Increased support from the private sector driving green jobs growth
Green technology has garnered a significant amount of investor interest lately, largely due to rising awareness of climate change and the depletion of natural resources. According to a recent McKinsey report, climate-related private-market investment far outpaced the broader market in 2022 as measured by deal activity, the amount of capital deployed, and capital flows into dedicated funds. Further, according to PwC’s State of Climate Tech 2022 report, more than one-quarter of all VC funding is going to climate technology. The market has
shown sustained growth this year as well, as governments, corporations, and investors continue to accelerate implementation of climate technologies.
Private market investment from 2019-2022 has been spread across a range of sectors, including the biggest recipient, the power market, at 50% of the total deployed capital. Power investments more than doubled in that time frame from $40 billion to $100 billion, driven by continued momentum in large-scale renewables. Other notable investments included transportation, which increased 370%, driven largely by increased adoption of electric vehicles, and hydrogen and carbon management which both recorded the most significant growth in investment (460% for hydrogen and 1,400% for carbon management).
As we’ve written about previously, federal government policies around the Paris Agreement as well as the landmark Inflation Reduction Act are driving a large amount of private capital spending on clean energy and low-carbon technologies. In fact, figures from the International Energy Agency and the Organization for Economic Cooperation and Development suggest that up to $6.9 trillion of annual global investments may be needed to meet the Paris Agreement emissions reduction target, with the IEA estimating 70% of that needing to come from the private sector.
Green Tech: A catalyst for creating new jobs shaping the future of work
With increased investment in the green tech sector, we’re also seeing an influx of green job openings. Overall, about 1.4 million workers are employed in green jobs across the country. According to a recent study by Lightcast, the number of green job openings has eclipsed the demand for licensed practical nurses, a job type historically and consistently in demand.
The demand for green jobs could grow by 5.5% over the next five years, with some roles, such as wind turbine technicians and solar installers, projected to grow by as much as 20%. In many of these roles, green skills offer significant average annual salary boosts of $1,500 or more, with some roles commanding a boost upwards of $10,700.
The need for green workers is growing not just in climate tech, but across a range of sectors, including manufacturing, construction, information technology and professional services. Given AstraWorks’ niche focus in the power, renewable energy, design/build and IT markets, we have access to a robust database of talent in the green jobs sector – if you need help with your staffing, contact us today.