Job creation potential in the environmental sector

Green growth is an imperative because, with raw materials increasingly in short supply, the traditional throw-away consumer society is no longer viable. The green, or circular, economy is also a major driver of new jobs.

ACT

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Green Employment Initiative: Tapping into the job creation potential of the green economy (COM(2014) 446 final of 2.7.2014).

SUMMARY

WHAT DOES THIS COMMUNICATION DO?

The communication sets out how labour market skills and policies can be developed and encouraged to support employment and create jobs as the green economy becomes a wider reality.

KEY POINTS

The communication recommends that EU activity encouraging the move towards a green and resource-efficient economy should focus on four areas.

• Bridge the skills gap. This will require measures (at both EU and national levels) to encourage the development of a skilled workforce able to meet rising demand from expanding eco-industries. Better forecasting is needed to identify those future demands.
• Anticipate change. Periods of great economic change can be better negotiated if clearly analysed in advance and managed efficiently and sensitively (i.e. closer cooperation between management and workers). Specific guidelines are necessary for sectors where change will be greatest and obstacles preventing workers from moving to new jobs elsewhere are removed.
• Support job creation. Finance from the various EU social, regional, agricultural, environmental and other funds could be used to promote sustainable growth and job creation. The communication recommends a move towards environmental taxation (i.e. taxing those who pollute) and away from taxes on labour.
• Improve data quality. Widely agreed definitions of green economy*, green growth* and green jobs* will provide a clearer picture of the changes taking place and will also provide policymakers with firmer evidence for future decisions.

KEY TERMS

Green economy: an economy that seeks to promote economic growth, environmental sustainability and social inclusion.

Green growth: the ecologically compatible use of resources and economic efficiency.

Green job: any job that contributes to preserving or restoring the quality of the environment whether it be in agriculture, industry, services or administration.

BACKGROUND

Growing resource scarcity and rising energy and raw material prices make the move towards a green economy inevitable. By embracing the change, Europe will be globally more competitive, will create sustainable and high quality jobs and will secure the well-being of future generations. Despite the economic and financial crisis, employment in environmental goods and services in the EU increased from 3 million in 2002 to 4.2 million in 2011.

For further information, see the European Commission’s website on the green economy.

last update 08.12.2014