Measuring green jobs in the context of a just transition

The STRENGTHEN2 project and the G7 Green Jobs and Skills Initiative, run by the ILO’s Employment Policy, Job Creation and Livelihoods department, jointly hosted an online workshop to explore the role of Development Finance Institutions (DFIs) in driving a green and just transition. The event, held on December 4, 2024, attracted around 60 representatives from institutions engaged in financing the green and energy transition, including development partner agencies, multilateral and bilateral development banks, national DFIs, as well as the European Commission. This workshop was the fifth in a series of events hosted by the ILO to exchange on best practices and improve methodologies for measuring the employment impacts of financial institutions.

The main objective of the workshop was to improve the understanding of how to measure the impact of investments on job creation and skill development within the framework of a green and just transition. Discussions revolved around key themes central to fostering a sustainable and inclusive economic transition, such as advancing green economic transformations and their related employment opportunities, refining the understanding and definitions of green jobs and just transitions, and examining financing mechanisms to support job creation and environmental goals.

The event opened with remarks by Sangheon Lee, Director of the Employment Policy Department at the ILO, who set the stage by highlighting the importance of ensuring that investments in the green transition yield maximum benefits for environmental sustainability, social inclusion, and job creation.

In the first session, experts from various financial institutions shared insights into their perspectives on investing in the green economy and just transition. Presentations by representatives from the KfW Development Bank, the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the European Investment Bank demonstrated their respective definitions and modelling approaches related to green investments and how a just transition informs their strategies.

The second session of the workshop explored specific modelling methodologies and approaches to measuring green jobs applied by participating DFIs. This session included presentations on the approach to measuring job impacts from greening by Ulrike Lehr (World Bank), the ILO’s Just Transition Jobs Model presented by Marek Harsdorff (ILO), and the Joint Impact Model’s approach to modelling green occupations by Alex MaxGillivray and Richard Horne.

In addition to methodological discussions, the third session focused on the application of impact measurement methodologies in the operations of DFIs. These included insights from Oliver Azuara (Inter-American Development Bank) on regional green initiatives in the Latin American context, Jan Imhof (International Finance Corporation) on measurable impacts in green financing, and Jean-Paul Heerschap (European Commission) on incorporating employment metrics into policymaking and operations.

The workshop emphasized the importance of robust methodologies, clear metrics, and collaboration to assess the employment impacts of green investments. Key insights included the need for skills training, social protection, and accurate green job definitions to ensure a just transition. Discussions reinforced aligning strategies to maximize social and economic benefits while advancing a sustainable and inclusive green economy.