A Fair Net-Zero Transition

Ambitious net-zero targets to reduce greenhouse gas emissions and mitigate climate disruptions will have limited effects on the total number of jobs, but major reallocations are expected across certain sectors, occupations and regions. Most OECD countries already have a range of instruments for managing structural adjustments and in some countries trade unions and employers’ organisations have a long-standing experience in anticipating structural change. However, some instruments may need to be adapted – e.g. in terms of targeting and resources and new ones may be needed, for example to make low-skilled green jobs more attractive, or to address the strong regional disparities in the effects of the transition. This policy brief builds on the work done for the OECD Employment Outlook 2024 and outlines the set of policies needed to address the labour and social challenges related to the transition to net zero.