DG Energy in a recent report investigated various economic outcomes coming from the global decarbonisation efforts of reducing CO2 emissions.  One of the key purposes of this investigation has been to assess the potential impacts on employment and skills. In doing so, DG Energy has built on Cedefop Skills Forecast framework in order to assess how two alternative futures of decarbonisation can influence the demand for skills and jobs comparing the results of this exercise to Cedefop Skills Forecast baseline scenario.

From a sectoral perspective, the report suggests a decline in fossil-fuel dependent sectors towards those related to electrification, renewable energy sources and energy efficiency installation and equipment. This tendency highlights the challenge of replacing the lost jobs and the need to retrain workers as relevant industries are typically geographically concentrated. With regards to level of skills, a move towards higher-level occupations and qualifications is expected. This shift may stretch the demand for high-skill occupations to levels that the supply may not be able to keep pace with. Finally, the impact of stronger decarbonisation may be felt more in specific “greening” occupations for which new competences will be needed. A summary of Cedefop baseline results can be found here.