Support to improve the effectiveness of development assistance in 'green jobs and skills'

The challenge

Environment and labour markets are inextricably intertwined, with over 1.2 billion jobs reliant directly on the effective management and sustainability of environment and related economic activities and their ecosystems. According to an ILO estimate, reaching the objective of limiting global warming to 2°C over preindustrial levels might result in more employment than a business-as-usual scenario. Activities targeted at modifying energy production and consumption alone, such as a move towards renewable energy sources and higher efficiency, the adoption of electric cars, and construction works with the goal of attaining greater energy efficiency in buildings, might result in the net creation of around 18 million jobs by the year 2030 - approximately 24 million new jobs produced in certain sectors while eliminating approximately 6 million jobs in other sectors. These emerging green sectors offer an opportunity to address the many pre-existing employment challenges faced by women in the labour market through relevant training, entrepreneurship opportunities and in both entry level and high skills positions.

Recent policy debates have focused on promoting a just transition to a green economy for women and men which will involve a new set of approaches and policy options to generate optimal environmental and social outcomes — including opportunities for decent work and the acquisition of respective skills — while minimizing and addressing the social impacts that arise from the transformation.

Better measurement and data on green jobs and skills is required to inform the design and implementation of evidence-based skills and employment programmes and policies and to adequately monitor and evaluate the progress towards the greening of economies with a just transition. However, the effectiveness of development financing and cooperation on green jobs and skills is hampered by lack of harmonization on definition, tracking and M&E approaches.

Commitment of the G7 in 2022

Under Germany’s presidency, G7 development ministers committed to target development cooperation further towards the creation of green jobs and green skills promotion by 2025, as a contribution to a swift and just transition to an inclusive green global economy, and in the joint effort towards achieving an equitable green recovery and strengthening global resilience against climate risks. Moreover, together with labour and employment ministers they launched an initiative to develop statistical measurement criteria for green jobs and skills for a green transition and a harmonized approach to M&E of G7 respective Programmes’ impacts by 2030.

Relevant extract from Development Ministers’ communique :

"By 2025, we will increase the share of our ODA employment and skills promotion programmes that is directed specifically towards green sectors and greening traditional sectors, in alignment with our emerging and developing partner countries’ strategies and subject to our budgetary processes.

We further welcome the initiative of developing criteria for employment-oriented private sector and skills development that are contributing to a green economy as well as a harmonized, lean approach for the monitoring and evaluation of our respective programmes’ impacts by 2030. To realize this aim, we look forward to cooperating with G7 Employment Ministers, social partners, and key international organisations.

Specifically, we ask ILO and OECD to support this process, taking into account existing definitions and frameworks in coordination with relevant stakeholders."

Project strategy

The overall objective is to increase the effectiveness, and ultimately the impact, of G7 countries’ official development assistance in the areas of just transition, green jobs and skills for a green transition, by promoting cooperation on gender responsive measurement, monitoring and evaluating skills and employment outcomes.

The overall objective will be achieved through

1. Development of a lean green jobs and skills M&E framework
2. Piloting the green jobs and skills M&E framework and development of a guidance M&E handbook focused on green jobs and skills
3. Increased cooperation amongst G7 and development partners on green jobs and skills promotion (and potentially measurement)

While there exists an international statistical standard definition of green jobs which was adopted by the 19th International Conference of Labour Statisticians in 2013, there currently exists a lack of guidance on how development programmes measure green jobs and skills at the programme level, including gender responsive frameworks. Some G7 countries are currently measuring job-related impacts of implemented programmes based on existing frameworks, but it is unclear to what extent this applies to green jobs and skills. This becomes increasingly important as G7 countries commit to increasing the share of ODA in employment and skills promotion programmes dedicated to green jobs and skills by 2025.

Developing guidance and an appropriate harmonized, flexible and straightforward framework will require expertise from the ILO which needs to be accompanied by efforts to share and collaborate amongst G7 countries and their development partners to ensure the guidance is understood and useful to their development M&E strategies.