Addressing the gender pay gap in the G20 through increasing female workforce participation in green jobs
It is time to mandate disclosure of the gender pay gap in industries in G20 member states, including green sectors.
The green economy is expected to be a catalyst in achieving the UN Sustainable Development Goals. Green jobs, the cornerstone of a green economy, carry a higher wage premium for women (12%) than for men (7%). However, women are under-represented in key green sectors such as renewable energy and water utilities, offsetting that premium.
Research shows that the reasons for the lack of women’s participation in green jobs and the persistent gender pay gap mirror those in traditional industries. The key factors include:
low numbers of women studying STEM subjects, translating into fewer women going into the emerging green industries;
the disproportionately high participation of women in the informal economy;
deeply embedded socio-cultural norms around gender roles and women taking up the majority of caring responsibilities;
lack of representation of women in leadership positions; and
undervaluation of women-dominated sectors.
Enhanced participation of women in green jobs has both environmental and economic benefits. Therefore, the G20, which represents two-thirds of the global population and 85% of the global economy, can significantly impact women’s participation in green sectors through policymaking. Recognising this, South Africa, during its G20 presidency, has prioritised ‘Solidarity, Equality, Sustainability’ with the aim of ‘leaving no one behind’. The recommendations below can help G20 countries reduce structural inequalities in the labour market and ensure an inclusive transition towards a green economy, thereby mitigating the challenge of gender pay inequity.
Gender mainstreaming in policies and decision-making
The recent COP29 highlighted the importance of gender in discussions around climate change and showed that men continue to dominate decision-making. Hence, the G20 should mandate that women have a ‘seat at the table’ in political and trade policy forums. Member states must be encouraged to mainstream gender in national-level policies on employment, economy, infrastructure, trade and climate action to mitigate prevalent systemic biases. Further, country-level data on green jobs and skills, disaggregated by gender, should be captured to assess the impact of policies and progress made on any gender-based key performance indicators.
Yet, receiving financial support remains complex and deters women from leveraging funding opportunities. G20 countries should implement fast-track one-stop hubs to support women setting up businesses by simplifying and streamlining processes. These hubs or portals must also embed financial literacy and training into local regulations to plug the information gap and break down barriers. In addition, they can be a source of wider collaboration by sharing best practices and networking and helping connect businesses to the greater labour market.
Government-financed green infrastructure projects should be mandated to offer contracts to women entrepreneurs and employ a certain percentage of women. This can be enforced through either quotas or softer regulations.
Adopting targeted strategies for green education and skill development
G20 countries should offer fee waivers, discounts and scholarships to women and girls studying sciences. They should embed green skills and behaviours in their curriculums, including super-curricular activities and vocational training that provide authentic learning experiences, and align these with industry requirements. Given that green jobs will involve integration with AI, developing digital literacy in women and girls is critical.
To boost women’s representation in green jobs in entry-level, middle and senior positions, government-supported lifelong learning programmes (such as credit-bearing part-time and full-time courses) should be offered to women, including those who take career breaks owing to caring responsibilities. Skills-based modules can be conducted by colleges and universities in a hybrid mode.
Ensuring pay transparency
The gender pay gap has been discussed at the G20 in several presidencies. It is time to mandate disclosure of the gender pay gap in industries in member states, including green sectors. Such transparency-based regulations will help uncover structural inequalities and increase the participation of women across sectors and in leadership positions. While a ‘one-size-fits-all’ approach across the G20 may prove challenging, different forms of reporting could be adopted. For instance, the disclosure should be comprehensive for countries that have already mandated reporting; for others, headline figures should be reported.
Getting more women into the emerging green economy can help achieve the Brisbane Goal 2025 of reducing the gender gap in labour market participation rates by 25%, albeit somewhat delayed. Since harnessing technology will be instrumental in any efforts, improving women’s digital literacy must go hand in hand with the recommendations provided.
The G20 countries urgently need to prioritise just and inclusive energy transition policies that ensure energy security, affordability, accessibility, resilience, market stability and economic prosperity.
3 Jun 2025
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok
Commentary
Addressing the gender pay gap in the G20 through increasing female workforce participation in green jobs
It is time to mandate disclosure of the gender pay gap in industries in G20 member states, including green sectors.
The green economy is expected to be a catalyst in achieving the UN Sustainable Development Goals. Green jobs, the cornerstone of a green economy, carry a higher wage premium for women (12%) than for men (7%). However, women are under-represented in key green sectors such as renewable energy and water utilities, offsetting that premium.
Research shows that the reasons for the lack of women’s participation in green jobs and the persistent gender pay gap mirror those in traditional industries. The key factors include:
Enhanced participation of women in green jobs has both environmental and economic benefits. Therefore, the G20, which represents two-thirds of the global population and 85% of the global economy, can significantly impact women’s participation in green sectors through policymaking. Recognising this, South Africa, during its G20 presidency, has prioritised ‘Solidarity, Equality, Sustainability’ with the aim of ‘leaving no one behind’. The recommendations below can help G20 countries reduce structural inequalities in the labour market and ensure an inclusive transition towards a green economy, thereby mitigating the challenge of gender pay inequity.
Gender mainstreaming in policies and decision-making
The recent COP29 highlighted the importance of gender in discussions around climate change and showed that men continue to dominate decision-making. Hence, the G20 should mandate that women have a ‘seat at the table’ in political and trade policy forums. Member states must be encouraged to mainstream gender in national-level policies on employment, economy, infrastructure, trade and climate action to mitigate prevalent systemic biases. Further, country-level data on green jobs and skills, disaggregated by gender, should be captured to assess the impact of policies and progress made on any gender-based key performance indicators.
Promoting women-led green entrepreneurship
The G20 has implemented initiatives such as the She Wins Climate and Work and Opportunities for Women (WOW) programme to support women-led green entrepreneurship financially. Local initiatives, such as South Africa’s ‘Isivande Women’s Fund and collateral-free loans in India, have accelerated the growth of women’s entrepreneurship.
Yet, receiving financial support remains complex and deters women from leveraging funding opportunities. G20 countries should implement fast-track one-stop hubs to support women setting up businesses by simplifying and streamlining processes. These hubs or portals must also embed financial literacy and training into local regulations to plug the information gap and break down barriers. In addition, they can be a source of wider collaboration by sharing best practices and networking and helping connect businesses to the greater labour market.
Government-financed green infrastructure projects should be mandated to offer contracts to women entrepreneurs and employ a certain percentage of women. This can be enforced through either quotas or softer regulations.
Adopting targeted strategies for green education and skill development
G20 countries should offer fee waivers, discounts and scholarships to women and girls studying sciences. They should embed green skills and behaviours in their curriculums, including super-curricular activities and vocational training that provide authentic learning experiences, and align these with industry requirements. Given that green jobs will involve integration with AI, developing digital literacy in women and girls is critical.
To boost women’s representation in green jobs in entry-level, middle and senior positions, government-supported lifelong learning programmes (such as credit-bearing part-time and full-time courses) should be offered to women, including those who take career breaks owing to caring responsibilities. Skills-based modules can be conducted by colleges and universities in a hybrid mode.
Ensuring pay transparency
The gender pay gap has been discussed at the G20 in several presidencies. It is time to mandate disclosure of the gender pay gap in industries in member states, including green sectors. Such transparency-based regulations will help uncover structural inequalities and increase the participation of women across sectors and in leadership positions. While a ‘one-size-fits-all’ approach across the G20 may prove challenging, different forms of reporting could be adopted. For instance, the disclosure should be comprehensive for countries that have already mandated reporting; for others, headline figures should be reported.
Getting more women into the emerging green economy can help achieve the Brisbane Goal 2025 of reducing the gender gap in labour market participation rates by 25%, albeit somewhat delayed. Since harnessing technology will be instrumental in any efforts, improving women’s digital literacy must go hand in hand with the recommendations provided.
29 May 2025
Task Force
Keywords
Author/s
More articles
Cross-border payments at a crossroads: The case for G20-led coordination
The G20 should ensure robust multistakeholder engagement involving central banks, financial institutions, academia & international organisations.
Taxing the AI revolution: Aligning digital transformation with global tax reform
There is an opportunity to leverage AI to modernise tax collection, especially in developing economies.
Realising a just and inclusive energy transition requires incorporating the climate change–security nexus: A view from the Asia-Pacific region
The G20 countries urgently need to prioritise just and inclusive energy transition policies that ensure energy security, affordability, accessibility, resilience, market stability and economic prosperity.