Low-carbon economy transition
The transition towards a low-carbon economy presents several opportunities for achieving gender equality that are critical to achieving the Paris Agreement and the United Nation’s Sustainable Development Goals. A ‘just transition’ through inclusive business models can play an important role in furthering women’s economic empowerment (WEE), ensuring women participate as actors in the new green economy, and can take advantage of green job opportunities through upskilling, job readiness training and other support based on their needs (e.g. transport, childcare).
The ‘just transition’ concept is acknowledged in the preamble of the Paris Agreement and emphasises the imperative for the transition to a net zero and resilient economy to be socially inclusive. If managed well, the transition to a net zero economy can help reduce the immense human and economic costs of climate disruption and generate new jobs for women and under-served groups.
A just transition can therefore increase the participation of women in the workforce in jobs that are resilient to negative climate impacts. Applying a gender lens to business model transformations can help overcome systemic gender disparities in the labour market, and reduce gaps in incomes and livelihoods. Women’s inclusion in the workforce can also help advance low-carbon, sustainable businesses. Evidence shows that businesses with more women on their boards and in executive-level positions are more likely to proactively improve energy efficiency, invest in renewable power, and measure and reduce carbon emissions.
Source: https://www.wri.org/blog/2019/03/will-women-build-sustainable-infrastructure-future
- Opportunity
- high
Opportunity to significantly increase women’s economic participation in male-dominated sectors, for example in infrastructure and power, and in jobs that are resilient to negative climate impacts.
- Risk
- low
Risks of exacerbating gender gaps due to disruptive labour impact of low-carbon economy transitions in energy-driven economies. Risk of women being ‘left behind’ if a gender lens is not factored into green job creation and upskilling.
- Opportunity
- high
- Risk
- low
There is a growing market for green finance across asset classes and types of investors. FIs have considerable influence over the recipients of their green finance and can therefore effect improvements in gender-inclusive business models and practices.
The design of green economy financial products and services can be improved by considering gender differences in climate risks and needs.
Gender-smart investors can support investees by providing or helping to design specific green-focused on-lending or risk-sharing facilities that incorporate a strong gender lens. They can also offer targeted value-added services to increase women’s access to green technologies and boost know-how and technological uptake.
- Opportunity
- medium
- Risk
- medium
The manufacturing industry is also affected by the transition to a low-carbon economy. Shifts in business models to green manufacturing involve changing business and manufacturing practices. It also involves changing the mindset of stakeholders to mitigate the industry’s impact on climate change and other environmental concerns. The green economy transition requires the adoption of sustainable practices within facilities, across the supply chain, and through the customer base. Where this involves new job opportunities, a gender lens can enable upskilling of women to take advantage of those jobs and contribute to improved business outcomes.
There is a risk that green manufacturing would worsen existing gender gaps in the sector as women tend to be less represented in science, technology, engineering and mathematics (STEM)-related professions. This is particularly the case for more skilled roles (which have greater employability and livelihood benefits), highlighting the need to upskill women for those roles.
Gender-smart investors can provide support to ensure women employees benefit from upskilling or reskilling programmes in sustainable business practices. Training programmes in climate-resilient and sustainable manufacturing-related roles can also be established to promote women’s access to the industry.
- Opportunity
- medium
- Risk
- medium
The transition towards a low-carbon economy creates both risks and opportunities associated with investing in women’s STEM education and skills development for jobs of the future. Driving interest in and uptake of STEM subjects will be key to ensuring women are able to capture the opportunity associated with green-related work that requires STEM skills – and ensure girls do not get left behind. In addition, improving women’s education outcomes overall will ensure they have the technical and behavioural skills to obtain access to green jobs across sectors.
For gender-smart investors, the target of their work should therefore shift from job creation to skills development. To facilitate this shift, they could first evaluate the likely changes in skill requirements by sector, and then work with investees to create a workforce ready for the future (high priority sectors for just transition include manufacturing, OGS, energy, and infrastructure).
If their existing investments lack the capacity or knowledge to fill the skill gaps identified, gender-smart investors might consider making new sector-specific investments in academies, universities and colleges that provide for the upskilling of existing and future workers, with a focus on ensuring access for women.
- Opportunity
- low
- Risk
- low
Environmental and community health is a positive effect of a successful transition to low-carbon, green economies.
Access to affordable, available and quality health care will be particularly important for just transition, as it will allow women and mothers to meet their basic needs during periods of unemployment, training or education, all of which are characteristics of industrial transitions.
There is a risk that women’s access to health services may be constrained and limited (especially health care) during the transition to the low-carbon economy.
Gender-smart investors can work with investees to explore and identify health care solutions and platforms that are affordable and accessible for women, especially for mothers and female-led households.
- Opportunity
- high
- Risk
- low
Providing access to clean and reliable energy to off-grid populations represents a large market opportunity within the low-carbon economy transition. OGS can provide women, often the primary caregivers, with access to the energy and technologies necessary to undertake domestic work in a clean and safe environment (e.g. access to clean drinking water through solar powered filters, power for cooking, etc.). In addition, OGS can provide women entrepreneurs with the energy they need to strengthen and expand their business models (e.g. opening hours, storage).
As the OGS industry expands, women are at risk of not benefiting from the same new employment and supply chain entrepreneurship opportunities, due to lack of targeted upskilling and job placement opportunities that have a gender lens. It is therefore important that investors and investees work together to promote women’s access to STEM education and green skills through technical and vocational education and training (TVET) and other training channels. This can be done by partnering with local and national TVET institutions and universities, and encouraging awareness-raising activities for women on careers in the OGS industry.
Gender-smart investors can support investees to increase access to OGS as part of a just transition towards a low-carbon economy:
- Improving the level of consumer awareness of OGS (e.g. through partnerships with local companies, collaboration with local agent networks, etc).
- Seeking ways to lower barriers to access to OGS (including loans and pay as you go models).
- Supporting regulators, financial institutions and other stakeholders to innovate to lower the cost to serve and scale OGS.
- Collaborating with major donors to ensure OGS is an integrated part of relief programs.
- Opportunity
- high
- Risk
- medium
Feeding nine billion people by 2030 – while protecting the vital natural systems which sustain us – will be one of the core challenges of a just rural transition towards a low-carbon economy. As part of this transition, agriculture will need to move away from carbon-intensive approaches towards more sustainable food systems. Other food and agriculture sectors, such as sustainable forestry, will also become more important.
Gender-smart investors can support investees by:
- Providing opportunities for training and skills development for women farmers to diversify their production, have more resilient crops and water supply, and shift to more sustainable farming techniques.
- Facilitating access to finance for green and climate-resilient technologies through partnerships and facilities with local banks and microfinance institutions.
- Encourage inclusive sourcing and supply chain diversity through special initiatives and partnerships between major food and agriculture corporations and sustainable farms.
However, efforts to reduce greenhouse gases (GHGs) in the food and agriculture sector can also bring disruptions to livelihoods and women’s agricultural activity. The International Labour Organisation estimates that more than 60 percent of all working women in Southern Asia and sub-Saharan Africa remain in agriculture, often unpaid or poorly paid while being concentrated in time and labour-intensive activities. Women already face a range of barriers due to unpaid care work, social norms, educational barriers, and legal barriers to entry in a range of industries. Women’s jobs and livelihoods in agriculture are also vulnerable to the effects of climate change through heat stress, flooding and other impacts. Rural women’s employment and entrepreneurship in the food and agriculture sector should therefore be protected and promoted by gender-smart investors through investing in low-carbon businesses and supporting the low-carbon transition.
- Opportunity
- high
- Risk
- medium
Women have historically been under-represented in the infrastructure industry, specifically the energy, power, water to transportation and logistics sectors. For instance, women represent just 22 percent of the energy sector’s labour force. Access to jobs in the infrastructure sectors is highly gendered and unequal, as is access to transport, electricity and information and communications technologies (ICT) in a number of countries.
A just transition towards a low-carbon economy presents an opportunity for businesses and investors to promote women’s inclusion in traditionally male-dominated sectors, with a focus on ensuring access for low-carbon business models and technologies. Gender balance across the sectors will enable businesses to respond more easily to energy transition demands, increase their profitability and shift business models in a positive direction.
One of the major risks is that women continue to be left out of the industry (as employees and customers) and that novel, green infrastructure does not respond well to women’s needs and concerns about service provision and product use. There is, therefore, a need for gender-smart solutions to be integrated across investments and product design.
Gender-smart investors can support investees by providing:
- Targeted support on how to better serve the female market and respond to women’s needs and concerns in infrastructure services.
- Training and skills development programmes that actively promote an increased representation of women across the industry.
- Diversity and inclusion initiatives that help shift workplace culture and policies to build a gender-inclusive environment.
- Support to address gender-based violence and harassment which continues to impact women during large-scale infrastructure construction and prevents women from entering the industry and from benefiting equally from new infrastructures (e.g. urban transport).
- Opportunity
- high
- Risk
- medium
Women have historically been under-represented in the construction and real estate sectors. Women represent only 13 percent of the construction workforce in Africa and 32 percent in Asia. Jobs in the construction sector are highly gendered and unequal. Women workers tend to be concentrated in administrative and support roles as opposed to technical and production professions.
A just transition towards a low-carbon economy presents an opportunity for businesses and investors to promote women’s inclusion in traditionally male-dominated sectors – both as workers and customers. Gender balance across the sectors (in terms of job opportunities and as a gender lens in customer engagement) will enable businesses to more easily respond to energy transition demands, increase their profitability and shift business models towards more energy efficiency and sustainability.
One of the major risks is that women continue to be left out of the industry and that novel, green construction and real estate projects do not respond well to women’s needs and concerns with respect to service provision and product use (e.g. affordable housing). There is, therefore, a need for gender-smart solutions to be integrated across investments and projects design.
Gender-smart investors can support investees by providing:
- Targeted support on how to better serve the female market and respond to women’s needs and concerns in property and real estate programs (e.g. affordable housing).
- Training and skills development programmes that actively promote an increased representation of women across the construction and real estate industry.
- Diversity and inclusion initiatives that help shift workplace culture and policies to build a gender-inclusive and sustainable business culture.
- Support to address gender-based violence and harassment during large-scale construction projects which continues to impact women.
