Preparing the Workforce for the Green Transition

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The green transition in South Africa is expected to create new jobs while also leading to job losses, particularly in carbon-intensive sectors like coal [8][19] - The report outlines five strategies to prepare the workforce for the green transition, emphasizing the need for skills development to support employability and competitiveness [9][52] Summary by Sections A. Introduction - South Africa's green transition will significantly impact its workforce, with new job creation and changing skill requirements [8] - The report proposes strategies to enhance the skills development system to support the green transition [9] B. Global Context - A global commitment to achieving net-zero emissions is driving the need for substantial changes in various sectors, including energy and transportation [13] - Decarbonization is essential for maintaining competitiveness in international markets, particularly for countries reliant on exports [14] C. The Green Transition in South Africa - South Africa has ambitious goals for a Just Energy Transition, but progress has been modest due to various challenges [19] - Examples of promising investments include Toyota's R2.6 billion investment in hybrid vehicle production and renewable energy projects in the COEGA Development Cooperation [19] D. Impact on Labor and Skills Demand - The World Bank forecasts a net job creation of approximately 1 million jobs in key industries affected by the low-carbon transition from 2022 to 2050 [26] - Job creation is expected to be highest in non-coal mining and renewable energy sectors, while job losses will primarily occur in high-emission industries [26] E. PSET System's Ability to Prepare Workforce - The PSET system faces structural weaknesses that hinder its performance in equipping workers with necessary skills for the green transition [39][41] - There is a need for better coordination among stakeholders to align education and training with emerging skill demands [46] F. Strategies for Workforce Preparation - The report emphasizes the importance of systematically collecting and disseminating information on skill needs for the green transition [53] - Establishing clear leadership and effective coordination mechanisms among stakeholders is crucial for aligning skills development with industry needs [57]