Manage the impact of the transition on jobs and businesses and train workers for a lower-carbon economy

Because many assets in the real economy last for decades, the financing decisions of the past can lock in carbon emissions well into the future. “Committed” emissions from existing fossil-fuel-based assets in the power, industrial, and transport sectors are already incompatible with a 1.5C trajectory. Consequently, some carbon-intensive assets will likely need to be retired early, requiring a transformation of the corporations, utilities, and communities that have historically relied on their operation. Thus, policymakers and civil society organizations will need to implement initiatives that manage the impact of the transition on jobs and businesses.

As new technologies emerge fast, all nations around the globe will also need to train workers for the low-carbon economy. This is fundamental to ensure that new technologies can be implemented quickly and safely. Over the coming years, policymakers and civil society will need to prepare younger professionals and reskill workers from high-emitting sectors to install and operate green technologies. See Pillar 4 for more on ensuring a just transition.