This report from Deloitte explores how the path towards net zero is giving rise to a new ‘green collar workforce’ and predicts that this could create more than 300 million new jobs globally by 2050. It notes that with around one quarter of global jobs at risk from unchecked climate change, policy action to upskill and retrain workers can realise the potential of economic growth and drive greater equality as the world economy shifts to a low emissions production system.
With the right policies in place, an industrial revolution in under 30 years can be achieved— creating new industries, more jobs, and a confident future of work as the worst impacts of climate change are avoided. But the promise of decarbonization presents risks unless the right planning and support is provided to those most vulnerable to climate change and job disruption in transition. As economies accelerate to netzero, the success of the global effort to mitigate climate change will be judged on how it protects those most vulnerable. This report identifies the industries, regions, and workers who will be most adversely affected by climate change and the global transition to a net-zero economy. It demonstrates how a coordinated policy for transition toward new areas of low-emissions growth can create viable employment pathways for vulnerable workers, reduce disruption, and improve standards of living globally.
Climate extremes and unplanned economic transition create substantial risks to workers
According to the Deloitte Economics Institute’s analysis, more than 800 million jobs worldwide—around onequarter of the global workforce today—are highly vulnerable to both climate extremes and economic transition impacts. The impacts will be particularly severe in Asia Pacific and Africa, with many workforces in these regions, such as workers in India and China, having more than 40% of employment in highly exposed industries. Government coordination is key to ensuring the transition takes place at the optimal pace and scale to achieve the greatest possible economic growth and job creation while mitigating climate impacts and costs to vulnerable workers.
A coordinated and rapid transition to net-zero delivers new job growth
Deloitte Economics Institute modeling shows that with rapid decarbonization and active transition policy in the coming decade, all regions globally can have higher economic growth and more jobs in the long term. More than 300 million additional jobs globally can be created by 2050 from seizing the decarbonization opportunity and making the transition work for all. Deloitte Economic Institute’s analysis demonstrates that an active transition, with the right policy support from governments, globally, means more jobs and better outcomes for workers, in comparison to a passive, uncoordinated transition to net-zero.*
The net-zero economy will create—and require—a Green Collar workforce
The transition to net-zero emissions fundamentally changes the global economy. But where there is transition, it does not mean the people, or their skills disappear. In fact, workers and their skills will be vital to creating a pathway that delivers on the promise of global net-zero to deliver job creation.