Future of manufacturing in Europe

Energy scenario: Employment implications of the Paris Climate Agreement

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This report explores the potential employment and economic impacts of an EU transition to a low-carbon economy by 2030 – on the EU, and on other regions of the world. It analyses the impacts across sectors and occupations, with a particular focus on manufacturing.

The report highlights that the impact of such a transition is positive for the EU as a whole, although with considerable variation between sectors. The positive impact on employment is largely due to the investment required to achieve this transition, along with the impact of lower spending on imported fossil fuels. The consequent shift in production has implications for labour market demand. 

The analysis is carried out using the E3ME macro-econometric model, which provides information on sectoral impacts, together with the Warwick Labour Market Extension model for occupational analysis. Further analysis of the employment developments in Europe is undertaken using Eurofound’s European Jobs Monitor.

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