Deloitte BrandVoice: Work Skills for a Just Transition

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COP27 concluded with a historic climate financing deal, providing developing nations vulnerable to the impact of climate extremes with the funds needed to rebuild and strengthen their communities. The summit also saw diplomats reaffirm their commitment to limit global temperatures to 1.5 degrees Celsius above pre-industrial levels. However, to reach this goal, global emissions will need to fall by 50% by 2030 and under current government policies, the world is moving towards a much hotter 2.1 to 2.9 degrees Celsius. A recent survey found that more than half of adults say climate change has had a severe impact on their lives, and seven in 10 expect it to in the next decade. Further, climate change is a main driver of internal displacement - with vulnerable communities disproportionally affected. While the need to secure food, shelter, and clean water are frequently at the center of the climate discussion, employment opportunities (or lack thereof) also are inextricably affected by climate change. The Deloitte Economics Institute calculated that a quarter of the global workforce--more than 800 million jobs--is highly vulnerable to climate extremes and economic transition impacts. Accordingly, the economics of transitioning to net-zero emissions will give rise to a new 'Green Collar workforce' - a labor pool of jobs ranging from manual to managerial, positively influenced by global efforts to decarbonize. The birth of this workforce can provide the global economy with a dividend of more than 300 million jobs by 2050. Reaching net-zero, reaping the job dividend, and ensuring that job development is equitable among developed and developing countries will take a conscious effort by governments. This shift will have unique characteristics. A tale of many transitions Government coordination will be key to ensuring transitions take place at an optimal pace, to achieve strong economic growth and create jobs for vulnerable workers. Fortunately, 80% of skills needed for these new net-zero jobs already exist. Clearly identifying and actively managing upskilling will be key to unlocking the potential and maintaining the employability of the Green Collar Workforce. Policy decisions can ensure an equitable workforce transition Governments should consider the following principles: The imperative for and magnitude of intervention become clearer every day. Policymakers can seize the opportunity and help ensure a just transition.