Empowered Citizens, Informed Consumers and Skilled Workers

3. Building a strategic vision for skills development for the green transition

Achieving a sustainable future requires policies that ensure long-term employment and social well-being, presenting both challenges and opportunities for policymakers working to transition job markets toward greener economies. This ever-changing landscape requires a workforce that is well-prepared with the necessary skills, highlighting the crucial role of education in equipping individuals to meet the demands of sustainable markets and jobs.

In their Declaration on Building Equitable Societies Through Education in 2022, OECD Education Ministers called on the OECD’s Education Policy Committee (EDPC) and other OECD Committees to support countries in building “a new vision for skills development that keeps pace with changes in societies and economies and supports the transition to net zero” and in developing “strategies to empower and support all learners appropriately to build foundational and transferable skills for current and future labour markets as well as for digital and green democracies” (OECD, 2022[1]).

The shift to an inclusive green economy is a powerful engine for growth and has the potential to create quality employment—characterised by e.g. fair wages, job security, safe working conditions—across developing, emerging, and advanced economies (van der Ree, 2019[2]). This chapter will explore the role of education in supporting the green transition of economies and labour markets, from a perspective of skills development. Based on a review of a wide range of OECD publications and additional evidence, it will first examine the concrete implications of the green transition for labour markets and skills needs in a changing world. Secondly, the chapter will explore the role of education in promoting skills development in line with current and anticipated labour-market changes brought about by the green transition.

The evolving labour-market landscape in the green transition

A snapshot of labour-market changes

The policies countries are adopting globally to achieve net-zero greenhouse gas (GHG) emissions by 2050 will significantly impact labour markets by reducing jobs in high-emission industries, creating new opportunities in climate-friendly sectors, and transforming many existing occupations. Much attention has been paid to the impact of the green transition on the quantity of jobs, i.e. whether it will create more or fewer jobs than those that it will destroy. While estimates vary, there is broad agreement that the net effect of the transition on the number of jobs will be relatively modest (OECD, 2024[3]).

While the total number of jobs may not be significantly impacted by the transition, profound changes in the composition of jobs and significant shifts within and across sectors and regions are expected. The Employment Outlook 2024 finds that around 20% of workers in OECD countries are currently employed in green-driven occupations, as opposed to 7% in GHG-intensive occupations. It is important to note that the Employment Outlook 2024 uses a broad definition of green-driven occupations, which includes “all jobs that are likely to be affected by the net-zero transition and not just those that may be considered green as such” (OECD, 2024[3]) (for more detail on definitions, see Box 3.1).

Overall, among green-driven occupations, the category of “green new and emerging jobs”, i.e. previously non-existent jobs with unique new tasks and worker requirements (see Box 3.1 for definitions), has seen the fastest growth over the last decade, with their share increasing by some 13% in European OECD countries and the United States during that period. According to global LinkedIn job postings, the proportion of green talent (defined by LinkedIn as those workers with green jobs or who list at least one green skill on their LinkedIn profile) in the global workforce increased by a median of 12.3% between 2022 and 2023 and job postings demanding at least one green skill grew at double that rate (LinkedIn, 2024[4]). Between 2011 and 2022, while the share of GHG-intensive occupations declined by 18%, the share of green-driven occupations in overall employment increased by 2%, (OECD, 2024[3]).

Box 3.1. Definitions

To analyse green labour-market transitions, it is essential to define what is meant by different job types—specifically, which are considered green, polluting and neutral. Defining green jobs is challenging, with no universally accepted definition, posing ongoing difficulties for policymakers. Different definitions emphasise various aspects of the transition. Top-down approaches define green jobs broadly within sectors or activities contributing to environmental goals, using process-based or output-based methods. Bottom-up approaches identify green jobs based on specific tasks or keywords in job descriptions, offering a more detailed, occupation-specific perspective. This report primarily uses the "green-driven occupations" definition from the OECD Employment Outlook 2024 (OECD, 2024[3]), but mostly refers to "green-task jobs" when discussing regional labour-market differences, based on definitions from Job Creation and Local Economic Development 2023 (OECD, 2023[5]).

Green-driven occupations

Green-driven occupations are defined as “all jobs that are likely to be affected by the net-zero transition and not just those that may be considered green as such”. Green-driven occupations comprise “green new and emerging occupations” (new occupations with unique tasks and worker requirements), “green-enhanced skills occupations” (existing occupations whose skill set is being altered because of the green transition), and “green increased demand occupations” (existing jobs that will be in demand because they provide goods and services required by green activities) (OECD, 2024[3]).

Green-task jobs

Green-task jobs are defined as jobs with a considerable share of green tasks (at least 10%) that directly help to improve environmental sustainability or reduce greenhouse gas emissions (OECD, 2023[5]).

GHG-intensive industries and occupations

High-emission industries are defined as those with the highest greenhouse gas emissions based on data from several European countries between 2009 and 2020. These industries are identified by ranking them according to their emissions, with the top 20% being labelled as high-emission. Together, these industries account for at least 70% of greenhouse gas emissions in each OECD country for which data are available. Jobs within these high-emission industries are identified as greenhouse gas-intensive occupations. This approach helps ensure consistency across different countries and aligns with models predicting the impact of environmental policies. (OECD, 2024[3]).

Neutral occupations

Neutral occupations refer to jobs that are neither green-driven nor GHG-intensive and thus not directly associated with the green transition (OECD, 2024[3]).

Note: For an in-depth methodological discussion of approaches, refer to (Causa, Nguyen and Soldani, 2024[6]) “Lost in the green transition? Measurement and stylized facts”, OECD Economics Department Working Papers, No. 1796, OECD Publishing, Paris, https://doi.org/10.1787/dce1d5fe-en.

Source: (OECD, 2024[3]) OECD Employment Outlook 2024: The Net-Zero Transition and the Labour Market, OECD Publishing, Paris, https://doi.org/10.1787/ac8b3538-en; (OECD, 2023[5]) Job Creation and Local Economic Development 2023: Bridging the Great Green Divide, OECD Publishing, Paris, https://doi.org/10.1787/21db61c1-en.

When it comes to job quality, green-driven occupations generally offer higher wages and fewer temporary contracts than other occupations; at the same time, they often come with a higher risk of unemployment. But these occupations encompass a diverse range of jobs—from high-skill positions such as managers, professionals, and engineers to medium—and low-skill roles employing many workers with low educational attainment levels. The quality of these jobs often varies based on the skill levels required. The quality advantage of green-driven occupations is mainly seen in high-skill roles, where workers with the necessary competencies have a competitive edge. In contrast, low-skill green-driven jobs tend to offer lower wages and less job security than other low-skill occupations (OECD, 2024[3]).

GHG-intensive occupations, found mainly in high-emission industries, make up only 7% of overall employment across the OECD. While these jobs often offer relatively good wages, they also tend to have a higher incidence of low wages and poorer working conditions. Although these roles do not currently have larger unemployment risks than other occupations, employment in these sectors is projected to decrease by over 2% every year between 2019 and 2030, compared to a 1% annual decline since the 2000s. This rapid contraction is likely to significantly increase the risk of job displacement in high-emission industries (OECD, 2024[3]).

As the demand for green-driven occupations continues to rise, challenges to meet this demand are also increasing. It is important to consider a broader context in which labour markets remain tight (OECD, 2023[7]). Across the 19 OECD countries with available data, the number of vacancies per unemployed person has decreased from its 2021 peak but remains significantly higher than pre-COVID-19 levels. In the coming years, several countries and employment sectors are likely to face qualified labour shortages (International Labour Organization, 2023[8]).

The European Commission (EC) projects that the green transition will create one million new jobs until 2030, and finds that labour shortages already doubled between 2015 and 2021 in key green sectors and jobs (European Commission, 2023[9]). Indeed, 85% of European firms state that the lack of available skills delays crucial investments in long-term structural challenges like the climate transition (European Investment Bank (EIB), 2023[10]). A 2024 analysis of key sectors in ten countries across the Global North and Global South concludes that the supply of skilled workers is unlikely to meet the demand (Sam Huckstep and Helen Dempster, 2024[11]).

These critical shortages not only risk slowing down progress towards global environmental goals but may also exacerbate inequalities in local labour markets if there is insufficient attention to ensuring that all workers can benefit from the new job opportunities brought by the green transition (OECD, 2024[3]). Analyses converge to show that the green transition is generating and will continue to generate high-quality jobs, but that these are primarily concentrated in high-skill occupations.

While green-driven occupations present significant opportunities for highly educated workers with the necessary competencies, they may not appeal as much to low-skilled workers compared to jobs in high-emission industries. This underscores the need for measures to enhance the quality of green-driven employment, especially in low-skilled jobs, and highlights the critical role of public policies in supporting the transition, such as upskilling initiatives and other labour market interventions. Ensuring a just transition is essential, where the benefits and opportunities of the green economy are accessible to all workers and all regions, and those at risk of job displacement are adequately supported through targeted re-skilling and social protection measures (Box 3.2).

Box 3.2. Just transition and skills

As the global transition to net-zero GHG emissions continues and accelerates, and economies and societies transform to be aligned with climate goals, a key priority for governments is ensuring a just transition. The net zero transition will naturally entail both opportunities and adverse effects for different segments of populations, with the risk of creating winners and losers. It is essential to ensure that distributional consequences are managed carefully, and both benefits and losses are shared as far as possible. Climate policies should not exacerbate existing inequalities, and particular attention should be paid to marginalised groups, including women and girls, migrants, socioeconomically disadvantaged people. Given the regional concentration of both high-emitting and emerging green occupations, it is equally important to consider the spatial dimensions of equity and ensure that vulnerable regions within countries are not left behind.

In addition, just transition is increasingly being considered not only in terms of equity within countries but also justice between countries. While they have the least responsibility for cumulative GHG emissions, developing countries face extreme challenges in the transition to net-zero emissions (in addition to their frequently high vulnerability to the impacts of climate change itself). Developing countries often face the need to transition their economies while balancing priorities related to formalising the workforce and ensuring energy access, while tackling constraints related to capacity and finance. Recognising this challenging position, there is increasing focus, among both developed and developing countries, for a holistic approach to just transition that considers justice at the global level (OECD, 2024[12]). Given strong linkages with development processes, effective skills policies to support the transition in the energy sector in developing countries are critical, as discussed in Annex A.

The need to ensure a just transition comes not only from ethical concerns, but from fundamental considerations of effectiveness. The success of the green transition depends on its social acceptability. The perceived distributional impacts of climate policies are one of the key factors determining their levels of public support (Dechezleprêtre et al., 2022[13]). Should climate policies unduly burden, or be perceived to unduly burden, certain individuals or groups, they are likely to be socially divisive and to be met with unequal public support, or even social unrest, slowing, halting, or potentially reversing the implementation of climate ambitions. For instance, for every 1% increase in unemployment, the percentage of adults who report prioritising the environment over the economy declines by 1.7% (OECD, 2023[14]). As such, carefully managing the impacts of the transition on populations is essential to ensure the speed and ultimate resilience of the transition to a low-carbon economy.

Among the most visible distributional impacts of the transition are those on jobs and labour markets. As discussed, education is a key driver of individuals’ ability to transition into green jobs and to capture the benefits associated with green jobs. Indeed, a region’s ability to benefit from the green transition depends significantly on the skills available in its local labour market. Higher shares of scientific, technical and information activities in a given region correlate with a higher share of green-task jobs. The regions with the greatest share of green-task jobs also tend to have a higher share of population with tertiary education (OECD, 2023[5]). This implies the need to incorporate considerations of equity and inclusiveness as education and skills policies increasingly target the preparedness of the workforce for the new green economy. Effective policies in this area can facilitate smooth transitions, lead to improvements in working conditions, and minimise widespread job losses and contractual instability.

These considerations of justice underscore the need to ensure the wide reach of education and skills policies. It is essential to promote skills development among the most vulnerable. However, efforts to date are falling short. As described in Chapter 1, socio-economic status is a significant predictor of environmental sustainability-related educational attainment. Among both teenagers and adults, many disadvantaged groups access career guidance services less frequently. Women continue to be underrepresented in science, technology, engineering and mathematics (STEM) education, which is a powerful predictor of obtaining a job in the green economy (OECD, 2023[14]) (Causa et al., 2024[15]). There is a major gender difference in green-driven occupations, with only 11.5% of women holding a green-driven job, compared to 28.9% of men (OECD, 2024[3]).

As outlined in the OECD Employment Outlook (2024[3]), employees in high-emission sectors, and thus those most at risk of displacement, are predominantly male, older and more likely to live in rural areas than other workers. These workers also tend to be employed in relatively high paying firms (partly due to a higher coverage rate by collective agreements in GHG-intensive occupations) but they have relatively low educational attainment compared to workers in low-emission industries. This combination of worker characteristics means that job displacement in high-emission sectors is likely to be 20% more costly than in other sectors of the economy. Displaced workers in high-emission industries face a decline in annual earnings of 38% on average during the five years since displacement, while displaced workers in low-emission industries face a decline of 31% (OECD, 2024[3]). This highlights the importance of developing a skills delivery landscape that offers attractive, flexible and inclusive provision of upskilling and re-skilling opportunities (see Section on Building a coherent skills delivery landscape for the green transition).

Source: (OECD, 2024[3]) OECD Employment Outlook 2024: The Net-Zero Transition and the Labour Market, OECD Publishing, Paris, https://doi.org/10.1787/ac8b3538-en; (OECD, 2023[14]) OECD Skills Outlook 2023: Skills for a Resilient Green and Digital Transition, OECD Publishing, Paris, https://doi.org/10.1787/27452f29-en; (Causa et al., 2024[15]) “Labour markets transitions in the greening economy: Structural drivers and the role of policies”, OECD Economics Department Working Papers, No. 1803, OECD Publishing, Paris, https://doi.org/10.1787/d8007e8f-en; (OECD, 2024[12]) Development Co-operation Report 2024: Tackling Poverty and Inequalities through the Green Transition, OECD Publishing, Paris, https://doi.org/10.1787/357b63f7-en; (Dechezleprêtre et al., 2022[13]) “Fighting climate change: International attitudes toward climate policies”, OECD Economics Department Working Papers, No. 1714, OECD Publishing, Paris, https://doi.org/10.1787/3406f29a-en; (OECD, 2023[14]) OECD Skills Outlook 2023: Skills for a Resilient Green and Digital Transition, OECD Publishing, Paris, https://doi.org/10.1787/27452f29-en; (OECD, 2023[5]) Job Creation and Local Economic Development 2023: Bridging the Great Green Divide, OECD Publishing, Paris, https://doi.org/10.1787/21db61c1-en.

The regional dimension of labour-market changes

While the net-zero transition is a global challenge requiring international and national efforts, its impact on labour market and skills will be felt keenly at local level. Even if aggregate employment effects of the transition at national level are modest, regions will be affected differently by a shift towards greener labour markets. Some will be well poised to take advantage of emerging opportunities, while others stand to be more negatively affected. OECD analysis indicates that to date the share of green-task jobs varies significantly within countries, with an average 7 percentage point difference between the top and bottom regions across the OECD, and capital regions often having the highest share (OECD, 2023[7]; OECD, 2023[5]).

Employment risks tend to be regionally concentrated. In particular, regions with a high share of jobs in high-emissions sectors are more likely to experience job losses. For example, OECD modelling on the effects of the EU’s Fit for 55 package indicates that blue-collar workers in the coal and lignite mining sector will be severely impacted. In 2019, most of these workers were concentrated in five countries—Bulgaria, Czechia, Germany, Poland, and Romania—requiring targeted attention and support (Borgonovi et al., 2023[16]).

Urban-rural location is also a significant factor. Green-driven occupations are a heterogeneous group of jobs and are represented differently in different geographies. Green new and emerging occupations are typically high-skilled and employ highly educated workers in urban areas. It is among these high-skilled jobs that the advantages of green-driven jobs are most concentrated. The other green-driven occupations are on average more medium- and low-skilled and employ many more low-educated workers in rural areas. GHG-intensive occupations also tend to be concentrated in rural areas, but in different regions than green-driven occupations (OECD, 2024[3]). While the transferability of workers’ skills is one factor in their possible transition to other industries, geography is likely to be another large barrier. Since workers in GHG-intensive occupations are often not located in the same areas as emerging green jobs, the number of job switches that can occur is limited (Lim, Aklin and Frank, 2023[17]).

In regions with a high concentration of polluting industries adopting green technologies and ways of working can come at a high cost, due to the investments needed not just to adapt existing infrastructure, but also to upskill and reskill the existing workforce. In areas with significant potential for the development of green industries at scale (such as the wind industry in coastal or remote areas), the challenges may lie in attracting a mix of both vocationally and academically trained workers to those areas, which are often sparsely populated, and in significantly scaling up educational opportunities, along with other core services to make those areas more attractive (Grashof and Basilico, 2024[18]). Recent evidence from the OECD shows that, in 31 countries with available data, 66% of people living in remote regions can access tertiary education within a 45-minute car trip, compared with 98% for those living in larger metropolitan areas (OECD, 2023[19]).

Since many rural regions fail to match the standards provided by urban areas, not only in terms of educational opportunities, but also access to healthcare, internet connectivity or high-quality work, many young people and adults move to cities for further education and employment. This trend contributes to widening the urban-rural education gap, which is of growing concern for governments (Teo et al., 2023[20]; Millward, 2023[21]). Between 2012 and 2020, the number of countries where the share of adults (24-65 years-old) with a tertiary degree was higher in urban than rural areas grew from 19 to 25 countries (out of 26 countries with available data). In 2020, the urban-rural gap in tertiary attainment was as wide as 30 percentage points in Hungary, compared with 2 percentage points in Belgium (OECD, 2023[19]). Without policy action, the transition risks leaving those without the necessary skills behind, and deepening divides between regions (OECD, 2023[5]).

Importantly, while the impact of the transition on skills demand and labour markets differs across regions within countries, it also differs significantly between countries, including between developed and developing countries. It is essential for transition planning to consider the specific national contexts and the heterogeneous starting points of different countries. Developing countries have the least responsibility for cumulative GHG emissions (Box 1.3 on Carbon Inequality Chapter 1) but face potentially severe impacts from both climate change and the net-zero transition, exacerbating existing economic challenges. Rapid population growth, urbanisation, and rising energy demand are key trends in many developing countries. Unique challenges persist in developing countries due to diverse labour markets, underfunded welfare and social protection, lower capacity of government and institutions, and technology gaps (OECD, 2022[22]). Moreover, only 1.5% of global climate finance in 2021 was for the education sector (Sabarwal et al., 2024[23]). At the same time, the global transition can also provide key opportunities to developing countries for more sustainable growth and may allow for more workers to transition from informal to formal employment.

Skills requirements for the green transition

As the world shifts towards more sustainable practices, the green transition requires a diverse set of skills to address complex environmental challenges. Numerous frameworks have been developed to outline the essential sustainability competencies (Box 1.7 International frameworks articulating sustainability competencies in Chapter 1) and to describe skills required for transitioning towards a sustainable future. For example, based on the definition of green skills by the European Centre for the Development of Vocational Training (Cedefop)1 (Cedefop, 2012[24]), the European Skills, Competences, Qualifications and Occupations provides a classification of a range of skills and knowledge concepts as “green”2 (ESCO, 2022[25]). Various frameworks, while not identical, broadly align on a key set of skills necessary for the green transition. These skills fall in the combination of three broad aspects:

• Technical skills: These encompass occupation or sector-specific competencies that demand technical expertise, such as proficiency in production processes, machine operations, and other specialised tasks essential to a particular field or industry.

• Transversal skills: Also called transferable skills, these are versatile abilities that can be applied across different jobs, industries, or situations. Examples include communication, teamwork, problem-solving, adaptability, and leadership. These skills are crucial for navigating diverse challenges and tasks, enhancing overall versatility and employability.

• Sustainability competencies: These encompass a solid understanding of the interrelationship between social and ecological systems; critical, creative and systems thinking; and a disposition to act and engage with others in shaping a sustainable future (see Chapter 1).

One key finding of the OECD Employment Outlook 2024 is that skills themselves are not intrinsically "green"; their impact depends on how they are applied (OECD, 2024[3]). This is particularly true for transversal skills which are in high demand for roles across green-driven, neutral and GHG-intensive sectors. Indeed, the application of individuals' skills for positive or negative environmental impact depends on the types of jobs they choose and on the way they use their skills in these jobs, which in turn is influenced by their attitudes and dispositions and ultimately by their “sustainability competencies” (see Chapter 1). These attitudes and dispositions are crucial enablers of skill development and investment; skills only lead to meaningful action if accompanied by the will and the opportunities to act (OECD, 2023[14]).

It is important to note that the competencies required to develop agency for socio-behavioural change (explored in Chapter 1) overlap significantly with the skills required for a workforce prepared for the green transition (explored in this chapter), with competencies such as critical thinking, systems thinking and collaborative problem-solving being key for both. However, while these areas share common ground in terms of fostering awareness, skills and competencies related to sustainability, they may diverge in their implications for policy and practice. Education geared towards sustainability and climate action typically focuses on cultivating citizen engagement, promoting advocacy skills, and nurturing a sense of responsibility towards the planet. This approach often calls for policies that support curriculum adaptations, community engagement initiatives, and public awareness campaigns, as explored in Chapter 1.

Conversely, education and training aimed at building a sustainable workforce also prioritises technical skills, and mobilises innovation, systems thinking and entrepreneurship skills that are particularly relevant for green industries and occupations (see also Box 3.4). Policies in this realm may entail investments in vocational education and training, incentives for green innovation hubs, and collaborations between education and training providers and industries to align curricula with emerging environmental needs. While all learning pathways share a common goal of preparing individuals to exercise agency in the context of socio-ecological challenges, their distinct focus underscores the need for holistic skills strategies capable of fostering both individual agency and workforce readiness in the face of environmental crises.

To achieve a sustainable future for all, rapid and far-reaching transitions across all sectors and systems are necessary, with a broad set of technical, transversal and sustainability skills becoming available. First, this section will briefly discuss sector-specific transitions and technical skills requirements, with a deep dive on the energy transition included in Annex A. Second, the section will discuss the transversal or cross-functional skills necessary for the green transition, analysing whether higher levels of these skills are required for green-driven occupations compared to other jobs.3

Sector-specific transitions and implications for technical skills demand

While the net effect of the green transition on the number of jobs is likely to be modest, the transition will have major implications for specific sectors and the regions where they are located. Figure 3.1 shows a range of mitigation and adaptation measures and their potential for emissions reductions across different sectors of the economy. Not only will GHG-intensive sectors undergo substantial transformation and green sectors grow, but the green transition will also have a more nuanced impact on jobs and skills needs across the economy, including in sectors that are neither green nor polluting.

Mitigation and adaptation measures across sectors, such as the ones described in Figure 3.1, will have important implications for demand of technical skills in each sector. Interestingly, OECD (2024[3]) finds that technical skills, for example those related to machine operation or maintenance in clean-energy engineering jobs, are on average required at lower proficiency levels in green-driven occupations. This does not imply that technical skills are unimportant; in fact, a shortage of these critical technical skills would pose severe obstacles to the transition in all transitioning sectors. Still, the analysis highlights the relatively greater importance of higher levels of proficiency in transversal and analytical skills in the overall skill set required for green-driven occupations (OECD, 2024[3]).

Figure 3.1. Mitigation and adaptation measures in different systems and sectors in line with low-carbon transformation

Source: (IPCC, 2023[26]) Climate Change 2023: Synthesis Report. Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, H. Lee and J. Romero (eds.)]. IPCC, Geneva, Switzerland., IPCC, Geneva, Switzerland, https://doi.org/10.59327/IPCC/AR6-9789291691647.

To illustrate the profound changes some economic sectors are undergoing in the context of the green transition, Annex A offers a deep dive on how the demand for technical skills is likely to evolve in the energy sector, which is both a major direct contributor to global GHG emissions and a key area for achieving significant reductions across most sectors of the economy.

Broader transversal skills requirements for the green transition

Accelerating the transition and minimising its cost to workers necessitates a deeper understanding of skill requirements to enhance job transition mechanisms. In that context, it is important to move beyond discussions centred around technical skills for the green transition and look at the wider skill sets required in emerging and in-demand jobs (OECD, 2024[3]). Indeed, as discussed, skills are not inherently "green"; their environmental impact depends on how they are applied, shaped by individuals' attitudes, dispositions, and "sustainability competencies," which are essential for translating skills into meaningful action (Ibid).

Skills identified as critical for green-driven occupations are those transversal process and cross-functional skills linked to the knowledge economy. These include critical thinking, monitoring, active learning, problem-solving, and decision-making, all essential for helping workers adapt to the innovative landscape of the green transition (OECD, 2024[3]). Additionally, fostering system-level resilience to environmental challenges requires empowering individuals to develop information-processing, socio-emotional, and metacognitive abilities (OECD, 2023[14]). Furthermore, skills that promote climate literacy, including foundational skills in literacy, numeracy, and STEM—such as computer literacy and data analysis—will be crucial for the green transition and in particular for the development of high-tech job profiles (see Box 3.3) (OECD, 2023[7]).

Box 3.3. The importance of literacy, numeracy and STEM skills for the green transition: findings from recent econometric analysis

Based on a large sample of European countries over the period 2011-2019, an OECD analysis on labour-market transitions has found that education is the most important individual-level driver of transitions from non-employment to green jobs (using a task-based definition). The odds of getting a green job are twice as high for workers with high levels of education relative to those with low levels of education.

The positive effect is particularly strong for education in science, technology, engineering and mathematics (STEM) for young people entering the labour market. The odds of transitioning to a green occupation are twice as high for young individuals with medium education in STEM relative to those with low education, but also relative to those with non-STEM medium education. Highly educated students with a degree in engineering are most likely to transition to green jobs, with six times higher odds than the low education reference group. Women's odds of transitioning from unemployment to green jobs is 60% relative to men. These results imply a clear role for investing in relevant post-secondary and lifelong learning and a need to remove barriers for women in STEM education (including by combating stereotypes).

Analysis of structural policies found that transitions from non-employment to green jobs are more likely in countries where adults' proficiency in numeracy and literacy is high, and where the incidence of underperforming adults is low. Transitions into green jobs are more likely in countries featuring higher shares of population with tertiary education attainment. Higher shares of government spending allocated to education, not least tertiary education, are associated with higher chances of moving from joblessness to green jobs among women. The estimates suggest that well-developed systems of adults' learning through training and job-related education can help workers seize new opportunities provided by green jobs, particularly in the case of workers with high and medium educational attainments.

Source: (Causa et al., 2024[15]) “Labour markets transitions in the greening economy: Structural drivers and the role of policies”, OECD Economics Department Working Papers, No. 1803, OECD Publishing, Paris, https://doi.org/10.1787/d8007e8f-en.

This shift in skill demand is also illustrated by OECD modelling analysis, which has examined the economy-wide changes in labour markets and the demand for skills resulting from implementing policies aimed at reducing GHG emissions by considering the case of the European Union’s Fit for 55 policy package (OECD, 2023[14]) (Borgonovi et al., 2023[16]). Projections indicate declining labour-market opportunities to 2030 for blue-collar workers and declining demand for skills involving the use of tools and technologies adopted in traditional manufacturing processes. By contrast, the demand for skills related to interacting with computers; thinking creatively; analysing data and information; and communicating with persons outside an organisation is projected to significantly increase by 2030.

Even where there are significant overlaps between the skills needed for green and high-emitting occupations, transitioning from one sector to another is not without challenges for individuals. OECD (2024[3]) offers analysis of the level of preparation required across a range of broad skills (e.g. content, problem-solving, system skills, social skills), comparing the average skill requirements of green-driven, GHG-intensive, and neutral occupations (for definitions, see Box 3.1). The analysis finds that, overall, high-skilled occupations face smaller differences in skill requirements across job categories than low-skilled occupations. This suggests that transitions from GHG-intensive to innovative, green-driven occupations might be easier for high-skilled workers compared to low-skilled workers, who would need significant re-skilling. Low-skilled workers might find transitions to neutral occupations more feasible but still require substantial training to enter green-driven jobs. Without accessible training for all, particularly for the disadvantaged, filling lower-skilled green-driven job vacancies and aiding displaced workers could be challenging, risking their exclusion from the green transition (OECD, 2024[3]) (see Box 3.2 for implications for a just transition).

Conclusions and policy options

Developing skills for high green potential jobs has become crucial in today’s workforce as job markets are shifting towards more sustainable economies. Many questions arise for policy makers when navigating this dynamic and ever-evolving landscape. Indeed, policy makers must prioritise the strategic importance of the education and training sector for the transition to greener societies by ensuring fit-for-purpose programmes and learning opportunities for society as a whole to meet the demands of the green labour market (OECD, 2023[7]).

Skills development policies to date are not keeping up with the required pace of change. On average across OECD countries, only around four in ten adults participate in formal or non-formal learning for job-related reasons (OECD, 2021[27]). Workers in green-driven and GHG-intensive occupations participate in training less than those in neutral occupations (OECD, 2024[3]). According to an OECD policy questionnaire, most OECD governments have introduced incentives for education and training institutions to develop or update course content to align with the skills needed for the transition. Some governments have given subsidies or tax deductions to employers offering green-related training to employees. Still, it appears that the current supply of green-related training may be insufficient to meet demand (OECD, 2024, forthcoming[28]).

Analysis from the OECD’s Programme for International Student Assessment (PISA) indicates that there are large disparities in the extent to which education systems equip children from different socio-economic backgrounds with foundational science knowledge and self-efficacy (Chapter 1). Girls, women, minorities, and disadvantaged youth are less likely to pursue studies or careers in science and engineering. Cultural stereotypes and a lack of role models hinder some individuals’ entry into expanding fields around science, engineering, and construction fields (OECD, 2023[7]; OECD, 2023[14]). If unaddressed, these trends could suggest a compounding effect of the net-zero transition on existing inequalities, as well as segments of the population that, with the right education and training policies, could be directed towards skills and jobs required by the growing green economy (see Box 3.2).

Making connections between labour market and education policies is essential to address specific barriers and activate enabling factors for achieving the needed job market transitions. This concluding section reflects on the opportunities and challenges for education to promote the green transition via skills development and discusses a range of education policy options. It first examines how skills assessment and anticipation systems can be made effective to support evidence-based policy design. Second, it explores the role of career guidance in ensuring that individuals have the information they need to make informed study and career choices in the context of the green transition. Finally, it proposes avenues for establishing coherent skills delivery systems that offer a continuum of relevant learning opportunities throughout vocational education and training, higher education, and upskilling and re-skilling programmes.

Anticipating future skills needs for the green transition

Skills assessment and anticipation is the systematic process of predicting the future demand for specific skills in various industries or sectors (OECD, 2016[29]). It involves analysing current and emerging trends, technological advancements, economic factors, and other relevant variables to anticipate the skills that will be in high demand in the future job market. Skills forecasting directly informs career guidance initiatives, education and training policies, and workforce development strategies, to ensure that individuals are equipped with the necessary skills and competencies to meet the evolving needs of the labour market. Skills forecasting can provide initial roadmaps to respond to and prepare for changes in skill requirements brought about by a transition towards a greener economy.

In dynamic economies, the challenge lies in effectively matching the demand for skills with their supply. In an ideal scenario of a competitive labour market, prices and quantities adjust until equilibrium is achieved: firms adjust their production methods according to the available pool of skilled workers, while workers pursue training that aligns with current or anticipated economic needs. However, this model assumes perfect information —where both firms and workers have full and accurate knowledge of market conditions and future demands—a situation that hardly ever occurs. Students, workers, employers, and training institutions often lack accurate knowledge about the skills in demand over the short, medium, and long terms. This information gap can cause individuals to either underestimate or overestimate their employment prospects and can result in delays between educational or training decisions and actual labour market entry. Consequently, mismatches or shortages in skilled labour may arise (OECD, 2017[30]).

Policy makers also lack clear information on the supply of training and whether it is sufficient. In a 2016 OECD study, Labour and Education Ministries, along with social partners, such as employer organisations and trade unions, were surveyed on obstacles that hinder effective translation of skills assessment into policy. Respondents ranked 19 barriers, focusing on issues related to methodology, dissemination, and policy development. Broadly, these barriers highlight the following main challenges: coordinating stakeholders, aligning skills assessment with policymakers' needs, the lack of sufficiently disaggregated data per e.g. regions or sectors, and the difficulty in reaching consensus on skills needs and the required policy response (OECD, 2016[29]).

This sub-section examines how skills assessment and anticipation systems can be made effective to support evidence-based policy design, inform strategic decision-making, facilitate targeted education and training programmes, and foster a more agile and responsive workforce ecosystem, ultimately driving sustainable economic growth and societal resilience. It explores the importance of stakeholder involvement and the processes that can support the collection of data with adequate sectoral, geographical, and temporal resolution. It then discusses how such information can best be used to inform education policies and institutional strategies and how skills assessment and anticipation can be implemented in practice. It also addresses questions around how to balance catering to current skills needs with focusing on skills for jobs that are anticipated but have not yet materialised in the current labour market.

Ensuring stakeholder participation

Information on skills needs is most useful and effective for policymaking when there is strong co-ordination across different ministries and active stakeholder involvement (OECD, 2016[29]). Creating a comprehensive and resilient skill system to meet the challenges of the green transition requires collaboration among the diverse set of stakeholders involved in training design, provision, employment policies, and activation. Stakeholder involvement offers a valuable starting point to establish connections and communication channels among education providers, government entities, and employers, thus potentially facilitating the necessary changes for education and training systems to adapt to the evolving needs of the green transition (OECD, 2024[3]).

Different stakeholders will have different roles. For example, governments and policymakers play a crucial role in commissioning skills forecasting studies, setting policy priorities, and coordinating efforts to align skills development with sustainable development goals. As the green transition is predominantly driven by public policy, governments play a central role in setting long-term goals and ensuring compliance, necessitating proactive approaches to gather skills intelligence for evidence-based policies (OECD, 2023[31]). In addition, employers and associations in the industry sectors contribute by providing insights into current and future skills needs based on market trends, technological advancements, and regulatory changes. Finally, educational institutions, including higher education institutions, and vocational training providers utilise skills forecasting data to design curriculum and training courses tailored to the needs of sustainable/green industries.

In Norway, a 2023 report by the Norwegian Committee for Skills Needs offers an overview of future skill requirements in Norway, particularly addressing the challenges associated with the green transition (Kompetansebehovsutvalget, 2023[32]). The report points out gaps in collaboration between educational institutions, employers, and the government, suggesting stronger integration to ensure that training programs effectively address emerging demands. The exercise performed in the report involved various stakeholders through a structured and inclusive approach to ensure that the assessment of future skill needs was comprehensive and well-informed. The process involved social partners, including both representatives of employers and employees, expert contributions ensuring an evidence-based approach, the public sector, organisations involved in education and training as well as open dialogues to gather wide-ranging input from society at large. As a result of this multi-stakeholder approach, the committee was able to develop a comprehensive view of the skill needs and challenges faced by Norway, ensuring that its recommendations were practical, applicable, and inclusive of diverse perspectives.

Considering sectoral, regional, and temporal dimensions

OECD economies and regions vary significantly in their economic structures, workforce compositions, and environmental challenges, necessitating fine-grained, context-specific skills assessment and anticipation strategies. The development and implementation of skills assessment and anticipation practices within countries/economies requires therefore the consideration of sector-specific, regional/local dimensions as well as potentially different temporal scales.

National-level data is essential for monitoring labour-market trends and designing overarching training policies. However, it often lacks the granularity needed to identify regional and local disparities, as well as sector-specific job distributions and shortages. To address these gaps, more detailed, localised data is required to ensure that policies are responsive to the unique needs of different regions and industries. Indeed, two-thirds of Labour and Education Ministries consider that in general results from skills assessment and anticipation exercises are not sufficiently disaggregated for use at the regional, local or sectoral levels (OECD, 2016[29]).

In 2023, the European Centre for the Development of Vocational Training produced a series of skill forecast country reports providing an overview of future job and skill trends for individual EU Member States (Cedefop, n.d.[33]). The latest forecast, covering up to 2035, incorporates recent global economic trends and reflects adjustments for the European Green Deal. A common methodology and harmonised data ensure comparability across Member States, and the forecasts align with official EU economic and population projections of the economy, covering national employment projections for all sectors and industries, occupational groups, and education levels, as well as demographic changes in the working-age population. While regional disaggregation is lacking, these reports provide a solid foundation for further regional analysis.

For example, in France, Regional Observatories for Employment and Training (Observatoire Régional Emploi Formation, OREF) collect and analyse employment and training data at the regional level, including studies on green jobs and skills needs. For instance, the OREF for Provence, Alpes, and Côte d'Azur examined the number, gender, and qualifications of employees in green professions. Additionally, the ECECLI (Evolution Compétences Emplois Climat Ile-de-France) project in Ile-de-France anticipates skills needs related to the ecological and energy transition, analysing the evolution of skills in 35 professions, including new roles like ecologists and existing ones like bus drivers, who will need to adopt eco-driving techniques (OECD, 2024[3]).

Involving regional and local governments in the structure of skills assessments and anticipation exercises is especially important. Local skills systems are struggling to keep pace with the rapid change of jobs and skills needs, and to reach those who most urgently need training. Identifying both potential vulnerabilities and opportunities, through skills assessments and anticipation and responding early, can be crucial for preventing protracted regional decline, or capturing the benefits of the transition. Tailoring action to the regional context requires tripartite dialogue involving workers, employers, and public local actors including education providers, along with targeted measures to address the uneven risk of job losses across regions (OECD, 2023[5]).

Applying skills assessment and anticipation to the green transition

Recent analysis reveals that while there is growing recognition of the importance of skills assessment and anticipation methods, their application to the green transition remains relatively new and is not yet closely aligned with specific environmental targets, such as decarbonisation or circular economy goals (OECD, 2023[31]). Considering such targets and the impact of environmental policies on jobs facilitates effective long-term planning in the context of an evolving job market. It is therefore crucial to incorporate the impact of the green transition into regular skills assessment and anticipation exercises and occupational classifications, rather than examining it separately. This process involves anticipating future demands for crucial green skills amidst uncertainties such as governmental changes, technological disruptions, evolving environmental regulations and emerging technologies. It helps to foster resilience against unexpected shifts in market demands imposed by the green transition and to ensure that individuals are equipped with the necessary competencies to thrive under changing circumstances.

Moreover, the use of big data in these assessments is still limited, which affects the depth and timeliness of the results. Current approaches often prioritise general employment projections over specific skills needed for the green transition. While crucial, if specific skills are not considered, employment projections are less effective for designing policies aimed at transitioning workers and enhancing training systems (OECD, 2023[31]). Skills assessment and anticipation analysis and the integration of their outcomes into policy making would establish a direct connection between employment and training policies (OECD, 2024[3]). In Greece, the Ministry of Labour and Social Security has established the Labour Market Diagnosis Mechanism, a tool that leverages big data to identify and analyse emerging skills, including those related to the green transition. This analysis uses the ESCO skill taxonomy, alongside employment and earnings data, and is validated through quantitative business surveys and qualitative foresight panels. The top green specific skills are identified across key sectors, and the findings are used by the Ministry to effectively inform policymaking (OECD, 2024[3]).

Aligning skills assessments and anticipation with policy making needs

The challenges associated with skills assessment and anticipation exercises, such as the lack of alignment between how skills are defined and their relevance for policy decisions, the absence of sectoral and regional detail, and the insufficient involvement of stakeholders, significantly hinder the effective use of skills assessment and anticipation results in policymaking. Without sufficient detail or consensus among key actors, the findings are often too technical or broad, making it difficult for policymakers to translate the results into actionable strategies. This limits the overall impact of skills assessment and anticipation exercises on developing targeted and responsive skills policies.

Figure 3.2. Improving the evidence base through skills assessments and anticipation

Source: (OECD, 2019[34]) Getting Skills Right: Creating responsive adult learning systems, https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/adult-learning/adult-learning-systems-2019.pdf (accessed on 2 July 2024).

Figure 3.2 outlines a framework detailing some ways in which skills assessment and anticipation exercises and frameworks can be improved to align with the needs of policymaking, by supporting different stakeholders to enhance the adaptability of adult learning systems in response to evolving skill demands (OECD, 2019[34]). Although not conceptualised specifically for the green transition, it provides numerous insights also for transformations leading to more sustainable futures:

• Improving the evidence base: The foundation for addressing skill imbalances starts with generating accurate data on labour market skill needs and the skills workers possess. Effective interventions depend on robust data that is accessible to stakeholders with diverse needs and interests.

• Guiding individuals: Existing data on skill requirements often fails to reach individuals, hindering their ability to make informed decisions about training investments and career paths. Implementing methods which direct individuals toward in-demand skills and overcome barriers to accessing relevant training emerges as crucial.

• Incentivising providers: Educational institutions, whether public, private, or third-sector, may lag in updating curricula to match labour-market demands. Designing financial incentives and regulations that accommodate these differences is crucial.

• Supporting employers: Many employers, especially small and medium-sized enterprises (SMEs), struggle to strategically assess and meet future skill requirements due to limited human resource capacity. Supporting these employers in identifying and addressing their skill needs is vital for aligning training provision with labour-market demands.

Table 3.1 provides a comprehensive list of actions essential for implementing effective skills assessments and anticipation systems. These actions include improving data collection and sharing practices to gather detailed, sector-specific insights into skill needs and ensuring accessible dissemination of this information. Emphasis should be placed on involving stakeholders during the design phase to align skills assessments and anticipation outputs with practical requirements, fostering collaboration among educational institutions, employers, and policymakers. Prioritising sector-specific analysis and using comprehensive information systems are recommended to keep these efforts relevant and up to date. Integrating quantitative labour-market analysis with qualitative insights from industry surveys can enrich skills assessments and anticipation exercises, capturing both current demands and future trends. Additionally, building capacity for skills assessments and anticipation practitioners, integrating policies, and conducting ongoing monitoring and evaluation are crucial for maintaining the robustness and adaptability of these systems, ensuring they effectively inform education, training, and labour-market policies.

Table 3.1. Potential actions supporting the implementation of effective skills assessments and anticipation systems

Actions	Actions
Improve the governance of skill anticipation	Setting up a dedicated coordinating bodies: this helps streamline skill assessment processes across various levels (national, regional, sectoral) of green industries by harmonising methodologies and sharing tools. Establishing independent and reputable organisations/initiatives: creating independent bodies to conduct rigorous research and strategic planning tailored to existing and emerging green industries enhances the credibility and effectiveness in skill assessment. Legal obligation for stakeholder involvement: Ensuring stakeholder (e.g. representatives from employers in green industries and trade unions, education providers) involvement through a legal mandate in skills anticipation largely enhances co-ordination.
Enhance the evidence base	Sharing collected data in a user-friendly manner enhances its impact and utility for stakeholders, such as policymakers, training providers, and industry leaders in green technology sectors. Involving end users during the design phase ensures the relevance and usability of skill anticipation outputs particularly for industries transitioning to green technologies. Prioritising specific sectors or regions for detailed data collection to manage resource constraints effectively, such as focusing on regions or sectors with high potential for transformation. Combining quantitative data with qualitative insights enriches skill anticipation efforts, offering a broader understanding of labour-market dynamics, especially in sectors undergoing rapid green transformation.

Source: Adapted from (OECD, 2019[34]) Getting Skills Right: Creating responsive adult learning systems, https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/adult-learning/adult-learning-systems-2019.pdf (accessed on 2 July 2024).

Efforts should be made to ensure that skills assessments and anticipation processes are inclusive and equitable, considering the diverse needs and backgrounds of individuals in accessing green job opportunities. This involves addressing various dimensions to ensure fair and inclusive access to skills assessments and anticipation dialogues, which must bring together multiple stakeholders, including underrepresented groups, minority communities, and disadvantaged populations. This can be achieved through targeted outreach, engagement initiatives, and consultation forums that solicit input and perspectives from these groups (OECD, 2019[34]). By embracing inclusivity and equity in skills forecasting, societies can leverage the full talent pool, enhance social cohesion, and promote sustainable economic growth that benefits all individuals and communities. This marks also an opportunity for course-correction to ensure that the future workforce is more inclusive, gender-balanced, and enabling of equal opportunity across different transitioning sectors of the economy (IEA, 2022[35]).

Enhancing career guidance to support pathways into sustainable careers

Globally, skills gaps and shortages are increasingly acknowledged as critical obstacles constraining progress towards the green transition (Keese and Marcolin, 2023[36]). This is despite the fact that many of the skills necessary to carry out green-related jobs already exist in the labour market (OECD, 2024[3]). Career guidance systems can serve as bridges connecting the interests and skills of people with labour-market demand, facilitating effective communication between both sides. However, results from the OECD’s Programme for International Student Assessment (PISA) 2022 show that 15-year-old student participation in key guidance activities remains limited in many OECD countries (OECD, 2023[37]) and need to be enhanced. A survey conducted in six countries (Chile, France, Germany, Italy, New Zealand and the United States) showed that there is significant demand for career guidance among adults, with 43% of adults having consulted a career guidance advisor in the past five years, and most engaging in multiple interactions with advisors (OECD, 2021[38]).

This section explores the role of career guidance in support of an inclusive and fair green transition. It examines how career guidance systems at the school level and beyond can best make green guidance an integral part of general career guidance and examine the role of effective career guidance systems in addressing social inequality, ensuring a just transition. Given that access to career guidance is strongly patterned by the demographic characteristics of learners, it considers how career guidance interventions can address inequities in who benefits from the green transition. In addition, beyond the school level, it explores how lifelong learning systems can be strengthened via effective career guidance systems to help people navigate changing labour-market demands in line with the green transition and make decisions for re-skilling and upskilling at different stages of their careers.

Guiding individuals into sustainable and resilient careers

The complexity of the labour-market changes discussed above complicates advising students and adults on opportunities related to the green transition (Chang and Mann, 2024[39]). This complexity arises because many skills do not clearly fall into the categories of green or polluting occupations, but rather exist along a spectrum depending on how they are applied within the different industries. As a result, providing clear and simple guidance on skills needed to benefit from green job opportunities becomes challenging, making it difficult for individuals to navigate and capitalise on the green transition.

However, Chang and Mann (2024[39]) find that, despite the complexities of aligning education and career guidance with labour-market demands, young people show a strong interest in participating in the fight against climate change. Surveys from around the world indicate a significant commitment among youth to pursue green jobs and contribute to sustainability efforts. Career guidance can nurture this commitment, emphasising the potential implications of their chosen education paths in terms of climate action, and enabling them to build a foundation for a career in the new and evolving green-driven occupations (OECD, 2024[3]).

For adults, career guidance is a crucial policy tool that helps them to successfully navigate the ever-changing labour market by providing advice and information on job and training opportunities. Career guidance is a valuable way to facilitate skill matching between workers and jobs, guiding workers towards jobs that fit their skill profile well. Skill mismatches can result in lower earnings and job satisfaction, higher risk of job loss, loss of competitiveness, and lower economic growth. Persistent mismatches entail large costs for individuals, employers, and society, and could slow down the transition to net zero (OECD, 2024[3]). Well-designed career guidance can limit the incidence of such mismatches.

However, relatively low uptake of career guidance remains an issue. In particular, groups already facing disadvantage in the labour market tend to use career guidance services less than the population at large (OECD, 2024[3]). The majority of adults who do not participate in training (82%) report that no available training options appealed to them, indicating a lack of awareness about the importance of training in the current labour market, challenges in finding appropriate guidance opportunities and/or inadequacies of the educational offer (OECD, 2021[38]). This highlights the need to develop labour-market aligned education and training options as well as relevant and accessible study and career guidance.

A range of actors are involved in the provision of career guidance. Traditionally, the public employment service (PES) is the most used career guidance provider. Several countries are undertaking actions to strengthen the provision of career guidance relating to the net-zero transition within the PES. However, education and training institutions, employers, private career guidance providers, and dedicated public guidance agencies each have important roles in providing career guidance. Co-ordination between these actors can ensure the effective and efficient provision of career guidance. For instance, public-private collaborations are necessary to inform both the content of guidance and its use by adults (OECD, 2024[3])

In an OECD policy questionnaire (OECD, 2023[40]), only nine out of twenty-six respondent OECD countries reported having career guidance initiatives in place to facilitate workers’ transitions into green jobs. This indicates strong potential to enhance targeted career guidance programmes. In some cases, countries report having added an environmental angle to existing, broader guidance programmes. In other cases, career guidance has been added as a component of a wider environmental training programme.

In the context of the green transition, green career guidance (or 'green guidance') should not be seen as a specialised or optional aspect of general career guidance, but rather as an integral component of it. Given the urgency of climate change and other environmental challenges, as well as the risks of skills shortages for the green transition, it is essential that education systems fully incorporate green guidance into standard career counselling practices, ensuring it receives the attention it deserves (Chang and Mann, 2024[39]).

Irving and Liévano (2019[41]) argue that the disconnect between educational and career guidance on the one hand, and the principles of social and environmental justice on the other have rarely been effectively bridged. The authors contend that there is significant potential to expand guidance and education to include transformative dialogues, offering opportunities to envision positive futures in the context of climate and other environmental challenges and highlighting connections between educational pathways and broader social and environmental goals. This underscores the importance of offering young people and adults a diverse array of perspectives, enabling them to critique, examine, and explore the concept of “meaningful career”.

Building on previous discussions in this report, green guidance should extend beyond merely equipping youth and adults with advice on technical skills, knowledge, and competencies needed to meet employer needs and economic demands. Indeed, green guidance can also empower individuals to develop systems thinking and critical thinking skills, fostering agency to make career choices that align with sustainable futures. This approach not only promotes safer and more resilient career paths but also ensures their longevity in a rapidly changing world.

Carosin and Canzittu (2019[42]) set out a framework aiming at identifying and developing career guidance systems that are relevant to the complex 21^st century challenges faced by current and future generations. Through career guidance, this framework aims at empowering individuals to transform their capacity to act into the power to pursue careers that foster a collective consciousness of global challenges, particularly the environmental issues confronting societies today. Figure 3.3 illustrates this framework, which conceptualises career guidance as a learning experience in its own right.

Figure 3.3. Learning experience through career guidance

Source: (Carosin and Canzittu, 2019[42]) “A reflection on career guidance skills for the 21st century in a Guidance Oriented Approach to Learning (GOAL)”, Vol. 8, pp. 375-391, https://doi.org/10.34862/sp.2019.8.

The authors identify three sets of pedagogical tools to foster career guidance systems that are relevant for the 21^st century. The first set of pedagogical tools focuses on self-awareness, helping individuals identify and understand their personal characteristics, such as interests, values, and skills, and how these can inform their career choices. The second set emphasises societal context, encouraging individuals to contrast and critically evaluate available knowledge about the labour market, sustainable development, and the impact of various industries, thereby fostering critical thinking. The third set addresses self-knowledge through the lens of the learners’ generation, guiding individuals to reflect on their profiles, values, and aspirations, and facilitating discussions that connect their personal development with societal roles and future career paths (Carosin and Canzittu, 2019[42]).

Importantly, this framework takes a holistic approach to situating career guidance within a global context, encompassing the broad range of challenges facing societies today, without singling out the climate and environmental problems. Considering that that many challenges facing societies today are intertwined and that solutions do not exist in isolated parts of the system, but rather rely on a systemic approach to the multi-faceted crises, it provides a valuable reflection and potential way forward for more effective career guidance systems.

Figure 3.4. A model of green guidance

Conceptual model drawing upon current green guidance practices and OECD analysis of longitudinal datasets that explores the relationships between teenage career development and better employment outcomes in adulthood.

Source: (OECD, 2024[43]) Cultivating green futures: Helping students understand and progress towards green jobs”, OECD Education Policy Perspectives, No. 104, OECD Publishing, Paris, https://doi.org/10.1787/7c9912c5-en.

Aligned with these findings, the OECD Career Readiness framework for green guidance (Figure 3.4) proposes a conceptual model that emphasizes the importance of building upon and strengthening foundational environmental literacy. This approach empowers students from an early age to connect their classroom learning with future career possibilities. Furthermore, green guidance should provide students with opportunities to explore various occupational fields in greater depth through authentic, first-hand interactions with professionals in relevant sectors and visits to their workplaces. By doing so, students are better equipped to navigate their educational and training journeys, linking their daily learning efforts with envisioned future careers (OECD, 2024[43]), thereby transforming career guidance itself into a meaningful learning experience.

Career guidance, social inequality, and social mobility

Access to career development is heavily influenced by socio-economic background, gender, and ethnicity, leading to significant inequalities in employment outcomes and career aspirations (OECD, 2024[44]). Evidence from a number of career guidance programmes from across the world reveals that there are four thematic areas through which guidance systems can address barriers to labour-market progression. These include: (i) providing intensified support for disadvantaged groups, (ii) enhancing the professional capacity of guidance practitioners to address inequalities, (iii) building social capital by connecting students with professionals in their desired fields, and (iv) encouraging a critical understanding of personal relationships with the labour market to empower informed career decisions (OECD, 2024[44]). By integrating these strategies with a focus on the green transition, career guidance can also steer students towards emerging green jobs, ensuring that the benefits of a sustainable economy are accessible to all, regardless of background.

Career guidance also has the potential to address social inequality ensuring a more just transition. There are two main ways in which career guidance can achieve this objective. First, career guidance systems need to be made equally accessible to students from different socio-economic backgrounds and across various segments of the labour market, from high-skilled to low-skilled workers. Second, by taking a holistic approach, career guidance can guide individuals towards professions where they can actively work to reduce disparities and promote sustainability. This approach ensures that career advice is not merely about individual success, but also about making a positive impact on the broader community.

Building a coherent skills delivery landscape for the green transition

The structural changes to our economies and societies brought on by the transition to net zero require that the current and future workforce develop the right skills to prepare for and adapt to these changes. Given their close connection to the labour market, vocational education and training (VET) and higher education are uniquely positioned to provide relevant initial programmes and re-skilling and upskilling opportunities (OECD, 2022[1]; OECD, 2023[45]). However, a recent OECD policy survey found that policy actions to elevate the importance of education towards greener and fairer societies primarily focus on lower levels of education. Only 50% of 34 education ministries indicated this to be a policy priority for attention for the next five years in post-secondary non-tertiary education, and 42% indicated this to be a priority for tertiary education. This compares with 64% for primary and secondary education (OECD, 2023[7]). Moreover, much as policy makers face challenges in determining the changing demand for skills, they have imperfect information on the supply of training and whether it is sufficient to meet the needs of the transition (OECD, 2024, forthcoming[28]).

VET programmes have traditionally supported learners for employment in medium-skilled occupations, some of which are at a risk of displacement due to the green transition (OECD, 2023[5]). At the same time, many green jobs are highly technical in nature, putting VET -at various levels- at the heart of the green transition. Throughout the section, the analysis highlights three complementary approaches that can help adapt VET provision to the context of the green transition.

• First, adapting initial VET programmes at upper-secondary, post-secondary and tertiary levels to prepare labour market entrants for new and emerging occupations and occupations that content is changing in a rapidly greening economy.

• Second, creating new and more flexible opportunities for the workforce to upskill and reskill by adapting continuing VET provision.

• Third, improving opportunities and pathways for VET learners to progress to higher levels of education and training, as evidence shows that high-skilled and educated workers have predominantly captured the employment opportunities brought on by the green transition (OECD, 2023[5]).

Higher education institutions (HEIs) also need to accelerate the alignment of their existing programmes and curricula to the skills required by a greening labour market. As core suppliers of advanced knowledge and skills to economies and societies, adding a green lens to their programme offerings will be crucial to cultivating workers that can spearhead the much-needed innovations to accelerate the transition to net zero (Kato, Galán-Muros and Weko, 2020[46]; OECD, 2024[47]). While HEIs traditionally focus on the provision of post-secondary education to young adults, external factors such as rapidly ageing populations and public funding pressures are pushing the sector to create more flexible and tailored upskilling and re-skilling offerings for adult learners at different stages of their careers (OECD, 2023[48]; OECD, 2024[49]).

In addition, several countries have supported the creation of new and more professionally oriented HEIs, such as universities of applied science (UAS) and polytechnics (OECD, 2008[50]; OECD, 2019[51]), often in response to demands from students and employers for more applied forms of higher education and to skills-based hiring practices in companies (Gonzales Ehlinger and Stephany, 2023[52]; Ehlers and Eigbrecht, 2024[53]). In many countries, these practice-oriented providers play a key role in expanding opportunities for learners, especially VET graduates, due to the more applied nature of their courses (OECD, 2022[54]). In addition, other forms of specialised professionally-oriented programmes have developed to provide skills and training necessary for the greening economy. See for example Box 3.6 on the case of green entrepreneurship.

Box 3.4. Supporting skills needed for green entrepreneurship

Stimulating green entrepreneurship is an important lever that governments can use to drive the net-zero transition. Green entrepreneurship can help to develop and propagate new technologies and business models, create new markets and drive change in the business sector. To tap into this potential, governments often provide direct support to green entrepreneurs, for example, through training and support for incubation and acceleration programmes. These direct supports are typically situated within a broader set of policies that build demand for green solutions. Green entrepreneurship policies are initiated both by national and sub-national governments, often in partnership with private sector actors. This implies a need for a co-ordinated policy approach that enables and encourages collaboration between different actors.

Entrepreneurs leverage a wide range of skills in order to start, operate and grow their businesses. These include both the workforce skills required of employees and additional skills that reflect the demands of running a business (e.g. identifying opportunities, financial literacy). Green entrepreneurs may also require additional skills related to adapting products, services, and processes to be supportive of climate action goals and related environmental requirements and regulations. Training and education programmes that combine these different elements can be valuable in providing would-be green entrepreneurs with the skills needed to drive green and innovative business. While some small-scale training programmes have been implemented, skills gaps remain an issue in many OECD countries, and supporting training for green entrepreneurs should therefore be a priority area for future policy development.

An increasingly common approach to supporting the development of green skills among entrepreneurs is through dedicated incubation and acceleration programmes for green businesses. These programmes typically provide a combination of training, individualised coaching and advisory services, access to networks, investors or markets, a workspace, and shared facilities and equipment. They can be a valuable way of nurturing early-stage start-ups and accelerating the growth of more established businesses. While the number of specialised incubation and acceleration programmes has been increasing in recent years, continued government support is needed to fund and build the capacity of such programmes.

Source: (OECD, 2022[55]) Policies to Support Green Entrepreneurship: Building a Hub for Green Entrepreneurship in Denmark, OECD Studies on SMEs and Entrepreneurship, OECD Publishing, Paris, https://doi.org/10.1787/e92b1946-en.

To achieve the triple objective of aligning provision with the competencies needed by a greening economy, expanding upskilling and re-skilling opportunities, and improving transitions and pathways for learners across VET and higher education, both sectors must find ways to “better integrate the world of learning with the world of work” across education, training, upskilling and re-skilling strategies (OECD, 2022, p. 6[56]).

In this context, education providers must strengthen co-operation, not just with each other, but also with greening industries, local governments and other relevant actors to align their provision with regional skills needs and national priorities. For example, a VET provider offering training for construction workers and a university educating structural engineers, might engage with the same construction companies to identify relevant skills needs and jointly organise work-based learning, thereby preparing graduates from both sectors for future work together. In practice, however, such collaboration across VET providers, HEIs and employers may prove challenging, as it is often impeded by culture clashes, inner/outsider dynamics and vertical hierarchies, which may hinder effective collaboration (OECD, 2023[57]; Staring and Butler, forthcoming[58]).

In addition to this, several countries face challenges in aligning national priorities with those of regional or local authorities and stakeholders. Local governments are well-placed to act as initiators of local skills coalitions that improve the design and delivery of local policies and secure public buy-in for the green transition (OECD, 2023[5]). However, actions focused on joining local employment and skills policies may clash with an overarching and more long-term vision for skills development at system level. This is where central government leadership and steering can help facilitate co-operation around a common green skills agenda (Dowling, 2015[59]; European Commission, 2018[60]).

In recent years, some OECD jurisdictions have embarked on “a national effort to create an accessible and organised tertiary system” (Teo et al., 2023, p. viii[20]). This is especially the case in countries where VET is primarily offered from age 16 onwards (for example, in Canada, the United States, Ireland), with VET modules being introduced on a modular basis in general upper-secondary programmes. In these countries, VET and higher education are strategically positioned as being part of a single “skills delivery landscape” (Withers, 2023[61]), with the common objective of supporting skills development centred on key societal challenges.

Building on a recent mapping of policies to strengthen synergies across the VET and higher education sectors by Staring and Butler (forthcoming[58]) (see also Figure 3.5), the following sections discuss a set of strategies through which governments may support the development of more flexible and coherent post-secondary education and training system:1) building a strategic vision for skills development; 2) adapting qualifications and curricula; 3) removing barriers to participation in re-skilling and upskilling; 4) supporting VET and higher education providers in enhancing the lifelong learning offer; and 5) strengthening professional learning of teaching staff.

Figure 3.5. Strategies for building an inclusive skills delivery landscape for the green transition

Source: Adapted from the “Future Skills in Higher Education” model developed by Ehlers and Eigbrecht (eds.) (2024[53]), Creating the University of the Future: A Global View on Future Skills and Future Higher Education, Zukunft der Hochschulbildung [Future Higher Education], Karlsruhe, pp. xiv, https://link.springer.com/book/10.1007/978-3-658-42948-5.

Building a strategic vision for skills development across VET and higher education

In recent years, some OECD jurisdictions have carried out comprehensive reviews of their post-secondary VET, higher education, research and skills systems with a view to developing cross-sectoral strategies and creating overarching bodies to implement skills policies spanning both sectors (Staring and Butler, forthcoming[62]). In many cases, this has included a focus on skills development for the green transition and improving pathways and transitions across VET and higher education. In some cases, strategic performance agreements are used as a tool to incentivise providers to align with national priorities such as environmental sustainability, especially in the higher education sector. In some cases, part of an institution’s core funding is tied to the implementation of such agreements (Jongbloed et al., 2022[63]).

To give some examples, Ireland, Norway, Scotland (UK), Singapore and Wales (UK) have recently embarked on strategies to strengthen tertiary alignment around a common skills agenda (Staring and Butler, forthcoming[62]). In Scotland (UK), for example, the Further and Higher Education Funding Council (SFC) undertook a national review of its VET, higher education and research systems (SFC, 2021[64]). Based on the findings of this review, four strategic objectives and twenty priorities were identified to guide skills development across the three sectors from 2022 to 2027 (SFC, 2022[65]). Climate change is a key theme underpinning all priorities and described as “a collective responsibility” for all sectors. Box 3.5 provides more detailed examples from Australia and Ireland.

Box 3.5. Building a coherent landscape for skills development across the VET and higher education sectors in Australia and Ireland

The Australian Tertiary Education Commission

In November 2022, Australia’s Department of Education appointed the Universities Accord Panel to carry out an independent review of the higher education sector to meet current and future skills needs. In February 2024, the Panel’s report was published, including a National Tertiary Objective, accompanied by 47 recommendations, to drive “stronger alignment between VET and higher education, in pursuit of a stronger skills system”. The National Tertiary Objective includes a specific focus on “driving] national economic and social development and environmental sustainability” (Australian Department of Education, 2024, p. 16[66]).

In response to the Panel’s recommendations, in July 2024 the Department of Education started the process of establishing an Australian Tertiary Education Commission (ATEC), which would include representatives from the main regulatory bodies for Australia’s skills, VET, employment and higher education sectors. The government envisages that ATEC will need to play a leading role in identifying skills needs (in co-operation with bodies such as Jobs and Skills Australia) and, based on this, facilitate purposeful collaboration between all government departments, tertiary education providers, industry, employers, communities and unions to develop a high-quality, engaging and transformative.

Ireland’s Department for Further Education, Higher Education, Research and Skills

In 2020, Ireland established the Department of Further and Higher Education, Research, Innovation and Science (DFHERIS) to progress a unified tertiary system. DFHERIS does this by, among others, fostering strategic alignment between the actions of the Further Education and Skills Service (SOLAS) and Higher Education Authority (HEA), which are responsible for the resourcing and policy development of Ireland’s further (i.e. VET) and higher education sectors.

A concrete example of alignment between further and higher education facilitated by DFHERIS can be found in the national priorities underpinning the strategic performance agreements between SOLAS, the HEA and providers. The agreements between SOLAS and the 16 Education and Training Boards (ETBs) in Ireland—who manage more than 200 VET providers—now include specific targets related to embedding core green skills modules in VET programmes. Likewise, the performance agreements between all Irish HEIs and the HEA include performance objectives related to institutions’ contribution to climate, environment and sustainability across four pillars of institutional activity: a) teaching and learning, b) research and innovation, c) engagement, and d) promoting access and participation.

Source: Based on SOLAS (2022[67]), Transforming Learning Strategic Performance Agreements: The Further Education & Training System 2022-2024, Further Education and Skills Service (SOLAS), Dublin, https://www.solas.ie/f/70398/x/807fb6e096/fet-system-report.pdf (accessed on 6 December 2024) and (HEA, 2023[68]), Strategic Performance Framework 2023-2028, Higher Education Authority (HEA), Dublin, https://hea.ie/assets/uploads/2017/04/System_Performance_Framework_2023-2028.pdf. (accessed on 6 December 2024)

Adapting qualifications and curricula to changing labour market needs

Beyond a national vision for delivery, objectives for skills development for the green transition need to be reflected in qualification and curriculum frameworks. In all OECD systems, the structure, content, teaching and outcomes of VET and higher education programmes are guided by national regulation and subject- or profession-specific curriculum frameworks. These frameworks often follow international standards [e.g. the European Qualifications Framework for lifelong learning for EU member states (Council of the EU, 2009[69])] and seek to establish common standards and comparability in student learning outcomes, regardless of the type of institution or programme they graduate from. They also seek to promote transitions between different types of programmes and institutions, lifelong learning, and international mobility of learners and workers (OECD, 2022[70]; OECD, 2024[47]).

Within these broad curriculum frameworks, VET and higher education providers have varying degrees of autonomy in curriculum design. Giving education providers sufficient autonomy for curriculum design is generally regarded as crucial to ensure responsiveness to emerging skills needs—such as those required by the green transition. Depending on the level of education, the types of institutions and programmes and the education system’s overall maturity, providers will enjoy greater or less flexibility to adapt national standards to their local context, for example to integrate content or subjects tailored to the specific needs or interests of the learners or regions they serve. Lower levels of education, VET providers and practice-oriented HEIs will typically be subject to more detailed requirements than universities offering programmes that have less of a direct link to specific professions (OECD, 2022[70]; Staring and Butler, forthcoming[58]).

Regardless of providers’ level of autonomy for programme design, curriculum developers face the common challenge of knowing: a) which competencies to prioritise, and b) where best to integrate these competencies in often already overloaded curricula (see Chapter 1). Adding content related to the green transition requires choosing between adapting existing courses (which requires finding a link to existing content), creating additional formal courses, or expanding work-based learning (which may require the omission of other courses) (OECD, 2023[57]; OECD, 2024[47]). Another challenge relates to the time lag and costs associated with conventional approaches to mapping skills needs and updating curricula (OECD, 2020[71]; Eckel, 2023[72]).

To accelerate curriculum adaptation processes in VET and higher education, several governments foster collaboration between industry, education and training providers to map sector needs, identify current and future skills demands and, based on this, develop guidance and frameworks to support curriculum adaptation by providers. Such frameworks either seek to offer an overview of skills in support of the green transition common across different subjects, or on skills specific to certain disciplines or occupations which are believed to play a key role in advancing the green transition (see Box 3.6 for examples from Austria and Singapore).

Box 3.6. National support for curriculum updates in Austria and Singapore

Supporting curriculum adaptation of VET providers and vocational colleges in Austria

In 2020, the European Commission (EC) published the “Osnabrück Declaration on vocational education and training for transition to digital and green economies” (EC, 2020[73]). The Declaration includes four broad objectives, one of which is to promote sustainability in VET. In response to this Declaration, Austria developed a National Implementation Plan, including thirty actions to support the VET sector with the adaptation to green skills (BMBWF, 2022[74]). One of these (Action 13) includes a curriculum reform for intermediate VET providers (Berufsbildende mittlere Schulen – BMS), which offer ISCED (International Standard Classification of Education) level 3 and 4 programmes, and vocational colleges (Berufsbildende höhere Schulen – BHS) offering short-cycle tertiary programmes at ISCED level 5. This is done through two studies: one to support those involved in developing curricula in including “transversal” green skills, and one to support a specific focus on developing prototypical competence descriptions for construction technology.

Skills Frameworks to promote skills mastery and lifelong learning for the Singapore workforce

In 2021, Singapore’s Ministry of Education established SkillsFuture Singapore (SFS) as a government agency with dedicated responsibility to support universities, polytechnics and institutes of technical education (ITEs) in developing multiple pathways for skills acquisition and mastery. One of the key objectives of SKS is to promote a “shift away from an education system that relies on front-loading within the first 2 decades of an individual’s life, towards continuing education and learning over a lifetime” (Singapore Ministry of Education, 2023, p. xiv[75]).

To support VET and higher education providers with the development of new and industry-relevant qualifications, SFS has developed 35 Skills Frameworks to support the implementation of Industry Transformation Maps. This includes specific skills frameworks for the Energy & Power sectors, Environmental Services and Landscape as sectors that will play a key role in achieving the transition to net zero. Each Skills Framework includes: a) sector information (i.e. key trends and workforce profiles in a given sector); b) a skills map (i.e. an overview of the main job roles, critical work functions, key tasks, skills and competencies needed by that industry); and c) a list of skills and competencies under two broad categories: technical skills and competencies, and critical core skills (SFS, 2024[76]).

Source: (Singapore Ministry of Education, 2023, p. xiv[75]) Education Statistics Digest 2023, Singapore Ministry of Education, https://www.moe.gov.sg/-/media/files/about-us/education-statistics-digest-2023.pdf (accessed on 18 July 2024); (SFS, 2024[76]) Skills Frameworks to support the Industry Transformation Maps, SkillFuture Singapore (SFS), https://www.skillsfuture.gov.sg/skills-framework (accessed on 18 July 2024); (EC, 2020[73]) Osnabrück Declaration on vocational education and training as an enabler of recovery and just transitions to digital and green economies, European Commission, Brussels, https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8441&furtherPubs=yes (accessed on 31 July 2024); (BMBWF, 2022[74]) Nationaler Implementierungsplan (NIP) Österreich [National Implementation Plan (NIP) Austria], Ministry of Education, Science and Training (BMBWF), Ministry of Digitalisation and Labour Market (BMDW), https://ec.europa.eu/social/BlobServlet?docId=26326&langId=en (accessed on 31 July 2024).

Removing barriers to participation in upskilling and re-skilling

As discussed throughout the chapter, upskilling and re-skilling opportunities are crucial to support workers at risk of displacement due to the green transition. According to a policy questionnaire distributed to all OECD countries, many governments have launched publicly funded training programmes to upskill and reskill workers and jobseekers for the green transition (OECD, 2024, forthcoming[28]). Yet, recent OECD analysis highlights that despite the risk of job displacement, workers in GHG-intensive occupations currently tend to train significantly less than other workers (OECD, 2024[3]). Moreover, while participation in training is low among workers in general, it appears to be especially low among highly impacted workers such as those in the most vulnerable regions and sectors (Borgonovi et al., 2023[16]). Globally, workers in GHG-intensive jobs show lower training participation rates, with especially concerning disparities in countries where training rates are already low (OECD, 2023[5]).

Ensuring equal access to education and training opportunities and addressing barriers to participation are key policy priorities. One of the main barriers to adult participation in upskilling and re-skilling by adults is lack of motivation. Other barriers include lack of time or money, lack of awareness of programmes, lack of recognition of their prior learning, inconvenient place and mode of learning, and lack of flexible provision. This sub-section will address these barriers in turn and provide policy options for addressing them.

First, a potential barrier hindering participation relates to the financial costs associated with upskilling and re-skilling. There are both direct costs to participation (such as tuition fees) as well as more indirect costs linked to the potential loss of income due to having to take shorter working hours or having to pay for additional childcare in order to free up the time needed to participate (OECD, 2024[49]). Government support can thus help workers in covering some of their costs. In some countries, adults can receive financial support or time from the government to engage in upskilling or re-skilling. The SkillsFuture Credit is a publicly funded student finance mechanism first introduced in 2015 as part of Singapore's SkillsFuture initiative (see Box 3.6 earlier in this section). All Singaporeans aged 25 or over receive a non-expirable allowance of SGD 500, which they can use to cover the costs of eligible courses listed on the MySkillsFuture portal (Government of Singapore, 2024[77]). Linking financial support to courses aimed at advancing skills development for the green transition may be an option that governments may wish to consider moving forward.

A second obstacle for adults is lack of awareness about available upskilling or re-skilling opportunities, especially among learners with lower levels of prior educational achievement (Kis and Windisch, 2018[78]; OECD, 2019[79]; OECD, 2019[80]). To overcome this challenge, some countries have invested in career guidance (see Section on Enhancing career guidance to support pathways into sustainable careers) and online information portals, providing a user-friendly overview of upskilling and re-skilling opportunities. In some countries, portals have been developed with a specific focus on the green transition. An example is Finland’s Climate University, an online platform which brings together courses on climate change from 27 HEIs. An explicit priority of the network is to support upskilling and re-skilling for the green transition (Climate University, 2023[81]).

A third challenge many adults face is lack of recognition of the knowledge and skills they have already acquired through non-formal and informal learning. The long administrative processes associated with recognition of prior learning (RPL) processes can present a major barrier to participation in upskilling and re-skilling in VET and higher education. RPL can be defined as “the process by which authorised bodies validate an individual’s existing knowledge and skills” (OECD, 2023, p. 13[82]). Historically, these systems were developed to recognise formal learning in the form of prior educational qualifications. More recently, however, governments have started to integrate non-formal and informal learning in their procedures, as well as changing existing credit transfer and national qualification frameworks to enhance adult learning (Tuck, 2007[83]; Auzinger, Ulicna and Messerer, 2016[84]; OECD, 2023[85]).

The improvement of RPL processes will require co-ordination across sectors (i.e. VET, higher education, and adult learning), the labour market and government (e.g. departments responsible for education and labour market policy) (OECD, 2023[48]). In France, for example, a system for recognising and validating the professional experience of adults (Validation des acquis de l’expérience – VAE) has been in place for more than 20 years. Through the VAE procedure, anyone with at least one year of professional experience can apply for a professional certificate which can be used to enter formal learning programmes in VET or higher education. The process requires applicants to fill out an application form in which they indicate which skills they have acquired and how, for example through volunteering, self-employment or community service (French Ministry of Education and Youth, 2024[86]).

Inconvenient mode of provision may be another obstacle to engagement. For adult learners, having flexibility in what and how to study is crucial so they can follow individualised pathways that reflect their prior experience, and allow them to combine upskilling and re-skilling with work and family duties (OECD, 2023[82]). Yet, in many countries, regulatory barriers impede VET providers and HEIs to develop more flexible study programmes (Staring and Butler, forthcoming[58]). For example, some VET providers and HEIs face restrictions to developing part-time programmes, expanding students’ course choice (e.g. due to a high number of mandatory courses), or offering programmes in online, hybrid or blended formats. In addition, the nature of some green-related training, which may involve hands-on learning of new technologies, may be challenging to deliver virtually. In any case, removing legislative barriers to the development of flexible formats of provision is thus crucial.

In this context, the emergence of micro-credentials4 has pushed several governments to introduce the regulatory changes needed to advance upskilling and re-skilling. Australia’s National Micro-credentials Framework seeks to “encourage greater cohesion in the design, development and delivery of micro-credentials across both the Australian education system and broader industry” (Government of Australia, 2022, p. 4[87]). The government also offers targeted funding for micro-credentials development in areas of national importance for upskilling and re-skilling (Clare, 2023[88]). Hungary has recently introduced amendments to its Adult Education Act to make VET and higher education providers explicitly responsible for the development of more flexible upskilling and re-skilling programmes for adults. In the higher education sector specifically, it has also removed several regulatory barriers impeding HEIs to develop fully online and hybrid study programmes (Hungarian Parliament, 2023[89]; OECD, 2023[90]).

A final important barrier is related to geographical factors. As highlighted above, regions with less green labour markets, despite facing greater risks and changes due to the green transition, also record lower participation in training programmes.

To tackle the urban-rural divide (see Section on The regional dimension of labour-market changes) and support skills development in regions that are particularly affected by or well positioned to tackle climate change, some governments are investing in the development of regional dual sector programmes (Staring and Butler, forthcoming[58]). Such programmes are jointly designed and delivered by VET providers and HEIs, often in partnership with employers, and support skills development adapted to the needs of a particular region, sub-region or sector. There is a strong focus in these programmes on bottom-up, collaborative and place-based approaches between students, instructors and employers, focused on the immediate environment within which these actors function.

Such local, bottom-up organised training can be crucial for workers transitioning from high carbon-emitting to green industries (OECD, 2023[19]). In addition, they offer alternative pathways and transitions between VET and higher education, making them more attractive to learners looking for further study and work opportunities. The development of a forward-looking, comprehensive, and well-targeted adult learning system can become a regional advantage, attracting innovative investments, and allowing restructuring of local economies facing high risks due to the transition (OECD, 2023[5]). Box 3.7 provides examples from France, the Netherlands and Scotland (UK). In Europe, the European Commission’s Pact for Skills and Centres of Vocational Excellence programmes play a key role in fostering such partnerships, including around climate change (EC, 2024[91]).

Box 3.7. Supporting regional and sectoral lifelong learning ecosystems in France, the Netherlands and Scotland (UK)

Professional Campus and Excellence Qualifications in France

Campus des métiers et des qualifications (Professional Campus and Excellence Qualifications) was created in 2013 with the aim of aligning education and vocational training with the economic needs of different regions in France. These campuses focus on developing skills in sectors critical to national and regional growth, such as aeronautics, energy, and digital industries. The governance of the Professional Campus is decentralised and collaborative, involving a partnership between regional presidents and academic rectors. These authorities are responsible for presenting the campus projects for accreditation and overseeing their implementation once approved. A national commission, comprising representatives from regional authorities, the Ministry of Education and Youth, and other governmental bodies, grants labels to campuses for a period of one to five years. This label certifies that a campus meets rigorous standards for excellence in education and training. Additionally, the campuses are closely integrated with local businesses and regional development policies, allowing them to serve as hubs of innovation and skills development. This governance model ensures that the campuses remain adaptable to regional economic priorities and the evolving demands of the workforce.

Lifelong Learning Catalyst in the Netherlands

In the Netherlands, the government commissioned a consortium of five research institutes (KBA-Consortium) to prepare an independent review of the VET, higher education and research sectors to identify a vision for 2040. In its final report, the Consortium identifies climate change as one of several key societal challenges around which the government should foster collaboration between the three sectors (KBA-Consortium, 2023[92]). Five recommendations are made to support such collaboration: 1) promoting equal opportunities for all students; 2) strengthening the connection between education and the labour market; 3) strengthening the role of the regions; 4) creating parity of esteem between VET providers, universities of applied science (UAS) and universities; and 5) science engagement and communication.

To progress the implementation of these recommendations, one concrete action of the government has been to provide financial support for the establishment of the Lifelong Learning Catalyst (LLO Katalysator), a national platform to co-ordinate and fund the development of—among others—regionally anchored dual sector provision tailored to the transition to net zero. In April 2022, following recommendations from the Advisory Committee of the National Growth Fund (Adviescommissie Nationaal Groeifonds), the government of the Netherlands mobilised €391.6 million for the establishment of a Lifelong Learning Catalyst (LLL Catalyser). The National Growth Fund is one of the Netherlands’ main policy instruments through which the government funds projects that can support structural and sustainable economic growth across a range of sectors, including education.

The LLL Catalyst was initiated by the sectoral associations for VET providers (MBO Raad), universities of applied sciences (Vereniging Hogescholen) and universities (Universiteiten van Nederland), as well as a wide consortium of employers and public sector organisations. It seeks to support the creation of regional and sectoral “LLL-ecosystems” in which employers and education providers collaborate to develop accessible and labour market-relevant courses to support upskilling and re-skilling. The network offers sectoral support for this through four main activities: 1) mapping skills for the future; 2) funding projects focused on specific priorities (until 2026, “solutions for the green transition” is the theme under which the platform will collect applications); 3) capacity building and professional development of staff; and 4) stimulating lifelong learning cultures in companies. After two subsidy rounds, 70 projects or public-private partnerships have now started in regions throughout the Netherlands, focusing on the energy and raw materials transition.

Tertiary Pathfinders in Scotland

In Scotland (United Kingdom), in 2022, the government set up Regional Delivery Boards (RDB) for two “Tertiary Pathfinder” regions, in the north and south-east of the country. The RDBs include representatives from VET providers and HEIs, employers and other actors in the regional skills ecosystem. They oversee the implementation of seven pilot projects focused on improving the alignment of post-16 provision with local and regional skills and more integrated pathways from school through to degree-level provision (SFC, 2022[93]). Several pilots also focus on the green transition. For example, the pilot on Energy Careers Pathways focuses on improving communication of low-carbon energy jobs and the education pathways into them. In another pilot, Scotland’s Rural and Borders Colleges collaborate to identify and jointly develop land-based provision, including agriculture or countryside and wildlife management.

Source: Adapted from LLL Catalyser (n.d.[94]), LLO Katalysator [LLL Catalyser], https://www.llokatalysator.nl/ and Government of the Netherlands (2023[95]) (accessed on 6 December 2024), Staatscourant van het Koninkrijk der Nederlanden [Government gazette of the Kingdom of the Netherlands], Government of the Netherlands, https://zoek.officielebekendmakingen.nl/stcrt-2023-19046.html. (accessed on 6 December 2024); Regional Tertiary Pathfinders, Scottish Funding Council (SFC), Edinburgh, https://www.sfc.ac.uk/skills-lifelong-learning/pathfinders/ (accessed on 18 July 2024).

Supporting VET and higher education providers in enhancing the lifelong learning offer

Expanding lifelong learning offerings remains a challenge for many VET and higher education systems. For HEIs, one of the main reasons for this is because their primary focus continues to be to attract upper-secondary school enrolment in traditional bachelor’s and master’s programmes. In addition, lifelong learning is often not explicitly mentioned in legislation as a mission of VET providers and HEIs. According to the OECD Higher Education Policy Survey 2022, only six out of 29 responding jurisdictions legally mandate some or all HEIs to provide upskilling or re-skilling (OECD, 2024[49]). This has an impact on associated funding systems and limits institutions’ ambitions to making lifelong learning an integral part of their activities. Giving institutions a clear mandate for the integration of flexible upskilling and re-skilling opportunities in their study programmes is thus crucial. In VET, some countries have adapted their systems to make them more flexible for adult learners; others (such as Denmark) have created separate tracks for adult learners (OECD, 2023[45]).

To incentivise the development of lifelong learning opportunities, governments may also provide funding to education providers to cover some of the initial costs associated with the development of new delivery formats. Such funding is often targeted to certain policy priorities, such as enhancing labour-market relevance and social inclusion more broadly, or to support upskilling and re-skilling in greening sectors specifically. In Europe, several countries are using EU Recovery and Resilience Facility (RRF) funding to support the development of upskilling and re-skilling courses for the green transition (European Commission, 2022[96]). In Slovenia, for example, the Ministry of Higher Education, Science and Innovation (MVZI) has invested EUR 55.6 million of RRF funding in 38 pilot projects, implemented by four public HEIs, to support a “Reform Higher Education for a Green and Resilient Transition to Society 5.0” (Republic of Slovenia, 2024[97]). To support HEIs with the development of their pilot projects, the Ministry developed a set of guidelines, covering three broad thematic areas: 1) the digital transition, 2) the green transition and 3) lifelong learning, including micro-credentials.

In some countries, the transition to a more flexible lifelong learning offering in VET and higher education is further supported by (voluntary) external review services offered by the external quality assurance (QA) agency or inspectorate. Through such services, VET and higher education providers can obtain advice on the quality and relevance of their course offerings and improve their effectiveness (Staring and Butler, forthcoming[62]). In Estonia, for example, the Quality Agency for Education (HAKA) offers a voluntary external review service for digital courses. The service was developed in the wake of the COVID-19 pandemic, is open to teaching staff and providers from all levels of education, and works as an incentive for VET providers and HEIs to develop more flexible and accessible courses (HAKA, 2021[98]). Similarly, the Dutch-Flemish Accreditation Organisation (NVAO) in the Netherlands offers a special assessment of small-scale and intensive education, as well as sustainable higher education (see Box 3.8).

Box 3.8. Voluntary “special feature” assessment of small-scale and intensive provision and sustainable higher education in the Netherlands

NVAO is responsible for the external evaluation and accreditation of all higher education providers and programmes in the Netherlands and the Flemish Community of Belgium. For Dutch HEIs, NVAO offers “special feature” assessment of programmes in four areas of strategic importance for the government and higher education sector: internationalisation, entrepreneurship, sustainable higher education, and small-scale and intensive provision. The sustainability area is for programmes that wish to integrate content related to the Sustainable Development Goals with their existing programmes and make it relevant to the sectors that they are preparing learners for.

The evaluation procedure involves a self-evaluation by the institution of the selected strategic area (“special feature”) in relation to its programme (e.g. how sustainability is integrated and addressed in the existing course offer), followed by a review and site visit by an external expert panel. Based on the self-assessment report and site visit, the external review panel prepares a report with recommendations for the institution on how they can improve the quality and effectiveness of their provision in relation to the special feature under examination. The special assessment is free of charge when it is part of the regular, six-yearly external assessments of study programmes, which is mandatory for all publicly funded HEIs in the Netherlands. For a separate assessment, the fee is EUR 1 000.

Source: NVAO (2024[99]), Special Features General, Dutch-Flemish Accreditation Organisation (NVAO), https://www.nvao.net/en/procedures/the-netherlands/special-features-general (accessed on 06 December 2024)

Supporting VET and higher education teachers in keeping up with the green transition

In addition to developing opportunities for the broader adult workforce to engage in lifelong learning, specific attention needs to be paid to the upskilling and re-skilling of those who are teaching in VET and higher education institutions. Given the rapid changes brought to labour markets, sectors and skills requirements by the green transition, supporting educators in VET and higher education to invest in continuing professional learning (CPL) can also play an important role in keeping their own knowledge and skills up to date.

For VET teachers, it is common to be required to hold a teaching qualification, vocational qualification and/or work experience, although requirements differ across countries as well as between different programmes and subjects taught. Typically, in-company trainers will be required to have a relevant vocational qualification and work experience, but dedicated training for in-company trainers is less common, although it does exist in some countries. In Canada, Denmark, Estonia, the Netherlands and Norway, for example, in-company trainers are required to have a vocational qualification and demonstrate a certain number of years of professional experience to ensure quality (OECD, 2022[100]). In Germany and Switzerland, in-company trainers require a specific training qualification. Data from the OECD’s Teaching and Learning International Survey (TALIS) also found that VET teachers feel less prepared than those from general programmes to support their students to adapt to global megatrends such as digitalisation or the transition to a low-carbon economy specifically (OECD, 2021[101]). CPL is crucial for VET teachers to ensure that they keep abreast of changes in the labour market, including those resulting from the green transition.

Higher education faces a similar challenge of raising the bar for teaching staff’s general pedagogical competencies. Beyond holding a PhD qualification, it is not common for academic staff to hold any type of formal teaching qualification or to engage in CPL. In countries where such requirements do exist, this is often not centrally regulated and the nature of teaching requirements is determined by individual institutions, or limited to professional HEIs, as is the case in the French Community of Belgium or Switzerland (OECD, 2024[102]). In Denmark and the Netherlands, agreements negotiated between HEIs specify minimum competence requirements for all academic staff involved in teaching, but these primarily focus on basic pedagogical skills (VSNU, 2008[103]; Universities Denmark, 2021[104]).

In some higher education systems, dedicated national supports have been created to support CPL of higher education teaching staff, including on sustainability matters. For example, Ireland’s National Forum for the Enhancement of Teaching and Learning leads and advises on the enhancement of teaching and learning in Irish higher education. In 2022-24, the activities of the forum centre on three key priorities, one of which is education for sustainable development (Ireland’s National Forum for the Enhancement of Teaching and Learning in Higher Education, 2022[105]).

In the European context, a major initiative bringing together the VET and higher education sectors around CPL is the Centres of Vocational Excellence (CoVE) scheme. CoVEs seek to promote vocational excellence in Europe, which is defined as “high-quality training and education, but also to [enhance] relevance to the world of work and the attractiveness of the educational offer to learners and to employers” (EC, 2024[106]). This is done by fostering the development of local skills ecosystems in which VET providers, HEIs and employers collaborate around common skills challenges. A mapping of CoVEs has found that such centres typically seek to support VET providers and teachers with the development and implementation of innovative teaching and learning methods, project-based learning, the integration of transversal and technical skills in curricula, and sharing facilities between VET and higher education institutions (EC, 2019[107]).

Box 3.9. Centres of Vocational Excellence to support skills development for a greener Europe

GREENOVET is an international project, co-funded by the EU’s Erasmus+ programme, supporting the development of the knowledge, resources and infrastructure needed to support innovation and skills ecosystems, regional development, and promoting environmental, social, and economic progress in four regions: Styria (Austria), Vaasa (Finland), Skopje (Macedonia) and Leiria (Portugal).

The CoVEs foster collaboration among a wide range of stakeholders in each region: regional upper-secondary and higher VET providers, local companies, sector and employer representatives, regional and national governments, as well as regional innovation agencies. Through the organisation of conferences, workshops and strategic research, the CoVEs seek to align stakeholders around common challenges and enablers for green skills development in each region, as well as Europe more broadly.

Source: Adapted from (GREENOVET, n.d.[108]), GREENOVET: Skills for a Green Europe, https://www.greenovet.eu/ (accessed on 8 August 2024)

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Notes

← 1.  Green skills in this definition refer to “the knowledge, abilities, values and attitudes needed to live in, develop and support a society which reduces the impact of human activity on the environment”

← 2.  The full list comprises includes 381 skills, 185 knowledge concepts, and 5 transversal skills as green

← 3.  This section does not include a separate subsection dedicated to sustainability competencies, as these are covered in Chapter 1 and are integrated throughout this chapter, where relevant.

← 4.  Micro-credentials are short, focused courses—often offered online—that are designed to certify knowledge or skills in a specific area, allowing workers to bolster their existing skills set or switch to a new field without needing to commit to a full degree programme.