ABSTRACT
The transition to a net-zero economy requires decarbonisation and technological change, which will profoundly reshape employment. While the green transformation is expected to generate new jobs, it also risks exacerbating existing inequalities and displacing workers, particularly in carbon-intensive sectors. Manufacturing, in particular, is under increasing competitive pressure, highlighting the European Union's (EU's) weak position in global value chains. Projections of net employment gains often overlook external trade, industrial policy, and global competition. The concept of ‘green jobs’ encompasses newly emerging roles, redefined skillsets, and increased demand in sustainability-related occupations. To ensure a just transition, policies must go beyond labour market measures to include targeted industrial strategies, social protection, and large-scale investments. Based on a literature review, publicly available data and three case studies, this chapter argues that instead of decarbonisation itself, the greater risk for jobs is when decarbonisation strategies fail to exploit the full employment potential of an emerging green economy. A differentiated policy approach is essential to manage diverse regional and sectoral impacts and to unlock the employment potential of green industrialisation.
