Transitioning to a green economy : the impact on the labor market and workforce skills

Abstract

The global economy finds itself at a critical crossroad, facing the challenging task of reconciling economic growth with environmental sustainability. As the world confronts the need to combat climate change, safeguard ecosystems, and reduce its environmental footprint, the transition toward a greener economy has become an important challenge. This transition extends beyond mere adaptation of industries and practices; it entails a reconfiguration of the labor market and the skills essential to support it. The greening of the global economy, which aims to reduce carbon emissions, conserve natural resources, and promote the responsible utilization of the Earth’s limited assets, presents a landscape rich in both opportunities and challenges. Central to this transformation is the “skills challenge,” a critical factor as economies across the world attempt to integrate green policies and practices. The interplay between skill transformation and its impact on the labor market stands as a central focus of this inquiry. Drawing upon existing literature and empirical evidence, this paper delves into the dynamics of green policies and practices on employment, workforce skills, and the future of education and training. How does the transition to a green economy influence job creation and job displacement in selected industries, and what are the implications for the labor market? What are the specific workforce skills and competencies that are in high demand in selected industries transitioning to a green economy, and how effective are current education and training programs in meeting these skill requirements?