Fast‑tracking Net Zero by Building Climate and Economic Resilience

2. The net-zero transition needs to bring workers and citizens on board

Climate action by governments can only be effective and resilient if it addresses citizens’ needs and maintains public support. As such, climate strategies need to be built on effective citizen engagement and participation and responsive to the public’s concerns and priorities.

A just transition is central to bringing the public onboard with climate action. While the net-zero transition offers significant opportunities, there are also potential costs which can lead to concerns among citizens. Failure to address these not only risks inequitable outcomes, but could also lead to public opposition, slowing or halting the transition. Carefully managing distributional outcomes such as job losses in GHG‑intensive occupations, and leveraging the transition to improve socio-economic outcomes, is crucial.

According to the OECD Survey on Drivers of Trust in Public Institutions, while citizens’ concerns about climate change and climate policies are significant, their trust in governments’ ability to tackle the climate crisis remains low. Most respondents feel that governments favour private sector interests over those of citizens, and only 37% are confident that their government balances the needs of current and future generations (OECD, 2024[34]). Overcoming concerns over the fairness and personal impact of climate action demands better citizen engagement. At the same time, citizen engagement is about more than just overcoming opposition to climate policy. Mobilising and empowering citizens can leverage their vast potential to drive innovative and effective policy action. A meaningful government-citizen interface can empower citizens to take action and help shape climate policy efforts to ensure that the net-zero transition leads to a future they helped create.

Education has a vital role in preparing workers for labour market shifts and supporting a just transition, and in building citizens’ sense of agency. It can help citizens develop the knowledge, skills and attitudes needed to better understand the challenges of climate change, effectively engage with the policymaking process, and adopt sustainable behavioural changes in their own lives. As such, education empowers the public to actively participate in collective climate action and effect positive change.

Ensuring that the transition is just and equitable

Ensuring that the net-zero transition is just is paramount both from an equity perspective and to secure public acceptance of climate policies. Climate mitigation measures will significantly impact labour markets and households in ways that vary by region, gender and other socio-demographic markers; managing these effects is crucial to avoid exacerbating existing inequalities. The potential costs of climate action should be weighed against the costs of inaction – including climate change impacts on health, assets and livelihoods – which are likely to impact disadvantaged groups most heavily (OECD, 2024[35]).

The net effect of the net-zero transition on aggregate employment is projected to be modest. Across the OECD, only 6% of workers are employed in GHG-intensive occupations, while around 20% are employed in green-driven occupations (Figure 11), suggesting that a relatively small proportion of workers will be directly impacted (OECD, 2024[36]). Nevertheless, the risk of job displacement is highly concentrated in certain industries and regions. Workers in some of the most affected industries tend to be older, more likely to live in rural areas, and employed in relatively high paying jobs compared to their educational attainment. Job losses in high‑emissions industries are estimated to be 24% more costly than in low-emissions industries (OECD, 2024[36]).

Regions facing considerable transformation challenges due to high employment in hard-to-decarbonise activities often already perform relatively poorly on several socio-economic indicators. These areas typically have GDP and wages below the national average, relatively low levels of educational attainment, and fewer resources to invest in renewable energy, infrastructure, and innovation (OECD, 2023[37]). These characteristics compound transition-related challenges and risk widening socio-economic gaps between regions.

A just transition must also take into account the specific challenges that small and medium-sized enterprises (SMEs) and entrepreneurs face in the shift to a low-carbon economy. SMEs account for around 69% of employment in OECD countries on average and are vital to green innovation, but policy frameworks are often designed with larger firms in mind (OECD, 2023[38]). Policymakers should ensure that policies address the specific barriers that SMEs face in the transition, including a lack of managerial and technical skills, limited access to (green) finance, and fewer resources to comply with reporting requirements compared to larger firms.

Figure 11. Shares of employment in green-driven and GHG-intensive occupations in OECD countries

Note: Data refer to the average for 2015-19, except for Canada (2017-19) and New Zealand (2018). Green-driven occupations comprise “green new and emerging occupations” (new occupations with unique tasks and worker requirements, e.g. solar photovoltaic installers, carbon trading analysts), “green-enhanced skills occupations” (existing occupations whose skill set is being altered because of the green transition, e.g. architects, farmers), and “green increased demand occupations” (existing jobs that will be in demand because they provide goods and services required by green activities, e.g. construction workers, drivers). GHG-intensive occupations are those occupations that are particularly concentrated in high-emissions industries.

Source: Estimates in (OECD, 2024[36]) based on version 24.1 of the O*NET database and following country-specific sources: Australian Labour Force Survey; Canadian Labour Force Survey; Japanese Labour Force Survey; New Zealand: Household Labour Force Survey; United States: Current Population Survey. All other countries: EU Labour Force Survey.

In the energy sector, major employment shifts are already underway, encouraged by climate mitigation policies. Between 2019 and 2023, fossil fuel-related jobs fell by 1% while employment in clean energy rose by 15% (IEA, 2024[39]). Stepping up climate ambition could lead to dramatic growth in energy employment. In both the IEA’s Stated Policies Scenario (STEPS) and Net Zero Emissions by 2050 Scenario (NZE Scenario), job creation associated with clean energy technologies comfortably outweighs job losses in fossil fuel and related industries through to 2030 around the world. Energy employment in 2030 is substantially higher under the NZE Scenario (83 million workers) than under STEPS (74 million). Still, the benefits of clean energy employment growth are spread unevenly across countries: two-thirds of all clean energy job additions since 2019 have been in developed economies and in China (IEA, 2024[39]).

Supporting workers in declining sectors and at-risk regions requires measures such as active labour market policies (e.g. job search assistance) and income support, potentially including targeted wage insurance schemes, along with place-based policies and policies supporting geographical mobility. Collective bargaining and social dialogue, when aimed at finding solutions for all parties, can provide essential input for designing effective measures to support workers, households and regions. Involving social partners and all stakeholders in long-term transition planning, including organisations representing employers and workers, public employment services and training institutions, can contribute to more informed policy responses (OECD, 2023[40]).

Education and skills policies are also key. Analysis of labour market transitions in European countries has found education to be the most important individual-level driver of transitions from non-employment to green-task jobs (Causa et al., 2024[41]). Moreover, the job quality advantage of green-driven occupations tends to be concentrated in high-skilled jobs, with low-skilled, green-driven jobs offering lower wages and job security than other low‑skilled occupations (OECD, 2024[36]). This underscores the need for responsive education and skills policies, complemented by labour market policies, to enhance the quality of green‑driven jobs.

Education and skills policies need to provide learners with core sustainability competences and the technical and transversal skills needed for employment in the net-zero economy. However, education and training policies are not keeping up with the required pace of change. For instance, only 40% of adults in OECD countries participate in formal or non-formal learning for job-related purposes (OECD, 2021[42]), and workers in high‑emissions occupations tend to train significantly less than those in other occupations. In sectors such as energy, skilled labour shortages, particularly in job profiles typically linked to vocational education (e.g. installers and technicians), are already emerging as a major bottleneck to the low-carbon transition.

Key actions for policymakers to address these challenges include strengthening skills assessment and anticipation, including by facilitating broad stakeholder participation; enhancing green career guidance; and developing a coherent and inclusive skills delivery system through greater co-operation and alignment across vocational, higher and adult education, keeping regional contexts in mind (OECD, 2025[43]). Overcoming barriers to participation in upskilling and reskilling programmes, particularly for vulnerable groups and women, is essential.

Beyond employment impacts, climate mitigation policies can have distributional impacts on household budgets. Policy design must ensure that measures such as carbon pricing do not weigh unduly on disadvantaged groups (e.g. low-income households). Targeted redistribution of revenues generated can enable governments to influence distributional outcomes while maintaining economic efficiency. Additional targeted measures are needed to ensure that climate policy instruments such as standards, bans and subsidies are not regressive and that vulnerable populations can benefit from them.

Gender equality is essential for the pursuit of a just transition, yet remains relatively overlooked by countries. Only 17 out of 30 OECD country survey respondents consider gender aspects in environmental policymaking (OECD, 2021[44]), and only 55 national climate action plans explicitly reference gender equality (UN Women, 2023[45]). Additionally, only 55% of all climate-related official development assistance (ODA) from OECD Development Assistance Committee members integrates gender equality objectives (OECD, 2023[46]).

Managed well, the net-zero transition presents opportunities to address gender inequalities in the labour market. At present, women account for only 28% of green-task jobs (OECD, 2023[40]). Facilitating women’s participation in growing green sectors requires tackling their underrepresentation in relevant training and education programmes, including in science, technology, engineering and mathematics (STEM) and vocational programmes. Targeted efforts are needed to overcome gender stereotypes and barriers to entry in these fields, expand inclusive training opportunities, and develop tailored scholarships. Governments can enhance support for women in green entrepreneurship by providing funding opportunities for women‑led start-ups and by developing platforms for women entrepreneurs to access larger networks and markets.

Adopting a place-based approach – where policies are targeted or tailored to the needs of specific places – can ensure that climate policies reflect local contexts, needs and opportunities. Place-based policies can support vulnerable regions in transitioning away from emissions-intensive industries and maximising local green job creation. National governments should be attentive to the spatial implications of climate policies and support subnational governments in addressing obstacles to local climate action such as limited access to finance, capacity constraints, and insufficient co-ordination mechanisms across levels of government.

A just transition at the global level needs to recognise countries’ unequal starting points. In transitioning their economies, developing countries need to address challenges such as limited institutional capacity and access to finance. High levels of informal employment and low levels of social protection coverage increase workers’ vulnerability and complicate assessments of the labour market impacts of the transition. Informal employment represents approximately 89% of total employment in low-income countries, compared to only 16% in high-income countries (OECD, 2023[47]). Integrating climate action with development objectives can help to achieve more favourable socio-economic outcomes. Growing numbers of green‑driven jobs can be leveraged to drive more formal employment, bolstered by support for labour representation and collective bargaining (OECD, 2024[48]). Developed countries have an important role to play in this effort by aligning ODA with Paris Agreement goals and building fruitful partnerships with developing countries.

The government-citizen interface as a cornerstone of climate action

Mobilising the collective voice of citizens is integral to building trust in government decision-making and bolstering support for climate policy. Empowering citizens within policymaking processes can also lead to the design of more effective policies that fit citizens’ needs. According to the OECD Trust Survey, only 30% of respondents feel that their political system gives them a voice, and fewer than half feel that communication around policies is adequate, especially regarding how policies will affect them (OECD, 2024[34]). This is compounded by more than half of survey respondents feeling governments do not make decisions based on the best available evidence (OECD, 2024[34]). Reversing these trends requires a stronger government-citizen interface that: 1) provides access to transparent and open information; 2) builds trust through clear and responsive public communication; 3) empowers and mobilises citizens through people-centred policymaking based on meaningful citizen participation; and 4) sustains change through behaviourally informed citizen engagement.

Figure 12. Citizens’ trust in government’s ability to reduce GHG emissions

Note: The figure presents within-country distributions of responses to the question “On a scale of 0 to 10, how confident are you that [country] will succeed in reducing greenhouse gas emissions in the next ten years?”. The “confident” proportion is the aggregation of responses from 6‑10 on the scale; “neutral” is equal to a response of 5; “not confident” is the aggregation of responses from 0-4; and “Don't know” was a separate answer choice. “OECD” presents the unweighted average of responses across countries. The data are based on the OECD Survey on Drivers of Trust in Public Institutions (Trust Survey), carried out in October and November 2023 in 30 OECD countries.

Source: (OECD, 2024[34]).

Climate change poses unique challenges for the government-citizen interface. Its pervasive nature requires a whole-of-government approach to citizen engagement co-ordinated across multiple policy domains. As the benefits of climate action are often long-term and diffuse, finding ways to make them relevant for citizens with other immediate economic concerns is an immense task for which governments need creative solutions. This is particularly the case as citizens’ perceptions of climate policies, their effectiveness and fairness may not always be accurate. The government-citizen interface must remain agile and accountable to avoid being regarded as mere box-ticking or overly burdensome.

Governments have started making progress on these challenges. Across the OECD, open access to climate-related data – such as mobility, meteorological, geospatial, earth observation, and environmental data – is becoming more common, though some countries lag behind. Further progress requires a commitment to better data availability and access, including through crowdsourcing and clear legal frameworks to define which data is relevant and should be openly accessible.

Public communication is essential for successful climate policy, which is often technical and difficult for the public at large to grasp, compounded by the vast ecosystem of diverse voices and actors communicating on this issue and advocating a range of perspectives. Public communicators are increasingly tailoring their messaging to audience values and collaborating with “multipliers” – individuals, organisations, businesses, and media figures who can reach wider and more diverse groups and may elicit higher trust among groups less likely to trust national government. Public communication is also being increasingly mainstreamed across the policy cycle. Nevertheless, public discourse on climate change continues to be rife with mis- and dis-information. Tackling this not only requires strong and accurate public communication, but also efforts to build societal resilience, for example through educating and empowering citizens to think critically.

Citizen engagement makes a real difference. Almost 70% of OECD Trust Survey respondents who feel that they have a say in government action report moderate or high levels of trust in government, versus 22% who feel they do not have a say (OECD, 2024[34]). Engaging citizens in the policymaking process not only gives them agency and ownership over policy outcomes, building trust and public support, but can also increase policy effectiveness by incorporating citizens’ experiences, concerns and interests, and tapping into their capacity for innovation and action.

Countries are recognising the importance of citizen engagement, with environmental issues accounting for 17% of the over 700 examples of citizen assemblies recorded in the OECD Deliberative Democracy Database (OECD, 2023[49]). Still, governments can do more to empower citizens by providing opportunities and resources to collaborate across the policy cycle and all levels of government. This means participation that is accessible, takes citizens’ needs into consideration, and is accountable, providing transparent feedback on how citizens’ voices were, or were not, incorporated into final policy decisions.

Effective citizen participation also requires a targeted approach – not all policy issues require the same level of engagement. Citizens are more likely to engage with policy processes that have an immediate and tangible effect, for example cycling infrastructure – but climate change requires policies that have a longer time horizon and are national, regional or even global in scale. A place‑based approach to citizen engagement can generate better buy-in, but governments also need to develop ways to engage citizens on broader climate policy strategies and frameworks.

An effective government-citizen interface relies on an understanding of citizens’ attitudes, values and behaviours. Across the entire policy cycle, environment ranks among the top three issues where behavioural science is most frequently applied, for example to assess public knowledge of climate change, gauge support for reforms and track sustainable behaviours. These insights can be used to better understand challenges such as mis- or dis-information, and to monitor policy outcomes. Behavioural science is also crucial to better understand how citizens experience the government-citizen interface, identifying barriers to more inclusive and empowering forms of citizen engagement.

Education is essential to build citizens’ sense of agency

In addition to supporting labour market transitions, education plays an important role in empowering citizens and encouraging sustainable socio-behavioural change. Many people do not feel that they have the personal agency to influence change. Agency reflects not only individuals’ intent, values, preferences and capacities, but also the influence of the social and material environment around them. Education can empower learners to use their agency in support of climate objectives by equipping them with the foundational knowledge, skills and attitudes needed to understand their environment and recognise their role within it. This is fundamental for encouraging and enabling people to take informed action, including through consumption and lifestyle choices and civic and political engagement.

In the OECD Programme for International Student Assessment (PISA) 2018, almost 80% of students aged 15 years across OECD countries reported being aware of or very familiar with climate change and global warming. However, the data showed significant socio-economic variation: on average, the share of students displaying awareness of climate change and global warming among socio-economically advantaged students was 20 percentage points higher than among disadvantaged students (OECD, 2022[50]). PISA results also revealed that, on average, fewer than 50% of students across countries and economies were able to correctly answer sustainability items. Performance was better among socio‑economically advantaged than disadvantaged students in each of the 20 environmental sustainability items covered (OECD, 2022[50]). Importantly, while evidence suggests that most students across the OECD are aware of the climate challenge, are taught about it in school, and are motivated to contribute to solving it, only just over half reported feeling personally capable of taking action (OECD, 2025[43]).

In the Earth for All Survey 2024, 71% of adults across G20 countries believe that the world must take immediate action within the next decade to reduce emissions from key sectors (Earth4All, 2024[51]). However, the degree to which individuals feel a personal responsibility for taking action is more varied. Survey evidence finds that on a scale from 0 (no sense of responsibility) to 10 (strongest sense of responsibility), the average score for 25–64-year-olds across OECD countries surveyed is 5.9 (Figure 13) (OECD, 2024[52]). Crucially, individuals with higher levels of educational attainment are more likely to report a strong sense of personal responsibility for contributing to climate action.

Figure 13. Self-reported scores on adults’ sense of personal responsibility towards reducing climate change, by educational attainment (ESS, 2016 and ISSP, 2020)

Average scores on a scale from 0 to 10, 25-to-64-year-olds

Note: Note: Scores range from 0 to 10, with 0 indicating a complete lack of responsibility towards reducing climate change.

1. Year of reference differs from 2016. Survey question also differs from that used in ESS.

Countries are ranked in descending order of the mean score among adults with below upper secondary educational attainment.

See Table A6.3 (OECD, 2024[52]) for data. For more information see (OECD, 2024[53]).

Source: (OECD, 2024[52]).

To bridge the gap between awareness, attitudes and action, education systems need to provide all individuals with solid foundational sustainability competencies, including strong literacy and numeracy, media and digital literacy, critical thinking, creativity and collaboration skills. This requires adapting curricula, qualifications and learning programmes, supported by broad stakeholder collaboration. Educator upskilling can be supported by mainstreaming sustainability into initial teacher education and continuing professional learning opportunities across schools, vocational and higher education in order to break down silos and spread innovative and interdisciplinary teaching approaches. Policymakers can also consider scaling up inclusive place-based and collaborative practices including whole-institution approaches and local partnerships. Beyond formal education, information campaigns and consumer education, along with science communication supported by formal education providers such as higher education institutions, can promote engagement with climate change.