{"id":7286,"date":"2022-02-16T05:00:12","date_gmt":"2022-02-16T05:00:12","guid":{"rendered":"https:\/\/www.rbc.com\/en\/thought-leadership\/green-collar-jobs-the-skills-revolution-canada-needs-to-reach-net-zero\/"},"modified":"2025-03-26T04:54:43","modified_gmt":"2025-03-26T04:54:43","slug":"green-collar-jobs-the-skills-revolution-canada-needs-to-reach-net-zero","status":"publish","type":"rbc_tl","link":"https:\/\/www.rbc.com\/en\/thought-leadership\/economics\/featured-insights\/green-collar-jobs-the-skills-revolution-canada-needs-to-reach-net-zero\/","title":{"rendered":"Green Collar Jobs: The skills revolution Canada needs to reach Net Zero"},"content":{"rendered":"
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Green Collar Jobs<\/em> is the latest report in RBC Economics and Thought Leadership\u2019s climate series, building from the team\u2019s flagship report, The $2 Trillion Transition<\/a>, which was launched in October 2021. This climate series is designed to inform and inspire Canadian prosperity, while advancing RBC\u2019s ongoing commitment to speak up for smart climate solutions, a key pillar of RBC\u2019s Climate Blueprint<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Key findings<\/b><\/span><\/h3>\n

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3.1 million Canadian jobs\u2014or 15% of the labour force\u2014will be disrupted over the next 10 years as the country transitions toward a Net Zero economy.<\/p>\n<\/div>\n<\/div>\n

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8 of 10 major economic sectors will be affected as the workforce adapts.<\/p>\n<\/div>\n<\/div>\n

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Canada\u2019s transportation, energy and manufacturing sectors will undergo the most significant early shifts, as 46% of new jobs in natural resources and agriculture and 40% of new jobs in trades, transport, and equipment require an enhanced skillset.<\/p>\n<\/div>\n<\/div>\n

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Initial changes will affect highly-paid, highly-skilled workers more dramatically. Managers in engineering, architecture, utilities and manufacturing are already seeing over 50% of their tasks shift due to the climate transition\u2014five times that of managers on average.<\/p>\n<\/div>\n<\/div>\n

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For workers, upskilling could also bring significant opportunities. Between 235,000 to 400,000 new jobs will be added in fields where enhanced skills will be critical.<\/p>\n<\/div>\n<\/div>\n

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A highly-skilled Net Zero workforce could establish Canada as a top destination for green investment, building on existing advantages, including a free trade pact with the U.S. and Mexico and large deposits of natural resources critical to clean technology.<\/p>\n<\/div>\n<\/div>\n

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A comprehensive skills strategy must be a key pillar of Canada\u2019s $2 trillion Net Zero transition, particularly as other countries compete for investment.<\/p>\n<\/div>\n<\/div>\n

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Why skills are the key to green economic growth<\/b><\/span><\/h3>\n

Canada is on the cusp of a generational skills crisis. As a nation, we\u2019ve set some of the most ambitious climate objectives in the world, led by an overarching goal to reach Net Zero emissions by 2050. This pursuit brings with it an abundance of opportunity: for Canadian innovation, for new green investment, and for economic growth.<\/p>\n

But none of it will happen without people. Our journey to Net Zero hinges not just on the large-scale mobilization of financial capital but also, critically, human capital<\/em>. According to our research, 3.1 million Canadian jobs will change in some way over the next decade due to the climate transition. Traditional energy sector workers will need to be bridged to new, growing areas of the economy as this evolution plays out. But as our research shows, equally important and wide-ranging skills shifts are already taking place in other parts of the economy.<\/p>\n

Companies like Vancouver\u2019s Ballard Power Systems, at the forefront of the energy transition, will need engineers trained in the rapidly-evolving technology of hydrogen fuel cells. Long-established industrial giants like Sault Ste. Marie\u2019s Algoma Steel will need to recruit and retrain workers as it overhauls its operations to rely on clean electricity. Firms like Oakville-based Samuel, Son & Co.\u2014one of the largest North American metals processors, now pivoting to automation, robotics and innovative new forms of manufacturing\u2014will increasingly seek engineers, workers with hybrid skillsets and those with training in new disciplines like mechatronics (integrating mechanical, electronic and electrical engineering), as it aims to make supply chains more efficient. And nearly everywhere, across nearly every industry, Canadian companies will need more traditional skilled tradespeople\u2014the metallurgists, welders, machinists and other workers already in severe short supply.<\/p>\n

To meet the moment, Canada needs a strategy\u2014and a workforce nimble enough to keep pace with the rapid technological and operational changes driving the climate transition. We\u2019ll need new models of collaboration among businesses, government and post-secondary institutions. We\u2019ll need companies driving cutting-edge innovation to take a bigger role in work-integrated learning and training. And we\u2019ll need workers and students to adopt a mindset of constant learning. Chronic problems will have to be tackled too, including longstanding bottlenecks in our pipeline of skilled tradespeople and a failure to tap into underutilized pools of talent such as women, immigrants and Indigenous youth.<\/p>\n

Skills must be at the heart of any strategy to achieve Canada’s new target of cutting emissions by at least 40% by 2030. Yet so far, our discussions have been largely limited to debate about regulation and technology.<\/p>\n

In this report, we examine the transformations already underway in Canada\u2019s labour force as the country moves to a Net Zero economy. We map out the sectors and occupations experiencing the greatest disruption, the ways skills are shifting within specific professions and the competitive advantage that a green workforce will bring. The challenge ahead is sizeable, but for workers and employers alike, the payoff could be significant: as many as 400,000 new jobs will be added in fields that will demand enhanced skills. The importance of these green skills can\u2019t be overstated\u2014equipping Canadians with them is the only way to get to Net Zero.<\/p>\n