Business Leaders Are Overwhelmingly Positive About the Green Transition, but More Needs to Be Done to Implement Green Skills Programmes

Most business leaders believe that responsibility for driving the green transition rests with the private sector rather than policymakers, with the vast majority anticipating more opportunities than challenges. However, rapid progress to a lower carbon economy is under threat from the failure of companies to develop and source sufficient green skills, according to the Green Skills Outlook – new research from Economist Impact, supported by Avangrid’s parent company and Europe’s largest electricity company, Iberdrola.

The research explores the impact of the green transition on global labour markets and is based on a scoping literature review and data audit, a global survey of 1,000 business leaders, sector-specific workshops, and the convening of an advisory board of subject-matter experts. It looks at nine countries and four sectors of the economy playing a central role in the green transition, including IT and Technology, Construction and Infrastructure, Transport and Logistics and Energy and Utilities.

Despite an overwhelming majority (79%) of business leaders agreeing that skills will be the most important driver of the green transition, just 55% are implementing or planning to implement relevant programmes to create these for their workforce.

This leaves a large proportion of the workforce without training in the skills necessary for a greener economy, and risks obstructing progress on the green transition, at a time when it is gaining urgency in order to tackle the climate crisis and enhance energy security.

Accordingly, the Green Skills Outlook found that 62% of global business leaders say shortages in green skills will create bottlenecks that will delay the green transition.

Green transition will have net-positive impact on job creation

As greener industries gain prominence, the Green Skills Outlook shows that business leaders are overwhelmingly optimistic about the green transition, with 79% saying it presents more opportunities than challenges for their organisation.

European business leaders, albeit generally optimistic, show a slightly more cautious stance. Smaller majorities of survey respondents in the UK (68%), Germany (72%), France (74%), and Spain (75%) were confident that opportunities will surpass challenges compared to near unanimity (94%) in Brazil and China (94%).

However, the green transition is expected to have a net-positive impact on job creation, with particular benefits seen in clean energy, electrification, energy efficiency and research and development.