Just Transition Planning Toolbox

As part of preparing a transition plan to manage these impacts and capitalize on new opportunities, the government of Wales commissioned work to explore ways in which previous industrial transitions – in the UK and internationally – have been managed and to flag lessons that can help skills institutions, industry leaders and representative bodies, the Welsh Government and local authorities as they develop policy and regulatory approaches for the transition in Wales. 

Manufacturing remains a proportionally larger part of the Welsh economy than in the rest of the UK, and includes carbon-intensive industries such as liquid natural gas terminals, oil refineries, steelworks, and the manufacture of fossil-fuel-powered vehicles and airplanes. Much of this carbon-intensive employment is regionally concentrated. Further, productivity is lower in Wales than elsewhere in the UK, particularly in rural areas, and developing skills is seen as a critical productivity driver. However, a high proportion of adults have low qualifications, adult participation in further education and adult community learning has declined considerably in the past decade, and there has been a similar drop in total numbers in further education and those starting traineeships. There is also a mismatch identified between the skills and training that is available and the needs of growth industries. 

The report summarizes an exercise undertaken to looks for lessons from industrial transitions in various international contexts, including Australia, Germany, the Netherlands, Singapore, the United States and other parts of the United Kingdom, as well as in South Wales itself.

Among its various recommendations, the report suggests that effective implementation of transition policy responses in Wales will require action and coordination amongst four groups of key organisations: industry, skills institutions, local authorities and the Welsh Government. It highlights that effective policy responses will likely need to include: conducting skills assessments and training to tailor policies to support increasing the supply of high-skilled labour; stimulating investment and innovation in new industries and research to build demand for that labour; and providing support and resources to strengthen local communities most affected by the transition.

In North Macedonia, the public electricity generation utility JSC Elektrani na Severna Makedonija ("ESM") with support from the European Bank for Reconstruction and Development (EBRD) is implementing a 30 MW solar PV project.

Through this collaboration, there are resources set aside to identify the social implications of the transition and the challenges it may pose for regional development. There is also a focus on cooperating with local educational institutions to define redeployment and reskilling opportunities and to develop labor market initiatives targeting the retraining of the region’s coal workforce. The latter will create a nationally accredited, market-relevant curricula program.

The Online Vacancy Analysis Tool for Europe (Skills-OVATE) is an example of how big data can be used to enhance job market transparency, facilitate policy-making, and connect workers with new job opportunities. It offers detailed information on the jobs and skills employers demand across 28 European countries.

Skills-OVATE works by collecting and analyzing real-time data from various online sources, such as job boards, career websites, recruitment agencies, and employer portals. It uses advanced algorithms and data mining techniques to extract from these sources information including job titles, required skills, qualifications, and geographical distribution.

The tool then processes and organizes the data, generating comprehensive reports and visualizations that showcase labor market trends, demand for specific skills, and other relevant job market indicators. Skills-OVATE provides information on occupations, skills and regions based on international classifications: ISCO-08 for occupations, NACE rev. 2 for sectors and NUTS-2 for regions. There are two ways to display information on skills: via ESCO version 1 or O*Net.

Skills-OVATE presents data for the last 4 available quarters and is updated four times a year. Yearly averages for key variables are available via Cedefop’s skills intelligence platform.

By providing a clear understanding of up-to-date job market demands, OVATE offers insights into the skills and qualifications sought by employers. This enables job seekers to align their profiles and training accordingly and to make informed career decisions.

Employers can benefit from OVATE by gaining insights into the competitive landscape, identifying talent pools, and adapting their recruitment strategies to better attract and retain skilled professionals.

The platform also provides crucial information for policymakers, by helping them understand the evolving labor market dynamics, identify emerging sectors, and formulate effective employment policies and strategies.

The steel company BHP and labor unions representing workers at the plant collaborated to form a “transition steering team” (TST), to help plan for phase down of production in a smooth manner.

The TST – comprising representatives from the company, unions and non-unionized employees – played a central role not only in designing redundancy packages and redeployment benefits for workers, but also in designing a the “Personal Pathways” program. This was a support package available to all employees, which comprised various forms of support: retraining and re-employment services, but also training and services for financial planning, mental health needs, and new business support. Additional special support was available for certain groups of workers, such as those aged over 45 or those with disabilities.

The joint Transition Steering Team (TST) helped develop and promote the Personal Pathways Programme, a series of individual, employee-tailored support mechanisms that included support services for retraining and finding new employment, as well as the provision of services for financial planning and mental health needs.

Local employers used the program to recruit new staff, and BHP collaborated with universities and the state Department of Education to train employees in specific vocations, such as teaching, for which workers with needed skills were in short supply. The program included additional special support for certain groups of workers (e.g., those aged over 45 or with disabilities). Around 7,000 separate training events were organized by the time the program finished.

Within a year after the steelworks closure, an estimated 90% of the participants had found new employment. The Pathways program did not end up costing BHP any extra funds; it paid for itself through avoided salaries and redundancy entitlements of those employees who found new employment before the closure.

Encuentra Empleo is a general national program launched in 2017 by the Ministry of Labor and the Technical Secretariat for Productive Development and Competitiveness. It aims to promote employment opportunities and job creation in Ecuador, and is part of Ecuador's broader efforts to promote inclusive and sustainable economic growth, reduce poverty and inequality, and increase access to decent work for all Ecuadorians.

Various features of Encuentra Empleo are particularly relevant to the goal of expanding employment opportunities in the transition to a future, green economy:

To encourage job creation, the program collaborates with businesses and industries, facilitating partnerships and incentives for companies to hire more workers. Tax incentives and other benefits are available to employers who hire workers from vulnerable groups, such as youth, women, and people with disabilities. The program promotes entrepreneurship by offering support and mentorship for aspiring entrepreneurs, fostering a culture of innovation and self-employment. Financial and technical support is available to strategic sectors, such as tourism, agriculture, and manufacturing.

The program also focuses on connecting job seekers with employers, through various means. To improve the matching process, the program has developed a labor market information system to provide up-to-date information on job vacancies, labor market trends, and employment opportunities in different sectors and regions. It provides a comprehensive online platform where individuals can create profiles and upload their resumes, making it easier for employers to search and identify suitable candidates. The platform also offers tools and resources for job seekers to enhance their employability, including job search tips, interview guidance, and training opportunities.

The Ghana Green Jobs Strategy emphasises several measures that are designed to create a conducive environment for green businesses to thrive while empowering individuals with relevant skills needed for employment opportunities within these sectors.

One is the development of green skills and occupations. The strategy emphasizes expanding training and education opportunities that equip people with the necessary skills and knowledge to work in fields such as renewable energy, sustainable agriculture, waste management, and eco-tourism.

Another measure is the promotion of green enterprises, specifically supporting individuals and groups trained in green skills to establish and manage their own green enterprises. It aims to deliver business support services such as continuous training on management practices, provision of incubation services, productivity enhancement, and market facilitation services. Existing green enterprises would also be identified and supported with business development services to help them grow and expand.

The strategy also prioritises strengthening institutional capacities, across the public and private sector, that can enable more effective delivery of services which support the growth of the green economy. This includes creating platforms for effective coordination among stakeholders with an interest in promoting green jobs.

The strategy also consider how Ghana’s green jobs agenda will be funded, so that adequate finance is mobilized to . to support economic activities and job creation in green sectors. It considers the role that may be played by both domestic and funding sources, including by the private sector.

The strategy aims to ensure that youth, women, and other vulnerable groups who are often excluded from formal employment opportunities are able to participate in the emerging opportunities. To this end, its specifically highlights the Ministry of Gender, Children and Social Protection (MGCSP) and the National Youth Authority (NYA) as key relevant stakeholders to include in roll out of the strategy.

As part of managing a transition away from coal in Victoria, Australia, the Latrobe Valley Authority (LVA) has created a Worker Transition Service to support workers, contractors and their families with career navigation, training and health and wellbeing. It connects people to local services which provide skills development, training, information and other personal support such as financial planning. The aim is to ensure people can take up new employment opportunities, start their own business, move into retirement or otherwise adjust to the significant life changes they may be experiencing.

The service provides:

• Assistance with identifying employment and training services which can provide career advice, identify training needs and help people to access training opportunities, and provide support with resume and interview preparation;
• Financial advice;
• Mental health support, and other support provided through local health and community services; and
• Small business advice and assistance for those considering starting a new business.

Changes to the U.S. power sector have affected coal mining communities in the Appalachia region. To help the communities and individuals in affected areas to diversify their economies and create jobs and workforce services and skills training, the national government introduced two grant programs: the POWER National Dislocated Worker Grant (POWER DWG) and the National Emergency Grant (NEG).

The POWER DWG delivers training, work-based learning and supportive services to dislocated coal miners and other workers impacted by layoffs in the coal industry in the states of Ohio and Kentucky. In Ohio, retraining is focused on preparing workers for occupations in the growing oil and gas industry, including as diesel mechanics, heavy equipment operators, welders, crane operators, and waste and wastewater operators. In Kentucky, retraining is targeted towards occupations including broadband technicians and fiber installers who could find work as part of the state’s internet broadband expansion efforts, and a variety of IT positions that can support regional business growth and expansion in sectors such as healthcare, agriculture, tourism.

A separate program, the West Virginia Coal National Emergency Grant (NEG), provides retraining and reemployment services to dislocated coal miners and displaced homemakers impacted by layoffs and coal mine closures in the state. These resources are intended to help participants find new career paths outside the coal mining industry and long-term reemployment opportunities.

In 2019, the United States government also passed the American Miners Pension Act to protect the pensions of nearly 100,000 retired coal miners whose pensions may be jeopardized by coal company bankruptcies. The $1.4 trillion spending bill means that public funds will be used to bail out a pension fund for workers in the private sector.