy and grids (Source: IRENA, 2020, p. 119)
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3.4 Increasing national climate ambitions and raising renewable energy targets
• discuss why more ambitious targets must be proposed by governments that reflect recent
growth in the RE sector
• explain why national targets should incorporate long-term targets for all end uses and not just
the power sector
When designing their recovery programmes, governments have both a responsibility and an
opportunity to combine recovery efforts with more ambitious plans to transform the energy system.
It is important that governments propose ambitious targets that reflect recent growth in the RE sector.
Current NDCs – Nationally Determined Contributions under the United Nations Framework Convention
on Climate Change – do not take into account the rapid growth experienced by renewable energy over
the past decade. From 2015 to 2020, renewable energy deployment grew at a rate of approximately
8.7% per year, while the implementation of NDCs would only lead to a growth rate of 3.1% in the next
decade (see figure).
Renewable energy targets also need upward adjustment to take account of additional short-term
procurement of new capacity, as policy makers deploy more renewable energy-fuelled capacity in
green recovery programmes. Otherwise, there is the risk of stop-and-go procurement cycles, which can
cause uncertainty and have detrimental effects on the national and local renewable energy sector.
National targets have so far been focused on the power sector, with only 63 countries having included
renewable energy targets for direct heat and transport in their NDCs, compared to 141 having included
targets for renewable electricity generation. Long-term targets for all end users will be needed to help
ensure that reductions in emissions and air pollution achieved now will persist after the economy
recovers. By reviewing their NDCs in 2020 and 2021 and subsequent review cycles, countries can re-
evaluate their targets and adopt more ambitious ones, both for the power sector and beyond.
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Renewable energy futures: NDCs vs. current plans vs. IRENA energy transformation model (Source: updated
from IRENA, 2019, p. 19)
3.5 Conditional bailouts and their impact on investment in the energy transition
• describe what is meant by the term ‘conditional bailouts’
• give an example of how conditional bailouts can be applied to the airline industry
• give examples how conditional bailouts can be tied to climate and sustainability targets
conditions
In the wake of a global crisis that disrupts normal economic patterns, many companies seek bailouts
and other forms of financial assistance from their governments. Governments can seize this
opportunity to impose conditions for measurable climate action when offering financial lifelines to
companies in carbon-intensive industries. Major financial assistance packages with such requirements
attached are commonly referred to as ‘conditional bailouts’.
The idea behind such bailouts is to offer institutions the opportunity to seek assistance for recovery
programmes, while at the same time holding them accountable for behaviour and practices that have
environmental impacts. For instance, the French government attached environmental conditions to its
EUR 7 billion bailout for Air France in 2020. The terms required the airline to reduce its carbon
emissions by 50% by 2030 compared to 2005 levels, renew its fleet with more efficient aircraft, and
commit to sourcing 2% of its fuel requirements from sustainable sources by 2025.
Given the volume of bailouts globally (see figure), conditional bailouts could be an effective tool for
governments to restore economic activity while also moving closer to international climate
commitments and development objectives. For example, when the U.S. government bailed out the
automobile industry in 2008 during the global financial crisis, it attached requirements mandating the
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production of more energy-efficient fleets. This was the impetus needed for the industry to become
more competitive and innovative, and helped catalyse the deployment of electric vehicles.
Alternatively, bailouts for carbon-intensive companies could require them to set climate- and
sustainability-related targets. If such targets are not met in the future, bailout funding could be
converted to equity, creating strong incentives for companies to deliver on their stated targets. In the
energy industry, governments could also make bailouts conditional on the replacement of fossil fuel
plants with new renewable energy facilities, or mandate targets for renewable energy-based power
generation targets.
Airline bailouts (conditional and otherwise) promised as of May 2020 (Source: IATA, 2020)
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4 Financing means & fiscal measures
4.1 Encourage institutional investment in renewable energy
• give examples of institutional investors
• describe the role institutional investors play in green recovery strategies
• summarise how investments with environmental, social and governance attributes can bring
benefits to institutional investors
Institutional investors typically pool funds from a large number of sources and direct them into
investments in order to generate returns. With about USD 87 trillion of assets under management,
institutional investors – including pension funds, insurance companies, sovereign wealth funds and
endowments and foundations – represent one of the largest capital pools in the world and are
indispensable to the investment required for the energy transition.
Although direct institutional investment in renewable energy projects has increased over time, it
remains minimal, amounting to only about USD 6 billion in 2018 – or 2% of the total direct investment
in renewable energy that year. Similarly, institutional investment in renewable energy-focused funds is
estimated at about USD 6 billion per year.
Institutional investors are increasingly seeking investments with good environmental, social and
governance attributes. By aligning their investment portfolios to a climate-safe future, institutional
investors can be better prepared to anticipate new regulatory demands and evolving fiduciary
standards. Many are likely to boost their capital allocations to renewable energy infrastructure as a way
to hedge their climate exposure. Renewable energy assets can provide institutional investors with
stable, bond-like returns that match their liabilities, while reducing their exposure to the risk of
stranded assets.
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Renewable energy projects involving institutional investors, 2009-2019 (Source: IRENA, 2020, p. 84)
4.2 Overcoming barriers for institutional investors

• identify some barriers institutional investors face when scaling up investments in renewable
energy technologies
• discuss and compare strategies to tackle macroeconomic and regulatory barriers to greater
institutional investment
Institutional investors will play a bigger role in a green recovery if they perceive that the barriers to
their investment are lowered. Institutional investors typically have high internal and external
regulations governing where they can invest. Thus, factors like regulatory uncertainty, a lack of
investment vehicles, lack of data and transparency, the involvement of multiple layers of
government, and a lack of expertise in both the infrastructure sector and green technologies all act
as barriers to higher levels of participation by institutional investors. [1]
Combined efforts on multiple fronts will be needed to scale up institutional capital in renewable
energy. Regulations and policies, capital market solutions, and a host of internal changes on the
part of institutional investors form part of these efforts. The figure below summarises
recommended actions for different stakeholders to scale up institutional investments in renewable
energy.
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Mobilising institutional capital for renewable energy (Source: IRENA 2020)
4.3 Promote green bonds for renewable energy

• define green bonds
• describe the implication of economic crises such as COVID-19 on the global green bonds
market
• describe the trend of different sectors issued with green bonds over the last 10 years
“A green bond is a fixed-income instrument designed specifically to support climate-related or

environmental projects. Green bonds typically come with tax incentives to enhance their attractiveness
to investors. To qualify for green bond status, they are often verified by a third party such as the Climate
Bond Standard Board, which certifies that the bond will fund projects that include benefits to the
environment.”[1]
Green bonds can be an important instrument for mobilising financial resources in support of a global
economic recovery aligned with climate and sustainability objectives. Green bonds are particularly
attractive to institutional investors, as they typically offer reliable returns with all risk factors priced in.
They thus have the potential to channel considerable additional private capital into renewable energy.
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However, green bonds are not immune to upheavals in the global financial markets, as was observed
for instance in early 2020, when demand in global bond markets plummeted. Before that, annual global
green bond issuances experienced considerable growth, from USD 44 billion in 2015 to USD 271 billion
in 2019. Renewables are the largest recipient of green bond proceeds, followed by energy efficiency
projects and clean transport. Annual green bond issuances dedicated to renewable energy grew rapidly
from USD 2 billion in 2013 to USD 21 billion in 2018.
Breakdown of green bond issuance by use of proceeds, 2010-2019 (Source: IRENA, 2020, p. 86)
4.4 Strengthening green bonds

• describe the historical growth of green bonds
• emphasise the potential of green bonds to enhance green recovery packages
• discuss strategies to strengthen green bonds’ credibility among market participants
The green bond market can be a bridge between providers of capital, such as institutional investors,
and sustainable assets, including renewable energy. Although progress to date has been impressive
and increasingly global (see figure), cumulative issuances of green bonds are still below 1% of all bond
issuances, leaving significant opportunity for further growth.
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Annual green bond issuances per region 2014-2019 (Source: IRENA and CPI, 2020, Global Landscape of
Renewable Energy Finance, 2020, p. 17)
Stimulating the recovery of the green bond market and boosting further growth, particularly with
respect to renewable energy, will require co-ordinated measures among stakeholders, including policy
makers, public capital providers, and institutional investors.
Policy makers and public financial institutions, can support green bond issuances and strengthen their
credibility among market participants by:
1. Adopting green bond standards in line with global climate objectives (e.g., the Climate Bonds
Standard) (see figure)
2. Reviewing investment restrictions for institutional investors and mandating a minimum allocation to
green assets such as renewable energy
3. Providing technical assistance and economic incentives (e.g., grants, seed capital and funding of
demonstration issuances)
4. Creating pipelines of bankable renewable energy projects (e.g., via risk mitigation instruments,
documentation standardisation, and aggregation).
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Climate bond standards: categories of eligible projects (Source: IRENA, 2020d, p. 14)
4.5 Using public finance strategically

• outline the challenges facing developing countries and explain why international cooperation
is needed to tackle them
• discuss the trend in international public financial flows to developing countries over the past
few years
• give examples of some key policy strategies that can be used in green recovery packages
The recovery from economic crises provides governments and investors with an opportunity to
accelerate the energy transition. Governments and development finance institutions need to shift
public finance away from fossil fuels and other polluting and harmful activities toward sustainable
infrastructure assets, such as renewable energy.
International co-operation, together with financial assistance from the industrialised world, will be
required to sustain developing countries, as emerging economies often lack the resources needed to
respond to economic turbulence.
While private capital financing of the energy transition is the norm across much of the world, in
emerging economies public funding, often international, can make up a substantial portion of green
financing. In Latin America, Sub-Saharan Africa and South Asia, public capital accounted for an average
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of 49%, 41% and 24%, respectively, of direct investments in renewables over the 2013-2016 period [3].
International public financial flows to the renewable energy sector in developing countries have surged
in recent years, from USD 3.8 billion in 2009 to USD 21.4 billion in 2017. During the recovery period,
these flows will have to be scaled up even more, to ensure that developing countries can build the
infrastructure they need to accelerate the energy transition.
To emerge from the pandemic with new strength and chart a path toward a climate-safe energy system,
policy makers should consider:
• encouraging investment in green assets
• making bailouts or other assistance, especially to energy intensive industries, conditional on
further investment in the energy transition,
• reforming energy subsidies that encourage fossil fuel use
• retiring fossil-fuel assets and replacing them, where needed, with low-carbon alternatives.
Q1 foreign direct investments in fossil fuels vs. renewables, 2005-2020. (Source: IRENA, 2020, p. 35)
4.6 Offer green finance via development banks

• recall the role development banks play in a green recovery strategy
• state ways in which national and international development banks can help improve access to
credit, investment and funding
Yet another way to scale up renewable energy post-crisis is through the use of green finance via
development banks. Green national and international development banks (or green financing
programmes under those development banks) can help improve access to credit, investment and
funding to undertake industrial activities that feed into renewable energy value chains. Credits for
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activities that aim to increase local investment in the renewable energy sector could also benefit from
lower interest rates (e.g. clean-tech interest rates versus the standard interest rate).
In Brazil, for example, the Brazilian National Development Bank played an important role in supporting
the wind turbine manufacturing industry by offering competitive financing for wind power installations
at rates well below market levels for local projects. In the U.S. market, electric carmakers benefitted
from guaranteed loans (of more than USD 1 billion in total) from the U.S. Department of Energy. And
development banks were early adopters of the notion of green bonds, discussed previously. In Africa,
the African Development Bank still handles over 80% of that continent’s green bonds (see figure).[3]
Green bonds by issuer type (Source: IRENA 2020d, p. 9)
4.7 Provide price signals and fiscal tools

• describe how governments can alter market signals using subsidies or other price mechanisms
• discuss the impact of altered market signals on RE uptake
• recount examples of how fiscal tools were used in the U.S. and E.U. to improve RE / EE uptake
A variety of mechanisms can be used to influence the price and perceived costs of various practices,
and thereby influence markets and behaviours (see figure). For instance, various fiscal incentives, from
grants to tax breaks, can be offered to companies and suppliers that contribute to the local economy
through industrial linkages and knowledge transfer.
Governments can also alter market signals by increasing the cost of alternatives to green technologies.
Consider, for example, that in addition to (or in lieu of) carbon taxes, the progressive phasing out of
fossil fuel subsidies can incentivise local consumers and firms to shift to renewable energy, creating a
mass market in which private firms can exploit scale economies to produce goods at lower cost.
In the U.S. market, Tesla and other makers of electric cars have benefitted from federal tax credits for
purchases of electric cars, as well as from fuel efficiency standards that favoured energy-efficient
vehicles, further boosting the productivity of manufacturers through economies of scale. The European
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Union’s gradual phasing out of incandescent bulbs between 2009 and 2012 enabled LED costs to fall
by 85% because the shifting consumer demand created a mass market that enabled firms to produce
LED goods more competitively.
Types of energy subsidies and their price impacts (Source: Taylor, 2020, p. 22)
4.8 Reform fossil fuel prices

• estimate the global subsidies provided to the energy sector
• discuss some un-priced externalities of fossil fuel use
The G7 and many European countries have pledged to phase out inefficient fossil fuel subsidies by
2025. Government interventions could accelerate this process, in concert with measures to support
greater energy efficiency and structural changes in the economy to help keep demand for fossil fuels
from returning to pre-pandemic levels.
Global energy subsidies continue to consume enormous fiscal resources in some countries. The total
global direct energy sector subsidies – including those for fossil fuels, renewable energy and nuclear
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power – were estimated at over USD 634 billion in 2017; of this, USD 447 billion was channelled
towards fossil fuels.
These estimates do not include the even greater costs of un-priced externalities of fossil fuel use.
Outdoor air pollution generated from fossil fuel use generated health costs estimated at USD 2,260
billion in 2017, accompanied by climate change costs of around USD 370 billion (at USD 11/tonne of
CO2). The costs of these externalities and the direct subsidies for fossil fuels, some USD 3.1 trillion in
total, exceeded support for renewable energy by almost a factor of 20.
The taxation of fossil fuels (such as at the pump) goes some way to addressing these costs; however,
the continued subsidisation of the industry immediately reverses even those financial flows. Reforming
the subsidy structure could be an important step toward determining genuine fossil fuel prices.
Global fossil fuel subsidies by fuel (Source: Taylor, 2020, p. 39)
4.9 Chapter notes

[1] Kaminker, Stewart and Upton 2012
[2] https://www.investopedia.com/terms/g/green-bond.asp
[3] https://www.climatebonds.net/standard
[4] IRENA, 2020c, p. 14
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5 Green recovery programmes and employment opportunities
5.1 Employment intensity of energy transition investment
• define what is meant by the employment intensity of investment for energy transition
technologies
• compare the global employment intensities of investments for RE, EE, and energy flexibility.
The employment intensity of investment, which refers to the amount of employment generated on
average with each unit of investment, varies from one technology to the next. Studies have shown that
investing in energy transition technologies creates close to three times more jobs than fossil fuels do,
for each million dollars of spending. The figure, based on results from an econometric model, shows
that both renewable energy and energy flexibility have an intensity of more than 25 jobs/USD million,
with energy efficiency generating about 10 jobs per million U.S. dollars invested.
At the same time, significant regional differences reflect specific country conditions, such as the depth
and characteristics of local value chains, energy and commodity dependencies, and trade relationships.
The global employment intensity of all energy transition-related technologies is about 16.5 jobs/USD
million; regional values range from as high as about 30 jobs/USD million in Latin America and the
Caribbean and countries of the Association of Southeast Asian Nations (ASEAN) to around 10 jobs/ USD
million in EU-27 plus UK and North America.
Employment intensity of clean energy investments (Source: IRENA, 2020, p. 57)
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5.2 Net gains in employment by shifting towards renewable energy
• identify the main inputs and assumptions behind the Planned Energy Scenario and the
Transforming Energy Scenario
• compare the employment impacts of the Planned Energy Scenario to those of the
Transforming Energy Scenario
The IRENA “Planned Energy Scenario” provides a perspective on energy system development to 2030
and 2050 that is based on governments’ current energy plans and other planned targets and policies
(as of 2019), including Nationally Determined Contributions (NDCs) under the Paris Agreement, unless
the country has more recent climate and energy targets or plans.
The “Transforming Energy Scenario” (TES) describes a more ambitious yet realistic energy
transformation pathway, based largely on renewable energy sources and steadily improved energy
efficiency (though not limited exclusively to these technologies). This pathway indicates the actions
needed in the global energy system to keep the rise in global temperatures to well below 2 degrees
Celsius (°C) and towards 1.5°C during this century.
Globally, due to changed investment volumes and patterns, transition-related technologies can create
almost 19 million energy sector jobs more under the TES than under the Planned Energy Scenario.
Although the fossil fuel and nuclear industries will lose 4 million jobs, the TES yields a net gain of almost
15 million jobs.
The balance of overall energy sector jobs is also positive in all regions, while the loss of fossil fuel jobs
is concentrated in Asia, the Middle East and North Africa, the EU-27 plus UK, and North America (see
figure). This suggests a potential for employment in the transition-related energy sector for workers
transitioning from the fossil fuel sector, as well as new opportunities for both skilled and unskilled
workers from other industries across all the segments of the value chain. However, a careful analysis is
required to assess skills and occupational patterns of old and new jobs, respectively, along with
retraining efforts and support to workers in the transitioning process.
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Energy sector job differentials: TES vs. PES (Source: IRENA, 2020, p. 60)
5.3 Employment via RE technologies – the pivotal role of solar PV and bioenergy
• understand why solar PV and bioenergy typically lead job creation in renewables in long-term,
global scenarios
• explain why both solar PV and biomass create many jobs
Two technologies typically dominate assessments and scenarios for job creation with renewable energy
sources: solar PV and bioenergy. For instance, the latest available IRENA assessment of global jobs in
renewable energy shows that some 3.75 million jobs existed in solar PV and 3.58 million jobs in
bioenergy as of 2019, together accounting for two-thirds of all jobs in the renewables sector.
In the case of bioenergy, several fuel types for different sectors are included, including liquid biofuels
(for transport), and solid biomass and biogas (for heating and electricity). The wide use of bioenergy
fuels is one of the reasons for the high number of jobs created. The other main reason is the high labour
requirement in feedstock cultivation and harvesting, primarily in rural areas. However, the quality of
many of these jobs in developing countries needs scrutiny.
In the case of solar PV, the high share of deployment in recent decades is one of the main reasons for
the high number of jobs created. In addition, roof-top solar PV creates more jobs than any other power
generation technology on a per megawatt basis. In all of IRENA’s future scenarios, solar PV is expected
to remain the dominant technology worldwide (see figure).
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Renewable energy jobs dominated by solar (Source: IRENA, 2020b, p. 102)
5.4 Employment factor of RE technologies – the pivotal role of distributed generation

• state some advantages of distributed generation for the power sector and economy
• understand the job creation impact from small-scale, distributed generation
Investment in distributed generation for residential and commercial users will be crucial for the
transformation of the power sector. Small, modular technology solutions can be developed relatively
quickly to provide timely, scalable stimulus that can have a meaningful impact across the economy.
Small-scale distributed generation is understood to have slightly higher power generation costs than
larger scale systems. However, there is an advantage in that investment in distributed generation can
trigger many new jobs in a short period. Therefore, establishing dedicated programmes or targets for
distributed generation can be an important ingredient of recovery programmes and drive short-term
job creation, primarily in construction and installations.
An analysis from India shows that the employment factor from rooftop solar is about ten times higher
than the employment factor for utility-scale solar PV and other large-scale power generation
technologies. Similarly, (small-scale) biomass and small hydro can create many more jobs per installed
unit than larger scale systems (see figure).
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Employment coefficients of different electricity-generating technologies (Source: IASS/TERI, 2019, p. 14)
5.5 Seize renewable energy job-creation opportunities

• discuss the wide range of employment opportunities available in the renewable energy sector
• identify trends in the skills and occupational patterns for workers in the renewable energy
sector
The renewable energy sector offers employment prospects for people with a wide range of experiences
and backgrounds, with many of the required skills typically widely employed in other sectors. This
includes a strong demand for professionals with training in fields such as science, technology,
engineering and mathematics (STEM), as well as other highly qualified individuals (such as lawyers,
logistics experts, marketing professionals, financial analysts, and experts in regulation and
standardisation). Occupations like plumbers, electricians and technicians are also in much demand;
they do not require a university degree, but manual dexterity and knowledge that is often acquired on
the job.
The greatest demand from the renewable energy sector will be for factory workers and technicians. In
solar PV and onshore wind facilities, for example, IRENA’s analysis shows that over 60% of the
workforce requires only minimal formal training. This portion of the workforce includes construction
and factory workers (see figure). In offshore wind, the proportion is similar: those with lower formal
skills and training represent the largest share of the work force (47%). Individuals with degrees in STEM
fields can make up anywhere from 22 to 30% of the needed workforce, depending on the specific
renewable energy technology. Non-STEM professionals range from 4% to 19%, while administrative
personnel make up the smallest share.
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The lower threshold of formal training required for the majority of jobs opens doors to employment
for many people, particularly where on-the-job training is feasible. Furthermore, some skill sets can be
leveraged from other domestic industries, with some retraining.
These skill and occupational patterns are important markers that can guide governments as they
allocate public investment budgets, shape the contours of industrial policy measures, and undertake
efforts to match skills demand and supply through labour market policies – all helping to speed post-
crisis recovery and accelerate the energy transition. But it is critical that worker representatives be
included in such planning, to ensure that it is well-grounded in reality.
Human resources requirements for RE workforce (Source: IRENA, 2020, p. 111)
5.6 Employment opportunities along renewable energy value chains

• identify employment opportunities along renewable energy value chains
• explain why an understanding of employment opportunities along renewable energy value
chains is important in policy making
• discuss the human resource requirements in solar PV as well as onshore and offshore wind
projects
Policy makers need to have an idea of how many renewable energy jobs can be created along each
segment of the value chain, to help them in designing green recovery programmes that maximise
regional and national value creation.
The value chain of RE projects entails a range of activities from project planning and development,
manufacturing of equipment and components, construction and installation, as well as operations and
maintenance. RE development thus offers considerable potential to generate employment to spur a
recovery.
The figure here illustrates the human resource requirements of segments of the value chain for solar
photovoltaic (PV) plants and onshore and offshore wind farms.
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• A large-scale 50 MW solar PV project provides a total of 230,000 person-days of employment
along all segments of the PV value chain. According to the IRENA analysis, the highest
concentration is in operation and maintenance (O&M), which requires 56% of the total human
resources, followed by manufacturing (22%), and construction and installation (17%).
• For a 50 MW onshore wind project, employment amounts to a total of 144,000 person-days.
In this case, again, O&M is the leading segment, accounting for 43% of the total employment,
followed by construction and installation (30%), and manufacturing (17%).
• Similarly, the analysis for a 500 MW offshore wind farm yields a total of 2,100,000 person-
days3 of employment, with manufacturing and procurement representing the largest segment
(59%). This is followed by O&M (24%) and installation and grid connection (11%).
Please note that in other employment analyses the share of procurement and manufacturing in total
employment generation is frequently higher and consequently the share of operation and maintenance
is lower. The analysis here is for a theoretical X MW plant with an average of labour productivity.
Numbers may differ in countries or regions with lower productivity.
Employment along several important RE value chains (Source: IRENA, 2020, p. 63)
3 Employment can be measured in person-days. This measure reflects the amount of work done by one person working full
time in one day. Person-days cumulate over time, so if the same person performs a task for two years, it is counted as one
job, but two person-years. Person-years are most useful for estimating the amount of effort being devoted to a task over its
lifetime.
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5.7 Demand for skills and job types
• describe the skills which will be in demand for employment in the renewable energy sector by
2030
• outline differences between the renewable energy technologies regarding skills requirements
The design of green recovery programmes must also take into account existing skills and potential skill
gaps in the workforce. The figure here shows what kinds of jobs are likely to be created, classified into
broad occupational requirements. The figures represent a subset of renewable energy technologies
(solar PV, solar water heaters, onshore wind, offshore wind and geothermal) in 2030 under IRENA’s
Transforming Energy Scenario. Overall, the 15.5 million jobs in these technology sectors can be broken
down into workers and technicians (77%), experts (10%), engineers and others with advanced degrees
(9%), and marketing and administrative personnel (3%).
For the two solar technologies (PV and solar water heaters), 80% of jobs are workers and technicians,
9% experts, 8% engineers and others with advanced degrees, and less than 3% are marketing and
administrative personnel. There are significant differences between the two solar technologies, with
workers and technicians accounting for 95% of jobs related to solar water heaters and 76% for PV.
The share of workers and technicians for wind and geothermal is 68% and 86%, respectively. When
comparing wind with solar PV, we find a lower share of workers and technicians (68% versus 76%), and
higher shares in experts (14% versus 11%), engineers and higher degrees (12% versus 11%) and
marketing and administrative personnel (6% versus 3%).
Distribution of jobs among solar, wind, and geothermal (Source: IRENA, 2020, p. 66)
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5.8 Enhance education and training, including technical and vocational programmes
• explain why educational and training programmes are crucial components of the energy
transition
• describe how TVET institutions can further develop workers’ skills to meet the needs of a
renewable-based future
Developing adequate education and training programmes can help avoid or minimise skills gaps in the
shift towards renewable energy sources. Doing so well requires monitoring how skill profiles evolve,
identifying potential skill gaps, and co-ordinating among educational institutions and the renewable
energy industry to address any mismatches between skill-building profiles and the inventory of skills
required in the energy transition.
TVET (Technical and Vocational Education and Training) institutions need financial and technical
support to ensure a high degree of training quality. Curriculum standards must keep pace with the skills
needed in a continuously evolving renewable energy sector; instructors must receive training as
needed; equipment must be kept up to date; and information and communications technologies must
figure prominently.
To ensure that skills development meets the needs of the renewable energy sector, TVET training in
manufacturing, in particular, should move beyond skills such as metal working and welding to train
workers in areas such as advanced material development and digital design. Governments and
international bodies can help ensure that this kind of training and development is harmonised among
different countries, which could help with trade and knowledge sharing.
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UNESCO provides guidance to TVETs on greening their training and operations (Source: UNESCO,
2017)
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5.9 Assessing the need for re-skilling of fossil fuel workers
• understand how to determine the need for re-skilling in the fossil fuel sector
• understand the importance of assessing the age-structure and the skill levels of fossil fuel
workers
The current crisis is hitting the fossil fuel sector harder than other energy sectors, offering a prelude to
the profound changes the energy transition will bring. While the energy transformation will have an
overall net-positive impact on employment, millions of fossil fuel workers will need to find new jobs
(see figure).
Policies for a just transition can facilitate retraining those fossil fuel workers at risk. But for this to
happen, the reskilling needs of these workers must be evaluated so that financial support can be
provided to help them adapt or acquire new skills.
First, the age structure of the remaining fossil fuel workers needs to be assessed. Based on this
assessment, policymakers can foresee how many of those workers will still be in active working life,
how many will have already retired and how many might be amenable to consider early retirement.
Second, the skill level of the remaining workers needs to be assessed, with their active participation
and consultation. Their skills need to be compared with skill requirements in other sectors (e.g., the
renewable energy sector or other industry sectors) in order to determine what skills upgrades are
feasible and needed.
Energy sector job gains: Exceeding losses in every region (Source: IRENA, 2020b, p.45)
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5.10 Re-skilling workers from the fossil fuel industry
• explain the role of evaluation in facilitating the transition of fossil fuel industry workers to the
renewable energy sector
• describe financial instruments currently in place for retraining/ re-skilling workers in the fossil
fuel industry
The skilling and re-skilling of fossil fuel workers can be based on economy wide analysis (e.g. examining
opportunities in other industries, such as automobiles) or an analysis of jobs in the energy sector only.
The latter should include assessments of the skills transferable from fossil fuel industries to the
renewable energy sector, to determine how many workers may be able to switch careers within the
energy sector as opposed to leaving it for another sector or choosing early retirement. Some skills are
readily transferrable (such as from offshore oil and gas to offshore wind, though some re-certifications
may be required), but in many cases reskilling support will be needed.
Partnerships between government, industry and unions can be built to finance reskilling and to ensure
that training content meets the evolving needs of the sector. For instance, the Scottish regional
government’s “Transition Training Fund,” aimed at retraining and certification of oil and gas workers at
risk of redundancy, has already benefitted more than 4000 people (see image). The European Union is
working on a fund of up to USD 111 billion for its coal-dependent member countries. Germany is
considering a USD 55 billion package for regions and companies that rely on coal.
Far-reaching economic restructuring takes time to bear fruit; workers, communities, and regions will
need substantial and long-term assistance to succeed. A just transition policy will therefore not only
need to include dedicated reskilling and upskilling policies, but also extensive social protection
measures in the interim – to address various kinds of misalignments and to avoid socioeconomic
dislocation and hardship.
Scotland’s “transition training fund” finances free training for redundant oil and gas sector workers (Source:
West College Scotland, n.d.)
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6 Green recovery programmes and RE industrial policies
6.1 Developing renewable energy industries
Learning objective: Upon completion of this page, you should be able to
• discuss the role industrial policies play in energy transition pathways
Industrial policies will play a vital role in transforming the productive infrastructure that underpins
green industries. This is especially true in developing countries that lack pre-existing capacity, where
market forces may detract from welfare-optimal outcomes, and where the broader trends dominating
anti-poverty and recovery policies have favoured consumption jobs over production jobs.
Individual countries are embarking on the energy transition from different starting points, largely
defined by their existing socioeconomic structures, industrial supply chains, and human expertise.
Despite the prevalence of and need for market actors to play a role, in most countries it is policy
interventions that underlie the accumulation of productive capabilities.
6.2 Regionalise renewable energy supply chains

• discuss why it is important for countries to regionalise renewable energy supply chains
• explain how countries can regionalise renewable energy supply chains
Given the many challenges it brings in terms of travel and transportation, it is no surprise that a crisis
like COVID-19 can severely disrupt cross-border supply chains. While the renewable energy sector has
been affected less than other energy sectors, it has still faced significant disruptions.
The concentration of RE manufacturing in a few major countries (e.g., China, Germany, USA) means the
global industry is vulnerable in the face of shocks in any one market, as was very clear in the early
stages of the COVID-19 pandemic. To improve the long-term resilience of renewable energy
deployment against exogenous shocks, further diversification of supply chains must be promoted.
In developing countries, training local personnel and developing local suppliers will improve domestic
capacity and help reduce dependence on foreign expertise and just-in-time supply chains. Building a
domestic industry will improve the economics for in-country supply and O&M companies, and can even
encourage local manufacturing.
The expansion and diversification of supply chains for energy transition technologies is particularly
important given their role in surmounting the threats posed by climate change. The current momentum
for policy makers to consider ways to “build back better” offers an historic opportunity to pursue
ambitious structural measures that will boost the economy and create jobs while achieving energy
transition goals.
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PV module production by region 2010-2019 (Source: Fraunhofer, 2020, p. 13)
6.3 Support national manufacturers via local content requirements

• describe what is meant by local content requirements
• argue why local content requirements are necessary in the renewable energy sector
• state some advantages and limitations of local content requirements
Local content requirements for RE projects typically demand that local or in-country firms be used to
provide development services, which may include anything from surveys and legal work to component
manufacturing, supply and installation (see figure). These policies can be helpful in ensuring local firms
have opportunities for learning-by-doing and incremental innovation, especially in the context of
consolidated international supply chains with high barriers to entry. They can also spur training,
technology transfer, and support the local economy.
These policies are particularly relevant in the RE sector, since it is still a young industry in many markets,
and lacks supportive local industry networks. Renewable energy also offers favourable prospects for
localised inputs because of the comparative ease of technology transfer; also, the labour intensity of
its low- and medium-skilled work segments is favourable where local labour is cheap and plentiful.
In the past, the use of local content requirements for industrial development and job creation has been
challenged under World Trade Organisation rules, which may lead to a reversal of policy. However, the
recovery phase following an economic downturn presents an opportunity to rethink these rules and
the policy space for using local content requirements, including the possibility of granting special status
for renewable energy technologies, given the nature and urgency of climate change.
At the same time, local content requirements are not a stand-alone solution. They do not suffice for
building productive capabilities that are oriented toward international competitiveness in the long run.
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In fact, they have often failed to achieve desired outcomes. Quotas have often been either too high,
scaring away investors, or too broad, enabling investors to exploit ambiguities.
More importantly, governments have often enforced local content quotas without investing in parallel
processes to build capabilities, leading to a costly trade-off between local content and competitiveness.
The accumulation of the productive capabilities needed for integrating renewable energy supply chains
should go well beyond local content requirements, and be combined with genuine investment in
human resource development to fulfil the aims of local content ambitions.
Domestic content requirements under Ontario’s FIT programme v. 2.1 (Source: IESO, 2013)
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6.4 Ease entry into the renewable energy value chain
• explain why it is important to facilitate the integration of newcomers in renewable energy
value chains
• state how industrial policy tools can be utilised to create internationally competitive local
suppliers
Expanding global production networks in renewable energy sectors demands action to facilitate the
integration of newcomers into renewable energy value chains. Easing entry barriers can improve
competitiveness, encourage geographical diversification, and spread the socioeconomic benefits of the
energy transition to assist post-crisis recovery in more countries.
Development of local firms’ scale and capacity to meet the demand for increasingly sophisticated
inputs and services in green technology will go far in helping to drive localised socioeconomic
development, notably through job creation.
The use of industrial policy tools requires further attention, because high barriers to entry continue to
hinder the development of internationally competitive local suppliers (particularly in developing
economies). These barriers consist mainly of the capital- or technology-intensive nature of many value-
added activities, intellectual property and world trade provisions, and reliance on internationally
consolidated supply chains designed to ensure quality and reliability.
Such market obstacles can be largely overcome by industrial policies aimed at spurring innovation,
building skilled human capital, and learning-by-doing.
The growth of patents in renewable energy (2009-2019) (Source: IRENA, 2020f)
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6.5 Establish capacity development programmes
• give reasons why it is important for countries to develop local supply capacity
• describe how countries can establish a competitive supplier base without local content
requirements
Programmes to develop local supply capacity can enhance the industrial capabilities of many local
actors, allowing firms to benefit from more stable intra-industry relationships, exposing them to
international best practices and quality standards, and giving them access to up-to-date information
on quality requirements and evolving market needs.
In Malaysia, for example, vendor development programmes were set up across several sectors with the
objective of developing a competitive domestic industrial base and local technologies. Firms
participating in such programmes have strengthened their capabilities, increased sales, gained
exposure to international markets, and stabilised their contracts, enabling them to better plan their
future development. As innovation has grown (see figure), Malaysian companies can become more
competitive globally.
Technical skills are also essential for the adoption and diffusion of RE technology. When institutions for
training specialised personnel are lacking, or when specific expertise (or at least the means for
acquiring such expertise) is not available locally (or even nationally), firms struggle to increase local
content. Therefore, strategies encouraging entry into renewable energy value chains need to be
supported by targeted labour policies.
Through the gradual accumulation of capabilities, local firms can develop the scale and capacity to
meet the demand for increasingly sophisticated inputs and services in green technology
manufacturing. Even though countries would be expected to eventually phase out local content
requirements as part of their international trade commitments, they would have built a competitive
supplier base that would no longer need protection. This approach would also enable countries to
integrate renewable value chains without slowing down the global energy transition.
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Clean sector patents granted in Malaysia 2001-2015 (Source: IRENA, 2020f)
6.6 Support research & development (R&D), new strategies and industry clusters
• discuss the value of R&D for green recovery programmes
• understand why governments play an essential role in R&D
• explain the function and advantages of industry clusters
Increased R&D in energy transition technologies is an essential ingredient of green recovery

programmes. Innovation along the value chain depends, though, on public institutions that incentivise
firms to perform in-house R&D, quality certification, standard setting, incubation, technology transfer
and diffusion.
Government action is essential because finance capital tends to flow toward the deployment of
incumbent dominant technologies, rather than to early-stage R&D. Where governments do provide
long-term capital and grants to R&D efforts, they should aim to prioritise climate and environment-
friendly technologies.
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Global corporate R&D spending in energy related sectors (Source: IEA, 2019, p.160)
Many technologies that are crucial for the long-term energy transition and full decarbonisation of
energy systems are not yet cost competitive. Examples include battery storage, hydrogen, synthetic
fuels, electric vehicles, tidal and kite power. Crisis recovery programmes can help to bring these
emerging technologies closer to technological maturity, if governments support the necessary R&D.
Although these technologies can be supported individually under green recovery programmes, policy
makers might aim at forming industry clusters to further develop them. By adopting national or regional
strategies for emerging technologies, countries should be able to localise or regionalise many of the
expected socioeconomic benefits. The Netherlands and Germany, for instance, have each developed a
national hydrogen strategy aimed at creating a national hydrogen supply chain, which encompasses
policies and regulations, infrastructure investment, and additional support policies.
Research and Development spending by national governments, 2014-2019 (Source: IEA, 2020c, p.158)
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6.7 Policy recommendations
• list some policy recommendations for sustainable industrial policy
• consider and compare the objectives of different industrial policies discussed in this course
The following is a list of policy recommendations aimed at building a sustainable industrial

base. Recall how these different policy recommendations support various objectives, such as
employment, innovation, independence, and carbon targets.
a) Provide investment incentives for green R&D, patient capital, and grant funding.
b) Design and set up training programmes to build skilled human capital.
c) Consider local content requirements, incentives, skills development, R&D support and state-
led investment.
d) Impose strict performance requirements on local suppliers in exchange for government
support (such as subsidies and tax breaks).
e) Establish green financing programmes through national development banks to improve access
to credit, investment and funding for industrial activities.
f) Set up supplier development programmes to promote learning-by-doing for local suppliers.
g) Increase R&D into energy transition technologies to trigger innovation and spill-over effects.
h) Establish energy transition strategies and industry clusters for emerging technologies, e.g.,
hydrogen, batteries.
i) Phase out local content requirements as international trade resumes and as a competitive
supplier base outgrows the need for protection.
j) Certify quality, set standards, offer incubation, and support technology transfer and diffusion.
6.8 Chapter notes

[1] IEA, 2020c, p. 184
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7 Green recovery and energy access policies
7.1 The impact of COVID-19 on energy access
• discuss the importance of energy access
• reflect on how a global economic crisis impacts energy access and energy poverty
Energy access is essential for economic and human development and is an important driver for
progress and social welfare. Access to modern forms of energy for meeting electricity and heating
needs become even more important for the socioeconomic development of rural areas (which lag
behind urban areas in terms of infrastructure). Universal modern energy access to achieve social and
economic development goals (and SDGs) entails access for every household, public buildings (e.g.,
schools, healthcare centres) and local enterprise, especially in rural communities.
The economic, manufacturing, and mobility aspects of the COVID-19 crisis are affecting efforts to widen
access to modern energy in developing countries in a variety of ways. Most people who lack access to
modern energy live in rural areas in poorer countries. Their primary sources of income are typically
agriculture, seasonal and migrant work, or remittances from family members working elsewhere.
Pandemic-related disruptions impacted much of this activity and threatened rural populations in
developing countries with serious income shocks.
Economic shutdowns disproportionately affected women, as they are more likely to be informal
workers and entrepreneurs. Vulnerable households whose incomes are strained are then less able to
pay for electricity or clean cooking services, which hinders expansion of new electrical access, and
entails a risk of those with access falling back into energy poverty. Further, enterprises working to
deliver and maintain off-grid renewable energy solutions are deeply impacted by customers’ income
shock as well as logistical challenges posted by pandemic-related response such as lockdowns.
Keeping the momentum going toward achieving universal energy access by 2030 requires technological
improvements, supportive policies and regulations, capacity building, an appropriate institutional
framework, and the right financial tools and delivery models. Policymakers need to ensure that
vulnerable populations continue using modern decentralised solutions like off-grid renewable energy
facilities – perhaps by providing relief measures to energy providers to defer or restructure payments
– rather than reverting to traditional fuel use patterns in response to income shocks.
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Enabling off-grid renewable energy (Source: IRENA, 2020, p. 73)
7.2 The impact of economic downturns on energy access companies

• explain how economic crises impact energy access companies
• outline support schemes for energy access companies during economic crises
The pandemic and the economic downturn have a strong impact on the revenues of off-grid enterprises
such as standalone solar system companies and mini-grid utilities4. A worldwide survey of over 80 such
companies revealed that respondents expected to lose between 27% and 40% of their revenues in the
early months of the crisis.
Providing access to energy requires high capital investment. Even as global investment into providing
energy access has been far less than needed, the COVID-19 crisis raised concerns over future financing
for electricity and clean cooking, as it already placed utilities and off-grid enterprises in financial duress.
Support measures for vulnerable (rural and urban) energy consumers may be needed to protect those
who have recently gained access from falling back into energy poverty. In addition, support is required
by distributed energy enterprises, to help them meet their immediate financing needs for bridge loans,
operating capital and grants. The cash positions of off-grid companies are extremely tight, with
approximately 70% of companies having no more than two months of operating capital available.
Several dedicated funding facilities for such off-grid companies have already been announced. Donors,
foundations and other financing institutions are trying to ensure that the lights stay on for the 470
4Traditional distribution utilities are also affected by the pandemic and economic downturn owing to reduced demand,
particularly from commercial and industrial consumers, and income shock. In response, several countries have announced
dedicated funding facilities for utilities to tap into financing to meet immediate shortfalls.
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million people who depend on off-grid solar solutions. The COVID-19 Energy Access Relief Fund,
managed by SunFunder, is one example, designed as a EUR 100 million concessionary debt fund to
support off-grid energy companies facing a liquidity crunch due to the ongoing crisis.
7.3 Financing energy access and clean cooking

• highlight the relevance of energy access for a sustainable recovery
• recount national support measures to enhance energy access financially
Funding to expand access to modern forms of energy will have to be strengthened if the world is to
meet the goal of universal access by 2030, as articulated in SDG-7 of the UN’s Sustainable Development
Goals. Investments in electrification and clean cooking are key elements of this transition, and should
be scaled up to become a central pillar of the global recovery package given the long-term
socioeconomic dividends.
The estimated financing needed to meet the target of universal energy access is more than USD 45
billion annually; governments, utilities, off-grid enterprises, and consumers will need tailored financing
to ensure this investment level can be reached.
Public financing will continue to play a fundamental role, even as new models to leverage private capital
are tested and implemented. Fiscal support for off-grid renewable energy technologies could prove to
be an effective tool for improving affordability and boosting technology diffusion, particularly for stand-
alone systems.
Support measures could be enshrined in national planning, and could include specific financial support
to enable low-income consumers to pay for connection fees, stand-alone systems, or energy-efficient
appliances (see chart). Building adequate capacity along the value chain – by upgrading financing
institutions, for example – will thus yield valuable returns in terms of moving energy access forward.
Table: Policy recommendations aimed at ensuring universal access to electricity (Source: IRENA, 2020, p. 92)
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7.4 Energy access and livelihood support
• describe how improved energy access can enhance social inclusion
• explain why off-grid solutions should focus on users and livelihoods
Efforts to support livelihoods with distributed renewables is crucial to create local jobs, strengthen
enterprises and maximize socioeconomic benefits. For equitable outcomes, such efforts must ensure
equitable access to and control over sustainable energy services by both men and women to maximise
socioeconomic development. Women-owned enterprises should be encouraged in the energy access
sector, as in other sectors that depend on distributed energy solutions; financing and skills-
development programmes should be accessible to all.
There are some key differences between an ecosystem that supports off-grid renewable energy
solutions for energy access and one that specifically supports users and their livelihoods. Rather than
focusing on a specific technology solution (solar home systems, mini-grids, biogas plants), a focus on
users and livelihoods can assume additional dimensions, building on market linkages, sector-specific
skills upgrades, and coupling of energy technologies with energy-efficient equipment and tools people
need for income-generating activities. This in turn may help maximise the value of improved energy
access by leveraging this access to support agriculture, small enterprises, and sustainable livelihoods.
Supporting livelihoods with distributed RE (Source: IRENA, 2020, p. 90)
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7.5 Energy access for health
• understand the need for dedicated programmes to ensure modern energy access in health
care facilities
• describe the ways in which deploying distributed renewable energy solutions supports crisis
response and strengthens health and sanitation
There is an immediate short-term need to support efforts to strengthen healthcare and critical public
infrastructure to help tackle the pandemic in developing countries. Reliable and sufficient energy is
essential for providing basic amenities (e.g., lighting, ventilation, water supply, communications
devices) and powering vital medical appliances such as vaccine refrigerators and ventilators (see
figure).
A great many primary healthcare centres in sub-Saharan Africa operate without dependable access to
electricity, and often resort to unreliable and costly diesel backup generators. Distributed renewable
energy systems can enable healthcare centres to improve their level of care, and should be rapidly
deployed. Reliable distributed energy also helps ensure access to water and sanitation services, to
support continuous well-being, and the operation of critical infrastructure such as mobile testing
centres and laboratories, as well as the cold supply chains (e.g., for vaccines and medicines) on which
healthcare services rely.
Many emerging countries host a robust, dynamic ecosystem of distributed renewable energy
technologies that can be leveraged to improve energy supply for urban and rural hospitals, in addition
to isolation centres, rural health centres, and other critical public infrastructure. Rapid expansion of
these systems is entirely possible: for example, over a span of only two weeks Nigeria’s Rural
Electrification Agency installed solar-hybrid mini-grids to power four isolation centres in different parts
of the country, each with over 100 beds.
Energy for health services (Source: IRENA, 2020, p. 113)
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8 Summary
The green recovery agenda laid out in this online course offers a comprehensive set of investment and
policy actions that respond to the combined challenges of economic crisis and climate change. The
agenda aims to be global, inclusive, systematic, and transformative.
The COVID-19 pandemic has exposed the vulnerabilities inherent in an economic system that puts
relentless stress on the natural world and leaves many people behind. At the same time, it has given
pause to practices that are less sustainable, and thus opens the door to “building back better”, and
making the needed changes to protect individuals, society, and the environment, while paving the way
to being better prepared for future economic crises and other disruptions.
Renewables, although affected along with the rest of the economy, appear more resilient than other
parts of the energy sector. National and regional energy transitions can thus help to build more resilient
economies and societies.
Many of the technologies already available to us can help to create a safer, more resilient, and more
sustainable world. The necessary financial resources are also available, but the just transformation of
the energy system is unlikely to happen if left to markets alone. It will take visionary government action
and an empowered citizenry, together driving sustained and inclusive public dialogue that sets core
objectives to inform co-ordinated transition strategies.
Robust, dedicated institutions are essential to drive change at the required scale and pace.
Governments must find ways to harness the technical, economic, social and environmental expertise
available across all parts of society – whether in ministries, academia, or non-governmental
organisations – to ensure cohesion and unity of purpose in the coming years.
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8.1 References (cited)
Bloomberg (2020), ‘Air France KLM Wins EU Approval for $7.7 Billion Bailout’, Bloomberg News, 4
May. Online at http://www. bloomberg.com/news/articles/2020-05-04/air-france- wins-eu-approval-
for-eu7b-french-guarantee-and-loan
Fraunhofer Institute (2020), Photovoltaics report. Fraunhofer Institute for Solar Energy Systems,
Freiburg, 16 September 2020. Online at
https://www.ise.fraunhofer.de/content/dam/ise/de/documents/publications/studies/Photovoltaics-
Report.pdf
Global Climate Bonds Initiative (2021) Website of the Global Climate Bonds Initiative. Online at:
https://www.climatebonds.net/
IASS/TERI (2019), Future skills and job creation with renewable energy in India: Assessing the co-
benefits of decarbonising the power sector, COBENEFITS Study, October (IASS/TERI). Online at
https://www.cobenefits.info/resources/future-skills-and-job-creation-with-renewable-energy-in-
india/
IATA (2020), ‘Airline Debt to Balloon by 28% -Heavy New Debt Levels Will Weigh Down Recovery’, IATA
Press Release No: 46, 26 May 2020. Online at https://www.iata.org/en/pressroom/pr/2020-05-26-01/
IEA (2019), Global Energy Review 2019, International Energy Agency, Paris. Online at
https://www.iea.org/reports/global-energy-review-2019
IEA (2020), Global Energy Review 2020, International Energy Agency,, Paris. Online at
https://www.iea.org/reports/global-energy-review-2020
IEA (2020b), Sustainable Recovery, International Energy Agency, Paris. Online at

https://www.iea.org/reports/sustainable-recovery
IEA (2020c), World Energy Investment 2020, International Energy Agency,, Paris. Online at
https://webstore.iea.org/world-energy-investment
IESO (2013), Feed-in Tariff Contract (FIT CONTRACT) Version 2.1.1, March 22, 2013. Ontario Power
Authority/Independent Electricity System Operator. Online at https://ieso.ca/-
/media/Files/IESO/Document-Library/FIT/archive/FIT-Contract-Version-2-1-1.ashx
IRENA (n.d.), “Off-grid renewables supply life-saving power to rural health centres,” International
Renewable Energy Agency, Abu Dhabi. Online at https://irena.org/-
/media/Files/IRENA/Agency/Topics/Off-grid/IRENA_Flyer_Healthcare.pdf
IRENA (2019), NDCs in 2020: Advancing renewables in the power sector and beyond, International
Renewable Energy Agency, Abu Dhabi. Online at
https://www.irena.org/publications/2019/Dec/NDCs-in-2020
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IRENA (2020), The post-COVID recovery: An agenda for resilience, development and equality,
International Renewable Energy Agency, Abu Dhabi. Online at
https://www.irena.org/publications/2020/Jun/Post-COVID-Recovery
IRENA (2020b), Global renewables outlook: energy transformation 2050, International Renewable
Energy Agency, Abu Dhabi. Online at
https://www.irena.org/publications/2020/Apr/Global-Renewables-Outlook-2020
IRENA (2020c), Mobilising institutional capital for renewable energy, International Renewable Energy
Agency, Abu Dhabi. Online at https://www.irena.org/publications/2020/Nov/Mobilising-institutional-
capital-for-renewable-energy
IRENA (2020d), Renewable energy finance: Green Bonds, Renewable Energy Finance Brief 03, January
2020, International Renewable Energy Agency, Abu Dhabi. Online at
https://www.irena.org/publications/2020/Jan/RE-finance-Green-bonds
IRENA (2020e), Renewable Energy and Jobs – Annual Review 2020, International Renewable Energy
Agency, Abu Dhabi. Online at https://www.irena.org/publications/2020/Sep/Renewable-Energy-and-
Jobs-Annual-Review-2020
IRENA (2020f) website, https://www.irena.org/Statistics/View-Data-by-Topic/Innovation-and-

Technology/Enabling-Technologies-Patents
IRENA, IEA and REN21 (2020), Renewable Energy Policies in a Time of Transition: Heating and cooling.
Online at https://www.irena.org/publications/2020/Nov/Renewable-Energy-Policies-in-a-Time-of-
Transition-Heating-and-Cooling
Kaminker, Ch., Stewart, F. (2012), ‘The Role of Institutional Investors in Financing Clean Energy’,
OECD Working Papers on Finance, Insurance and Private Pensions, No. 23. Paris: OECD Publishing.
Online at
http://www.oecd.org/environment/WP_23_TheRoleOfInstitutionalInvestorsInFinancingCleanEnergy.
pdf
Taylor, Michael (2020), Energy subsidies: Evolution in the global energy transformation to 2050,
International Renewable Energy Agency, Abu Dhabi. Online at
https://irena.org/publications/2020/Apr/Energy-Subsidies-2020
UNCTAD (2021), “Global FDI Flows Down 41% in 2020”, Investment Trends Monitor 38, January 2021.
Retrieved from http://unctad.org/diae.
UNESCO & UNEVOC (2017), Greening technical and vocational education and training: a practical
guide for institutions, United Nations Educational, Scientific and Cultural Organization and
UNESCO-UNEVOC International Centre for TVET. Online at
https://unesdoc.unesco.org/ark:/48223/pf0000259632
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West College Scotland (n.d.), Oil and gas sector flyer. Online at https://investinrenfrewshire.com/wp-
content/uploads/2016/09/Oil-and-Gas-A5-flyer-090816.pdf
9 Additional glossary terms
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term
(can be left abbreviation
blank in the (if definition source
case of an applicable)
abbreviation)
The International Renewable
Energy Agency (IRENA) is an
intergovernmental organisation
that supports countries in their
transition to a sustainable energy
future, and serves as the principal
platform for international
cooperation, a centre of
excellence, and a repository of
policy, technology, resource and
International
financial knowledge on renewable
Renewable
IRENA energy. IRENA promotes the https://www.irena.org/
Energy widespread adoption and
Agency sustainable use of all forms of
renewable energy, including
bioenergy, geothermal,
hydropower, ocean, solar and
wind energy in the pursuit of
sustainable development, energy
access, energy security and low-
carbon economic growth and
prosperity.
Liquefied natural gas (LNG) is

natural gas that has been cooled
https://www.eia.gov/energyexpl
Liquefied to a liquid state (liquefied), at
LNG about -260° Fahrenheit, for ained/natural-gas/liquefied-
Natural Gas
shipping and storage. T natural-gas.php
Are fixed electricity prices that are

paid to renewable energy (RE) https://energypedia.info/wiki/F
Feed-in tariffs FIT producers for each unit of energy eed-in_Tariffs_(FIT)
produced and injected into the
electricity grid.
Emerging markets are nations that
are investing in more productive
Emerging capacity.1 They are moving away https://www.thebalance.com/w
Markets and from their traditional
EMDEs hat-are-emerging-markets-
Developing economies that have relied on
3305927
Economies agriculture and the export of raw
materials. Leaders of developing
countries want to create a
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better quality of life for their
people. They are rapidly
industrializing and adopting a free
market or mixed economy.
Variable renewable energy (VRE)

or intermittent renewable energy
sources (IRES) are renewable
energy sources that are
not dispatchable due to their
Variable fluctuating nature, such as wind
https://en.wikipedia.org/wiki/V
Renewable VRE power and solar power, as
opposed to controllable ariable_renewable_energy
Energy
renewable energy sources, such as
dammed hydroelectricity or bioma
ss, or relatively constant sources,
such as geothermal power.
Are at the heart of the Paris

Agreement and the achievement
of these long-term goals. NDCs
embody efforts by each country to
reduce national emissions and
adapt to the impacts of climate https://unfccc.int/process-and-
change. The Paris meetings/the-paris-
Nationally Agreement (Article 4, paragraph 2) agreement/nationally-
Determined NDCs requires each Party to prepare, determined-contributions-
Contributions communicate and maintain
ndcs/nationally-determined-
successive nationally determined
contributions (NDCs) that it contributions-ndcs
intends to achieve. Parties shall
pursue domestic mitigation
measures, with the aim of
achieving the objectives of such
contributions.
A green bond is a type of fixed-
income instrument that is
specifically earmarked to raise
money for climate and
environmental projects. These https://www.investopedia.com/
Green Bond bonds are typically asset-linked terms/g/green-bond.asp
and backed by the issuing entity's
balance sheet, so they usually
carry the same credit rating as
their issuers’ other debt
obligations.
Technical and TVET
Vocational
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Education
and Training
The United Aimed at promoting world peace
Nations and security through international
Educational, UNESCO cooperation in education, the
Scientific and www.unesco.org
sciences, and culture
Cultural
Organization
Research and
R&D
Development
The Sustainable Development
Goals (SDGs) or Global Goals are a
Sustainable
collection of 17 interlinked global
Development SDGs sdgs.un.org
goals designed to be a "blueprint
Goals
to achieve a better and
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21/12/2021

Green_Recovery_Storyboard_final_2021

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Online course

© Renewables Academy (RENAC) AG

1.3 Course structure

2.2 The impact on the power sector (existing plants)

2.3 The impact on the power sector (new plants)

2.4 The impact on renewable heating & cooling

Foreign direct investment by region (Source: UNCTAD, 2021, p. 3)

2.7 The impact on employment (in the renewable energy sector)

Solar PV employment: Top 10 countries (Source: IRENA, 2020e, p. 10)

2.8 The impact on supply chains and industrial policies

2.9 Chapter notes

Energy transition investment under TES, 2019-2030 (IRENA, 2020, p. 47)

3.2 Creating short-term stimulus via investment in energy transition technologies

3.3 Trigger investment in clean energy network infrastructure

4.2 Overcoming barriers for institutional investors

4.3 Promote green bonds for renewable energy

“A green bond is a fixed-income instrument designed specifically to support climate-related or

4.4 Strengthening green bonds

4.5 Using public finance strategically

4.6 Offer green finance via development banks

Green bonds by issuer type (Source: IRENA 2020d, p. 9)

4.7 Provide price signals and fiscal tools

4.8 Reform fossil fuel prices

Global fossil fuel subsidies by fuel (Source: Taylor, 2020, p. 39)

4.9 Chapter notes

Employment intensity of clean energy investments (Source: IRENA, 2020, p. 57)

5.4 Employment factor of RE technologies – the pivotal role of distributed generation

5.5 Seize renewable energy job-creation opportunities

Human resources requirements for RE workforce (Source: IRENA, 2020, p. 111)

5.6 Employment opportunities along renewable energy value chains

6.2 Regionalise renewable energy supply chains

6.3 Support national manufacturers via local content requirements

The growth of patents in renewable energy (2009-2019) (Source: IRENA, 2020f)

Increased R&D in energy transition technologies is an essential ingredient of green recovery

The following is a list of policy recommendations aimed at building a sustainable industrial

6.8 Chapter notes

7.2 The impact of economic downturns on energy access companies

7.3 Financing energy access and clean cooking

Supporting livelihoods with distributed RE (Source: IRENA, 2020, p. 90)

Energy for health services (Source: IRENA, 2020, p. 113)

IEA (2020b), Sustainable Recovery, International Energy Agency, Paris. Online at

IRENA (2020f) website, https://www.irena.org/Statistics/View-Data-by-Topic/Innovation-and-

9 Additional glossary terms

Liquefied natural gas (LNG) is

Are fixed electricity prices that are

Variable renewable energy (VRE)

Are at the heart of the Paris

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