Empowering youth for the transition to a green economy

In the heart of South Africa's renewable energy boom, the small town of Loeriesfontein in Northern Cape stands as a poignant example of the challenges faced by local youth in creating sustainable livelihoods. The hum of wind turbines in the distance spoke of promise and opportunity, but for many in the community, these prospects fell short. Jobs at the wind farms turned out to be short-term, low paying and unskilled, offering little in the way of meaningful training or long-term career growth. As foreign-owned renewable projects expanded, it underscored the need for genuine skills development and local ownership. The community yearned for a different approach to sustainable energy that empowered those who had long been marginalized.

As part of the low-carbon transition and a shift to clean energy, the green economy has emerged as a central concept in sustainable development discussions. Green economy proposals often require substituting traditional production processes with more resource-efficient and environmentally friendly ones, a shift that may not immediately lead to job creation and, conversely, could result in job losses. From this perspective, the concept of a just transition emerges: greening the economy in a way that is as inclusive as possible, creating decent work and ensuring that no one is left behind.

IDRC-funded research has focused on better-understanding youth opportunities emerging from the low-carbon transition and the challenges and systemic barriers that prevent young people from reaping the benefits of a green economy. Research in Nigeria, South Africa and across the African continent is looking at the job skills young workers require and generating findings that can help policymakers meet the needs of youth while transitioning to a low-carbon future.

Building the capacity of young entrepreneurs

The world is facing increasing youth unemployment and long-standing systemic social issues and inequalities that disproportionately affect young people. These issues, which were previously inadequately addressed, have worsened on account of the global climate crisis, placing youth in even more challenging conditions. Young women face specific challenges such as the social pressure of starting a family despite the lack of socio-economic infrastructure to reduce and redistribute unpaid care work. A shift to a green economy to address poverty, inequality and sustainable development challenges must create jobs to support the increasing number of people seeking work. Around the world, roughly 33,000 young people are expected to enter the labour market every day between now and 2050. Successfully integrating this generation into the workforce will be key to the shift to a green economy.

A green transition that prioritizes youth can focus on three main aspects: increasing youth employment by involving young people in the labour market within a green economy, enhancing youth employability by improving their qualifications for such a market, and promoting youth entrepreneurship to empower young people to co-create a green economy, along with labour opportunities for themselves and others.

The story of Loeriesfontein was elucidated through an IDRC-funded project led by INCLUDE, a knowledge platform on inclusive development policies. INCLUDE developed case studies, along with key recommendations, to support a just transition in Nigeria and South Africa, informed by multi-stakeholder dialogues with key players in the low-carbon energy space. In South Africa, one such recommendation suggested that public policy should support the informal economy by reducing bureaucratic barriers and unnecessary formalization, while still ensuring worker protection, to create an enabling environment for the micro, small and medium-sized enterprises in the green sector that are vital for youth. To bridge the skills gap, the research team highlighted that technical and vocational education and training institutions should partner with the green-energy sector to develop comprehensive programs that equip youth with practical skills needed in the emerging low-carbon industries. 

Youth are often drawn to entrepreneurial endeavours in response to a lack of formal-sector jobs or education opportunities but face barriers such as lack of access to capital and business experience. Entrepreneurship skills training is critical to addressing these barriers and unlocking their potential. 

With IDRC’s support, United Nations University is establishing a pan-African incubation, training, venture and acceleration program for youth entrepreneurs, offering technical assistance to help them develop innovative and transformative business opportunities in green sectors. A skills gap analysis across African countries identified key entrepreneurial competencies across five green sectors: renewable energy, smart agriculture, waste management, water management and blue tech, which refers to innovative technologies that promote the marine economy while protecting ocean and water resources. Online resources were collected and contextualized, and an eight-month blended learning curriculum was developed, all of which will enhance labour opportunities through the capacity-building of green entrepreneurs.

As the world navigates the shift to low-carbon technologies, it is essential to focus on promoting youth employment. The research and initiatives funded by IDRC point towards a promising path: creating inclusive green jobs, enhancing educational pathways and empowering young entrepreneurs through targeted support and training. By addressing systemic barriers and prioritizing local needs, we can ensure that the benefits of a green economy are widely shared, especially among youth, paving the way for a more sustainable and equitable future.