Human capital: Asia’s decisive advantage in the energy transition - South China Morning Post
Published February 05, 2026
Human Capital: Asia’s Decisive Advantage in the Energy Transition
The energy transition is a global imperative, driven by the urgent need to combat climate change and reduce dependence on fossil fuels. In this context, Asia stands out as a region with significant potential to lead the way, primarily due to its vast human capital. The workforce in Asia is not only large but also increasingly skilled, which positions the region favorably in the renewable energy sector.
As the world shifts towards sustainable energy sources, the demand for skilled labor in this sector is expected to surge. According to the International Renewable Energy Agency (IRENA), the renewable energy sector could create up to 24 million jobs globally by 2030, with Asia expected to contribute a substantial portion of this growth. This potential is largely attributed to the region's diverse talent pool and its ability to adapt to new technologies.
Countries such as China, India, and Japan are already making significant strides in renewable energy deployment. China, in particular, has emerged as a global leader in solar and wind energy production, driven by a robust manufacturing base and a growing emphasis on research and development. The country accounted for over 50% of the world’s solar panel production in 2020, highlighting its pivotal role in the global supply chain for renewable energy technologies.
India is also making notable advancements, aiming to achieve 450 GW of renewable energy capacity by 2030. The Indian government has implemented various policies to encourage investment in solar and wind energy, fostering a conducive environment for innovation and job creation. The country’s workforce is increasingly being trained in renewable energy technologies, which will be essential for meeting its ambitious targets.
Japan, known for its technological prowess, is focusing on offshore wind energy and hydrogen production as part of its energy transition strategy. The Japanese government has set a target of achieving 10 GW of offshore wind capacity by 2030, which will require a skilled workforce capable of supporting this growth. Initiatives to enhance training programs in renewable energy are being prioritized to ensure that the workforce is equipped with the necessary skills.
In addition to these leading nations, Southeast Asian countries are also recognizing the importance of human capital in the renewable energy sector. Nations like Vietnam, Indonesia, and the Philippines are investing in training and education programs to prepare their workforces for the opportunities presented by the energy transition. For instance, Vietnam has set a goal of achieving 20% of its electricity from renewable sources by 2030, necessitating a skilled labor force to support this transition.
Furthermore, the role of education and vocational training cannot be overstated. Institutions across Asia are increasingly offering specialized programs in renewable energy technologies, ensuring that the workforce is ready to meet the demands of the sector. Collaborations between governments, educational institutions, and industry players are essential to create a pipeline of skilled workers who can drive innovation and growth in the renewable energy space.
Investment in human capital also extends beyond formal education. On-the-job training and apprenticeship programs are becoming vital in equipping workers with practical skills. Companies in the renewable energy sector are recognizing the importance of investing in their employees’ development, leading to a more competent and adaptable workforce.
However, challenges remain. The rapid pace of technological advancement in the renewable energy sector means that continuous learning and adaptation are necessary. Workers must be prepared to update their skills regularly to keep pace with new developments. This calls for a commitment from both employers and employees to prioritize lifelong learning and professional development.
Moreover, there is a need for policies that support workforce development in the renewable energy sector. Governments across Asia must work to create frameworks that facilitate training and education initiatives, ensuring that the workforce is adequately prepared for the transition to renewable energy. This includes providing funding for training programs, incentives for companies to invest in employee development, and fostering partnerships between the public and private sectors.
As the energy transition progresses, the importance of human capital will only continue to grow. The ability of Asian countries to leverage their skilled workforce will be a decisive factor in determining their success in the renewable energy sector. By investing in training and education, fostering innovation, and creating supportive policies, Asia can position itself as a global leader in the transition to sustainable energy.
In conclusion, the energy transition presents both challenges and opportunities for Asia. The region's human capital is a critical asset that can drive the shift towards renewable energy. By prioritizing workforce development and investing in education and training, Asian countries can harness this advantage to not only meet their energy goals but also contribute to global efforts in combating climate change.
As the world looks towards a sustainable future, the emphasis on human capital in Asia will play a pivotal role in shaping the landscape of the renewable energy sector. The commitment to skill development and innovation will ensure that the region remains at the forefront of the energy transition, ultimately benefiting both the economy and the environment.
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