SIGNATURE WORK
CONFERENCE & EXHIBITION 2023

Climate change has become a priority issue for policy makers on a global scale due to its impact on the environment and the economy. However, while most research has focused on the root causes and environmental consequences of climate change, few studies have explored its socioeconomic implications. This paper examines the economic effects of the energy transition on the labor market in the European Union, with a focus on the automotive industry – historically at the core of many European economies. The paper provides data from relevant studies to contextualize the importance of transitioning to renewable energy sources to reduce CO2 emissions and manage financial risks stemming from climate change. While the green transition will result in increasing production costs in certain sectors, it may also bring cost reductions in other areas in the long term. However, the paper notes that the shift to electric powertrains in cars is expected to lead to significant job losses caused by technology, particularly in vehicle construction. To mitigate these negative effects, the paper emphasizes the need to plan for these changes and invest in reskilling and upskilling programs to equip workers with the necessary skills for the future of the automotive industry.