Vulnerable regions in the industrial transition to climate neutrality

This working paper assesses the socio-economic characteristics of the regions most vulnerable to the transformations needed for the transition of key manufacturing sectors to climate neutrality. The analysis considers regional characteristics, worker characteristics and firm characteristics. These point to the specific vulnerabilities of each region and lay the basis for regional policy action for a just transition. The most vulnerable regions tend to underperform on key regional socioeconomic indicators, including GDP per capita, wages and net-migration. Workers employed in the key manufacturing sectors in the most vulnerable regions have low educational attainment, work in low skilled occupations, and tend to have temporary contracts. Some firms in these regions underperform on productivity.