Today's Edition
JESSI AMASON (DUBAI)
The UAE plays a crucial role in driving renewable energy targets in the Middle East and North Africa (MENA) region, and the ability to be a model for the region in the just transition towards new, green economic sectors, detailed Peter Rademaker, Deputy Regional Director of the International Labour Organisation’s (ILO) Regional Office for the Arab States and Director of the ILO Decent Work Team for Arab States, in an interview with Aletihad on the sidelines of COP28.
UAE’s Early Adoption, Strategic Investment
Rademaker identified the UAE’s early adoption of renewable energies as a critical success factor for the nation, also noting that the country’s strategic investment in clean energy and vocational training demonstrates a proactive approach to preparing the workforce for emerging green job clusters.
“I think that one of the key success factors is that the UAE was an early adopter of moving into renewable energies. I think it was smart, [that the UAE] very early on tried to invest in clean energy and started to realise, what are the skills you need for the workers to take on these new jobs? So, I think it’s got to have a head start.”
Rademaker noted that the UAE demonstrated foresight in its understanding of the workforce shifts that would accompany the global energy transition, and began acting accordingly in terms of bolstering vocational training systems and encouraging young people to take up careers in new green sectors.
“The announcement of this large new $30 billion fund is also an example of helping countries to either do the same thing, or even make a leap from what they’ve done,” he added, referring to President His Highness Sheikh Mohamed bin Zayed’s announcement of the launch of the new Alterra fund to bridge the gaps in climate financing, announced during the first day of the World Climate Action Summit.
Clear Path for Reskilling
Addressing skills gaps and potential job losses in the energy transition requires collaboration between the government and private sectors, Rademaker emphasised. Such reskilling strategies should involve both workers and companies, and governments must provide guidance, core skills forecasting, and foster a supportive education system.
The ILO official noted that in the transition, certain career paths may become redundant, meaning that employees in these sectors will need reskilling. In this vein, he encouraged private companies in transitioning industries to identify the existing skill profiles of their current employees and build upon them.
Even though reskilling employees in transitioning industries is what he termed “tailor-made work”, the private sector may benefit from reskilling their existing workers rather than starting from a new candidate pool. Rademaker also noted that the role of the government in this collaborative process is to guide the overall path and by participating in macro-level core skills forecasting across the entire economy. “It really has to be a joint thing,” Rademaker said, adding that another optimal role for the government lies in shaping the direction of the new generation of the workforce.
“What is maybe more the role of the government is for new workers, young people that need to work in the future. How do you make sure that young people that now are in school start to consider the kind of careers that might be out there?
“How do we make sure young people start to think about, maybe not following the same path that their parents followed, but looking at new ventures? And how do you know, the school system and universities respond? I think that’s more a role of the state to make sure that happens,” Rademaker said.
Leveraging Fiscal Capacity for a Just Transition
Countries in the region, including the UAE, can leverage their fiscal capacity to invest in a just transition, Rademaker noted, emphasising that such investments are not costs, but long-term investments with future payoffs.
The region’s abundant renewable resources and expertise in energy technology are potential accelerators for the global energy transition, and there is great potential for countries like the UAE to become future green hydrogen exporters, offsetting transition costs.
Rademaker noted that the GCC region in particular is uniquely positioned for the transition, as revenue from traditional energy industries can be invested into the green economy. “I think countries in this region have a fantastic opportunity…The money, if you want to prepare for the just transition, they can afford to invest. That’s very important, because oftentimes, it looks like a huge cost, but taking action actually is not a cost, it’s an investment; there’s going to be future payoffs.
“If countries in the region, like the UAE and others, can become the future exporters of green hydrogen, that’s going to be an ongoing revenue stream in the future. So eventually, if you decarbonise through the investment or by growth industries, it’s going to eventually offset itself,” he added.
Green Jobs Creation and Inclusivity
In a recent report, the ILO projected the creation of 6.6 million jobs in the MENA region through a just green transition. The report, based on a sector-by-sector analysis, indicated potential growth in renewables, green hydrogen, electric transport, and smart agriculture.
Commenting on the report, Rademaker stressed the need for a sector-by-sector analysis, emphasising potential growth in a number of sectors, but advised that inclusivity is crucial to avoid backlash and ensure that both current workers and the rising generation are actively included in the transition process.
“For any country like the UAE, the trick will be to be very certain and very specific about which sectors, and which jobs in which sectors, will possibly be affected, and which are the ones that will stand to gain,” Rademaker said. In the UAE’s economy, Rademaker highlighted renewables, green hydrogen, all types of electric transport operations – including electric vehicle manufacturing – to overall electric transport as having “huge potential” for job creation in the green transition.
“There might be, in some countries, room for investment in smart agriculture. It all depends on each economy,” he added. He noted that for industries that may be affected in the transition, the key is to ensure that all are included in the various transition processes, such as reskilling.
“I think if you show that you take people along, and have foreseen opportunities for related laws, there’s a better chance of taking strong climate action, and that’s what we need to achieve,” he said.
ILO, UAE Sustainable Development Collaboration
The UAE has made significant progress in the pursuit of renewable energy and sustainability and the ILO has actively engaged in green economy initiatives within the UAE and across Gulf countries, Rademaker noted. Highlighting the organisation’s collaboration with the UAE’s Ministry of Human Resource and Emiratisation, he said that the ILO has focused on fostering green jobs, ranging from labour-intensive tasks to more technically advanced roles. He emphasised that collaborative efforts on green job creation varies and isn’t a one-size-fits all concept, stating “[with] green jobs, it’s not a magic formula”.
Specifically, he noted that efforts include discussions on green jobs with a focus on labour-intensive industries like green construction. This involves steps towards low-carbon and decarbonised construction work. Additionally, the ILO engages in more technically advanced careers, such as water harvesting and other technological domains.
The notion of green jobs extends beyond highly visible practices like tree planting, and rather, extends to include practical aspects of workplace organisation, like making working environments more sustainable.
“In hot climates, this is going to show that decarbonisation is actually not a problem, and can be an opportunity,” he added.
While recognising the challenges of the transition, Rademaker commended the UAE’s efforts to invest in renewable energy, indicating a commitment to understanding and navigating the complexities of the transition. “I think investment in renewable energy shows that the UAE is trying very hard to understand how its transition can work. And that’s where I think the UAE should also set an example,” he said.
UAE-ILO Efforts in Developing Countries
Expressing eagerness for collaboration, Rademaker noted that discussions with his UAE counterparts during COP28 have revolved around identifying positive practices that the UAE has developed and transposing them to less developed countries in the Arab region.
He added that the ILO is keen to work more with the UAE, especially in terms of jobs, employment, and skills. “We think that the experience here is probably valuable for other countries, keeping in mind different levels of development,” he said.
“By hosting this COP, the UAE put itself on the map as a… global hub for work. There’s bound to be a lot of intellectual capital here that we can tap into. Look what work is just going on around these floors; you’ll find many initiatives,” the ILO official noted.
Rademaker underscored the importance of a holistic approach, stating: “At the ILO, what we think is important is that it’s not just technology, it’s not just innovation, it’s also human development. It’s about people actually buying in to the change.”
