GIZ Discussion Paper · 2022

Skills for a Just Transition to a Green Future

Seven theses on how vocational education and training systems must change for the transition to a green economy — and how development cooperation can support partner countries

Abstract

The transition to an environmentally sustainable, low-carbon economy is reshaping labour markets worldwide: new jobs emerge, others are phased out, and skill requirements shift across occupations. This discussion paper, co-authored by indeson founder Dr Rainer Gerke, examines the role technical and vocational education and training (TVET) can and should play in making that transition just — and how development cooperation can support partner countries in the process. Drawing on a review of recent literature and interviews with technical cooperation projects, it formulates seven theses and recommendations for the design of development cooperation interventions related to green skills.

Why this research matters

Green economies need green skills — yet in many partner countries of development cooperation, TVET systems are not prepared to supply them. Where environmental agendas and skills policies are developed in isolation from each other, the workforce arrives too late, or not at all, in the sectors the transition depends on: renewable energy, energy efficiency, sustainable construction, waste management and circular value chains. The paper's central concern is that a transition can only be just if the people affected by structural change — including workers in the informal economy — are equipped to participate in it.

Scope and method

The study is the opening paper of a five-part GIZ series on greening TVET. It synthesises a review of current academic and policy literature with interviews conducted across GIZ technical cooperation projects and thematic discussions with development cooperation and economic experts. The concluding part of the paper translates the analysis into guidance for intervention design, outlining four project types for green-skills development cooperation.

The questions the paper addresses

  • 1
    How is employment changing in formal and informal labour markets in developing countries, and how must TVET systems be designed to meet the demands of a green economy?
  • 2
    How can it be ensured that the transition to a green economy is just and includes vulnerable groups?
  • 3
    What can be learned from the adaptation of TVET systems in industrialised, emerging and developing countries for development cooperation interventions?
  • 4
    What role do the wider institutional context, regulations and private-sector frameworks in emerging green sectors play in strengthening TVET systems?

The seven theses

The theses are thematically clustered: the first three address the political and economic framework a successful transition depends on; theses four to seven explore the role and design of TVET systems within it.

Thesis 1
A successful Just Transition requires a coherent alignment of green agendas and skills development policies

Educational and TVET systems must be systematically oriented towards sustainability — which only succeeds when sustainability is incorporated into a country's development strategies and all policy areas including TVET, and, conversely, TVET is integrated into environmental and sustainability policies. Developing countries often lack the required structures, but can be supported through strengthened governance and coordination mechanisms.

Thesis 2
The private sector needs incentives, sanctions and support to develop a demand for Green Skills

In many countries market incentives are insufficient for companies to demand green skills: environmental investment rarely pays off in the short term, and regulations are often weakly enforced. The employment gains of a skilled workforce will not materialise unless the private sector is comprehensively incentivised and supported to create green jobs — so interventions in sectors with green potential should address both the regulatory and the incentive systems.

Thesis 3
A Just Transition cannot be successful without the integration of the informal economy in green, economic and TVET policies

Given the weight of the informal economy in many developing countries, transition processes must give it appropriate attention — both to reduce environmentally harmful informal activities and, in the spirit of Leave No One Behind, to open modernised TVET systems to marginalised people working informally.

Thesis 4
TVET is crucial to prepare the labour force for a Just Transition but TVET systems need to be strengthened and aligned with comprehensive social protection measures

The shift to a low-carbon economy brings structural, sometimes disruptive labour-market change. TVET systems and labour-market policies can prepare for it in time if they react flexibly to changing skill requirements, transmit solid occupational and transferable core skills, cover initial training as well as re- and upskilling, include women equally, and are aligned with active labour-market policy.

Thesis 5
Just Transition requires holistic TVET reforms, in line with Education for Sustainable Development, to ensure relevance, attractiveness and inclusivity

Many TVET systems are currently too weak to support a just transition: governance mechanisms are missing, financing is thin, skilled teachers are scarce, and links to other education pathways are absent. Broad, well-coordinated reforms are needed — aligned with sustainability and digitalisation policies, using multilevel governance, interlinked with other forms of education, and complemented by mainstreaming Education for Sustainable Development and green-skills training for TVET personnel.

Thesis 6
Just Transition increases the need for labour market forecasting to match emerging skill demands

Higher workforce mobility, shorter innovation cycles, digitalisation and greening make future skill needs increasingly dynamic. Anticipation mechanisms can build on national labour-market information systems where these work — sectoral or locally based forecasting is sometimes the more efficient alternative. Private-sector engagement and close linkage between forecasting and TVET systems are indispensable for translating findings into modernised, greener occupational profiles and curricula.

Thesis 7
The emerging skill demand in a Green Economy will require TVET to rapidly adapt existing occupational profiles and develop new ones

TVET systems are often slow to respond to changing skill demand. Policy makers and practitioners must balance sufficiently rapid responses to market needs against anchoring modernised or new green qualifications in qualification frameworks. Rapid-response approaches include supporting in-company training programmes, non-formal trainings, and certified modules that can later be added to existing occupational profiles — guided by the relevance of occupational fields to greening, demand for green skills, and analysis of industry practice.

Cite this work

Bauereis, L.; Denker, A.; Gerke, R.; Horn, S.; Lange, R.; Rinelli, F.; Langthaler, M. (2022): Skills for a Just Transition to a Green Future. Discussion Paper. Bonn: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

Cover of the GIZ discussion paper Skills for a Just Transition to a Green Future
Publication details
Authors
Lukas Bauereis, Astrid Denker, Dr Rainer Gerke, Dr Steffen Horn, Ralf Lange, Frauke Rinelli (FAKT Consult); Dr Margarita Langthaler (Österreichische Forschungsstiftung für Internationale Entwicklung)
Published by
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH — Sector Project Technical and Vocational Education and Training (TVET)
Place and date
Bonn, October 2022
Series
Part of a five-part study series: this discussion paper, three sectoral studies (TVET for Renewable Energies, TVET for Sustainable Construction, TVET for Sustainable Mobility) and a vision paper
Note
The paper serves as input for interdisciplinary expert discussions and does not represent positions of the German Federal Ministry for Economic Cooperation and Development (BMZ)
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