Fit for 55 Climate Package: Impact on EU Employment by 2030 (an Eurofound Report)

"Fit for 55" is a policy package adopted in 2021 by EU policymakers that contains critical objectives to achieve a 55 per cent reduction in greenhouse gas emissions by 2030.
On 25 October 2023, Eurofound released a new report that forecasts how the “Fit for 55” policy package may affect employment in the EU by 2030.
According to the report, employment gains will vary widely among countries and regions depending on their reliance on carbon-intensive industries and their ability to exploit greening opportunities.

The Eurofound study examines the impacts of cleaner and cheaper energy and reduced dependence on external sources of supply on employment and production in the short and medium-term up to 2030.

The Report stresses that anticipating the impact of the development of EU climate policy on employment in EU labour markets provides essential data for policymakers, that has the critical role to ensure a green and just transition.

The Report underscores the importance of assessing the impact of the EU's climate policy development on employment within EU labor markets and provides crucial data on the issue.

According to the Report, some 204,000 jobs are expected to be created as a result in the EU Member States and that employment will grow by 6.7 million net new jobs between 2019 and 2030.

Geographically, the adverse effects on employment are more likely to happen in some central and eastern European countries, characterised by high employment in the mining and quarrying sectors. In contrast, Spain, Italy, and southern Europe, in general, should enjoy the positive effects on employment, also because of the natural configuration of these countries, which are more predisposed to producing renewable energy (solar and wind).

At a sectoral level, the construction sector is likely to benefit most in terms of employment due to the foreseeable improvement in renewable energy production capacity, followed by the service sector.

The Report also emphasises the importance of implementing policies, such as climate-friendly tax policies, reducing labour taxes, and investing in the green transition, with potential gains in both production and employment.

Here is a link to a previous Eurofound research paper, published last April, on the impact of climate change and policies to manage the transition to a carbon-neutral economy on employment, working conditions, social dialogue, and living conditions.