POLICY BRIEF – DECEMBER 2015 ?

Harnessing ’s Potential for Green Energy and Green Jobs in the Energy Sector Submitted by The Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ)

Zimbabwe’s energy situation Moreover, the main sources of energy in Zimbabwe 1 are non-replenishable, i.e., wood, , electricity and Energy demand in Zimbabwe has been growing by petroleum. In 2009, the dominant source was wood over 2% per annum. However, the country produces fuel (61%), followed by liquid fuels (18%), electricity only 1300MW of electricity versus a demand of (13%) and coal (8%). This dependency on high-carbon 2200MW, meaning that only 59% of the country’s wood fuel is major contributor to the production energy demand is produced internally, leaving of greenhouse gas (GHG), climate change and thus a national deficit of about 41%. This has stifled environmental unsustainability. The 2014 Labour industrial production at national level across all Force Survey revealed that 65.2% of the population economic sectors (both in the formal and informal still relied on wood for cooking, of whom 92.5% were economy). The 2015 Confederation of Zimbabwe living in rural areas. Despite the rural electrification Industries (CZI) State of the Manufacturing Sector programme, electricity usage in rural areas remained Survey indicated that power cuts and shortages low, being only 5.3%. are amongst the five top structural bottlenecks In light of the above, sustainable and renewable negatively affecting industrial production. energy has emerged as one of the anchors in national Unable to remain competitive as a result, some policies and developmental frameworks such as the companies have responded by reducing the size National Energy Policy (2012), the Zimbabwe Agenda of their workforce or shutting down completely. for Sustainable Socio-Economic Transformation (Zim- Power outages have likewise heavily disrupted the Asset) (2013–2018) and the National Response Strategy accessibility and availability of essential basic social on Climate Change (2015). It also has great potential services such as water and sanitation, education to create green jobs at all levels of society and in rural and health, which are basic socio-economic rights. and urban areas. The government has been trying to address this through load shedding and increasing imports.

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policy-brief-green-jobs.indd 1 11/26/15 11:07 AM Green jobs from THE Drivers of renewable 2 renewable energy 4 energy production and investments in Zimbabwe According to the International Labour Organisation, jobs are green when they help to reduce There are five main drivers for adoption of renewable negative impacts on the environment and lead to energy and job creation in Zimbabwe, namely: environmental, economic and socially sustainable 1. Energy deficits from the traditional sources of enterprises and economies. In addition, jobs are energy. green if they: 2. High unemployment rate, especially among the 1. Improve energy and raw materials efficiency. youth. 2. Limit . 3. The expansion of the informal economy. 3. Minimise waste and pollution. 4. Limited fiscal space for importing energy. 4. Protect and restore ecosystems. 5. The national policy direction towards a 5. Support adaptation to the effects of climate sustainable . change. In this regard, renewable energy jobs fit perfectly challenges to DEVELOPING with the above five criteria. However, according 5 renewable energy and to the ILO, the transition towards renewable creatinG GReen jobS in technology tends to have positive and negative Zimbabwe effect on jobs in the following ways: Creating green jobs in renewable energy has its • Additional jobs are created. own particular challenges. These include: • Some jobs are substituted. • Competition for land use between bio-energy and • Certain jobs are eliminated. large-scale solar projects and agricultural food • Many existing jobs are redefined. production and food security. • New jobs offset those that were lost. However, • The high initial investment costs associated with project those who get green jobs will not necessarily development, design, planning, and installation, be the same workers who were originally made and consultations with regulatory authorities, policy redundant. makers and communities. Therefore, all these effects need to be taken into • The high production cost of solar-generated electricity consideration in policy implementation, including compared to those of the current national power strategies to ensure that positives outweigh the supply, which discourages investments. negatives. • High regulatory costs, which puts a premium on the cost of doing business in the renewable energy sector and The potential for job limits investments and job creation. The Environmental 3 creation in renewable Management Agency (EMA), for example, charges energy value chain systems 1.5% of the total project cost upfront in order to obtain As indicated in Figure 1 (right), the potential for an Environmental Impact Assessment (EIA) certificate employment creation lies in the renewable energy and the Zimbabwe National Water Authority (ZINWA) value chain. The value chain encompasses the charges 10% of the revenue for non-consumptive water use for hydropower projects, thus making manufacture and distribution of renewable energy mini-hydro projects unviable (ZERA, 2015). equipment, developing renewable energy projects, construction and installation associated with • The lack of a comprehensive labour market information the development of renewable energy capacity, system on employment levels in the renewable energy sub-sectors. This makes it difficult to determine the operation and the maintenance of renewable state of green energy jobs, potential green job creation, energy facilities as well as a range of cross-cutting and projected demand for these jobs in order to inform activities that contribute to more than one of the future policy direction and interventions. other value chain stages. • The lack of effective private sector participation to fund The value chain system and employment potential renewable energy projects. As some mega renewable applies for all the sub-sectors of renewable energy: energy investment projects may take between 5 and wind, solar, bio-energy and hydropower. 10 years to realise profits, local banks are less than

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policy-brief-green-jobs.indd 2 11/26/15 11:07 AM Figure 1: The value chain system and employment potential

Figure 2: Potential providers of green energy jobs.

interested making investments. This is due to the • The lack of specialised skills in renewable technologies lack of any guarantee about commercial viability or that have a more ‘micro’ approach to renewable profitability. energies, such as those for the areas of energy storage, • Lack of integration of decent work in green energy jobs. transmission, and standardisation processes in For example, jobs in bio-energy production (such as engineering systems, especially for medium- to large- sugarcane plantation workers, construction workers scale projects. for installing facilities and farm workers in bio-energy • The lack of integration of entrepreneurial and ‘soft’ projects) are usually precarious, with low wages and skills in tertiary degree programmes. These include serious decent work deficits. strategy and leadership, negotiation, interpersonal • Lack of effective engagement (social dialogue) in communication, innovation skills, risk analysis, national policy development by all stakeholders. communication, sustainable procurement, business Although investment in greener energy rests in job plans to market renewable energy, and carbon creation, trade unions are largely side-lined when it auditing and trading. comes to renewable energy-related initiatives. Social • Weak co-ordination between national development dialogue is critical to maintaining peaceful labour policies and those concerned with green energy and relations. green skills development. • Potential job losses in the fossil fuel industry, as the • The lack of information, especially in rural communities transition to a greener energy sector involves switching that show high potential for investment in renewable to new and less labour-extensive technologies. This energies. These communities lack knowledge about may in turn result in opposition to the transition to the market potential for renewable energy, the renewable energy. potential for providing renewable energy services to • The slow response of educational institutions to customers, projects that can be successfully replicated, provide requisite green skills (cognitive, technical and potential financial partners, and the means for interpersonal). For example, there are only two higher establishing renewable energy systems. learning institutions that currently provide specific and comprehensive programmes in renewable energy: the Who are the potential Mechanical Engineering Department at the University 6 providers of renewable of Zimbabwe and Chinhoyi University of Technology. energy job opportunities? • High brain drain in the engineering field. The potential players in investment in renewable • The limited number of highly qualified lecturers – especially those with PhDs – at tertiary institutions, energy who are critical to unlocking this area of which undermines the quality of human resources future employment are show in Figure 2 (above). and educational services.

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policy-brief-green-jobs.indd 3 11/26/15 11:07 AM Policy interventions be carefully designed and provided in a transparent 7 and actions manner to avoid abuse of resources. Balancing trade-off benefits from renewable energy and Greater policy coherence in land use livelihoods A sound policy framework is required to ensure a In many instances, renewable energy projects such balance between land use for renewable energy as mega hydropower, bio-energy and solar have installations and food production. Promoting resulted in the displacement of local populations, renewable mega energy projects such as bio-fuels and occasionally the relocation of entire villages, or solar should be done in a manner that encourages thereby adversely affecting local livelihoods. It greater agricultural productivity and the use of is therefore critical that proposals for large-scale degraded land. Biofuels, for example, play a critical renewable energy projects fully offset negative role in increasing employment gains, especially in effects by providing a social plan that is supported the rural economy, creating income streams, even by adequate budgetary resources. Displaced for out-growers in rural areas. Thus, integrating food inhabitants must be adequately compensated. and fuel production should provide opportunities Careful planning, social dialogue and thorough for synergies that allow overall improvements in social and environmental assessments and the efficiency with which land-based resources are mitigation are vital to redressing the adverse effects. produced and used. In the event of attracting of foreign direct Incorporating renewable energy-based employment data investments in the renewable energy sector, emphasis into the national Labour Market Information System (LMIS) should be placed on adhering to environmental Reliable, up-to-date statistics are critical to protection systems, developing comprehensive social developing concrete policies and future policy plans in case of livelihood disruption, technology and directions. National statistical systems need to skills transfer, and promoting forward and backward integrate and document data on number of linkages with domestic industry in order to boost local jobs created in renewable energy and related employment and income. sub-sectors. This will assist in tracking the state Integrating renewable energy technology and green skills of the country’s progress in renewable energy in the National Education and Skills Training Policy development. Other countries have already Zimbabwe’s National Education and Skills Policy begun reporting on employment statistics in the should combine education, training and capacity renewable energy sector. Here, Zimbabwe should building from early childhood in order to foster place particular focus on hydro, solar and bio- wider public and industry support for a low- energy, as these sub-sectors have greater potential carbon energy sector. The policy should be able for employment gains. to address the skills mismatch and shortages for Creating an enabling, stable and supportive essential occupations in all renewable energy sub- macro-economic environment sectors. This can be done by increasing higher A stable macro-economic environment acts as a academic institutions that offer specialised courses catalyst for private sector investment in renewable on renewable energy at all levels, as is the case in energy technologies. Given that the initial developing countries such as Tunisia and emerging investment cost in renewable energy technologies economies like India. is relatively high – especially if it is a large-scale The policy should also integrate specialised training initiative – the right choice of supportive incentives with a more ‘micro’ approach for each renewable is critical. Such incentives include time-bound energy sub-sector. This can be effected through green subsidies, lower interest rates, feed-in tariffs, vocational training colleges. Countries such as Belgium, and exemption from certain regulations. Support Greece, Poland, Portugal, and Tunisia have already for creating green small and medium enterprises recognised the potential of the green economy as a (SMEs) should be regarded as a priority. This will source of jobs for the unemployed and have developed assist in unlocking employment gains (especially appropriate vocational courses in green skills. In the for youths, who form the bulk of the unemployed) case of Zimbabwe, specific attention should paid to in the value chain system for renewable energy areas of renewable energy-related information and products and services. However, such support must communication technologies, energy storage and

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policy-brief-green-jobs.indd 4 11/26/15 11:07 AM transmission, and product standardisation processes Adequate budgetary support for climate change policies in engineering systems. and climate related strategies This same policy should likewise pay specific Zimbabwe has established sound government attention to the gender dimensions of green skills machinery and institutions, polices and development. In terms of careers, females remain developmental frameworks to deal with climate underrepresented in life and physical sciences, change and renewable energy development. In engineering, manufacturing and construction, all of fact, the development of sector-specific policies which have strong links to renewable energy. Special such as the Climate Policy, Bio-fuels and Solar effort should be made to make these areas of study Policies is underway in order to harness the and related occupations more attractive to females potential in renewable energy. However, without where skills shortages are particularly acute, for adequate budgetary support, it will be impossible example, energy auditors, engineering consultants, to effectively implement these enlightened and and equipment installers. comprehensive policies and strategies that have Greater policy coherence potential to unlock job creation. It would be In addition to those of the Ministry of Environment, disheartening to observe such polices gathering Water and Climate, the Government has other dust due to a lack of resources. sectoral policies that embrace climate change- Gender mainstreaming in renewable energy technologies related issues. Examples include the Zimbabwe The majority of green energy jobs are highly National Employment Policy Framework, the technical and mostly found in the construction, Energy Policy, the Biofuels Policy and the upcoming manufacturing and engineering fields where Climate Policy and Solar Policy. Improved policy females are significantly under-represented, thus co-ordination will result in greater effectiveness in perpetuating gender inequality. In order to avoid employment creation. exclusion of females, gender mainstreaming Establishing an energy bank must be placed at the centre of policy planning, The lack of capital with which to finance renewable formulation, monitoring and evaluation and all other energy production is one of the barriers to strategic interventions on job creation in renewable unlocking potential employment. In this regard, technologies in both urban and rural areas. establishing an energy bank is vital, as energy Intensified Research and Development (R&D) security is equally important as food security. The Additional cutting-edge research and development energy bank can provide business start-up loans is required in supporting renewable energy with manageable interest rates to both households investments, given that the renewable energy and larger projects. New potential investors can sector is relatively new to Zimbabwe in comparison also obtain longer-term loan financing with greater with to other countries. This necessitates an increase ease, since most traditional financial institutions in targeted financial support, especially in the areas lack an appreciation of the renewable energy of climate science and services, technology and business whose investments can take longer to reap knowledge transfers between universities, research profits. centres, and the public and private sectors. SIRDC In addition, as part of the recent move for transition is already undertaking pilot projects but faces from informality to formality, loan facilities should also financial constraints as far as upgrading them to be tailor-made to support green SMEs and renewable more widespread implementation. energy initiatives for the informal economy. Applying the ‘just transition’ principle in transitioning to Investing in renewable energy is complicated and greener energy sector and green jobs requires a very specific approach. The approach used Transitioning to a greener energy sector has both to establish Agribank, a financial body that supports positive and negative effects on employment. and boosts agriculture production and productivity, It requires workers to adapt and ensure that the could be replicated in the renewable energy sector. workforce is kept abreast of skills and qualifications Lessons can also be drawn from the Grameen Shakti changes during this time. In the event that Rural Bank of Bangladesh, which provides micro- workers lose jobs due to adjustments within the credit for solar installations targeting the rural poor, workplace or as a result of restructuring, retraining especially women. is critical to improving their future employability.

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policy-brief-green-jobs.indd 5 11/26/15 11:07 AM Both the government and employers should in greening the energy sector. consider supporting ‘just transition’ programmes, Expanding the role of trade unions as these encompass social protection (pensions, Trade union involvement in the green economy, retrenchment packages and gratuities). and renewable energy and climate change in Active labour market policies particular, must be increased and strengthened. Improving assistance with job searches, job Trade unions should continue to demand a voice counselling, training and labour market information in policy decisions and political debates related to targeting opportunities in green energy sectors greening processes and creating green jobs, not to is vital. In addition, public works programmes in mention a fuller role when it comes to monitoring climate-sensitive infrastructure, such as dams and the effective implementation of decent work road infrastructure, should be promoted in climate principles in the ‘new’ renewable sector. Here, in change-sensitive geographical locations. addition to their regular mandate, trade unions must Strengthening national social dialogue mechanisms on also undertake training courses on skills for green renewable energy jobs and participate in encouraging workers with Social dialogue should be at the centre of policy designing environmentally friendly workplaces. making, implementation, and the monitoring and evaluation of national green energy-related Conclusion processes. Effective dialogue between the Investing in renewable energy technologies is government, business and trade unions will foster a promising option for combining the multiple national ownership and awareness of environmental goals of climate change mitigation, a low-carbon issues and jobs related to renewable energy. This economy, employment creation (especially among will act as a catalyst for establishing win–win the youth, thereby taking advantage of the growing partnerships to create green jobs. Models of good number of young people out of work), energy practice from which to draw lessons on effective security and sustainable development. Green social dialogue include France (Grenelle), Germany investments are also an important component (Building Pact), Spain (Kyoto), and for supporting entrepreneurial initiatives, skills (South African Green Economy Accord of 2011). development and technology transfer, all of which These developed strong relationships with their are critical to economic growth and development. social partners and harnessed political commitment Greening the energy sector means investment in when co-ordinating green economy initiatives. renewable energy technologies which include wind, Applying the principles of Decent Work to the renewable solar, bio-energy and hydropower. energy sector Adopting green technologies is expected to It is critical that the social partners (business, contribute not only to lowering carbon emissions, government and labour) ensure that decent work but improvement in national energy production principles are applied to existing and newly grown and security, employment creation, access to energy, renewable energy enterprises and supply chain poverty reduction and improved livelihoods without systems. This includes the stages of policy design adverse effects on the climate. and at the workplace. The Decent Work Country Programme for Zimbabwe (DWCP–Z) is a tool that © Photgraph of workers installing solar panels, Impact Solar Energy Zim, social partners can use to strengthen decent work 30 Garth Road, Borrowdale, Harare.

Contact details Disclaimer Friedrich-Ebert-Stiftung Zimbabwe Labour and Economic Research The findings, interpretations and PO Box 4720 Institute of Zimbabwe conclusions expressed in this paper 6 Ross Avenue (LEDRIZ) do not necessarily reflect the views of Belgravia 78 East Road the Friedrich-Ebert-Stiftung. Belgravia Harare FES does not guarantee the accuracy Harare Tel: +263-4-705657 of the data included in this work. +263-4-705653 Tel: +263-4-308846 Fax: +263-4-796672 Fax:+263-4-339833 Email: [email protected] Email: [email protected] www.fes.de/gpol www.ledriz.co.zw © Friedrich-Ebert-Stiftung (FES) 2015

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