The transition to net zero will have far-reaching and unequal effects on labour markets, as some jobs disappear, existing jobs change, and new jobs aligned with or supportive of the net-zero objective are created. The evidence to-date suggests that 'green' jobs tend to be relatively highly skilled compared to their non-green counterparts. But skills needs will continue to evolve with the rise of new sectors and companies using new technologies and practices contributing to the greening of the economy. As governments worldwide increase their commitments to tackling climate change, there is potential for inequalities to rise with some workers, sectors and regions more able to adapt to this transition. Given the uneven geographic spread of opportunities and risks for workers, it is likely that spatially targeted capital investments and efforts to improve the mobility of labour will be needed. More generally, education, skills and place-based policies will be central to accelerating the transition and ensuring that it is an inclusive one.

Capucine Riom and Anna Valero

10 December 2024

This work is published under POID and the CEP's Growth programmeLabour programme.