Gaps in skills recognition a barrier to just transition in Asia Pacific: report

Energy and mining workers face barriers to moving between sectors, including unnecessary repeated training, according to a report by nonprofit Opito. As the region’s energy systems become more integrated, the findings highlight the need to recognise existing skills while maintaining safety standards.

Nickel mining workers in Molawe, Indonesia
Nickel mining workers in Molawe, Sulawesi Tenggara, Indonesia. Image: ArtHouse Studio via Pexels

Gaps in skills recognition are making it harder for energy and mining workers in Asia Pacific to move between sectors, according to a new report by nonprofit skills and safety authority Opito.

Based on a survey of 390 workers and employers across Australia, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, the report examined gaps in skills recognition across safety-critical industries such as oil and gas and mining. In each market, more than two-thirds of employers or operators said they always or often require additional training, certification or assessment when hiring or deploying workers from related sectors.

For Opito, these requirements pose a challenge for a just transition that includes helping experienced workers access opportunities in other industries without unnecessarily repeating training or compromising safety.

The survey pointed to a lack of confidence in how skills are recognised and assessed. Among respondents, 57 per cent said trust breaks down when training or certification is not recognised across sectors, employers, projects or geographies, while 55 per cent cited difficulty verifying practical competence.

Addressing these workforce barriers is one part of the region’s broader energy transition, alongside efforts to build a more integrated electricity system. In October, members of the Association of Southeast Asian Nations (Asean) reached consensus on an enhanced memorandum of understanding for the Asean Power Grid, advancing plans for cross-border electricity connections and trade. 

Beyond these infrastructure efforts, initiatives are seeking to help workers navigate the transition. In Indonesia, the International Labour Organization is contributing to a skills roadmap to support economic diversification in coal-dependent regions. In the Philippines, it is advancing an approach combining skills development, social protection and enterprise support.

OPITO graph_just transition

More than 65 per cent of employers require additional training, certification or assessment before deployment when hiring workers Image: OPITO

“As Asia Pacific accelerates its energy transition, a just transition has to be a workforce transition too,” Ooi Suan Hoe, Opito’s senior vice president of strategic partnerships for Asia Pacific, told Eco-Business.

Hydrogen, carbon capture and renewables would require new capabilities while drawing on experience built in established safety-critical industries, he said.

“The answer is not to lower the bar on safety,” Ooi said. “It is for industry to work together to understand what is genuinely equivalent, bridge the differences that remain and create clear, trusted pathways for people to move between sectors.”

Opito chief executive Stephen Marcos Jones said the convergence of sectors such as renewables and oil and gas offered opportunities to exchange knowledge and skills.

“Workers need to know that their experience will be recognised when they work across countries or industries, and employers need confidence that safety standards will be consistent across more diverse workforces,” he said.

Across respondents, 61 per cent identified globally aligned training and safety standards as key to building confidence in workforce mobility, rising to 74 per cent in Malaysia. Some 55 per cent cited clearer recognition of existing certifications.

The report recommended mapping overlapping competencies while retaining environment-specific training, widening career choices and helping employers deploy experienced workers across projects and sectors.

“Our goal is to work with industry partners to develop a shared language of safety, so skills can travel more widely,” Jones said.

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