Skills and innovation needed to fuel green growth

The sustainability of the insurance sector is adversely affected by the risk of climate change, with over R2 billion worth of claims paid out as a result of damage caused by severe weather conditions in 2013.

In South Africa companies have begun the process of adjusting training provisions to meet the new demands of the green economy. Developing green skills is the key to unlocking the employment and entrepreneurial potential of green growth. Green growth is a powerful weapon with which we can tackle youth unemployment as we transition from fossil fuel industries to renewable energy industries. Green growth requires structural change and adaptation of existing jobs, and a few new occupations are also created.

Green economy drivers

There are four key drivers of change to a greener economy and labour market demands.

• The first driver is the environmental degradation including climate change, biodiversity loss and diminishing water resources.
• Heightened consumer awareness and behaviours around the conservation of energy and our natural resources is another driver. We have seen an increase in demand for environmentally friendly and energy efficient products.
• The third driver is government’s policy and regulation, which was initially propelled by environmental degradation and global shifts towards a greener economy. Regulation can be instrumental in reshaping consumer behaviours and providing the technology and funding to incentivize the transition to a greener economy.
• Financial investment by government into green projects allows for job creation and tax incentives to reduce the initial start-up costs for entrepreneurs and consumers who adopt green technologies.

Emerging green skills and jobs

The biggest changes are occurring to existing occupations. These changes are happening at all levels of qualifications and spread across all sectors.

Action is needed to ensure that training is relevant to the labour market needs which are fuelled by green growth. There are job losses in carbon intensive industries and the displacement of low skilled workers must be managed.

The green restructuring in South Africa has seen the decreasing demand for some occupations and skills sets, and an increase in demand for others in the following industries:

• Renewable energy industry – South Africa is poised to become one of the key producers of renewable energy and has implemented the Renewable Energy Power Producer Programme. The programme has a goal of the production of a clean and sustainable power supply using our natural resources of solar and wind energy.
• Building industry – residential and commercial buildings contribute 7.9% of the greenhouse gas emissions globally. New buildings provide an opportunity to implement energy efficient practices in heating systems, renewable energy sources and building insulation. Retrofitting of existing buildings is a market that is not fully exploited by entrepreneurs due to the shortage of skilled technicians to consult in this area and to implement the retrofitting.
• Automotive industry – workers need to be trained to adjust to new technologies that are fuel efficient.
• Farming – South Africa is self-sufficient in all the major agricultural products and also exports food ensuring our food security. Farmers need to be skilled in new methods of sustainable farming and in severe climate changes, skilled to adapt to new crop growth. The organic farming market is also being fuelled by heightened consumer awareness.
• Management and protection of the environment - this includes recycling, biodiversity and eco-tourism management.

Identifying green skills shortages across sectors

The Insurance Sector Training Authority (INSETA) has identified that the core skills that are affected in the sector include entrepreneurship, risk assessment, risk surveying, underwriting and investment management.

The sustainability of the insurance sector is adversely affected by the risk of climate change, with over R2 billion worth of claims paid out as a result of damage caused by severe weather conditions in 2013.

The insurance industry also faces a challenge which drives higher insurance payout costs in motor accident claims. This is due to a lack of skilled technicians to conduct specialised repairs on accident damaged motor vehicles.