How is Green Transition reshaping industrial development?

The energy and green transition is reshaping industrial development in two ways:

 (i) changing how manufacturing industries source and use energy, and 

(ii) fostering the emergence of new energy-generating industries, such as solar, hydrogen and biomass. 

For manufacturing industries, this transition entails adopting clean energy sources, decarbonizing production processes, and embracing circular economy principles to remain competitive and sustainable. In a global market that increasingly prioritizes sustainability, industrial competitiveness will increasingly be tied to industry’s capacity to comply with environmental regulations. At the same time, energy-generating industries are undergoing a transformation. The rapid growth of renewable energy sectors—such as solar, hydrogen and wind—coupled with advancements in energy efficiency, is creating new competitive advantages for countries and firms that lead in these technologies. Leaders in renewableenergy production, such as China and Brazil, are already positioning themselves as frontrunners in the green economy. This transition is expected to not only create a dynamic energy industry and generate jobs, but also facilitate the gradual phasing out of older, emission-intensive energy sources such as coal and oil. As the energy transition progresses, the manufacturing sector and energy-related industries will require new skills and capabilities. The shift towards net-zero carbon emissions and circular production processes will necessitate workers with specialized green skills, particularly in sectors such as renewable energy, waste recycling and organic agriculture. Conversely, workers in emission-intensive industries may face job displacement, highlighting the need for reskilling and upskilling programmes focused on environmental sustainability. Investing in the development of green skills will be crucial for facilitating a smooth transition for workers into emerging green industries.