What future for green jobs in Europe?

Mary McCaughey (00:00:17:00 – 00:04:24:00): Good morning and welcome to this edition of Eurofound Talks. Today we are going to talk about green jobs, but we are going to be talking about green jobs in the context of so much else that is going on in the European agenda. We have competitiveness and the drive towards greater European competitiveness very much on the agenda. There is a push for good-quality jobs, with the roadmap and the Act underway for the end of the year. We are also looking at anti-poverty strategy, very much in the ether in discussions at European level now.

Why are all of these things interesting for green jobs, you might ask? Well indeed, this is something we will discuss today and explore further. What we want to talk about is green jobs. As part of the European Green Deal, green jobs are seen as a fundamental part of this. It is critical that we have good green jobs in their development to ensure that we reach the 2050 climate neutrality target. We see this as a major opportunity to create millions of good-quality jobs across the European Union in key sectors such as technology, clean energy, construction and the circular economy.

But we will be looking at what kind of jobs these green jobs are. It is not entirely clear how we define a green job. Are they good-quality jobs? Are they actually lower-quality jobs? Who occupies those jobs? We want to make sure that these new jobs are a fundamental part of the way we grow.

What we do should ensure greater growth, but also a just transition. The Just Transition Mechanism and the Just Transition Fund, which were set up to accompany the European Green Deal, are about supporting the most vulnerable and to ensure that sectoral and job changes do not have negative effects on regions and on those who are most disadvantaged.

We also want to look at the European Social Climate Fund, which was created to alleviate the social and economic impact from new EU emissions as part of the emissions trading system. The overall goal clearly is to create new jobs. We want green jobs and clean jobs, but they are also supposed to be good-quality jobs. How can we ensure that this is aligned with our other objectives, which are part of the European Pillar of Social Rights, where we want to ensure fair wages and decent working conditions for all, and as part of the sustainable goals, that we do not leave people behind? But is this attainable? I suppose green jobs for the future of Europe, yes, but do we need to think about them differently now that we are in this increasing drive towards greater competitiveness and productivity?

So, no small questions for our guests today, who are experts in this area. I am joined today by Jorge Cabrita, Senior Research Manager at Eurofound, who will be contributing on working conditions and green jobs, and Martina Bisello, a former colleague here at Eurofound and now with the European Environment Agency. A very big welcome to you both.

Martina Bisello (00:04:24:00 – 00:04:27:00): Thank you. It is a pleasure to be here. Thank you for inviting us.

Jorge Cabrita (00:04:27:00 – 00:04:37:00): It is great to be here.

Mary McCaughey (00:04:37:00 – 00:04:54:00): Good, so let's just get into it straight away: Martina, there has always been discussion around green jobs. What are they actually? Is it just sort of a jargon linked to the Green Deal and the jobs associated, or can you give us an idea of what these green jobs are and what they represent in the European market?

Martina Bisello (00:04:54:00 – 00:09:01:00): That is the million-dollar question, Mary, and it is a very important one. The concept and idea behind green jobs is not clearly defined, which makes it difficult to quantify them, to characterise them, to understand them better and to compare across countries or set targets. So it's really critical that we understand what these jobs are and how we measure them. There are currently three main approaches to look at green jobs.

One approach looks at sectors, on the one hand this includes economic activities that protect the environment such as protecting biodiversity or minimising pollution, and on the other hand activities that can improve our resource management in a more efficient way, such as energy efficiency measures or renewable energy production. Using this perspective, which is the one that Eurostat takes for the indicator on employment in the environmental goods and services sector, we can see that there has been growing employment in this sector in the last years. In 2022, around 6.7 million people were employed in this sector in the EU. So it's growing, but it's still margin and if we put it into perspective, compared to the overall employment in the EU, we're talking about 3.4%. But it's important to highlight it and particularly if we look a little bit closer at what types of jobs are created within this sector. It's really employment in renewable energy production, which has doubled, especially from 2021 to 2022 and the share of energy consumption, which is from coming from renewable energy in 2024 reached 25%, which was really high.

A second approach looks at green jobs from an occupational perspective, focusing on job profiles such as solar power plant operators, battery assemblers or onshore wind energy engineers. And then we can look how many of these people are employed, how many do we need? Do we have enough, yes or no? No. That's the short answer. Maybe we can come back to that later. And it's interesting because if we look at job profiles, we look at concrete jobs and the skills that are associated to that, we can better understand also the training needs for those jobs. We can look at the job tasks, the activities that these workers carry out, we can see the extent to which they are green or not green. There are there's no black and white. There are different shades and there is also a greening of the job profile. So, what is green today might not be green tomorrow.

A third perspective looks at companies that are greening their practices and business models, for example through the transition to a circular economy. Overall, this shows that green jobs are a complex concept.

Mary McCaughey (00:09:01:00 – 00:10:13:00): Those categories help explain how we define green jobs. When we look at measurement, are we able to see how important green employment is for achieving the 2050 climate neutrality goal? Are initiatives such as the Competitive Compass and the Green Industrial Deal showing a return on investment?

Martina Bisello (00:10:13:00 – 00:11:50:00): There is no doubt that green employment is an important pillar. The EU remains firmly committed to achieving the Paris Agreement goals. Some important steps have been taken, more would have been probably better, but the commitment from the European Union is still there and there's the ambition of becoming the first world climate neutral continent, and we have a legally binding headline for 2040 of a 90% emission reduction. Green employment is one of the elements that turns climate ambition into social opportunity.

However, it is also important not to focus only on green jobs, regardless of how we define them. The transition to climate neutrality brings profound and structural transformations across all sectors and production and consumption systems, with significant implications for labour markets, skills needs and employment opportunities.

Mary McCaughey (00:11:50:00 – 00:12:14:00): Of course, it's it's just one factor in the general drive towards this goal and the initiatives that are in place to try and achieve that. Turning to job quality, Jorge, Eurofound has done a lot of work in this area. From the Working Conditions Survey results, do we know whether these green jobs are good-quality jobs?

Jorge Cabrita (00:12:39:00 – 00:16:29:00): That's a very good question, Mary. Job quality refers to those characteristics of work that have a proven relationship with workers’ health and well-being. At Eurofound, job quality is assessed across seven dimensions, including earnings, working time quality, physical environment, social environment, career prospects, skills and discretion, and work intensity.

We are currently analysing job quality across sectors and value chains involved in the green transition, such as construction, manufacturing, operations and research and development. What we see is not a black-and-white situation. For example, workers in research and development tend to report higher skills use and autonomy compared to manufacturing. At the same time, many occupations necessary for the green transition, such as construction trades, tend to have lower average job quality. The objective should be to raise standards and ensure that nobody is left behind.

Mary McCaughey (00:16:37:00 – 00:17:02:00): Why is the clean technology sector so pivotal to the broader debate on green jobs?

Martina Bisello (00:17:04:00 – 00:19:22:00): The clean tech sector is central to decarbonisation. Employment in this sector has expanded considerably over the last 15 years, particularly in operations and maintenance. Manufacturing has been weaker in some technologies due to strong competition, especially from China.

There is also significant variation across Member States, with some countries leading in specific technologies. Gender disparities persist, with women representing less than a quarter of employment in the clean tech sector, reflecting broader inequalities in the labour market.

Mary McCaughey (00:19:32:00 – 00:20:23:00): When we look at labour shortages and job development, we also need to consider the gender dimension. Is the green transition benefiting women, or are inequalities being reinforced?

Jorge Cabrita (00:20:23:00 – 00:22:39:00): Most sectors affected by the green transition, such as construction, manufacturing and energy, are predominantly male, often with 70% or more male workers. STEM-related skills, which are in high demand, are also predominantly held by men.

Without proper monitoring and promotion of women’s participation, the green transition could exacerbate gender segregation and the gender pay gap. At the same time, it offers an opportunity to address these inequalities if policies are designed accordingly.

Mary McCaughey (00:22:48:00 – 00:23:24:00): Martina, you have also worked extensively on the circular economy. What impact is this having on employment?

Martina Bisello (00:23:34:00 – 00:27:39:00): The circular economy is a cornerstone of the European Green Deal. In 2023, around 4.4 million people were employed in circular economy activities in the EU, a 14% increase since 2010.

These jobs range from low-skilled waste management and recycling to high-skilled roles in product design and consultancy. While the sector offers strong growth potential, job quality, informality and vulnerability remain important concerns that need to be better understood.

Mary McCaughey (00:27:41:00 – 00:28:20:00): Jorge, how is climate change itself affecting existing jobs and working conditions?

Jorge Cabrita (00:28:33:00 – 00:32:21:00): Climate change is already affecting workers through rising temperatures, extreme weather events and pollution. Data from the Working Conditions Survey show increased exposure to high temperatures, particularly in agriculture, construction and manufacturing. These conditions increase health risks, affect productivity and also have implications for mental health. Employers need to adapt work organisation, for example through changes in working hours, more frequent breaks or relocating tasks indoors.

Mary McCaughey (00:32:37:00 – 00:33:15:00): Martina, adaptation measures also create employment opportunities. What are you seeing in this area?

Martina Bisello (00:33:29:00 – 00:36:05:00): Adaptation is essential alongside mitigation. Investments in flood defences, cooling infrastructure, ecosystem restoration and urban planning all have employment implications. These activities show that employment impacts of the green transition extend well beyond narrowly defined green jobs.

Mary McCaughey (00:36:14:00 – 00:37:12:00): Jorge, does the digital transition, including AI, risk undermining Europe’s green objectives?

Jorge Cabrita (00:37:32:00 – 00:40:53:00): Digitalisation and AI may compete with the green transition for investment, resources and skills. They can increase energy demand and resource use, but they can also support a more efficient and sustainable transition if used wisely. The outcome depends on how these technologies are governed and deployed.

Mary McCaughey (00:40:59:00 – 00:41:46:00): Finally, if you had the ear of EU leaders, what would be your key messages?

Jorge Cabrita (00:41:46:00 – 00:44:37:00): First, job quality must be a priority. Second, workers and regions affected by the transition need targeted support, including training and reskilling. Third, participation and social dialogue are essential to ensure a just and inclusive transition.

Martina Bisello (00:45:05:00 – 00:47:14:00): Investment in the green transition is not an option, it is a must. We need strong investment, social conditionalities to ensure good-quality jobs, and a broad understanding of employment opportunities linked to decarbonisation, adaptation and the circular economy.

Mary McCaughey (00:47:14:00 – 00:49:05:00): Investment in the green transition is not an option, it is a must. That is a fitting way to conclude today’s discussion. Thank you to our guests, and thank you to everyone listening.