Changing skills landscape in the face the twin digital and green transition: fostering resilience and new skillsets in a rapidly evolving world - a deep-dive
The digital revolution and the green transition are reshaping the world of work. Automation and data analysis are key skills in the digital age, while the green transition demands expertise in renewable energy and sustainable practices. This rapid change necessitates a focus on lifelong learning and resilience. Individuals and organisations must adapt by fostering digital literacy, problem-solving skills, and a commitment to continuous learning. Governments and businesses can support this transition through reskilling initiatives, promoting STEM education, and fostering diversity and inclusion in the workforce. By embracing change and investing in skills development, we can ensure a future where technology and sustainability go together with a successful and adaptable workforce.
Digital-green twin transition & fostering resilience in a changing skills landscape
The world is undergoing a period of unprecedented transformation driven by two powerful forces: the digital revolution and the green transition. These forces are reshaping economies, industries, and the very nature of work. The skills that were once valued are rapidly becoming outdated, replaced by new demands in automation, data analysis, and sustainability practices. This dynamic landscape has a unique challenge: fostering resilience and adaptability in the workforce.
Countries, international organisations, and companies across sectors have seen the challenges from the transition - and are suggesting specific guidelines to prepare for it. In particular, the European Union and the United States are leading in the effort to inform their citizens about the fragile skills landscape and the changes it undergoes as a result of the digital revolution and green transition. This includes taking active steps to propose future-proof solutions – launching detailed policy actions, making strategic investments, and opening up dissemination channels improving outreach. In Europe, the Digital Education Action Plan (European Commission, 2020) and the European Skills Agenda (European Commission, 2020) are spearheading the twin digital and green transition, ensuring education systems are fit for the digital age, and making sure citizens and workers can access a plethora of training and skill-building initiatives.
Tapping into the potential of a sustainable, digital economy: key skillsets
The philosophy of these programs is embedded in ambitions to facilitate the provision and quality of digital learning, promote lifelong learning for all and ultimately, to ensure everyone has direct access to education and training opportunities. All these programs and in co-existence to the effort to support the green transition. The green transition is, in-parallel to digital, is made possible through the EU's Green Deal (European Commission, 2019) that emphasizes the shortage of workers with so called ‘green skills’ all over Europe, and the need to train and upskill employees to address this. Indeed, one major element within the EU Green Deal is sustainability and it is recommended for EU Member States to integrate it within their respective education and training programs at large. Moreover, the EU's Recovery and Resilience Facility (European Commission, 2020) mechanism was created to streamline significant financial assistance to help countries emerge faster in a post-pandemic continent, and advance when it comes to the development of digital and green skills training structures. Two skillsets, or qualities, are thought of as most likely to support a sustainable adaptation of workers’ skills and their ability to respond to rapid technological changes and new environmental challenges – resilience and adaptability. With regards to getting to a prepared EU-wide workforce of employees with the right skills to succeed in the digital economy in an environmentally sustainable way, both funding and policy have made the right steps.
‘This game is rigged’ – throwing AI and automation in the mix
We are living within the digital revolution: and it is really difficult for the people to adapt – think of how our cell phones know more about us than even we do sometimes, or the way a robotic vacuum cleaner makes our homes and offices spotless. The digital transition has fundamentally altered how we work, communicate and access information – and indeed the past seems somewhat far away now. Automation is everywhere, fast transforming routine tasks across industries, while AI makes it possible to perform complex decision-making processes in little to no time. With all this in mind, while these advancements offer a myriad of benefits in efficiency and productivity in virtually all production sectors, they also risk to trigger job loss or displacement and therefore require workers to continuously adapt to new technologies during all their work life. The skills gap, unequal access to education and training, resistance to change, high cost of transition, and lack of standardisation are just some of the challenges that stakeholders and those active in the field need to overcome.
New skillsets, new world(s)
The skills gap that is created by digitalisation brings the need for people’s skillsets to shift towards digital literacy, problem-solving and critical thinking, and data analysis and interpretation to the very surface. These skills are a ‘must-have’ if one wants to be able to use technology effectively in their workplace – think of skills like basic computer literacy, the ability to work with online communication tools, and an understanding of data security.
Now let’s go back to the example with the robot vacuum cleaner: automation will certainly replace the routine and boring tasks from the job, such as the actual vacuuming and wiping of surfaces, but human skills remain essential to detect and troubleshoot problems, or remove obstacles that may pose challenges to the robot.
Data is central to the decision-making process here, and there is tons of it, so the ability to correctly collect, analyse, and interpret data is of high value at the moment. At the same time, it is unlikely that AI will remain in the same corner as it is today in 5, 10, or 20 years. Any next advance is essentially pushing the bar of competence even higher – so much that 50 years from now, the world will likely look very different from what it does today.
A hitchhiker’s guide to a changing climate
Climate change is in our house and environmental degradation pushes for a global shift towards a sustainable future. For this "green transition" to succeed, new skills are necessary and so is the know-how for industries to adapt and operate more sustainably. Examples include, amongst others, the renewable energy technologies (Panwar, 2011), the circular economy principles (Kirchherr, 2017) and the green building practices (Kibert, 2022). To be more specific, as the world switches towards clean energy sources, workers/engineers will need theoretical and technical expertise in solar, wind, and geothermal energy systems. Workers’ skills will be altered in all production sectors, i.e. the designing products for reusability and resource efficiency requires knowledge of life-cycle assessment and sustainable materials management, also the construction industry must adapt to low-carbon construction methods and energy-efficient building design. These are only a few examples of workers’ skills transition but in fact every sector will be affected.
The rapid frequency of skills change is a significant challenge for workers. To adapt and succeed in this dynamic environment, individuals and organizations need to foster their resilience. Most well recognised key strategies to build resilience include lifelong learning, promoting innovation and creativity, building soft skills, and importantly, promoting mental wellbeing. A dedication to continuous learning is essential for skills transition. Online courses, certifications, and skill development programs are some of the existing mechanisms individuals can access to equip themselves with new skills and knowledge. If we make encouraging innovation and fostering creative problem-solving priorities on both EU and national level, we can support the people and workforce of Europe to adapt to the changes brought about by advancements in technology coupled with market demands. But that’s not all. Communication, collaboration, critical thinking, and adaptability are some soft skills of vital importance that will undoubtedly remain relevant regardless of the pace of technological advancements. Finally, it is paramount that all stakeholders recognise that change of this magnitude is adding further layers of stress – and therefore invest in promoting mental health resources as part of workers’ compensation package, and make steps towards fostering a culture of empathy, teamwork, and understanding at the workplace.
“To adapt means to educate” – zooming in on education
Adapting to the changing skills landscape requires collaboration between governments, educational institutions of all levels, and businesses. Education systems need to incorporate digital literacy, data analysis, and sustainability concepts into curriculums at all levels. Governments and businesses should offer training programs and financial motivations, respectively, to help workers gain new skills. Encouraging students and workers to pursue careers in science, technology, engineering, and mathematics (STEM) fields is vital for innovation and addressing future technological needs (National Science Foundation, 2020). A diverse workforce with a range of skills and perspectives is better equipped to handle complex challenges and identify innovative solutions. STEM and lifelong learning with emphasis to the digital and green technologies are key elements. Additionally, having a workforce with different backgrounds and skills means that we can better solve difficult problems and come up with new ideas as research shows (Hunt, 2015).
Initiatives, for example, like the European Commission's Digital Education Action Plan 2021-2027 aims to boost digital literacy across Europe (European Commission, 2020). EU governments and businesses have created special programs and offer money to help workers learn these new skills. In the present continuously evolving work environment, it's important for governments, schools, and businesses to work together to offer the necessary updated job skills in every sector. Schools of all levels of education need to teach digital skills, from programming to the usage of modern AI-assisted computers, understanding data mining with Machine Learning, as well as how to include environmental protection training in all their courses. Soon, new challenges will arise with the introduction of the quantum computer technology. According to a report by the International Labour Organization, training programs are essential for helping workers transition to new roles in a greener economy (International Labour Organization (ILO), 2019).
Examples of Adapting to the Twin Transition
Renewable Energy Sector
The growth of the renewable energy sector creates many career opportunities. On-shore and off-shore wind turbines for example need regular maintenance and repairs to work well. This means new job openings for technicians/engineers who know or will learn how to maintain these turbines. The wind energy sector could create millions of jobs worldwide by 2030 (Global Wind Energy Council (GWEC), 2021).
Furthermore, as more homes and businesses use solar energy, there is a high demand for workers who can install and maintain solar panels. This market is so big that, for example, more than 60% of the mechanical engineers graduated in our Department are working in photovoltaics. It is reported that demand for solar energy jobs is growing fast, with over 3 million people employed already in this sector worldwide (International Renewable Energy Agency (IRENA), 2020). Moreover, batteries store energy from renewable sources and are a very important technology in the renewable energy value chain. Developing better batteries is key to making renewable energy reliable and usable days and nights, with wind or not. This creates jobs for engineers and scientists who design and test new battery technologies. The importance of advancing battery technology to support the clean energy transition and create jobs is highlighted by the key initiative in the European Battery Alliance (EBA), established in 2017 (Directorate-General for Energy, 2021).
Circular Economy
Industries like automotive, fashion and electronics are adopting circular economy principles by designing products made by recycled materials, and for prolonged usage. In the automotive industry, companies are adopting circular economy practices. Car manufacturers are increasingly using recycled materials in vehicle production and designing cars that are easier to disassemble and recycle at the end of their life cycle. For example, Renault has been a pioneer in this area by developing a facility dedicated to the dismantling and recycling of vehicles to recover materials such as metals, plastics, and glass. Such efforts may significantly reduce waste and made their production processes more sustainable. Only Renault's circular economy initiatives have resulted in a reduction of raw material use by 20% and CO2 emissions by 15% (Ellen MacArthur Foundation, 2016).
Similarly to the automotive industry, the fashion industry is starting to design clothes that last longer and made by recycled and/or recyclable materials. Waste reduction helps environment but also, for example, some fashion brands are creating clothes from recycled plastic bottles. The circular economy in fashion could save $500 billion a year and reduce greenhouse gas emissions by 44% by 2030 (Ellen MacArthur Foundation, 2017). Moreover, the electronics industry is also designing products that are easier to repair and recycle. Thus, less electronic waste and more efficient use of resources can be succeeded. For instance, some smartphone manufacturers are making phones with modular parts. This makes it easier to replace or upgrade components, extending the product's life. The European Commission estimates that implementing circular economy principles in electronics could create over 500k new jobs in Europe alone (European Commission, 2018).
Green Building
Architects and engineers are merging sustainable design principles into building construction, leading to more energy-efficient and environmentally friendly structures. This was also the subject of a Horizon call last year (European Climate, Infrastructure and Environment Executive Agency, 2023). Using sustainable design principles means that buildings are designed to use less energy and resources with target on Zero-Energy Buildings (ZEB). This includes environment friendly materials and more energy-efficient constructions. For example, some buildings use solar panels to generate electricity and green roofs or balconies to reduce heat. Green buildings can reduce energy consumption by up to 30% and water usage by 50% (World Green Building Council, 2016). Energy-efficient buildings are designed to keep heat in during the winter and out during the summer. This reduces the need for heating and cooling, saving energy and money. Techniques include better insulation, energy-efficient windows, and smart thermostats. Improving building energy efficiency is one of the most cost-effective ways to reduce greenhouse gas emissions and can create millions of jobs (International Energy Agency (IEA), 2019). Environmentally friendly structures also use sustainable materials, like recycled steel or bamboo, which have a lower environmental impact. Buildings are also designed to make the best use of natural light, reducing the need for artificial lighting. The use of sustainable building materials and practices is highly encouraged, contributing to healthier and more sustainable communities (U.S. Green Building Council, 2020).
The road ahead
The digital and green transitions represent both challenges and opportunities for the future of work. Embracing lifelong learning, cultivating resilience, and investing in reskilling and upskilling initiatives are key to ensuring a smooth transition. Through collaboration, individuals, businesses, and policymakers can navigate this dynamic landscape and create a future where technology and sustainability go together with a successful and adaptable workforce. For example, look at how a manufacturing company transitioned its workforce to focus on automation and advanced robotics. One such case is Siemens, which has successfully integrated advanced robotics and automation into its manufacturing processes. Siemens invested heavily in retraining its employees, ensuring they could work alongside new technologies rather than be replaced by them. This approach not only preserved jobs but also increased productivity and innovation within the company (Siemens, 2020).
The digital and green transitions impact different regions unequally. Developing countries may face greater challenges due to limited access to technology and education. Global collaboration is essential to ensure inclusive development and equal opportunities for skills acquisition. For instance, UN initiatives aim to promote quality education and lifelong learning opportunities for all, addressing disparities and fostering global cooperation (United Nations, 2020). Partnerships between developed and developing countries can help bridge the gap, providing resources and expertise to support the global workforce in adapting to new demands.
The rise of automation and AI brings significant ethical implications in case of not enhance human capabilities but replace them. Ethical considerations include the potential for job displacement, privacy concerns, and the need for transparent AI decision-making processes. Policies should protect workers' rights and ensure fair treatment. EU’s guidelines on trustworthy AI emphasize the importance of ethical AI development, which includes fairness, accountability, and transparency (European Commission, 2019). By addressing these ethical concerns, we can create a fairer transition to a digitally advanced and sustainable future.
About the author
Dr Ioannis Sarris, a Professor at Mechanical Engineering Dept. of the University of West Attica, Athens, Greece, brings expertise relevant to the "Changing skills landscape" discussion. His research focuses on modelling of various physical systems, an area crucial for advancements in digital and sustainable technologies. Leading the Flow Analysis and Simulation Team (FAST), Dr Sarris actively participates in national and international projects, including Erasmus Capacity Building, and Horizon MSCA and Pathfinder with emphasis in transfer of knowledge in science, education and entrepreneurship. His experience in high-performance computing and code development aligns with his continuous drive to explore the digital skills people need to successfully navigate the evolving technological landscape. With over 300 publications and recognition as a top 2% researcher, Dr Sarris has a strong scientific foundation for understanding the skills required to succeed in the dynamic world shaped by digitalisation and the green transition.
