Summary :

Abstract
As the rising risks of climate change intensify the imperative for global decarbonization, economies worldwide are gravitating toward a green transition. This shift’s impact on labor markets varies starkly between regions and countries. While advanced economies are experiencing steady growth in environmentally sustainable jobs, Middle East and North Africa (MENA) transitional economies, many long tethered to oil revenues including through remittances from their migrant workers, face mounting pressure to decouple their development from oil dependence. This paper provides the first careful assessment of green skills and jobs across the region using data from four MENA countries: Egypt (2018), Jordan (2016), Palestine (2020) and Tunisia (2014). Applying a skill greenness classification derived from the U.S. O*NET database to labor market surveys in these four countries, we estimate that fewer than 15% of MENA workers currently hold green jobs. Our analysis reveals that women are more likely to hold green occupations than men, even though in Egypt women are presently largely segregated into non-green sectors. More educated workers and those in higher economic strata show markedly higher green job shares. However, the difference between youth and prime-working age adults is surprisingly negligible. These findings point to the transformative potential of the green transition in the MENA developing countries while raising concerns that the green shift may exacerbate existing inequalities. Our study provides clear policy recommendations in crafting targeted interventions, from worker reskilling, job matching and labor mobility support, to enhanced access to finance and industry-academia partnerships, ensuring an inclusive, sustainable economic future for the region.

