Gender equality in the energy sector has become a global priority, requiring responsive policy actions and support for women in trades and leadership roles across the clean energy industry.

The energy industry faces several challenges, including skills shortages, new ways of finding renewable energy sources and developing sustainable solutions for energy storage.

Current workforce shortages within the energy sector are being exacerbated by the limited population from which the workforce is being sourced, which motivates the need to attract, support and retain untapped talent pools.

According to a report by the Powering Skills Organisation, despite being one of the most technically skilled labour markets in Australia, the energy sector has the lowest women’s participation rate compared to all other sectors.

In Europe, women make up 25 per cent of the energy workforce, with representation marginally higher in senior roles. In Australia however, women make up only 17 per cent of the energy sector workforce, but this drops to below 4 per cent when focusing solely on women employed in hands-on trade roles, such as electricians.

However, although women’s entry into the electrical trades has been historically low, recent trends indicate a shift is underway. In the past few years, women’s participation in electrical trades has increased, with women currently representing around 3.5 per cent of the workforce, up from around 2 per cent in 2010.

By 2024, approximately 9,000 women were employed in this field, marking a 65 per cent increase (or an additional 3,500 women) since 2020, showing that real change – though small – is possible.

Growing women’s participation in the trades embodies only one share of the sector however – providing opportunities for women in leadership positions is also imperative in creating strong role models that can make real change, while promoting diversity and inclusivity.

Wood Mackenzie Vice President Consulting, Climate Risk and Strategy Valentina Kretzschmar said research has shown that women have more positive attitudes towards climate action, and having more women in leadership positions, as well as more gender-balanced boards, would therefore accelerate the transition towards a low-carbon future.

“This industry is still very male-dominated, and the challenge is deep and structural. By the time girls are offered STEM subjects it’s already too late,” Kretzschmar said. “Girls need to be attracted to science and engineering from pre-school age. Later, mentorships play a very important role in allowing young women to learn from senior leaders, emboldening them to identify and take leadership opportunities.”

There are two major global initiatives which have the objective to increase the number of female leaders in the energy sector. The Equality in Energy Transitions Initiative is a collaboration between the Clean Energy Ministerial (CEM) and the International Energy Agency (IEA), and has 12 member countries – including Australia.

The aim of the initiative is to advance women’s participation in clean energy and closing the gender gap in the energy sector. The Equal by 30 campaign, which Australia joined in 2021, is a commitment by public and private sector organisations to work towards equal pay, equal leadership, and equal opportunities for women in the clean energy sector by 2030.

Since the campaign’s launch in 2018, it has reached over 180 signatories worldwide spanning the energy sector, including renewables, energy efficiency, nuclear and clean technology. This includes 13 national governments, including all G7 countries.

THE NEED FOR CHANGE

There is a clear need for targeted actions and initiatives focused on boosting women’s leadership in the energy sector. Currently, the energy sector ranks second lowest in terms of women in leadership roles, with only 14 per cent of these positions held by women, compared with an average 25 per cent across all sectors.

One effective strategy for increasing the number of women in leadership roles over the long run is to enhance women’s participation overall, as there is a notable correlation between the two factors. Analysis by the Powering Skills Organisation indicates that, on average, a 10 per cent increase in women’s participation is associated with a 7.5 per cent rise in women’s leadership.

Ultimately, as women’s participation in the energy sector increases – particularly through attracting and retaining more apprentices but also other young professionals like engineers and managers – the representation of women in leadership positions is likely to rise as well.

 Wood Mackenzie Global Head of Steel, Raw Materials and Alloys Markets Isha Chaudhary said the industry must step up efforts to both recruit and retain talent, and avoid losing women at their mid-career stage when they take breaks for childcare or families.

 “Initiatives that support women back into work, with flexibility around hours, are vital.” Chaudhary explained sustainability and gender parity are interlinked and must therefore move in sync.

“The energy transition requires fresh perspectives – a larger role for women will ensure that innovative solutions are effectively implemented.”