A Review of “Transition Management” Strategies: Lessons for Advancing the Green Low-carbon Transition

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April 2019
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Organisation for Economic Co-operation and Development (OECD)

The paper discusses the implications of the low-carbon transition for workers and the relevant lessons-learnt in previous industrial restructuring experiences. The evidence suggests that, while climate policies are likely to have a modest impact on aggregate employment, workers in certain regions and industries can be more severely affected. The transition may also have gender-differentiated impacts: men represent the largest share of the workforce of most negatively affected industries (e.g. coal-mining) while the growth of the renewable power generation sector, which exhibits a relatively more gender-balanced workforce, suggests that female employment may increase in the traditionally male-dominated energy sector. Lessons from the case-studies underline that a suite of polices is necessary to manage the structural adjustment process, including structural reforms and skills policies. Importantly, the low-carbon transition differentiates itself from previous restructuring experiences because of its policy-driven nature and the possibility to finance structural adjustment measures through carbon-pricing revenues.