The scale, breadth and complexity of the net zero transition has been described as the next industrial revolution by some commentators and equated with world war mobilisation efforts by others. The Net Zero Australia study estimates a cumulative capital investment of $7-9 trillion is required to transition our economy to net zero. As stated in the BCA’s Seize the Moment report, a critical enabling step to decarbonising our domestic and export sectors is transitioning to a reliable, affordable and clean energy system.

Skilled labour is a critical enabler of Australia’s energy transition. Reaching net zero will require new jobs and skills, with most significant needs in energy and electricity. Jobs and Skills Australia’s (JSA) seminal Clean Energy Generation Report estimates that across 38 critical clean energy occupations, the workforce will need to grow from under 1.6 million to over 1.8 million by 2030, and to 2.25 million by 2050. The highest rate of workforce growth is anticipated in regional areas.

Labour shortages are forecast to be most acute in trades, and the Vocational Education and Training (VET) sector is the main vehicle for developing many of these workers. Significant demand is projected in electrical trades, particularly in wind and utility scale solar and battery storage.

However, clean energy is not the only sector experiencing critical skills gaps. JSA’s skills priority analysis found 36 per cent of occupations experienced worker shortages over the past year, up from 31 per cent in 2022 and 19 per cent in 2021.

The clean energy workforce crunch comes at a time when Australia is facing a housing and infrastructure crisis and a major expansion in defence manufacturing and digital capability. These national challenges demand substantial growth in many of the same skills, further compounding the criticality of clean energy workforce issues.

As such, the BCA recommends data, analysis and policy solutions in the National Energy Workforce Strategy encompass the broader labour market pressures that will affect net zero efforts, rather than narrowly focusing on electricity and energy sector pathways.

This strategic approach to workforce planning will identify and promote workforce mobility and skills transferability across the economy, enabling workers to move more easily between sectors and help to overcome the inherent transient risk in some clean energy occupations.

In analysing the clean energy workforce in the context of construction, the digital economy and other national priorities such as AUKUS, the NEWS could offer new and much-need advice to industry - without duplicating the plethora of clean energy efforts across government. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) cannot do this alone. Meeting this policy challenge will require a whole-of-government approach, with collaboration with Home Affairs, the Department of Education and the Department of Employment and Workplace Relations, along with the states and territories.

Read the full submission here.