Discussion paper

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 towards 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 labour market disruptions, new employment opportunities, and policy priorities.