Skills for the Green Transition in South Africa

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The success of South Africa's green transition hinges on the availability of necessary skills for green jobs among the current and future workforce, with a significant need for both transversal and green-specific technical skills [5][18] - The report emphasizes the importance of aligning the Post-School Education and Training (PSET) system with the skill demands of the green economy to facilitate a just transition [20][51] Summary by Sections 1. Introduction - South Africa is undergoing a green transition aimed at mitigating climate change, with strategies outlined in key documents such as the National Development Plan (NDP) [16] - The share of green jobs in South Africa's economy is currently small but is expected to rise as green technologies are adopted [16][18] 2. Demand for Skills - The report defines green jobs as those that contribute to the green economy and require specific skills, with various international definitions highlighting the environmental impact of these jobs [24][30] - The expected impact of the green transition on labor and skill demand includes the emergence of new jobs and changes in existing job requirements, particularly in carbon-intensive industries [51][52] 3. Current Offer of PSET - The PSET system's responsiveness to the skill needs for the green economy is assessed, revealing both strengths and weaknesses [3][27] - Systemic weaknesses in the PSET system negatively affect the relevance, quality, and quantity of education and training provision, contributing to skills gaps [5][6] 4. Conclusions and Recommendations - The report proposes several reforms to improve the alignment of the PSET system with the skill demands of the green transition, including effective coordination among stakeholders, systematic data collection on skill needs, and targeted interventions [6][20] - Recommendations also include supporting at-risk workers through skills development and removing unnecessary bureaucratic barriers to qualification development [7][20]