Employment and Skills Policies for the Green Transition

3. Greening employment and skills policies

This chapter offers a deep dive into how different countries adapted specific training and employment policies to address challenges brought about by the green transition. While strategies studied in the previous section set the overall vision and long-term direction, policies translate that vision into specific instruments, programmes, and measures that shape outcomes on the ground. Examining policies is therefore essential to understand how broad commitments to the green transition are put into practice, and how they directly affect workers, employers, and training providers. The specific policies analysed have been selected to inform the DGEFP’s roadmap for the green transition and the greening of several schemes it manages, but the findings are relevant for all OECD countries as they are grappling with similar issues.

Adapting apprenticeships to support the development of skills needed for the green transition

The potential of apprenticeship programmes to support the green transition is significant. As they provide a unique mix of classroom learning and on-the‑job experience, apprenticeships are usually responsive to labour market needs and can help address emerging skills needs related to the green transition. The flexibility of apprenticeship programmes allows green elements to be integrated into a wide range of sectors, regardless of their starting point in the green transition. This adaptability supports both short-term modular adaptations, such as adding specific green skills or modules to existing training pathways, and longer-term structural transformations, for instance by reshaping entire occupational profiles or creating new ones aligned with green objectives. When apprenticeship reforms are effectively embedded into broader sectoral plans or company-level sustainability strategies, their contribution is amplified, creating more coherent and impactful outcomes at both local and national levels. In the last years, countries have taken various initiatives to make apprenticeships programmes fit for the green transition, including updating the offer and content of apprenticeships programmes and curricula, targeting specific populations, and providing financial incentives and support to individuals and employers. These different strategies are presented below.

Updating the offer and content of apprenticeships programmes and curricula

Countries update the offer of training programmes by developing entirely new apprenticeships or adjusting the content of existing programmes to integrate sustainability elements, often combining both approaches to meet evolving needs. These updates are implemented through various strategies, which can be classified into top-down transversal strategies, top-down sector-specific adaptations and bottom-up strategies (CEDEFOP, 2024[21]). Top-down transversal strategies refer to centralised, national-level initiatives led by governments or large institutions, often involving systemic reforms to embed skills for the green transition across all programmes. Sector-specific adaptations focus on addressing the green transition needs of particular industries or occupations, ensuring that training aligns with sectoral sustainability goals. Bottom-up strategies refer to local, regional, or sub-sectoral initiatives, often led by schools, companies, or apprentices themselves. These smaller-scale efforts address specific green transition needs at the local level. The strategy used usually depends on the apprenticeship model of the countries. Most sector-specific responses come from countries where apprenticeships operate as an independent system, with collaboration platforms and shared governance structures for sector representatives and social partners. In countries where apprenticeships are an alternative to school-based VET, examples tend to either be broad initiatives covering all education or smaller-scale, locally focussed initiatives (CEDEFOP, 2024[21]).

Top-down transversal strategies

Some countries, like Austria, Finland, Germany, Greece, Ireland, Latvia, Lithuania, Norway, Poland, and Slovenia, have chosen to revise all their apprenticeship programmes to include green-related competences. In some cases, such as Austria, Greece, Finland, and Norway, new green modules have been introduced combining both cross-cutting competences, such as environmental values and a sustainability mindset, and more technical skills related to the green economy, such as waste production, sustainable energy technologies and carbon footprint analysis. In Finland, the technical modules are optional for the students. In some countries, such as Austria, the inclusion of green competencies is done by adapting national frameworks to international frameworks such as the EU’s GreenComp framework (see Box 2.1 above). In Poland, reforms have focussed on the integration of green skills through the examination and certification process. The integration of skills for the green transition into VET curricula is often combined with digital and STEM-related competencies, as seen in Latvia and Lithuania, so that apprentices acquire the necessary skills to work in evolving industries. Curricula adjustments may be accompanied by training for teaching staff on green transition topics, as well as the development of supporting materials and teaching tools, as is the case in Germany and Slovenia (CEDEFOP, 2024[21]) (European Commission, 2024[22]).

In several countries, including Ireland and Austria, the inclusion of skills for the green transition in apprenticeship programmes is part of broader green transition plans, which often involve several levels of education and/or employment policies.

In Ireland, the Green Skills 2030 Strategy aims to align the education and training system with the needs of the green transition (see also the section dedicated to the Green Skills 2030 Strategy). One of the priorities of the strategy (Strategic Priority 3) focusses on integrating skills for the green transition and transversal competencies into all FET programmes. This includes integrating sustainability content into curricula, aligning with the European GreenComp framework, and supporting continuous professional development for FET instructors. The goal is to equip learners with both technical and transversal skills for the green economy across various disciplines.

In particular, in the construction and built environment sector, apprenticeships are being updated to cover modern construction methods, retrofitting, Nearly Zero Energy Buildings, and environmental management. Transversal skills such as critical and systems thinking are also included, enabling apprentices to evaluate environmental impacts and make sustainable choices. In engineering, energy, and manufacturing, apprenticeships now emphasise renewable energy systems (e.g. wind turbine maintenance), with added focus on climate literacy1 and adaptability to prepare learners for emerging technologies. In transport and logistics, apprenticeships incorporate training in electric vehicle maintenance, eco-driving, digital literacy, and adaptability to support the transition to green mobility.

As outlined in the previous section, Austria launched its Just Transition Plan in January 2023, and a central focus of the plan is to integrate climate‑relevant content into existing apprenticeship programmes. This includes creating new training formats and enhancing existing curricula to address sustainability challenges. One of the main measures is to integrate sustainability elements into all apprenticeship programmes at the national level. Specialised training modules are also included in green sectors such as electrical engineering, building technology, and renewable energy to provide apprentices with targeted skills for these high-demand fields.

The adaptation of apprenticeship programmes to include sustainability is part of Austria’s regular process of updating VET. This process involves collaboration between social partners, sector representatives, research institutes, and the government. Proposals for updates are developed with input from experts, ensuring that apprenticeships meet industry needs and align with the green transition. These updates include both in-company training regulations and school-based curricula. Eligible participants undergo training in close co‑operation with companies that have specific staffing needs, ensuring that training aligns with industry demand (Schmid, 2023[23]).

In addition to adjusting existing programmes, new programmes have been introduced. For example the apprenticeship programme for “climate gardeners” focusses on climate change adaptation measures, in particular the successful implementation of green and blue infrastructure2 in urban areas (European Commission, 2024[24]).

Top-down sector-specific adaptations

Some countries are tailoring apprenticeship training to the specific needs of key green sectors, ensuring that apprentices develop specialised technical skills aligned with industry demands. In renewable energy and sustainable construction, countries like Australia, the Netherlands and Sweden have introduced new apprenticeship pathways, including training for solar energy management, electric vehicle maintenance, and energy-efficient infrastructure. In Germany, training is being adapted to support the hydrogen sector, ensuring that apprentices acquire skills relevant to hydrogen production, storage, and distribution (CEDEFOP, 2024[21]). Denmark, with support from the European Commission, is identifying circular economy skills needs in key sectors such as construction, wind energy, water technologies, and sustainable food, while simultaneously building institutional capacity through a network of Knowledge Centres in its VET system that foster curriculum innovation, teacher upskilling, and sector collaboration (European Commission, 2024[25]). Other countries are incorporating sustainability into a broad range of sectoral apprenticeships, from highly technical occupations to general business practices, as in Switzerland and the UK. Some countries are also focussing on embedding sustainability into service sectors. For instance, Romania is incorporating skills for the green transition into hospitality and catering apprenticeships (Romania and CEDEFOP, 2025[26]).

In the United Kingdom, apprenticeships now play a central role in supporting the net‑zero transition across critical sectors such as energy and networks; construction and built environment; environmental and land management; and sustainability‑focussed professional services. Over 200 apprenticeship standards already embed green competences, with many more in development to integrate sustainability principles across the economy. Developed and updated by thousands of employers with support from the Institute for Apprenticeships and Technical Education (IfATE), these programmes equip the workforce with essential skills for the green transition across various sectors. To guide this process, IfATE has developed a Green Toolkit, which provides both general and sector-specific guidance on how to integrate sustainability into technical education. All apprenticeship standards, new or revised, must now take this toolkit into account. The toolkit supports three key aims: ensuring all learners acquire foundational green competences; promoting the development of specific skills knowledge and behaviours for the green transition, where relevant; and encouraging green leadership and innovation, particularly in higher-level qualifications (IfATE, 2023[27]). Green content is introduced not only through specific modules or courses, but also by embedding them throughout occupational standards. To this end, the Green Toolkit identifies six key themes that should be integrated into any occupational standard (see Box 3.1). Through this framework, IfATE integrates sustainability into apprenticeships by enhancing existing programmes to train workers in green technologies (e.g. training electricians in domestic heat pumps, solar panels, and electric vehicle charging points). It also supports specialist occupations (such as ecologists and countryside rangers) and develops apprenticeships that help businesses adopt sustainable practices, including degree‑level training for sustainability business specialists. As part of this effort, six apprenticeships were selected in 2023 to receive the King’s Coronation emblem, recognising their exceptional contribution to sustainability. These include roles such as Low Carbon Heating Technician, Sustainability Business Specialist, and Countryside Worker.

Box 3.1. IfATE Green Toolkit: Guidance themes

The Green Toolkit developed by IfATE outlines six key themes to integrate green contents into occupational standards:

• Carbon, energy sources and usage: Encouraging decarbonisation, energy efficiency, and the uptake of renewable technologies.

• Resource management: Supporting circular economy principles and minimising waste.

• Procurement and full-life decisions: Promoting whole‑life costing, ethical supply chains, and sustainable procurement practices.

• Consequences and opportunities: Helping learners understand the risks of inaction and the benefits of a green economy.

• Data and innovation: Building capacity to use data in environmental decision making and developing new green solutions.

• Resilience, adaptation and preparation: Fostering skills to manage climate risks and adapt to environmental changes.

Source: IfATE (2023[27]).

Sweden developed an apprenticeship programme for solar energy managers to meet the growing demand in the solar energy sector. This programme is part of the Yrkeshögskolan scheme, which, although not formally considered an apprenticeship in the national context, aligns with the criteria set by the European Framework for Quality and Effective Apprenticeships.3 It is designed for employed adults and offers them a fast-track pathway to tertiary-level qualifications while they remain in their jobs. Companies can use this programme to hire and train new staff. To be eligible for this program, adults must have a minimum of four years of relevant experience. The programme covers electrical engineering, solar energy technology, regulations, construction, energy knowledge, and smart systems, with modules lasting between 10 to 25 days. It combines theoretical training, offered online or through school-based components, and practical experience, with approximately one‑third of learning taking place in the workplace. Employers play an active role in curriculum development and in providing workplace placements, and the Swedish National Agency for Higher Vocational Education oversees the programme, ensuring quality, allocating state grants, and approving eligible courses. Companies value the programme for its ability to upskill existing employees and attract new talent, and the possibility to shape training to their specific needs (Lundström and Cedefop, 2023[28]).

Denmark has established a network of specialised Knowledge Centres within vocational education and training (VET), designed to ensure that schools and programmes stay abreast of rapid technological change, digitalisation, and the green transition. These hubs, ten of which already exist covering areas like welfare, sustainable crafts, and business training, serve as incubators for new curriculum development, teacher continuous development, equipment upgrades, and sectoral collaboration. In 2024, Denmark launched its (eleventh) Knowledge Centre for Agriculture and Rural Development, the first of its kind focussed on agricultural and rural VET. The government has allocated DKK 4.4 million (~EUR 590 000) annually for its operation, along with one‑off capital grants of DKK 7.5 million in 2024 and DKK 3 million in 2025 for equipment and infrastructure. This centre aims to bridge the gap between agriculture and vocational training by developing and testing new teaching materials, technologies, and modules that support a climate‑resilient and sustainable food sector. It will equip both students and teachers with green competences, working in partnership with agricultural stakeholders and aligning with national policy goals for reducing emissions and transforming farming practices (Ministry of Children and Education, 2023[29]).

In parallel, the Danish Government has designated three vocational institutions (Rybners, TEC and Herningsholm) as “climate-related schools” (klimaerhvervsskoler), each specialising in core sectors such as energy transition, green transport, sustainable construction, and climate‑friendly agriculture. These institutions receive dedicated funding (DKK ~105 million annually from 2024‑2028 and DKK 30 million thereafter) to develop sector-specific curricula, pilot climate programmes, support professional development for VET educators, and upgrade infrastructure. As flagship institutions, they are expected to disseminate knowledge and best practices across the VET sector – through teacher training, cross-school collaboration and open participation in their courses – reinforcing a system-wide embedding of sustainability skills in vocational learning (Ministry of Children and Education, 2024[30]).

Bottom-up strategies

In some countries, efforts to integrate skills for the green transition into apprenticeships are being driven from the ground up, with local or sectoral initiatives leading the way. These bottom-up strategies are often spearheaded by schools, businesses, or apprentices themselves, addressing sustainability challenges at the grassroots level. While in some countries, such as Denmark and Croatia, these initiatives have resulted in the introduction of entirely new apprenticeship programmes, in others, including Spain and Bulgaria, they led to the adaptation of existing training content to better align with the green transition. In the cases of Bulgaria and Croatia, these local initiatives are designed as pilot projects, with the potential for national expansion.

In Denmark, the Apprentices for Sustainability project is a notable example of a bottom-up approach to embedding sustainability in vocational education. Initiated in Copenhagen by apprentice carpenters concerned about the environmental impact of the construction sector, which accounts for nearly 40% of energy-related climate emissions, the project explored how the United Nations (UN) Sustainable Development Goals could be applied within carpentry training. Working in collaboration with vocational schools and a national knowledge centre, the apprentices helped develop a sustainability-focussed curriculum that combined theory with hands-on learning. Over 1 000 apprentices were trained in sustainable construction methods, environmentally conscious material selection, and climate‑related topics. A highlight was the construction of a 25 m² model of sustainable youth housing, showcased during the World Congress of Architects 2023 in Copenhagen. Through workshops, site visits, and “train-the-trainer” sessions for company mentors, the apprentices became ambassadors for sustainable building, influencing companies, suppliers, and even launching their own businesses. The initiative’s success helped inspire updates to carpentry qualifications across Denmark (CONTECO[31]; CEDEFOP, 2024[21]).

Building on this foundation, the VIGOT project (2022‑2026), funded by the Novo Nordisk Foundation, brings together universities, vocational schools, and research centres to further develop skills for the green transition in carpentry education. It focusses on construction physics and the use of biogenic materials, such as seaweed, straw and hemp, that store atmospheric carbon and reduce climate impact. VIGOT includes instructor training, new apprentice courses where learners build and test wall elements, and continuous evaluation to ensure lasting integration of sustainable practices in carpentry curricula (University of Copenhagen, 2023[32]).

In Bulgaria, the Vocational School for Mechanical and Electrical Engineering in Pleven is leading the “ENTIRE” project (“Greening VET Curricula for Electricians”), supported by the Erasmus+ Programme. This initiative aims to update apprenticeship curricula for electricians at the upper secondary level, integrating skills relevant for the green transition. An amendment to the apprenticeship curricula is expected to be presented to educational authorities for approval. Once approved, the updated curricula could be applied to all apprenticeship programmes for electrical technicians across the country. The project also aims to develop methodological guidelines for integrating green transition skills into VET curricula, applicable to various professions. Additionally, it seeks to provide advice on how businesses can actively participate in adapting apprenticeship curricula to include skills relevant to the green economy. Furthermore, the project plans to create a training plan for VET teachers to support their upskilling in relation to green transition competencies across disciplines or in specific areas of expertise. The ENTIRE project is implemented by the Modern Education Foundation and the Pleven Vocational School, with oversight from the Ministry of Education and the National VET Agency, and involves collaboration with partners in Austria and Lithuania (Evtimova and Cedefop, 2023[33]).

Providing financial incentives and support to apprentices and employers

Countries are using financial incentives to promote green apprenticeships, either directed to apprentices themselves, to employers, or both. These incentives vary in scope and type, from direct subsidies for apprentices to grants and tax benefits for businesses, such as in the United Kingdom. Some countries, such as Austria, focus on funding apprenticeships in priority green sectors like clean energy, sustainable construction, and circular economy industries, combining financial incentives with targeted support to help disadvantaged groups access these opportunities and develop relevant skills for emerging green sectors.

In Austria, the “Digi-Scheck” for Apprentices initiative plays a central role in promoting digital, green, and job-specific skills among apprentices. Launched in 2021 as a response to the skills gaps exacerbated by the COVID‑19 pandemic, the programme supports the acquisition of additional, future‑relevant competences in areas such as digitalisation, climate protection, sustainability, energy and resource management, and professional foreign languages, for apprentices with valid apprenticeship contracts in training companies (excluding inter-company training institutions, which benefit from other support schemes). It offers 100% reimbursement for eligible courses, up to EUR 500 per course and three courses per apprentice per calendar year. The initiative is fully funded by the Austrian Government. Applications can be submitted by either the apprentice or, in some instances, the training provider. A list of eligible courses is made available by training providers and Chambers of Commerce, including the national online training platform “wîse up” (see Box 3.2). If a course is not yet approved, the training provider may be invited to submit it for recognition (Austrian Chamber of Commerce (WKO), 2024[34]).

In parallel, between 2022 and 2025, around 1 000 unemployed individuals with outdated skills have been re‑qualified in the environmental sector (OECD, 2024[35]). This initiative is part of Austria’s broader strategy to expand renewable energy sources such as wind, solar, hydropower, and biomass, as the government seeks to reduce greenhouse gas emissions. It builds on the foundations of the 2021 Job.ReAct pilot programme, co-funded by the EU’s European Social Fund, and is led by the Environmental Foundation (Umweltstiftung) in collaboration with AMS and BMK. The programme offers up to 24 months of training, combining theoretical education and company-based practical experience, with the goal of leading participants into employment. It provides tailored pathways including new apprenticeship qualifications, skilled assistant training, and higher technical qualifications, depending on the individual’s prior experience and learning goals. Sectors covered include photovoltaics, electrical installation, building sealing, waste management, horticulture, mobility, and forestry, among others. The training is conducted in close co‑operation with companies actively seeking workers in green occupations, ensuring alignment with actual labour market needs. Participating companies benefit from reduced supervisory obligations, support in developing training plans, and access to a pool of motivated candidates, while participants receive individualised coaching, mentoring, and monthly financial support of at least EUR 1 060, alongside full coverage of training costs (up to EUR 7 000 per person). The total budget of EUR 17.5 million includes EUR 10 million public funding and EUR 7.5 million from the private sector. The Environmental Foundation also places strong emphasis on gender equality and inclusion, aiming for at least 40% female participation and actively supporting groups underrepresented in the green workforce, such as older individuals and the long-term unemployed.

Box 3.2. Austrian national online training platform “Wîse up”

The Austrian Economic Chambers developed “wîse up”, a comprehensive national online training platform that offers more than 20 000 quality-assured online courses. The platform includes content relevant to all occupations (for transversal skills such as digital and soft competences), as well as apprenticeship-specific modules (e.g. electrical engineering, metal technology, retail). In 2024, around 550 curated learning paths – structured, didactically sound programmes aligned with major apprenticeships – were made available as an optional supplement to company-based training for current apprentices. These learning paths are fully subsidised through the Digi-Scheck, ensuring that financial barriers do not limit access to high-quality learning opportunities.

Source: ReferNet Austria and Cedefop (2024[36]).

In South Norfolk and Broadland, the United Kingdom, the Building Futures initiative supports the creation of new apprenticeship opportunities, with a particular focus on accelerating the green transition in SMEs. Funded by the UK Government’s Shared Prosperity Fund, this initiative provides financial and practical support to SMEs that would otherwise face barriers to hiring apprentices. The programme aligns with national goals to boost local investment, enhance life chances, and strengthen communities through skills development and business support (Apprenticeships Norfolk[37]). At the heart of Building Futures is a grant scheme designed to reduce the upfront costs of taking on an apprentice during the critical first 18 weeks of training, when supervision and mentoring demand greater investment from employers. Two levels of grants are available: a standard grant of GBP 2 000 for most apprenticeships, and an enhanced grant of GBP 5 000 for apprenticeships classified as dark green – those that directly support net-zero and nature recovery goals (see Box 3.3).

In addition to financial support, Building Futures offers SMEs a comprehensive package of wraparound services to ensure the success of apprentices’ placement and the long-term resilience of participating businesses. Employers receive tailored guidance from Apprenticeships Norfolk, including a skills analysis to identify the most suitable apprenticeship training programme. In addition, two mandatory e‑learning modules must be completed by staff supporting the apprentice: the first on onboarding and mentoring, and the second on sustainability awareness. These learning components are designed to help employers integrate apprentices effectively into the workplace while building internal capacity for sustainable business practices. To be eligible for the programme, employers must be non-levy paying SMEs (i.e. with an annual wage bill under GBP 3 million), intend to support the apprentice through to completion of the programme, and be based in, or hire an apprentice who lives in, South Norfolk or Broadland. Applications must be submitted before hiring the apprentice, and participation is subject to availability of funding and successful fulfilment of programme requirements (Apprenticeships Norfolk[37]).

Box 3.3. Green apprenticeship categories in the United Kingdom

A green apprenticeship is one that contributes to the UK’s goal of achieving Net Zero Carbon emissions by 2050. As sustainability becomes increasingly important, many apprenticeships will be influenced by environmental factors to varying degrees. The Institute for Apprenticeships & Technical Education (IfATE) classifies green apprenticeships into three categories:

• Dark Green: Roles where sustainability is the main focus, such as Low Carbon Heating Technicians and Countryside Workers.

• Mid Green: Roles that can contribute to sustainability, though it is not their main focus, like Financial Advisers or Procurement Assistants.

• Light Green: Roles with minimal or indirect links to sustainability; no examples have been officially shared by IfATE yet.

Source: Apprenticeships Norfolk ([38]).

The government’s Australian Apprenticeships Incentive System, part of the Future Made in Australia plan,4 supports the development of a skilled workforce in priority sectors, particularly clean energy, as the country positions itself as a leader in renewable energy. The system offers targeted financial support to both apprentices and employers to attract and retain talent in occupations critical to the net-zero transition. Within this framework, apprentices training in high-demand occupations in the clean energy sector listed in the Australian Apprenticeships Priority List may receive up to AUD 5 000 over two years through the Australian Apprentice Training Support Payment (Department of Employment and Workplace Relations[39]) and those pursuing qualifications in one of over 40 clean energy occupations, across fields such as engineering, electrical, agritech, telecommunications, and automotive, are eligible for the New Energy Apprenticeship (NEA) stream of the Key Apprenticeship Program (KAP), which offers up to AUD 10 000 over the course of their apprenticeship. To be eligible for the New Energy Apprentice Support Payment, apprentices must be enrolled in a Certificate III to Advanced Diploma and have started or restarted their apprenticeship on or after 1 July 2025 with a new employer. The training must not duplicate a recently completed qualification, and apprentices must be actively employed during the claim period. Employers must operate in the clean energy sector and offer relevant on-the‑job experience. Both parties must complete a declaration of their commitment to building the apprentice’s skills and experience in the clean-energy sector, and commit to two onsite workplace checks. Apprentices cannot receive the clean-energy support and the Australian Apprentice Training Support Payment for the same apprenticeship (Department of Employment and Workplace Relations[39]).

To encourage uptake by employers, the Priority Hiring Incentive additionally provides up to AUD 5 000 for hiring full-time apprentices (or AUD 2 500 for part-time) in occupations listed on the Australian Apprenticeships Priority List, which includes clean energy occupations. The incentive specifically targets the first year of the apprenticeship, when costs related to supervision and onboarding are high. Employers must register the apprenticeship through the national Apprenticeships Data Management System (ADMS), and the training must be aligned with Certificate III to Advanced Diploma qualifications recognised in the Priority List. These federal incentives are complemented by state‑level schemes, which vary across jurisdictions and target local skills shortages (Department of Employment and Workplace Relations[39]).

Encouraging workers and jobseekers to undertake training for the green transition

Countries have implemented various measures to address skills gaps arising from the green transition, and many target workers or jobseekers to encourage them to take part in green-related training. This section provides examples of how countries are influencing the incentives for workers and jobseekers to train in two ways: 1) providing financial incentives for training, and 2) improving labour market information about skills in demand and facilitating access to career guidance.

Providing financial incentives

Most OECD countries have financial incentives to encourage workers and/or jobseekers to train in green-related content, usually in the form of direct subsidies to individuals (e.g. scholarships, grants, bursaries, allowances, training vouchers, credits). This is the case for instance in Canada, Croatia, Latvia, Portugal, Singapore, Spain, the United Kingdom, and the United States (OECD, 2024[35]).

Croatia is an interesting example as it launched in April 2022 a voucher system aimed at fostering lifelong learning, in particular for the green and digital transitions. The initiative is part of a broader strategy to enhance the skills of the Croatian workforce and align with the EU’s goals for a sustainable and digitally advanced future (OECD, 2022[40]). Vouchers are awarded exclusively for adult education programmes that are aligned with the Croatian Qualifications Framework standards. This ensures the relevance and quality of the training programmes, providing participants with valuable and recognised qualifications. The system initially targeted solely training for the green and digital transitions, but since June 2023, the voucher system covers a broader range of training for in-demand skills, beyond green and digital. As of 2024, vouchers can also be used to co-finance Croatian language courses for foreign workers. At present, 258 education providers offer close to 2000 programmes eligible for financing under the voucher scheme. 538 programmes are for skills for the green transition. Examples include ecological production of vegetables, maintenance of hybrid electric vehicles, installing heat pumps, and installing photovoltaic systems.

The voucher system is open to all unemployed and employed persons aged 15 and above who have completed at least basic education. Participants can find information on the scheme on a dedicated platform5 and choose from the catalogue of eligible courses, selecting the programme and the education provider that best aligns with their needs. This approach encourages proactive engagement in lifelong learning and career management, empowering individuals to take control of their professional development. The cost of the education programme, up to the value of the approved voucher and within a limit of EUR 3 000, is paid directly to the selected education service provider, simplifying the process for the participants. The scheme is managed by the Croatian PES, under the responsibility of the Ministry of Labour, Pension System, Family, and Social Policy. Funding is provided by the EU via the National Recovery and Resilience Plan 2021‑2026 which allocated EUR 190.5 million to Croatia to support upskilling, reskilling, professional guidance, and employment, particularly in green and digital industries.

To ensure the quality and effectiveness of the voucher system, the PES monitors course attendance as well as programme completion (through final assessments). The PES also conducts satisfaction surveys among all learners upon programme completion. Based on evaluation results, the PES may terminate co‑operation with certain education providers. Co‑operation may also be terminated if programmes no longer meet the eligibility criteria, in line with the Catalogue of Skills, or if no voucher users enrol within a year. Random class observations and follow-ups on user complaints further support quality assurance, ensuring that the programmes are of high quality and meet the needs of participants. Since its launch in 2022, 30 000 voucher requests were approved, for a total amount of EUR 30 million and an average voucher value of approximately EUR 1000. Around 20 000 learners have completed training. Most learners (65%) are interested in developing digital skills, while green programmes account for 14% and other labour-market-relevant programmes for 21%. Surveys indicate high learner satisfaction, averaging 92%, particularly regarding learning environments, instructors, and career opportunities following programme completion (ReferNet Croatia, CEDEFOP, 2025[41]).

Instead of creating specific subsidies to respond directly to the green transition, another common approach is to promote general training incentives as a response to the upskilling and reskilling challenges presented by the green transition, even if they can be used for areas other than green-related training. This is the approach taken in Austria, Belgium, Japan, Portugal, and the Slovak Republic for instance (OECD, 2024[35]). Taking advantage of existing financial measures to promote training for the green transition can be advantageous, as it leverages on existing schemes strengths and reputation and can contribute to a streamlining of programmes and information. However, considering the widening skills gap in the net-zero transition, it is crucial to make sure that training initiatives are effectively reaching those who need them most and that they are fostering the skills essential for the green transition. To this end, some countries adapt existing programmes or add modules targeting specifically skills for the green transition.

In that respect, an interesting example is the implementation of a green pilot programme in Wales in the context of the personal learning account (PLA). The green PLA pilot is part of the Net Zero Skills Action Plan published in 2023 by the Welsh Government to support its net zero commitments.6 Compared to the general PLA (see Box 3.4), the main change introduced by the green PLA pilot is the removal of the eligibility salary cap for approved, green-related trainings. The list of approved courses includes 66 trainings in renewable energy solutions, retrofit, energy, electricity, construction, manufacturing/engineering, environment, and project management. To select these courses, a specialist panel composed of representatives of further education institutions, sector and industry experts, has been established. In 2022-2023, the core budget for PLA was GBP 17.9 million, and for the green PLA pilot, an investment of GBP 2 million has been set aside in order to fund the removal of the salary cap and the establishment of the specialist panel.

Box 3.4. The general Personal Learning Account in Wales

In 2019, Wales launched a general Personal Learning Account pilot to support individuals improve their skills in North Wales. While the pilot was initially planned to last for two years, the Welsh Government made the decision to accelerate the rollout of the programme across Wales prior to the completion of the pilot phase during the coronavirus (COVID‑19) pandemic. As a result, the PLA programme was implemented in all regions in Wales in August 2020.

The PLA in Wales provides funding for vocational training in industrial sectors in which there is a demonstrable skill shortage. The funding covers all training costs, and 470 courses are available in six sectors:

• Logistics

• Advanced Materials and Manufacturing

• Hospitality

• Health and Social Care re‑engagement

• Digital Skills

• Net Zero and Green technologies

Eligible courses are offered in 11 out of 16 further education institutions across Wales.

Individuals living in Wales, employed (including through a recruitment agency or with a zero-hour contract1), self-employed or full-time carer (paid or non-paid), and whose annual basic salary does not go over GBP 32 371, are eligible to receive training under the PLA scheme. In order to cater to the needs and responsibilities of employed individuals, trainings offered in the context of PLA are part-time, flexible, and are delivered either online or face‑to-face.

Candidates to the PLA must undertake a pre‑admission digital interview with a career adviser from Working Wales, the career guidance service of Career Choices, a wholly owned subsidiary of the Welsh Government which was formed on 1 April 2013 and which is managing the PLA scheme. During the interview, individuals are invited to discuss their career aspirations, goals and training aspirations and the career advisor ensures that the chosen course is the right pathway for the individual.

1. A zero-hour contract is an employment contract where the employer is not obligated to provide a minimum number of working hours, and the employee is not obligated to accept any work offered. Employees are only paid for the hours they actually work. This type of contract is often used in industries with fluctuating workloads, such as retail, hospitality, and healthcare.

Source: https://careerswales.gov.wales/courses-and-training/funding-your-studies/personal-learning-accounts (accessed on 28 February 2025).

Providing information and career guidance

Information, advice and guidance are important to help adults successfully navigate the evolving labour market and training opportunities, yet few OECD countries have put in place career guidance initiatives to facilitate transition into jobs for the green transition (OECD, 2024[35]).

A notable exception is Croatia. To inform potential beneficiaries about the new system of training vouchers, career guidance is available both in person and online. To help individuals select the training programme most appropriate for their needs, the training voucher online platform includes a guidance tool. Individuals are invited to answer a ten‑minutes questionnaire containing questions about their education and professional background, occupations and work activities they like, and a self-assessment of 36 job-related skills. The tool then offers a selection of five educational programmes within the voucher system that may be suitable for the individual, based on his or her experience and interests. Each proposition is accompanied by a numerical assessment of how well it matches the individual’s interests and skills. To obtain further information and more tailored career guidance advice, individuals can contact a PES guidance counsellor. To ensure that the skills acquired through the voucher system are aligned with the needs of the labour market, counsellors have been instructed to consult relevant labour market indicators when guiding adults in accessing upskilling opportunities.

Another interesting example is Sweden, where the PES implemented several programmes to support the green transition. These programmes all include job-search counselling and matching, as well as career information and advice. Furthermore, the PES also provides information on job opportunities in northern Sweden, where green industries are expanding, via different channels: a dedicated webpage, a job fair in Stockholm and Malmö with employers from the northern region, and through the private job matching companies they usually co‑operate with (Lauringson, Pantelaiou and Westlake, 2025[42]).

Supporting firms to adapt to structural changes brought about by the green transition

Mobilising job retention schemes

Short-time work (STW) schemes (also called job retention schemes) are typically used in many OECD countries to preserve jobs in firms experiencing a temporary decline in activity (OECD, 2021[43]). They help reduce labour costs for firms while supporting the incomes of workers whose hours are cut. Some EU countries use STW schemes to enable companies to temporarily reduce their activity in order to restructure and meet climate change mitigation targets. In some countries (Czechia, Germany, Spain), dedicated STW schemes, different from the standard STW, have been created to accompany firms’ restructuring (related or not to the green transition). They typically incorporate measures to encourage training and job transitions. In other countries, such as Italy, companies can use the standard STW for transition purposes.

In Germany, the transfer short-time work allowance (Transferkurzarbeitergeld), granted in the event of restructuring, is similar to the standard STW (Kurzarbeitergeld) in terms of generosity. Nonetheless, workers must register as jobseekers with the Federal Employment Agency (Agentur für Arbeit) before joining a transfer company, responsible for helping them transition into a new job, while the employer must make job placement proposals, and contribute (along with the Federal Employment Agency) to the costs of the transfer company and training. In Czechia, firms undergoing restructuring can apply to the New Entrepreneurial Programme (NEP), a programme that is substantially less generous (both in terms of level and duration) than the standard STW scheme aimed at supporting firms in the case of extraordinary events or economic difficulties.7

Spain is another particularly interesting case. In 2021, Spain implemented a substantial reform of its job retention scheme (Expedientes de Regulación Temporal de Empleo – ERTE) (OECD, 2024[44]). In particular, the reform created two new types of ERTE, which the government can “activate” in the event of (i) cyclical macroeconomic downturns (cyclical ERTE) or (ii) sectoral transformations requiring substantial labour reallocation (sectoral ERTE). Both schemes can be activated by a government-approved national collective agreement, a possibility known as the RED (Reducción de Empleo por Despidos) mechanism. Activation of the RED mechanism enables firms to apply for ERTE under a simplified procedure and to benefit from social security contribution exemptions. Cyclical and sectoral ERTE are subject to a 70% replacement rate (like other ERTE) and a maximum duration of one year; however, sectoral ERTEs can be extended for a further two semesters upon approval.

Sectoral ERTE is particularly relevant to the green transition. It aims to facilitate sectoral reallocation by making the reduction in social security contributions conditional on (i) workers’ participation in (partly subsidised) training programmes and (ii) the implementation of a social plan to promote the mobility of workers to other firms.8 Unlike training offered under other types of ERTE, which should be job-specific to encourage job retention, training offered under sectoral ERTE can be generic to support job transitions between sectors. A dedicated fund, the RED Fund for Flexibility and Stabilisation of Employment, aims to meet the future financing needs of the RED mechanism in terms of benefits, social security contribution exemptions, and training costs.

As an example, the RED mechanism was activated by the Spanish Government in December 2024 to support the automotive sector during its transition to electric and sustainable mobility.9 To ensure that the training actions are in line with sectoral transformations, a retraining plan had to be established, specifying training modules, number of training hours, detailed training programme and the skills to be acquired. Prescribed training actions had to be linked to the structural changes in the sector, such as the use of new technologies or the production of hybrid and electric vehicles.

Many OECD countries also rely on STW to cope with the direct environmental consequences of climate change (Table 3.1). Extreme weather events are in general part of the valid reasons for using the standard STW scheme. In some cases (Belgium, Finland, Luxembourg, and the Netherlands), consequences of seasonal weather events are also considered legitimate grounds for activating standard STW schemes. In Germany, a specific seasonal STW allowance exists for employees in the construction sector during the winter. It is worth noting that, to the best of the OECD Secretariat’s knowledge, no OECD countries have restricted the use of STW in light of the growing frequency of weather events associated with climate change.

For example, the Spanish Government – and the Valencian regional government – used ERTE after the catastrophic floods that hit Valencia in late October 2024. Companies located in areas affected by the floods – or severely damaged (e.g. L’Horta Sud and Ribera Alta) – were eligible for ERTE due to force majeure, a simplified ERTE procedure with total exemption from social security contributions. In addition, at the national level, in response to the challenges of climate change or other types of disasters, new paid leave entitlements of up to four days have been legally established to ensure the safety of workers in cases of serious and imminent risk.

Table 3.1. Examples of short-time schemes used for extreme weather events or seasonal reasons relating to climate change

Country	Programme	Reasons	Differs from the standard scheme?
Austria	Kurzarbeitsbeihilfe	Extreme weather	No
Belgium	Chômage temporaire – intempéries / Tijdelijke werkloosheid – slecht weer	Seasonal, extreme weather	No
Canada	Work-Sharing Program	Extreme weather	No
Czechia	Contribution during short-time work	Extreme weather	No
Germany	Seasonal short-time work allowance	Seasonal	Yes. Seasonal STW allowance is available from 1 December to 31 March and paid for employees in the construction industry or to companies in a sector of the economy that is affected by seasonal loss of work. This means that the loss of work must be based on weather or economic reasons regularly during periods of bad weather. Loss of work due to an unavoidable event is also included.
Germany	Economic short-time working allowance	Extreme weather	No
Finland	Lomautusjärjestelmä (layoff system)	Seasonal, extreme weather	No
Greece	Special purpose compensation	Extreme weather	No
Italy	Cassa integrazione	Extreme weather	No
Luxembourg	Chômage partiel	Seasonal, extreme weather	No
Netherlands	Regeling onwerkbaar weer (Row) and Regeling werktijdverkorting (WTV)	Seasonal (Row), extreme weather (WTV)	No
Norway	Temporary lay-off	Extreme weather	No
Slovak Republic	First Aid schemes	Extreme weather	No
Spain	Expediente de regulación temporal de empleo (ERTE)	Extreme weather	No
Sweden	Short-time work allowance	Extreme weather	No
Switzerland	Standard short-time work compensation scheme	Extreme weather	No
Türkiye	Short-time working allowance in the scope of “Force Majeure”	Extreme weather	No

Source: OECD policy questionnaire on the net-zero transition, 2024.

Engaging with small and medium enterprises

Reaching out to and engaging with SMEs so that they anticipate their employment and skills needs as a result of the green transition is a challenge that all countries face. An interesting example to address this issue comes from the Netherlands. The Dutch Ministry of Economic Affairs and Climate explicitly identified skills development for the climate transition as a key area where SMEs needed support. It thus introduced the MKB!dee scheme, a time‑limited (2018-2021) experimental subsidy programme designed to encourage small and medium-sized enterprises (SMEs) to invest more systematically in the training and development of their employees. It targeted SMEs facing structural or situational barriers to skills investment and invited them to propose demand-driven solutions. Approved projects received funding for eligible costs. The programme funded 169 projects with a total of EUR 26.8 million.

The initiative was led by the ministry, with implementation support from the Netherlands Enterprise Agency and Platform Talent voor Technologie. An independent advisory committee assessed applications, with the ministry responsible for final funding decisions. A dedicated portal10 served as a dissemination platform for projects and outcomes.

The core measure of the MKB!dee scheme was the provision of financial grants to SMEs with innovative approaches for learning and development. The scheme was demand-driven, meaning that SMEs themselves had to identify the barriers they faced and propose solutions. Several projects funded under the MKB!dee scheme directly addressed the energy and climate transition by focussing on training and development related to new technologies, sustainable practices, and the evolving demands of the sector. Concrete examples (2021[45]) include the following:

• Duurzame installaties (Sustainable installations): REMO West-Twente developed a modular training programme focussed on sustainable installations. This included a dual vocational training programme and shorter, specific modules for employees and individuals undergoing a career transition, directly addressing the need for skilled professionals in sustainable technologies like heat pumps. This project also aimed to establish a physical training centre, “Kampus, gebouw vol talent”.

• Open source, niet denken in patenten maar samen werken aan talenten (Open source, don’t think in terms of patents, but work together on talents): This initiative aimed to establish a knowledge and practice centre for the circular economy, where SMEs, education institutions, and government bodies could share knowledge about innovative energy and sustainability techniques. The goal was to promote reskilling and upskilling of technicians, foster informal learning, and stimulate energy transition innovations.

• Werken op Hoogte (Working at Height): This project addressed safety in the sustainable energy sector, where accidents during work at height (e.g. in wind turbines) were increasing. It used blended learning and virtual reality to train employees in realistic scenarios, aiming to change behaviour and improve safety practices in this growing green sector.

The monitoring framework established for the MKB!dee scheme offered a comprehensive approach to evaluating its effectiveness. The framework was grounded in a theory of change model, linking inputs (e.g. subsidies, support staff) to outputs (executed projects) and intended outcomes (e.g. improved learning culture, regional co‑operation, and SME readiness for climate transition). It included several indicators: the amount of subsidy money allocated, the number of participating companies and partners, the promotion of a learning culture, increased regional co‑operation among SMEs, new collaborations between SMEs and educational institutions, the ability of SMEs to respond to energy and climate challenges, and changes in awareness of available training and subsidies. Evaluation tools included surveys of both participating and non-participating companies.

According to MKB!deenetwerk (2021[45]; 2021[46]), the scheme contributed to embedding a learning and development culture within participating SMEs. Findings indicate untapped interest in the scheme and highlighted that lack of project ideas, rather than disinterest, was a primary barrier to application. Survey data also suggest that, in the absence of the subsidy, many SMEs would have prioritised short-term operational pressures over workforce development (MKB!deenetwerk, 2021[46]). The scheme facilitated experimentation with training formats, knowledge‑sharing platforms, digital learning technologies, and inter-organisational co‑operation. Notably, several projects focussed on the development of skills for the green transition, contributing directly to human capital formation in support of the energy and climate transition. Furthermore, MKB!dee also supported the development of new learning infrastructures, including facilities and digital platforms, with potential for ongoing use beyond the life of the program (MKB!deenetwerk, 2021[46]).

Despite being generally considered as a successful experiment, no new rounds are planned and the final projects were expected to conclude by mid-2024. MKB!dee was always meant to be a temporary policy experiment, not a permanent scheme. It rather served as a “proof of concept”: its insights are now being used in broader policies like the SLIM-regeling (sector-specific learning & development support) and National Growth Fund to scale its impact through larger, more structural initiatives. Budget pressures and shifting priorities also played a role in not renewing the scheme.

Addressing local employment and skills needs

Regions and territories will be unequally impacted by the transition to carbon-neutrality. At least in the short run, the most polluting regions will face major socio‑economic challenges, while other regions will manage to grasp immediate benefits from the transition. National and regional policies have a key role to play in reducing regional inequalities, and in ensuring that no territories are left behind and that all potentials for achieving climate‑neutrality are fully exploited. This section illustrates the role that public policies can play, drawing on various examples of green initiatives implemented in different socio‑economic contexts.

Involving all regional stakeholders

Involving all regional stakeholders is key to achieving a smooth and successful green transition. Because they have a comprehensive understanding of the regional socio‑economic context, local actors are best placed to identify the challenges and opportunities that the transition is bringing about. Hence, they should play an active role in the development of transition plans, to identify what could be done locally to make the most of the transition, and when necessary, what should be done to mitigate its employment and social impacts. In carbon-intensive regions, mitigation strategies should be developed in close consultation with all local stakeholders, not only local authorities but also employers as well as employees and citizens representatives (Brisbois and Cantoni, 2025[47]). This is critical to avoid strong resistance to the transition, in a context where the costs for local communities will come first, while the benefits will materialise later with the emergence and gradual development of a new local economy, more environment friendly.

For example, the Coal Commission in Germany has been instrumental in providing the right impetus to the gradual termination of coal mining activities in the Rhenish region. Set up in June 2018 by the federal government, the Commission comprised a wide range of experts, representing all the main regional stakeholders: regional and local authorities, representatives from the energy sector and other key regional industries, trade unions, environmental associations, and scientific experts (WRI, 2021[48]). The aim was to reach a consensus on the phasing out of coal mining activities by identifying policy measures to support the most vulnerable regions. In January 2019, the Commission formulated recommendations for a gradual and fair transition away from coal by 2038, which were adopted almost unanimously by its members (Agora Energiewende and Aurora Energy Research, 2019[49]). According to the Commission, this transition plan would require a budget of at least 70 billion euros over 20 years.

Developing sound implementation strategies

In carbon-intensive regions, decarbonising the economy while greening the labour market will be a long and complex process, requiring expertise and effective co‑ordination of all relevant stakeholders. This should be reflected in the implementation strategy of regional transition plans, by setting progressive deadlines that span several years, if not decades, and establishing a regional implementation body to initiate, manage and monitor the transition process.

In the Rhenish region in Germany, the transition process has not only been planned over a 20‑year period, but is also being managed by an experienced agency, known as the Rhenish Development Agency (“Zukunftsagentur Rheinisches Revier”). Established in 2010 to identify how regional assets can be used to build a sustainable economy, the Agency has in-depth knowledge of the region’s strengths and weaknesses (European Commission, 2020[50]). In 2014, municipalities, business associations, mining unions, as well as chemical and energy industries of the Rhenish region joined forces as stakeholders in the Agency, which served as a social dialogue platform to build consensus on coal phase‑out processes. The agency also conducted studies to make proactive decisions for shaping the future of the region, with a focus on the development of a comprehensive “Financial and Structural Project” (Tranoulidis et al., 2024[51]). The Agency was responsible for the entire process, including the planification, monitoring and evaluation, as well as the implementation of a framework for project calls and tenders.

Conditioning funding on concrete measures

Redistributive policies are needed as the green transition increases regional inequalities. Financial support for the most vulnerable regions should be an integral part of national and international climate action plans. However, redistributive policies should not just be about providing financial resources; they should require the beneficiary regions to develop transition plans containing concrete measures to be backed up by adequate funding. To overcome potential resistance to change, all local stakeholders should be able to easily identify the support they will receive (Cantoni and Brisbois, 2024[52]). The clarity of transition plans and the transparency of their financing are also instrumental in attracting new investments that will contribute to local development (Tranoulidis et al., 2024[51]).

For example, the financial support provided by the federal government to the Rhenish region in Germany is based on the recommendations made by the Coal commission, which allocated funds to different regional actors for implementing a range of specific policy measures. According to the Commission, total expenditure should fall into four main categories: EUR 40 billion for helping coal regions create new business and employment opportunities; EUR 5‑7 billion on the early retirement scheme for coal workers; EUR 5‑10 billion of compensation payments to power plant operators; and EUR 16 billion to hold down electricity prices for households and firms (Agora Energiewende and Aurora Energy Research, 2019[49]). The Commission also recommended regular monitoring so that policy measures and/or funding could be adjusted if necessary.

At the level of the EU, the Just Transition Funds initiative has been instrumental in supporting and accelerating the decarbonation of the most polluting regions in Europe (European Commission, 2021[53]). Launched by the European Commission in 2021 (with a total budget of EUR 19.32 billion for the 2021-2027 period), the Just Transition Funds initiative is helping both employers and workers navigate the transition towards climate‑neutrality, based on Just Transition Plans that regions have to submit for approval to the Commission in order to receive financial support.

The JFT initiative has, for example, played a key role in initiating and advancing the green transition of Western Macedonia in Greece. As the regional economy was (and still is) heavily dependent on the declining coal industry and characterised by persistently high unemployment, the cessation of mining activities by 2030 is raising major socio‑economic challenges (Christiaensen and Ferré, 2020[54]). Against this backdrop, the regional Just Transition Plan (adopted in 2022 by the Commission) aims to foster structural change and promote economic diversification, while also providing job-search assistance, retraining and upskilling for affected workers and income support for vulnerable households (CINTRAN, 2024[55]). In line with these objectives, 51% of the European funding (out of EUR 994 million in total) was allocated to entrepreneurship, 15% to the green energy sector, and 21% to affected workers.

Building on local assets and diversifying the local economy

To deliver greater value for money, regional transitions should primarily build on local assets. For example, existing infrastructure and natural assets can be leveraged to develop renewable energy systems (RES), eco‑agriculture or eco-tourism; coal-fired power plants and pipelines can be repurposed to produce and distribute green hydrogen; and transport infrastructures can be retrofitted to foster green mobility (Baker et al., 2022[56]). Wherever possible, the green transition of coal regions should rely on the deployment of RES and electricity storage solutions, for both economic and cultural reasons. The reutilisation of existing energy facilities and infrastructures reduces the installation costs, while also saving the decommissioning costs of coal-fired power plants (Tranoulidis et al., 2024[51]). Furthermore, maintaining the region’s energy profile ensures a better alignment with the socio-cultural profile of local communities – e.g. self-identification of miners and their sense of belonging to a particular community (Theodosiou, 2022[57]; The Green Tank, 2022[58]). This may in turn help foster engagement in and acceptance of the transition process.

The region of Western Macedonia in Greece has a significant untaped potential for renewable energies, particularly for the solar sector which is growing rapidly. Since 2022, the region has been operating the largest solar park in Greece (the Kozani park), which is also one of the largest parks in Europe, and covers 40% of the household electricity consumption of the region (The Green Tank, 2022[58]).

Carbon-intensive regions will also need to modernise and diversify their economy. This may be of greater importance in coal regions, as the operation and maintenance of green energy facilities may be less labour-intensive than those of coal-fired plants (CINTRAN, 2024[55]). To foster green innovation and entrepreneurship, the University of Western Macedonia, which aims to become the first green university in Greece, is reforming its curricula to place a stronger emphasis on green energy production, Greentech and sustainability topics (European Commission, 2024[59]). The university also involves its students in various projects under development in the region. These are mainly related to building retrofitting, renewable energy installations, smart grids, etc. and primarily aim to stimulate green innovation and entrepreneurship. In a similar vein, Kozani, the capital of Western Macedonia, was selected to participate in the so-called “EU Cities Mission” (European Commission, 2024[60]). Launched by the European Commission in 2022, this initiative has a twofold objective: delivering 100 climate‑neutral and smart cities by 2030 and ensuring that these cities act as experimentation and innovation hubs for sectors such as energy, buildings, waste management and transport (European Commission and CORDIS, 2024[61]).

Providing tailored training and upskilling opportunities

In carbon-intensive regions, specific policy packages may be needed to help affected workers find a new job in low-carbon activities that are emerging at the regional level (OECD, 2023[62]; European Commission, 2024[63]). For example, the European RES-SKILL project11 aimed to develop learning curricula to help workers in the coal sector to transition into the renewable energy sector, by identifying skills complementarities between occupations in the two sectors (PROMEA, 2021[64]). Some skills of coal workers, such as experience in hazardous environments and the use of both manual and sophisticated technologies, were found transferable to renewable energy occupations. Therefore, some coal workers only require a short course or on-the‑job training to upgrade their skills, as opposed to the lengthy training (around two years) currently on offer from existing VET courses (Table 3.2).

By developing in-house training opportunities for their staff and new recruits, large companies can be part of the solution to the development of skills for the green transition in their sector. They have the financial resources and the right knowledge base that local authorities may lack.

In Spain, “Keep it local” is an example of a company-led training programme implemented at the local level (European Commission, 2024[59]). Launched in 2021 by two major companies in the wind energy sector (Vestas and EDP),12 the programme offers scholarships and training to become a Wind Farm Maintenance Technician. The programme aims to address recruitment difficulties arising from the fact that wind farms are typically located in rural areas with low population density. It targets young people (aged 18‑30) living in rural areas where the companies are most active, and it comprises online theoretical courses and two days of on-the‑job training. Six months after the end of the first programme, one in three participants had a job at a wind farm near their home area, which they might otherwise have left. Hence, “Keep it local” may also help revitalise the demography and economy of rural areas. Considered as a successful initiative, the programme is also implemented in Italy since 2023.

Table 3.2. Transition pathways of former coal workers to the solar and wind energy sector

Role in coal sector	Role in solar and wind energy sectors	Comments	Retraining duration
Mining machine operators	Machinist of road construction machinery (photovoltaic) and machine operators (wind)	Even though mining machine operators have a similar set of skills to machinists of road construction machinery (PV) and machine operators (wind), workers in these sectors operate with heavy machines and therefore some training will be needed.	Around 6 months
Fitters in the coal industry	Photovoltaics fitter/installers and heating, ventilation and air conditioning system installers	Fitters can transition to photovoltaics fitters/installers and heating, ventilation and air conditioning system installers with a low level of retraining.	Around 1 month
Maintenance and repair workers	Photovoltaics operation and maintenance technicians	Maintenance coal workers have extensive experience of maintenance.	Around 1 month
Construction equipment operators	Machinist of road construction machinery (photovoltaic), Machine operators (wind)	Construction equipment operators have significant knowledge in handling construction machinery and therefore will need low levels of retraining.	Around 1 month (photovoltaics) Around 6 months (wind)
Heavy vehicle and mobile equipment service technicians and mechanics	Photovoltaics operation and maintenance technicians, maintenance and repair electricians	Heavy vehicle technicians and mechanics are already experienced in maintenance and repair.	Around 1 month
Mining electricians	Photovoltaics electricians, electricians (wind), maintenance and repair electricians (wind)	Mining electricians can transition to photovoltaics electricians with low levels of retraining as they already have the skillset required. However, they will need a medium retraining to acquire the skills needed to transition to electricians (wind) and maintenance and repair electricians (wind).	Around 1 month (photovoltaic) Around 3 months (wind)

Source: European Commission (2024[63]), Green skills toolkit – A guide to upskilling and reskilling workers for the green transition, https://data.europa.eu/doi/10.2833/41438.

In Sweden, the Volvo Group provides another example of a company-led initiative to develop skills for the green transition (European Commission, 2024[59]). In the Gothenburg area (where the head office is located), the company has its own training institute which has started to develop programmes for skills for the green transition (Trinomics, 2023[5]).

Notes

← 1.  Climate literacy is the understanding of how the climate system works, how human actions influence climate, and how climate influences people and other parts of the Earth system (U.S. Global Change Research Program, 2024[66]).

← 2.  Green infrastructure encompasses natural and semi-natural areas such as parks, woodlands, street trees, green roofs, and community gardens. These spaces provide essential ecosystem services, including air purification, temperature regulation, and recreational areas. Blue infrastructure refers to water-related features like rivers, lakes, ponds, and sustainable drainage systems. These elements manage stormwater, mitigate flooding, and support aquatic biodiversity.

← 3.  Council Recommendation of 15 March 2018 on a European Framework for Quality and Effective Apprenticeships.

← 4.  The Future Made in Australia plan seeks to drive long-term economic growth, build sovereign capabilities, and position the country as a global leader in renewable energy and advanced clean technologies.

← 5.  https://vauceri.hzz.hr/ (accessed on 23 April 2025).

← 6.  More information on the Net Zero Skills Action Plan is available here: https://www.gov.wales/stronger-fairer-greener-wales-net-zero-skills#117766 (accessed on 28 February 2025).

← 7.  NEP is paid up to half the minimum wage, for a maximum period of 6 months. The standard STW is paid at 80% of the wage compensation paid to the employee (up to a maximum of 150% of the average wage), and for a maximum of 6 months, with the possibility of further extensions of up to 3 months each time, up to an overall limit of 12 months.

← 8.  Social security contribution exemptions are also conditional on six‑month job retention post-ERTE for both cyclical and sectoral ERTE.

← 9.  https://www.iberley.es/legislacion/orden-pjc-1472-2024-26-diciembre-publica-acuerdo-consejo-ministros-23-diciembre-2024-declara-activacion-mecanismo-red-flexibilidad-estabilizacion-empleo-conformidad-articulo-47-bis-texto-refundido-ley-estatuto-trabajadores-aprobado-real-decreto-legislativo-2-2015-23-octubre-sector-fabricacion-vehiculos-motor-27282202 (accessed 15 September 2025).

← 10.  https://www.wijzijnkatapult.nl/mkbidee/ (accessed on 22 April 2025).

← 11.  The RES-SKILL project was supported by the European Union’s programme Erasmus+ and involved various stakeholders, such as VET providers, industry representatives, social partners, and regional development agencies from Germany, Greece, Austria, Romania, Bulgaria, and Poland. The educational materials provided from the project can be used free of charge.

← 12.  EDP Renewables is the fourth-largest renewable energy company in the world, and Vestas is the market leader in the manufacture, sale, installation and maintenance of wind turbines.