The Green Transition and the Future of Work: The Urgent Need for Green Skilling

Feb 11

11 Feb 2025

Introduction: The Green Workforce Imperative

The global workforce is undergoing a fundamental shift as businesses, policymakers, and investors accelerate the transition toward a net-zero economy. The green transition—driven by climate policies, technological advancements, and shifting investor priorities—presents both significant economic opportunities and profound labor market disruptions.

According to the World Economic Forum’s Future of Jobs Report 2025, the green transition ranks as one of the most transformative forces shaping the global labor market, with 47% of employers expecting climate-change mitigation efforts to fundamentally reshape their industries by 2030.

However, while demand for green jobs is accelerating, the availability of workers with the necessary skills is lagging behind. The number of job postings requiring at least one green skill has increased by 22% in the last year, yet only 12% more workers acquired such skills in the same period. This mismatch raises critical questions:

Are businesses prepared to meet their sustainability commitments with a workforce capable of delivering on green objectives?
Are existing education and training systems equipped to support large-scale green reskilling?
What strategic workforce interventions are required to ensure that the green transition is not hindered by labor shortages and skills gaps?

This article explores these pressing questions, offering a data-backed analysis of green job trends, skilling challenges, and strategic responses that businesses and policymakers must consider to future-proof the workforce.

The Rise of Green Jobs: Key Trends and Projections

The green economy is no longer a niche sector—it is now a primary driver of employment and investment worldwide. According to the International Labour Organization (ILO), the green transition could create 100 million new jobs globally by 2030, but this growth is highly uneven across industries and regions.

Which Green Jobs Are Growing the Fastest?

The WEF report identifies the top job categories experiencing the highest demand growth due to sustainability efforts:

Projected Growth by 2030 - Amongst 15 fastest-growing jobs:

Environmental Engineers +40%
Renewable Energy Engineers +35%

These roles are largely concentrated in renewable energy, electric mobility, and circular economy industries, where companies are racing to meet decarbonization targets. The EU Green Deal, U.S. Inflation Reduction Act, and China’s 14th Five-Year Plan have all reinforced the urgency of these skill sets.

However, beyond engineering and technical expertise, the green transition is also driving demand for skills in strategic management, policy, and supply chain innovation. Industries such as manufacturing, construction, and finance are also seeing a surge in demand for ESG analysts, carbon accounting specialists, and sustainable supply chain managers.

Green Hiring Rates

Outperformance in hiring rate for LinkedIn members with green skills versus all LinkedIn members, percent, January 2021 to July 2024

Graphic from The Future of Jobs Report 2025, World Economic Forum

Where Will the Green Transition Create the Most Jobs?

Certain regions are expected to benefit more than others from the shift to sustainability-focused industries:

Europe

Leading the charge with policies like the Green Deal, expected to generate over 2.5 million net new green jobs by 2030.

United States

Driven by clean energy investments, the U.S. anticipates 9 million new green jobs by 2032, with significant opportunities in solar, wind, and EV industries.

China

Dominating the renewables sector, China accounts for 42% of global clean energy employment and will continue to expand green job creation.

Emerging Markets

Countries in Southeast Asia, Latin America, and Africa could see job booms in climate adaptation industries, but lack of workforce training infrastructure remains a bottleneck.

While job creation numbers are promising, a significant risk looms: the green skills gap.

The Green Skills Gap: A Critical Bottleneck

Despite the optimistic job projections, employers are struggling to find workers with the necessary green skills. The WEF report highlights that 63% of businesses cite skills shortages as their primary barrier to transformation, surpassing concerns about capital investment or regulatory complexity.

Key Challenges Driving the Green Skilling Deficit:

Mismatch Between Education Systems and Industry Needs

Universities and vocational programs have been slow to integrate green competencies into curricula.
LinkedIn research indicates that 60% of respondents reported that soft skills training is given a low priority, even though such skills are more sought after than technical knowledge.

Underinvestment in Workforce Reskilling

Only 55% of global employers are investing in green upskilling programs, despite recognizing the skills gap.
Small and medium-sized enterprises (SMEs), which form the backbone of most economies, face the highest barriers to funding reskilling initiatives.

Geographic Disparities in Green Talent Availability

The transition to a green economy is occurring faster in high-income economies, while lower-income countries face limited access to training programs.
For example, South Asia and Sub-Saharan Africa could add millions of green jobs but lack formal training structures to capitalize on these opportunities.

Slow Adoption of Skills-Based Hiring Approaches

Many businesses still prioritize traditional degrees over green skill certifications, limiting access to a broader talent pool.
Only 19% of employers plan to remove degree requirements in hiring processes, despite the urgency of skill-based recruitment.

The question now is: how can businesses and policymakers close the green skills gap before it derails the transition to a net-zero economy?

Strategic Solutions: How to Build a Green-Skilled Workforce

1. Corporate Investments in Green Upskilling & Reskilling

Leading firms such as Siemens, Schneider Electric, and Ørsted have launched in-house green training academies to upskill their workforce in renewable energy and sustainability.
85% of global employers now plan to prioritize internal upskilling, but more investment is needed, especially for SMEs.

2. Expansion of Government & Public-Private Training Initiatives

Government subsidies for green training (e.g., EU’s €100B Just Transition Fund) are essential to accelerate workforce preparedness.
Collaboration with universities, technical institutes, and online platforms to embed sustainability into core curricula.

3. Adopting a Skills-Based Hiring Model

Moving beyond degree-based hiring and recognizing skill certifications, apprenticeships, and micro-credentials in hiring processes.
Countries like Singapore and the Netherlands are leading this shift, incorporating green skills into national workforce frameworks.

4. Investing in Emerging Markets’ Green Talent

Multinational corporations must actively invest in training in high-growth, low-skill regions to expand the global green talent pipeline.
Public-private partnerships are crucial for creating job-ready green workforce pipelines in developing economies.

Get your company started, or start for yourself with one of these free courses:

Conclusion: Building the Workforce for a Net-Zero Economy

The green transition is not just about decarbonizing industries—it’s about fundamentally reshaping the workforce. While demand for green jobs is rising, a persistent skills gap threatens to stall progress.

Addressing this challenge requires urgent action from businesses, governments, and educators to prioritize green skilling at scale. The time to invest in a green-ready workforce is now, and companies that fail to act risk being left behind in the rapidly evolving landscape of sustainable business.

The question is no longer whether the green transition will happen, but whether if we will have the skilled workforce needed to deliver it.

For further reading;