Strategies to bridge the great green divide

Learn from past and ongoing transitions to prepare for the green transition

Act proactively and in cooperation with local stakeholder and communities to foster support

Analyse and map possible industries or sectors at risk of fundamental change or closure

Conduct risk foresight analysis in polluting sectors and evaluate whether sectors will have to fundamentally adapt or close. Map which individuals are at risk of job losses and identify communities and regions where negative economic effects concentrate.

Develop a long-term vision and clear strategy for economic adjustment to engage both public and private stakeholders

Develop a clear long-term vision that allows stakeholder to choose skillsets and invest in projects that will fit in this plan, thereby creating a positively reinforcing circle of strategy, skills availability, and capital investment.

Develop programmes to support most affected individuals before closure of the polluting industries

The closing of polluting industries can cause unemployment concentrated in local communities, which can recover more quickly by anticipating plans for gradual re-skilling and re-employment. Providing easily accessible career guidance and well-designed income support to maintain household finances consolidates trust and participation in labour market programmes.

Include local stakeholders in re-adjustment strategies to provide political support and prevent resentment

Ensure that the strategy for economic readjustment is shared by local, private and public stakeholders increases that cooperation and effectiveness. Enforcing a structural adjustment plan top-down can spark protest and resentment, endangering political coalitions necessary for the green transition.

Invest in the attractiveness and competitiveness of affected regions

Focus upskilling and retraining on future-proofed skills with rising demand

To boost future employment and the competitiveness of atrisk regions, invest in the skills of the workforce, focusing on skills that are or will be in demand, helping to attract or grow companies and to provide easier reemployment of workers.

Use comparative advantages of a region to mitigate the costs of structural adjustment policies

Identify and exploit existing regional comparative advantages, thereby significantly lowering adjustment costs. Investments can be targeted to new and innovative industries to avoid lockin effect in ailing business models.

Invest in the attractiveness of a region to attract and retain workers and firms

Investment in heavily affected regions helps to avoid a downward spiral of unemployment and outward migration. It needs to include both physical infrastructure for firms as well as recreational facilities, education, and healthcare.

Step up efforts for local skills systems to deliver a green and just transition

Align environmental policy with employment and skills efforts

Match climate policies with programs to develop green skills and retrain

Increase collaboration between ministries responsible for climate policies and labour market and skills policies to avoid skills shortages that could slow down the green transition and support workers displaced by the transition in moving into new jobs.

Tailor skills and labour market policies to local needs Engage regional and local governments in skills and labour market policies to reflect the place-specific impact of the green transition. Build local green skills coalitions, including with training institutions, PES, and social partners, for better-informed policy response and buy-in for the green transition.

Develop a forward-looking strategy for adult learning based on sound labour market intelligence

Review skills assessment and anticipation exercises to reflect the impact of the green transition

The review could focus on (i) reflecting the impact of environmental regulation on skills demand, (ii) ensuring that data is sufficiently disaggregated at the sectoral and regional level, and (iii) aligning the data collection and methodology with policy needs.

Systematically update educational and training curricula to reflect the shift in skills and knowledge for green jobs

Tailor training for up- and re-skilling to occupations, sectors and regions heavily affected by the green transition

Support employers in up-skilling their staff to develop green skills

Develop a comprehensive strategy to systematically review curricula. Take into account that skills changes in the green transition differ by occupation and, therefore, support should range from awareness raising to comprehensive transition-oriented re-skilling. Use up-to-date labour market intelligence and involve employers in the design and delivery of training offered by TVET to ensure that it aligns with local labour market needs.

To boost future employment and the competitiveness of at-risk regions, invest in the skills of the workforce, focusing on skills that are or will be in demand, helping to attract companies and to provide easier reemployment of workers.

Identify and exploit existing regional comparative advantages, thereby significantly lowering adjustment costs. Investments should be made in new and innovative industries and avoid lock-in effect in ailing business models.

Offer targeted support for vulnerable groups within local labour markets to promote a just green transition

Develop a better understanding of the characteristics and barriers faced by workers at risk of displacement and tailor support

Develop better intelligence on individuals at risk of displacement, including on age, level of education, prior experience, and employment barriers. Proactively identify workers at risk of displacement and offer support before they become unemployed. Support workers in identifying new employment opportunities by (i) helping workers reflect on their skills, (ii) exploring employment opportunities that they might have not considered otherwise based on proximity of occupations and feasibility of transition pathways, and (iii) directing them towards careers with better long-term prospects based on current and future labour demand at the local level.