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This paper presents an analytical summary of current academic and policy literature on the impact of climate change and policies to manage the transition to a carbon-neutral economy on four key domains: employment, working conditions, social dialogue and living conditions. It maps the main empirical findings around the impact of climate change and the green transition on jobs, sectors, regions and countries in Europe, identifying the opportunities and risks that climate change policies bring to European labour markets. It also develops a conceptual framework to outline the relevant drivers, relationships and outcomes of climate change and policies to ensure the transition to carbon neutrality, focusing on Eurofound’s four strategic areas.

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