Green workforce and skill gaps in the transition to a green economy

The transition to a green economy is often discussed in terms of capital, technology and policy. Yet a growing bottleneck is becoming more visible: the availability of human resources to carry out the transformation. As emission standards, traceability and ESG transparency become mandatory across global supply chains, the key question for firms is increasingly whether they have enough talent to implement the transition.

Green jobs growth and shifting skill needs

According to the International Labour Organization (ILO), the transition to a green economy could create about 24 million new jobs worldwide by 2030, concentrated in renewable energy, green construction and sustainable agriculture. These job opportunities come with new skill requirements.

A World Economic Forum (WEF) report also indicates that 44% of workers’ core skills are expected to change in the 2023–2027 period. Demand is rising for skills related to data analysis, environmental governance, emissions accounting and ESG compliance.

Green skills shortages are emerging as a major barrier to the transition. “Green jobs” are not limited to new sectors such as wind and solar; they are also spreading into traditional industries. In manufacturing, firms need capabilities to manage energy use and emissions. In logistics, companies must optimize transportation to reduce carbon footprints. In finance, institutions are expected to integrate climate risk into investment decisions.

OECD highlights skills shortages as a constraint

An OECD report points to green-skills shortages as one of the major barriers to the transition. Many firms, it says, struggle to implement environmental solutions due to a lack of qualified personnel.

Vietnam: ESG implementation gap and limited capacity

In Vietnam, pressure on green labor is increasing quickly, particularly in export-oriented sectors. PwC’s ESG Progress Tracker 2025 shows that 89% of firms have or plan to implement ESG, but only 19% fully integrate it into their business model. The gap suggests limited implementation capacity, with human resources identified as a key factor.

High-demand roles and cross-disciplinary requirements

Roles in high demand include carbon emissions inventory specialists, ESG data analysts, life-cycle assessment experts, and personnel for international standards compliance. These positions require cross-disciplinary skills that combine environmental, financial and technological expertise—capabilities that remain relatively new in Vietnam.

The apparel industry is cited as among the frontrunners in restructuring toward cleaner production to cut emissions while remaining labor-intensive.

Data capability gaps

The skill gap is also evident in ESG data capabilities. While 78% of firms collect ESG data, only 3% use advanced analytical tools. About 33% have independent ESG reporting audits. The figures indicate that many firms lack the capacity to turn data into credible, decision-useful information.

ESG governance not fully embedded

ESG governance structures are not yet complete. Only about 30% of firms have ESG leadership linked to specific KPIs, while many still treat ESG as public relations or corporate social responsibility. Where ESG is not embedded in day-to-day operations, demand for deeper skills is not matched with sufficient investment in training.

Restructuring skills as a condition for real transformation

A defining feature of the green economy is that it creates new jobs while changing the content of existing work. The transition is therefore not only about hiring more workers, but about restructuring skills across the workforce.

For example, a production line worker is expected to follow energy-saving procedures in addition to operating machinery. Logistics staff must optimize routes to reduce emissions. Financial professionals must assess climate risk and ESG criteria alongside traditional profit analysis.

Training systems lag behind business needs

The current training system has not kept pace with these requirements. Environmental topics, renewable energy and sustainable development training programs are described as scattered and not well aligned with business needs. Skills such as carbon accounting, ESG reporting and green finance are not yet widely taught.

With ESG standards increasingly acting as a “passport” for global trade, human resources shift from a supporting role to a decisive factor. Without a suitable workforce, firms may struggle to implement emissions-reduction solutions, data governance and standards compliance—raising the risk of losing market access. Firms that invest early in training and developing green skills, by contrast, can gain competitive advantages and attract investment.

Policy and ecosystem approach

The Asian Development Bank (ADB) has urged developing countries to accelerate reskilling and upskilling to capture opportunities from the green economy. This is described as helping firms meet international standards while also supporting long-term growth.

In Vietnam, experts argue that progress requires cooperation among government, educational institutions and businesses to build a green skills ecosystem. Over time, as green skills become part of workforce capabilities, the transition to a green economy can advance beyond meeting commitments and toward substantive implementation.