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Nordic Toolbox for a Just Green Transition

Invest in inclusive reskilling and upskilling 

New jobs will emerge during the green transition while others – especially in fossil fuel- and energy-intensive industries – may be lost or undergo major transformations. The green transition therefore offers many opportunities but will likely also bring challenges for employees and communities that are more dependent on carbon-heavy industries.
Løvslett Danbolt, I. (2023). Bridging the green jobs divide: Nordic gender barriers and opportunities in the spotlight. Nord 2023:036. Copenhagen: Nordic Council of Ministers. Available at: nord2023-036 (norden.org).
 In order to involve all groups in the green transition, inclusive training and reskilling programmes are essential to provide the skills and qualifications required in a greener economy.
Li, L. (2022). Reskilling and upskilling the future-ready workforce for industry 4.0 and beyond. Information Systems Frontiers. Available at: Reskilling and Upskilling the Future-ready Workforce for Industry 4.0 and Beyond | Information Systems Frontiers (springer.com).


Key messages:

  • Offer continuous opportunities for reskilling and upskilling for all.
  • Ensure that educational programmes convey the skills and competences required by the transforming Nordic economies.
  • Ensure that educational offers are inclusive and benefit all of society, with a focus on marginalised groups.

What are the challenges?

1. Risk of job losses and social exclusion

The green transition may create new inequalities between workers possessing skills profiles that are in demand in a green economy and workers with skills and expertise that are no longer required. Reskilling and upskilling is essential, with lower-educated workers and those working in polluting industries likely requiring more intensive skills development.
Høst, J., Lauritzen, F. & Popp, S. (2020). A socially sustainable green transition in the Nordic Region. An analysis of the inequality-creating effects of the green transition and the opportunities to promote a socially sustainable green transition. Nord 2020:056. Copenhagen: Nordic Council of Ministers. Available at: A SOCIALLY SUSTAINABLE GREEN TRANSITION IN THE NORDIC REGION (norden.org).
People who are long-term unemployed or inactive, people with disabilities and immigrants are already in a disadvantaged position on the Nordic labour markets.
ILO GBDN, Fundación Once & KPMG. (2019). Making the future of work inclusive of people with disabilities. Available at: Making the future of work inclusive of persons with disabilities (disabilityhub.eu).
 Women are underrepresented in green sectors.
Sand, J. (2023). Gender perspective on green jobs in the Nordic Region. Copenhagen: Nordic Council of Ministers. Available at: nord2023-011.pdf.
 Such inequalities may increase if they are not proactively addressed through upskilling and reskilling programmes.

2. Lack of knowledge about spatial and sectoral impacts

The green transition implies large-scale investments in green industries and energy, as well as the infrastructure to support such developments. Such investments are often concentrated in areas with natural resources or the necessary human capital. Sectors in which jobs may be lost in the transition are often located in rural areas and/or around specific production plants. If new green jobs are not created in such areas, spatial inequalities in economic development opportunities may increase.
Atteridge, A. & Strambo, C. (2020). Seven principles to realize a just transition to a low-carbon economy. Stockholm: Stockholm Environment Institute. Available at: https://www.sei.org/wp-content/uploads/2020/06/seven-principles-for-a-just-transition.pdf.
While there is broad agreement that the green transition will have significant effects on the Nordic labour markets, there is a lack of knowledge about concrete impacts in specific sectors and regions. Estimates of the number of jobs which may be created, lost, changed or relocated are rarely available, making it difficult to plan ahead and adjust. There is also insufficient knowledge about the competences and skills required in a greener economy.
Council of the Nordic Trade Unions (NFS), Friedrich-Ebert-Stiftung (FES) and German Trade Union Confederation (DBG). (2021). The road towards a carbon-free society. A Nordic-German Trade Union Cooperation on Just Transition. Stockholm: Friedrich-Ebert-Stiftung. Available at: https://library.fes.de/pdf-files/bueros/stockholm/17520.pdf.

3. Lack of proactive planning for reskilling and upskilling

There is a lack of academic, vocational and on-the-job training programmes to support the labour force in gaining the skills and qualifications that are needed in a greener economy. The curricula of the relevant programmes are often insufficiently suited to the skills needs in green sectors and the adjustment of programmes to changing labour market needs is often too slow. The green transition is a long-term process and reskilling and upskilling programmes will have to be developed and refined on an ongoing basis.
International Labour Organization. (2019). Skills for a greener future: A global view based on 32 countries. Geneva: ILO. Available here: Skills for a greener future: a global view | International Labour Organization (ilo.org).
Level of education is important. The winners appear to be the most educated. It is not easy for the least educated to switch jobs.

- Labour union representative

1. Risk of job losses and social exclusion

The green transition may create new inequalities between workers possessing skills profiles that are in demand in a green economy and workers with skills and expertise that are no longer required. Reskilling and upskilling is essential, with lower-educated workers and those working in polluting industries likely requiring more intensive skills development.
Høst, J., Lauritzen, F. & Popp, S. (2020). A socially sustainable green transition in the Nordic Region. An analysis of the inequality-creating effects of the green transition and the opportunities to promote a socially sustainable green transition. Nord 2020:056. Copenhagen: Nordic Council of Ministers. Available at: A SOCIALLY SUSTAINABLE GREEN TRANSITION IN THE NORDIC REGION (norden.org).
People who are long-term unemployed or inactive, people with disabilities and immigrants are already in a disadvantaged position on the Nordic labour markets.
ILO GBDN, Fundación Once & KPMG. (2019). Making the future of work inclusive of people with disabilities. Available at: Making the future of work inclusive of persons with disabilities (disabilityhub.eu).
 Women are underrepresented in green sectors.
Sand, J. (2023). Gender perspective on green jobs in the Nordic Region. Copenhagen: Nordic Council of Ministers. Available at: nord2023-011.pdf.
 Such inequalities may increase if they are not proactively addressed through upskilling and reskilling programmes.

2. Lack of knowledge about spatial and sectoral impacts

The green transition implies large-scale investments in green industries and energy, as well as the infrastructure to support such developments. Such investments are often concentrated in areas with natural resources or the necessary human capital. Sectors in which jobs may be lost in the transition are often located in rural areas and/or around specific production plants. If new green jobs are not created in such areas, spatial inequalities in economic development opportunities may increase.
Atteridge, A. & Strambo, C. (2020). Seven principles to realize a just transition to a low-carbon economy. Stockholm: Stockholm Environment Institute. Available at: https://www.sei.org/wp-content/uploads/2020/06/seven-principles-for-a-just-transition.pdf.
While there is broad agreement that the green transition will have significant effects on the Nordic labour markets, there is a lack of knowledge about concrete impacts in specific sectors and regions. Estimates of the number of jobs which may be created, lost, change or relocated are rarely available, making it difficult to plan ahead and adjust. There is also insufficient knowledge about the competences and skills required in a greener economy.
Council of the Nordic Trade Unions (NFS), Friedrich-Ebert-Stiftung (FES) and German Trade Union Confederation (DBG). (2021). The road towards a carbon-free society. A Nordic-German Trade Union Cooperation on Just Transition. Stockholm: Friedrich-Ebert-Stiftung. Available at: https://library.fes.de/pdf-files/bueros/stockholm/17520.pdf.

3. Lack of proactive planning for reskilling and upskilling

There is a lack of academic, vocational and on-the-job training programmes to support the labour force in gaining the skills and qualifications that are needed in a greener economy. The curricula of the relevant programmes are often insufficiently suited to the skills needs in green sectors and the adjustment of the programmes to changing labour market needs is too slow. The green transition is a long-term process and reskilling and upskilling programmes will have to be developed and refined on an ongoing basis.
International Labour Organization. (2019). Skills for a greener future: A global view based on 32 countries. Geneva: ILO. Available here: Skills for a greener future: a global view | International Labour Organization (ilo.org).
Level of education is important. The winners appear to be the most educated. It is not easy for the least educated to switch jobs.

- Labour union representative

What can policymakers do?

1: Increase knowledge about labour market impacts and skills needs in a green economy

Nordic governments should aim to increase knowledge about how the green transition impacts the Nordic labour markets by supporting analyses and forecasts on employment impacts at regional and sectoral level. Policymakers should also support research on changing skills requirements and how those relate to the existing skills of the labour forces in the Nordic countries. That should include a focus on gaps and mismatches at regional level and in sectors of the economy that are of particular importance in the green economy. Since the green transition is a gradual process that will take place over many years, regular research updates will likely be required.
Løvslett Danbolt, I. (2023). Bridging the green jobs divide: Nordic gender barriers and opportunities in the spotlight. Nord 2023:036. Copenhagen: Nordic Council of Ministers. Available at: nord2023-036 (norden.org).

2: Invest in inclusive education, reskilling and upskilling

Developing and maintaining upskilling and reskilling programmes during the green transition requires a strong and stable commitment from the Nordic governments, including the necessary financial resources. Educational programmes can form part of formal vocational education and training programmes (VET) but may also include on-the-job training or short module-based courses. Training programmes should be regularly evaluated and updated to ensure that they correspond to changing skills demands and are effective.
Erola, J., Mills, M. & Solga, H. (2023). Beyond education and training – How can we adapt to future needs of local labour markets? Population and Policy Brief no. 42. Berlin: Population Europe. Available at: pb_no.42_web-02_20.11.pdf (population-europe.eu); International Labour Organization & OECD. (2022). Promoting a just and inclusive green transition. Joint ILO-OECD background paper prepared for the German G7 presidency. Available at: https://www.ilo.org/media/368196/download.
To ensure a just green transition, it is important that programmes are inclusive and accessible for all. They should specifically target groups on the Nordic labour markets that face barriers to employment, such as people with disabilities, migrants, low-skilled employees and people with weak labour market attachment.
Løvslett Danbolt, I. (2023). Bridging the green jobs divide: Nordic gender barriers and opportunities in the spotlight. Nord 2023:036. Copenhagen: Nordic Council of Ministers. Available at: nord2023-036 (norden.org); Atteridge, A. & Strambo, C. (2020). Seven principles to realize a just transition to a low-carbon economy. Stockholm: Stockholm Environment Institute. Available at: seven-principles-for-a-just-transition.pdf (sei.org).
 Gender equality also needs to be promoted, for example via scholarships, mentoring schemes or support services, as women are often underrepresented in green technological or scientific jobs.
European Commission. (2023). Employment and social developments in Europe. Addressing labour shortages and skills gaps in the EU. Brussels: European Commission. Available at: Employment and social developments in Europe 2023 - Publications Office of the EU (europa.eu).
 Participants may need financial support while they undergo education or training. 
To involve younger generations, education about the green transition, climate issues and sustainability should be included in school curricula. That can help young people increase their opportunities on the transforming Nordic labour markets, as well as challenge gender stereotypes with respect to subject choices.
European Commission. (2023). Employment and social developments in Europe. Addressing labour shortages and skills gaps in the EU. Brussels: European Commission. Available at: Employment and social developments in Europe 2023 - Publications Office of the EU (europa.eu).
Invest in sustainable education and skills development programmes to equip young people with the knowledge and expertise needed for green jobs and eco-friendly practices, to reduce the risk of job displacement.

- Youth representative

3: Involve labour market stakeholders

To build on the strong involvement of the social partners under the Nordic model for the labour market, the development of upskilling and reskilling programmes should be designed collaboratively by public agencies, labour unions and industry organisations. Civil society organisations representing marginalised groups, business sector representatives and education and training providers should also be involved. Broad collaboration is key to ensure that training courses convey the skills and competences that are required by green industries. Ideally, the programmes offered should also be aligned with regional and local contexts so that training content can reflect specific territorial labour market needs.
Sánchez Gassen, N. & Ström Hildestrand, Å. (2022). Combatting long-term unemployment among immigrants beyond the Covid-19 pandemic. Nord 2022:021. Copenhagen: Nordic Council of Ministers. Available at: https://pub.norden.org/nord2022-021/#.

4: Strengthen the welfare safety net

Offering skills development is one approach to supporting unemployed workers and employees during the green transition as it increases their chances of accessing emerging green jobs. Nonetheless, additional support is likely required, such as individual job placement support, relocation assistance and counselling. Nordic policymakers could also map skill sets of job seekers and match them to labour needs in emerging green sectors to support re-employment.
Thazin Aung, M. & Strambo, C. (2020). Distributional impacts of mining transitions: Learning from the past. Stockholm: Stockholm Environment Institute. Available at: distributional-impacts-of-mining-transitions-1.pdf (sei.org).
 For unemployed workers who are close to retirement age, early retirement allowances may be an option, while unemployment benefits and wage insurance are needed for younger workers as they transition between jobs. Such measures should, however, not be so generous that they disincentivise employees from seeking new employment.
OECD. (2022). Equitable framework and finance for extractive-based countries in transition (EFFECT). OECD Development Policy Tools. Paris: OECD Publishing. Available at: https://www.oecd-ilibrary.org/development/equitable-framework-and-finance-for-extractive-based-countries-in-transition-effect_7871c0ad-en.
I think a strong welfare system is an important element of the green transition. We are still moving in the wrong direction with the welfare system, which needs to change in order for people to be more secure during the transition.

- Labour union representative

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Nordregio I www.nordregio.org/publications