Equipping India’s workforce for the green transition

Several economies worldwide, including India, are pushing for cleaner growth and a greener future. As more countries shift toward renewables and sustainable practices, demand for so-called “green jobs” is expected to rise sharply. But these ambitions rest on one crucial factor—skills. Both current and future workers will need to be equipped to thrive in a greener economy, and education systems will need to integrate green skills development at every level—from primary school curricula to mid-career reskilling and upskilling programs. The success of the green transition hinges heavily on how effectively education systems can adapt, embracing lifelong learning to keep pace with the rapidly changing greener economy.

Green skills are not just for engineers or scientists—they’re essential for workers across sectors. From farmers implementing water-saving and climate-smart agricultural techniques to logistics managers optimizing supply chains to reduce waste, and workers engaged in manufacturing, operating, and maintaining electric vehicle powertrains, these skills are critical for a sustainable future.

The Green Workforce Challenge: Building a Skilled Workforce for a Sustainable Future

World Bank research finds that only 5.9% of India’s jobs are green, while 4.6% fall into the carbon-intensive category. This leaves a sweeping 89.5% of jobs outside both categories, underscoring the challenge of transitioning to a greener economy.

The study finds that the distribution of green and carbon-intensive jobs in India varies widely. Green jobs are concentrated in wealthier states, with higher per-capita income, indicating a faster green transition. (Figure 1).

Both types of jobs are largely male-dominated and tend to attract younger workers. Yet, there is a clear disparity in job quality. While green jobs offer better working conditions than carbon-intensive ones, on average, they lag behind other jobs in terms of job security, benefits, and contract stability. Notably, green jobs have a 37% wage premium over non-green jobs, whereas carbon-intensive jobs carry a 32% wage penalty (Figure 2).

Helping workers navigate the green transition

For India to transition to a greener economy, expanding green employment opportunities and supporting workers to acquire the necessary green skills will be essential. Achieving this will require coordinated policies that strengthen labor market information systems, enhance skills development, and provide targeted support transitioning from traditional industries.

India is already taking steps to meet this challenge. In 2015, it established the Skill Council for Green Jobs (SCGJ) as part of its National Skill Development Mission. This industry-led body is responsible for aligning skills with the growing demand in key green sectors, including renewable energy, sustainable development, and environment, forest, and climate change. SCGJ’s emphasis on standardization and accreditation seeks to ensure that India's current and future workforce is trained to meet national standards as well as to compete in the global green economy.

As of June 2024, SCGJ has developed 77 nationally approved qualifications across various sectors, including renewable energy, waste and water management, clean cooking, ecotourism, forestry, and sustainability. These skills are being imparted by more than 900 affiliated education and training institutions across the country, while e-learning systems enable some training to be conducted virtually.

The impact has been substantial: more than 560,000 candidates have been trained so far, and on the educator side, a nationwide network of 4,717 certified trainers and 756 certified assessors has been developed.

The Way Ahead

Moving forward, India will need to focus on three key policy priorities. First, India needs to strengthen its labor market information systems to effectively monitor green jobs over time. By tracking trends and identifying skills gaps, these systems can guide investments in education and training, ensuring that emerging green industries have access to the skilled workforce they need.

Second, it will be crucial to strengthen both formal education and lifelong learning systems. This will equip India’s current and future workforce with the skills needed for a successful green transition and help build a steady pipeline of green-skilled workers to support India’s sustainable development efforts.

Lastly, a people-centered and inclusive transition will require a clear understanding of who stands to gain and who may face challenges in the process. By identifying affected groups and tailoring policies to mitigate negative impacts, India can ensure that the benefits of the green transition are widely shared and that no one is left behind. This inclusive approach is essential to fostering both economic growth and shared prosperity as India advances toward a sustainable future.