Does climate action destroy jobs? An assessment of the employment implications of the 2‐degree goal

Abstract

The Paris Agreement lays out the objective of keeping global warming below 2 °C. The goal can be achieved by increasing both the share of renewables in the energy mix and energy efficiency. Such action entails a transformation of the energy sector, which, given its linkages with the rest of the economy, will have a knock‐on effect on other sectors. Using scenarios based on a multiregional input–output database, this article explores the economy‐wide and worldwide employment impact of such a transition. Findings suggest that by 2030 most economies will experience net job creation and reallocation across industries. Job creation is driven by the construction, manufacturing and renewables sectors.