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Thursday, 21 July 2022

Could renewable energy help narrow the gender gap in our workforce?

Could the green energy transition provide an opportunity for more women to join the workforce? Women make up only 10% of the total energy sector workforce in Egypt — far below the global average of 22%. But as Egypt and other countries in the region focus on expanding their renewable energy capacity in the coming years, there’s a unique opportunity to change this dynamic, according to a World Bank report (pdf).

The renewables industry is rapidly growing around the world, with that comes a new opening: The global energy market is expected to grow 44% by 2050. An overwhelming portion of those jobs (some 80%) will be coming from the renewables industry, which appears to be more capable of bringing more women into its workforce than the fossil fuel industry, the report suggests.

There’s a huge economic upside for making sure labor force participation is expanded: GDP in the region could grow 20% by simply closing the existing gender gaps in labor force participation, the report says. Part of this would come from growing the overall size of the labor force. Another part could come from a rise in productivity, which according to existing research occurs when gender diversity increases.

And major losses for inaction: The exclusion of women from the workforce is estimated to be costing the region some USD 575 bn per year, according to the OECD.

More jobs are on the horizon across the board: The green energy transition could add 1.4 – 3.8 mn jobs to the Egyptian economy by 2050, according to the report. Assuming no increase in the current rate of women’s participation in the workforce — which is currently around 15% — that would translate to about 210k – 570k new jobs for women, the report estimates.

That figure could be higher amid rising demand for new skills and growing interest among women: Telecommunications, computer science, and artificial intelligence-based skills are becoming increasingly important for the industry and could “leave significant room for empowerment of women in the sector through employment,” the report says. Part of the reason for this is because women have been generally more interested in enrolling in educational programs focused on renewable energy and make up a good chunk (43%) of the country’s STEM graduates, the report explains. Interest in climate issues among women has grown substantially, and is higher up on young women’s priorities than ever before.

Already we’re seeing renewable energy firms in Egypt more likely to hire women in technical roles than their fossil fuel-based counterparts: Overall, some 11% of technical and professional positions in the renewables sector are currently held by women — double that of the non-renewables industry. The same holds true for plant, machine and assembly operators, which in the renewables sector is 11% occupied by women while only 4% for non-renewables.

But we’re still far from celebrating a win for gender equality: Female representation in renewables globally is currently around 32%, far above the rates we’re seeing here in Egypt and the rest of the region. And while the representation of women in certain kinds of roles within the renewables industry in Egypt is significantly higher than those same jobs in the fossil fuel-based energy sector, the total difference in representation is only about 1%.

How do we stack up against our peers? Compared to neighboring countries in the Gulf and the Levant, we’re not at rock bottom. Saudi Arabia, for example, only has some 5-6% of its energy-related sector positions held by women. The figures are roughly the same for Lebanon, Jordan and Iraq. Compared to Tunisia and Algeria, though — who have participation rates of some 16-20% and 27%, respectively — we’re far behind.

A number of structural problems need to first be addressed before any meaningful gains on gender equity are achieved: Expanding recruitment opportunities — which typically target men — and ensuring safer and more reliable transport are crucial first steps, the World Bank says. There’s also a serious need for better vocational training and more accessible childcare options for women. Independent professional development networks would also be a huge help in providing guidance and networking opportunities for women looking to join the energy sector.

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