The successful transition towards a low-carbon economy, as defined by the Paris Climate Agreement, is projected to result in a 1.1 per cent growth in GDP, and a 0.5 per cent growth in employment in the EU between now and 2030 according to EU Agency Eurofound.

Globally, China is also projected to benefit from a low-carbon transition, but the US would experience a 3.4 per cent drop in GDP and a 1.6 per cent decline in employment.

The modelling shows that the full implementation of the Paris Climate Agreement is positive for the EU as a whole, both in terms of GDP and employment growth. This is mainly attributable to the investment activity required to achieve such a transition, together with the impact of lower spending on the import of fossil fuels. The shift towards the production of capital goods, such as equipment, machinery and buildings, will result in a notable increase in demand for construction and for labour from related occupations.

This analysis is based on a global macro-economic model run by Cambridge Econometrics and Eurofound’s European Jobs Monitor.

Full report here.

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