The world finds itself grappling with the urgency of a green transition, yet wages in green roles reveal a disconcerting reality. Despite the growing emphasis on sustainability, wage premiums in green roles are highly diverse across countries and levels of job complexity. Overall, there is no clear incentive to move into a green job. In fact, advertised wages of green jobs in the countries assessed for this report are 0.46% lower than their counterparts, as highlighted in the report “The Green Wage Premium” by Adecco Group.
This wage disparity underscores a critical issue: wages in green jobs do not reflect the urgency of addressing climate change and its detrimental effects on the environment and livelihoods. In short, working in green roles more often than desirable involves a pay cut compared to occupational peers. While jobs have value beyond wages, relying solely on goodwill and philanthropy for the green transition is untenable. To attract the talent necessary for this transition, working in a green job must be competitive, especially on the wage front.
India’s Green Wage Dynamics stand out in this global context. Investment Managers in green jobs in India could see an income rise of 12% or more, showcasing opportunities in the financial sector’s green transition. High-complexity roles in India demonstrate a significant Green Wage Premium of 57%, the highest among the countries analyzed. This finding highlights substantial incentives for highly skilled workers in green sectors.
Furthermore, roles like Sustainability Consultant and Cleantech Manager are highlighted for their earning potential in India, emphasizing the value placed on specialized green expertise. However, the report stresses the need for upskilling and reskilling, particularly in countries like India, to enable workers—especially in low-complexity roles—to transition effectively into green jobs. India also emerges as a region where medium and high-complexity green jobs are relatively well-rewarded, reflecting the growing alignment between digital transformation and sustainability initiatives.
Insights
Industry leaders have shared critical insights on India’s green transition. Subburathinam P., Chief Strategy Officer, TeamLease Services, remarks on the transformative potential of green jobs and wages in shaping a sustainable future. “Green jobs drive innovation, reduce carbon footprints, and foster a resilient economy. India’s commitment to the green sector, highlighted at global forums, underscores its leadership in climate action,” he says. By 2030, India aims to reduce its carbon intensity by 45%, achieve a 500 GW renewable energy capacity, and generate significant employment opportunities. Initiatives like the National Hydrogen Mission and the International Solar Alliance further demonstrate this dedication.
The wage landscape in India’s green sector is equally diverse. Salaries vary significantly, with energy efficiency consultants earning between ₹4-12 lakh annually, while climate specialists can earn up to ₹25 lakh per annum. Demand is rising for roles such as solar PV and wind turbine technicians, roofers, production operators, storage operators, and waste management specialists.
Green Startups and Inclusivity
Sandiip Bhammer, Founder and Managing Partner of Green Frontier Capital, highlights five critical areas for advancing green jobs:
Bridging the Skills Gap: Climate tech startups can redefine the workforce by offering innovative upskilling programs in collaboration with academia and industry.
Urban vs. Rural Inclusion: Green jobs shouldn’t be limited to urban areas. Opportunities in renewable energy, sustainable farming, and decentralized waste systems can drive scalable and inclusive growth in rural communities.
Fair Wages and Financial Viability: Clear, transparent wage policies are essential. Aligning with ESG-focused investors and leveraging government incentives can help startups balance sustainability with profitability.
High-Employment Sectors: Renewable energy, EVs, waste management, and sustainable farming offer opportunities for scalable job creation while fostering cross-industry innovation.
Addressing Challenges: Startups face hurdles such as talent shortages, scaling costs, and regulatory challenges, including lengthy certification processes that hinder growth and planning.
Green Wage Premiums by Occupational Fields
The wage premiums in green roles reveal significant variations. Account Executives in India face no wage gap (0%) when transitioning to green roles, unlike other countries with substantial negative gaps. Cleantech Managers and Climate Sustainability Officers in India see the highest premiums, at 73.6% and 84.5%, respectively. Environmental Engineers in India earn a Green Wage Premium of 46.3%.
However, these variations also extend to job complexity levels.
Green Wage Premiums and Gaps by Job Complexity
Low-complexity roles in India, such as Waste Collectors, see minimal wage increases. Medium-complexity roles, like Solar PV Engineers, show modest growth. In contrast, high-complexity roles, such as Sustainability Consultants, enjoy significant premiums, underscoring the value of expertise in driving the green transition.
Green Jobs Across Levels of Complexity
Low Complexity Roles: Positions like Greenhouse Assistants are critical in rural regions but lack wage incentives.
Medium Complexity Roles: Roles such as Environmental Project Managers highlight growing solar infrastructure potential.
High Complexity Roles: Climate Risk Specialists illustrate the value of strategic and leadership positions.
While, India’s green transition reveals potential, the need for competitive wages and targeted policies to attract talent across all complexity levels is the need of the hour. By addressing wage gaps, prioritizing upskilling, and leveraging government and private sector collaboration, India can equip ts workforce to meet the demands of a sustainable future.
Read More:Power of Purpose: Sustainability Edition