The increasing frequency of extreme weather events caused by climate change calls for a significant acceleration in the transition towards greener economies and societies. Climate protection efforts and steps to reduce the carbon footprint of the economy have an important impact on labour markets, including on where jobs will be created and lost and the skills that will be in demand. Skills gaps and shortages are already recognised as major bottlenecks in a number of green sectors, which risks constraining innovation and technology adoption. Policy makers can facilitate the shift towards a more sustainable economy through targeted policies on skills, helping workers transition to new industries and fostering investment in skills that are required in sectors with high growth potential. Effective policy action in this area requires better information on the types of skills crucial for the green transition, and the occupations and sectors where these skills are needed.