Factors such as income, type of employment and place of residence are likely to make some people more exposed than others to environmental hazards like climate change and air pollution. These vulnerable groups are also often disproportionately affected by environmental risks and impacts. Environmental policies need to consider potential distributional effects and equity implications to ensure that all parts of society benefit from the transition to a greener and cleaner economy. Without explicit considerations, policies could leave vulnerable parts of the population behind. 

Policy action is essential to mitigate the risks of compounding existing vulnerabilities and secure future support for ambitious environmental policies. The OECD provides evidence-based insights on fostering inclusive and equitable environmental policies across domains, including employment and the clean energy transition. Economic effects must be jointly considered. Environmental policies have implications on employment, the relative competitiveness of domestic sectors, and GDP. For instance, enacted policies may shift labour demand across occupations and sectors. 

The OECD is mapping inclusive and green policy packages, outlining the main challenges, and identifying possible solutions for countries to enable them to make a fair green transition. We are also exploring public and private efforts on just transition to encourage others to make the shift and provide a benchmark to help measure future actions.