Exploring the Employment Implications of the Green Transition

Elizabeth N. Ruppert Bulmer, Luc Christiaensen, Thomas Farole and Ulrike Lehr

No 208638, The Social Policy and Labor Discussion Paper Series from The World Bank

Abstract: Climate change and environmental degradation are accelerating globally, with low-income countries facing especially severe impacts and having limited resources to adapt or invest in mitigation. The global shift toward a sustainable, carbon-neutral development path -referred to as the green transition presents significant opportunities for productivity gains, diversification, and job creation, as well as substantial adjustment costs for firms, workers, and governments. This paper examines how the green transition affects economies and jobs through multiple channels and identifies emerging risks, potential labor market disruptions, new employment opportunities, and policy priorities.

Date: 2026-03-01
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