Future-Ready Workforce Strategies and Matching Skills Model: The Energy Transition Case

• This paper presents a Future-Ready Workforce Strategy, with a Matching Skills model to address mismatches and guide reskilling in times of major economic transitions. It shows that aligning labour market intelligence, training, and transition pathways to support displaced workers can promote lifelong learning and help position Canada as an industry leader following major shifts.

• In the case of the transition to a lower-carbon economy, studied here, most Canadian workers already possess many transferable skills, with minor gaps in technical knowledge, critical thinking, and problem-solving. Such occupational compatibility enables smoother transitions, especially in sectors like wind, nuclear, hydrogen energy, logistics, biomass processing, and metal refining.
• At the federal level, Employment and Social Development Canada (ESDC) should enhance intelligence gathering through its Occupational and Skills Information System (OaSIS) program to reflect emerging occupations, build a comprehensive skills database, and create tailored, sector-specific training programs through strong industry-academic partnerships.

This report unveils a new model for matching skills to jobs in Canada in periods of transition. It maps how workers can shift into emerging green industries – ensuring the best use of skills as the country’s economy grows sustainably.

1. Introduction

At a time of considerable transformation in the Canadian economy, aligning workforce skills with evolving industry demands has never been more critical. However, there is a dearth of systematic information and analysis to compare demand for specific skills and competencies in current occupations with those that are forecast to emerge. This gap is especially relevant for emissions policy.

A recent paper by Mahboubi (2019) shows that about 13 percent of Canadian workers have skills mismatched to their jobs.1 Higher skills mismatches are associated with lower labour productivity. More recent data also suggest that skills mismatches remain a significant concern in Canada’s labour market; according to a 2022 Statistics Canada report, 56.1 percent of businesses reported that their employees lacked full proficiency in performing their jobs at the required level (Fissuh et al. 2022).

In dynamic open economies, the skills needed by employers naturally evolve in relation to changes in trade, technology, public policy, or other factors. As a recent example of such dynamics, Canada’s efforts to reduce greenhouse gas emissions and “decarbonize” the economy, launched in early 2022, have prompted a shift in required skill sets and activities for the labour force.

This study examines the workforce’s capacity to adapt to changes in emissions policy. It also establishes a template for future analysis of other sudden shifts in skill demand. For example, it can help identify transferable skills, gaps, and training needs in implementing policies responding to evolving US tariffs and threats – such as increased defence spending and domestic infrastructure investments – as well as the tariffs’ direct impacts.

A better understanding of future dynamics in skills demand and gaps will help policy makers and businesses implement strategies that support productivity and enhance Canadians’ living standards. Regarding the lower-carbon economy, Pearson and Foxon (2012) highlighted the importance of retraining and upskilling to manage the economic and skills implications of transition. They advocated for proactive policies to ensure a smooth shift and maximize worker benefits.

This study develops a data-driven guide to addressing the challenges of upskilling and reskilling Canada’s workforce to meet the demands of a lower-carbon economy. In doing so, it develops a universal template applicable to other important policy-driven changes. It introduces the Matching Skills model, designed to (i) identify transferable skills and competencies across occupations and (ii) help workers move into emerging roles within decarbonizing industries such as energy, manufacturing, and logistics. The study also includes a jurisdictional scan of sector-specific training and workforce transition programs in Canada and Europe, providing comparative insights into how other countries are preparing their labour forces for similar economic shifts.

1.1 From Mismatch to Momentum: Policy Solutions for Upskilling Canada’s Workforce

The analysis reveals that many of the skills required for these transfers are already present among Canadian workers, though slight gaps remain in some areas, like technical knowledge, critical thinking, and problem-solving.

The findings highlight the importance of occupational compatibility to the success of workers and companies, where smaller skills gaps facilitate smoother transitions between roles. The study presents sector-specific case studies to demonstrate occupational opportunities for companies and workers in wind, nuclear, and hydrogen energy, as well as logistics workers with foundational or specialized skills, who can transition effectively into growing roles. The study also highlights pathways for workers with lower education levels to be successful in sub-sectors like biomass processing and metal refining.

1.2 Bridging the Skills Gap: A Model for a Future-Ready Workforce

Key policy recommendations to improve workforce adaptability include enhancing ESDC’s OaSIS program to incorporate new occupations emerging from decarbonization and technological advancements.2 As well, there is a need to develop a reliable skills database to improve training and employment mapping. Sector-specific training programs should be tailored to industries in the midst of change, with an emphasis on fostering partnerships between educational institutions and industry to develop relevant curricula.

Identifying and addressing the skills mismatch is critical to ensuring effective upskilling and reskilling. The Matching Skills model aims at doing just that. It leverages both quantitative and qualitative approaches to provide a deeper understanding of workforce dynamics during moments of shifting industrial priorities, helping to identify where the most pressing skills gaps and growth opportunities lie. By implementing targeted policies, such as improving access to labour market data, strengthening industry-academic collaboration, and encouraging lifelong learning, stakeholders can build a workforce that is both resilient and future-ready.

At the heart of this strategy is the integration of labour market intelligence (residing at OaSIS), sector-specific training, and transition pathways that include opportunities for both displaced workers and those with greater potential to contribute than is currently the case. When these components are strategically aligned, they form a coherent system that prepares workers for emerging jobs while reducing the risk of leaving economic opportunities on the table. Engaging Canada’s technical workers and professionals in this process is important to governments at all levels. This coordinated, data-driven approach will foster a responsive training ecosystem, support inclusive economic growth, and solidify Canada’s position as a global leader in sustainable industry. Together, these measures will align Canada’s workforce with the demands of a changing economy.

2. Methodology: Mixed-Methods Research

This research uses a mixed-methods approach, combining quantitative and qualitative methodologies to collect, analyze, and integrate data to identify occupational transition pathways.

2.1 Quantitative Methodology

My quantitative analysis identifies skills, knowledge, and abilities gaps between occupations in related or comparable industries. The study relies on key data sources, including the 2023 industry vacancy rates in Canada, OaSIS, and the US Department of Labor’s O*NET Database 28.3, which is built on the US Standard Occupation Classification (SOC) 2019 taxonomy structure. The SOC 2019 taxonomy structure is made up of 23 major groups and 98 minor groups, which provide comprehensive occupational descriptions. It includes 1,016 occupational titles, 923 of which represent O*NET data-level occupations (National Center for O*NET Development 2024). For an analysis focusing on sectors potentially sensitive to change driven by emissions reduction, I developed three subsets: one for the energy sector, another for manufacturing, and the third for supply chain occupations across sectors. Each subset includes 19 occupations that capture the diversity and variation within each sector, with different education requirements.

The Canadian government’s OaSIS database builds on the SOC framework, offering expanded details for 900 occupational profiles and complementing the Canadian National Occupational Classification (NOC), which includes 516 unit groups (ESDC 2024). This paper compares the OaSIS and O*NET databases, as well as the NOC, to the US Standard Occupational Classification (SOC) structures to recommend improvements to the OaSIS database. These distinctions highlight the need for detailed mapping crosswalks between classification systems to ensure accurate skill-matching and labour market analysis, which is particularly critical for industries with shared labour pools across Canada and the United States.3 See Appendix A for a comparison between the NOC and SOC systems.

To analyze occupational compatibility and enable meaningful comparisons, descriptors from O*NET and OaSIS are each standardized to a 0-100 scale. Standardized scores for skills, knowledge, and abilities are used to calculate the “distance” between occupations. The closer the “distance” between occupations is (in terms of skill, education, and knowledge) to zero, the more compatible those occupations are for workers moving into new roles. A smaller distance – measured in standard deviations from the mean – indicates a smoother transition.4

O*NET and OaSIS offer different views of skill requirements in the fossil fuel and utilities industry; O*NET shows less variation, while OaSIS shows more. The choice of dataset can shape how we interpret the workforce needs of an industry. The analysis further examines the differences in the distribution of scores within selected occupations to evaluate the ease of transition between occupations in the fossil fuel, electricity, and manufacturing sectors, depending on the data source used (O*NET vs. OaSIS). For instance, in the fossil fuel and utilities industry, the O*NET database shows that the data points for selected occupations are tightly clustered around the mean of 5.04,5 with a low standard deviation of 2.43, implying jobs within the industry require relatively similar skill sets, while OaSIS displays a higher mean of 15.49 and greater variability, with a standard deviation of 5.80 for fossil fuels and utilities. Percentage differences in skills and knowledge are calculated to identify critical gaps for effective transitions. See Appendix B for more details on the quantitative methodology used for this study.

The primary objective is to develop the Matching Skills model – a framework designed to assess the compatibility of occupations based on their skills, knowledge, and abilities – and hone its potential for upskilling and reskilling to address skills mismatches effectively. By evaluating the similarities and differences between occupational requirements, the Matching Skills model identifies pathways for workers to shift between roles with minimal retraining, providing a strategic tool for workforce development and labour market alignment.

2.2 Qualitative Analysis

The qualitative analysis examines case studies of various corporate and non-profit initiatives and projects across sectors, focusing on supply chain occupations. This approach is applied to occupations that – in order to transition to a lower emissions economy – require minor adjustments, such as additional skills and knowledge, but not fundamental changes. These occupations are typically found in industries like energy and manufacturing.

To characterize these changes, I collected occupation-specific qualitative information, work tasks, activities, and the associated skills and knowledge requirements of occupations such as industrial production managers and engineers, as presented on the O*NET US Department of Labor website.

Further, this paper’s qualitative analysis includes a jurisdictional scan of sector-specific training programs and transition pathways to a low-carbon economy in Canada and Europe. This scan reviews approaches to workforce development and labour market strategies to inform both the findings and the policy analysis (see Appendices E, F, and G).

3. Results and Findings

This section presents key findings from the qualitative and quantitative analysis of occupational transitioning opportunities in various energy and manufacturing sectors, focusing on the implications of decarbonization efforts. The results are structured around several core industries, including fossil fuels, electricity, wind energy, and nuclear energy, as well as emerging fields such as nanogeoscience, which is the study of matter at the nanoscale. I also examine the related topic of carbon capture and its applications in industries like cement manufacturing, and supply chain and logistics fields.

The analysis shows the importance of skill proximity in facilitating transitions, as closer alignment in skills, education, and knowledge reduces the retraining burden. Negative gap percentages signal skill shortages, while positive values indicate surpluses, providing insight for targeted interventions.

The distribution of occupational distances offers several insights into overall and average compatibility by examining the frequency of distances near zero, the mean or median of the distribution, and the range of compatibility levels based on whether the distribution is narrow or wide. Data from selected occupations across the energy and manufacturing sectors, as well as supply-chain occupations, yield the following findings (as summarized in Table 1 and shown in Figures 1, 2, and 3):

1. The energy sector shows a broader spread in occupational distances, suggesting a less smooth transition compared to the manufacturing sector and supply chain occupations across sectors. This implies that energy occupations are more diverse or require varying levels of skill adjustments.
2. The manufacturing sector shows a moderate level of transition smoothness. While occupational distances still vary, the range of change from one occupation to another is narrower than in the energy sector, indicating a more manageable transition.
3. Supply chain occupations across sectors demonstrate a more gradual or moderate transition compared to the energy and manufacturing sectors. While not as tight as the low-distance clusters, it still allows for a more predictable career shift with some room for skill adjustments, making the transition smoother than in the energy sector.

3.1 Energy Decarbonization: Fossil Fuels, and Electricity

I examined different occupations in the oil and gas and electricity industries (energy sector). The findings reveal that transitioning these occupations to a lower-carbon economy will require employees to have a combination of research, innovation, and critical thinking skills. These are fundamental in identifying cost-effective alternative technologies. In particular, research occupations that involve engineering and design skills will play an important role in developing clean energy solutions. Detailed descriptions of the occupations considered for this study are provided in Appendix C. Many of the skills required for this transition already exist among Canadian workers, which is a promising development for a low-carbon economy. Tables D1 and D2 in Appendix D show distances for selected occupations from O*NET and OaSIS databases, respectively. As examples, I select and describe the skills analysis for four subsectors: nanogeoscience and nanotechnology, wind energy, nuclear energy, and those subsectors requiring more general operator-type skills.

3.1.1 Nanogeoscience and Nanotechnology

Nanotechnology – the manipulation of matter at the atomic and molecular scale – has significant potential in Canada’s heavy oil production, particularly for Enhanced Oil Recovery (EOR). Nanoparticles can modify fluid properties such as viscosity and thermal conductivity, improve efficiency and reduce costs. My analysis shows workers transitioning to these roles, such as geological technologists, will require additional training in chemistry and production processing (Figure 4).6 Furthermore, geological technologists can transition to roles as surveying and mapping technicians as well as environmental engineering technologists and technicians.7

Despite its potential, Canada’s OaSIS database does not include entries for nano-focused occupations such as nanoengineering technologists, environmental engineering technologists, and technicians. This contrasts with the American O*NET database, which includes new technical and environmental occupations that are increasingly in demand due to advancements in decarbonization and computer technology. Therefore, my analysis of the OaSIS database indicates that geological and mineral technologists and technicians can transition to roles such as aerial survey and remote sensing technologists and land survey technologists, but those roles lack explicit pathways to nano-focused or environmental engineering roles. Addressing these omissions in the Canadian database is crucial for better workforce planning and adaptation in the context of decarbonization.

3.1.2 Wind Energy

Wind energy is the second-largest renewable energy source in Canada, accounting for 3.5 percent of the country’s electricity generation. Alberta, Ontario, and Quebec lead the country in wind power capacity, and the sector has seen significant growth over the past decade (Terra 2024). Wind energy is also the fastest-growing and lowest-cost source of new electricity in Canada, with 39 projects worth $16 billion planned over the next decade.8

Industrial engineers (OaSIS) working in the fossil fuel and other sectors can transition to roles in wind energy, where they would contribute to the development and monitoring of wind turbine operations. Although industrial engineers have a deeper understanding of physics than wind energy engineers, they also outperform their wind energy counterparts in areas such as production and processing, operations analysis, and problem-solving to improve efficiency and profitability (see Figure 5).

3.1.3 Chemical to Nuclear Energy

Nuclear energy is a key power source in Canada, and its role is expanding. Ontario Power Generation (OPG) plays a significant role in the sector and is developing the country’s first small modular reactor (SMR). In 2021, other provinces like Alberta, Saskatchewan, and New Brunswick joined Ontario in advancing nuclear energy. Nuclear reactors have diverse applications, including research and electricity generation (Johnson 2021).

As the shift to renewable energy progresses, demand for roles like nuclear monitoring technicians and reactor operators may rise. Chemical engineers and chemical technicians can specialize in roles as nuclear engineers and nuclear monitoring technicians, respectively, by focusing on designing and developing nuclear equipment, such as reactor cores, radiation shielding, or associated instrumentation or control mechanisms.9 They can also monitor nuclear facility operations to identify any design, construction, or operation practices that violate safety regulations and laws, or could jeopardize safe operations. Chemical engineering programs offer foundational skills for this specialization. Research shows that chemical engineers often outperform nuclear engineers in production and processing by 34 percent (see Figure 6).

The OaSIS database does not include the occupation of nuclear engineering, which limits its utility for workforce planning in this area. For example, my analysis of the OaSIS database shows that chemical engineers can work as industrial and manufacturing engineers and as metallurgical and materials engineers. Additionally, the growing focus on the conversion of carbon into usable products may increase the demand for chemical and materials engineers.

Chemical engineers, technologists, and technicians have the skills, knowledge, and abilities to work in different industries, including the healthcare sector. My analysis of both the O*NET and OaSIS databases shows that chemical technologists and technicians can easily work as medical and clinical laboratory technologists and technicians and as nuclear medicine technologists (see Figure 7 for an example of top occupations). Medical and clinical laboratory technologists perform complex medical laboratory tests essential for diagnosing, treating, and preventing disease, and may also train or supervise staff.

3.1.4 Careers Accessible to Lower Education Levels

For roles requiring a high-school diploma (Level 2 education) or a post-secondary certificate (Level 3 education), the most common occupational transition opportunities are shown in Table 2. The closer the “distance” between two occupations (in terms of skill, education, and knowledge) is to zero, the more compatible they are for transitioning workers. A smaller distance indicates a smoother transition. For example, petroleum pump system operators can transition to biomass plant technicians easily, with a small skills gap (a distance of 0.43) in the energy sector. They also have a relatively smooth path to becoming metal refining furnace operators in the manufacturing sector, with a slightly larger but still manageable gap (a distance of 0.74).

In statistical terms, these occupations are much closer in required skills compared to the average transition: the gap between petroleum pump system operators and biomass plant technicians is 11 standard deviations below the overall mean of 5.04, while the gap to metal refining furnace operators is six standard deviations below the mean. Metal refining furnace operators manage various types of furnaces, such as gas, oil, coal, electric-arc or electric induction, and open-hearth or oxygen furnaces, to melt and refine metal before casting or to produce specified types of steel.

3.2 Cement Manufacturing and Carbon Capture, Utilization, and Storage (CCUS)

Cement manufacturing is a carbon-intensive process that contributes significantly to greenhouse gas (GHG) emissions. The process starts with mining raw materials like limestone, clay, and marl, which are ground into a powder and heated in a kiln to create clinker. This clinker is then mixed with gypsum to make cement, which is used to produce concrete for construction.

Canada is emerging as a leader in carbon capture, utilization, and storage (CCUS) within the cement industry, driven by both industry innovation and government support. To reduce emissions, the Cement Association of Canada is promoting low-carbon alternatives such as Portland-limestone cement (PLC) and blended cements, which can cut greenhouse gas emissions by over 30 percent through reducing reliance on clinker, the most carbon-intensive component (Leetham 2015). In parallel, companies like Heidelberg Materials and Lafarge Canada are advancing CCUS technologies that aim to capture up to 95 percent of CO₂ emissions from cement production. These captured emissions can be stored in concrete or converted into carbonated aggregates that replace virgin materials and further reduce environmental impact materials.10

The government of Canada has been backing this transition through the Strategic Innovation Fund (SIF) managed by Innovation, Science and Economic Development Canada (ISED). From 2017 to 2023, over 108 direct-to-business agreements have been signed to provide support for activities in research and development (R&D) that lead to technology transfer and commercialization of new products, processes, and services (ISED 2022). SIF is set to provide up to $275 million in funding to Heidelberg Materials to support the development of North America’s first full-scale CCUS system for the cement sector.11 This shift toward cleaner production processes is expected to create demand for skilled workers in areas such as industrial ecology, chemical engineering, and production management. Industrial ecologists maximize the effective use of natural resources in the production of different commercial products such as cement and concrete. They examine the relationship between technical systems and the environment. These professionals must possess specialized knowledge of CCUS technologies to effectively manage and optimize low-carbon systems.12

As a result, workforce development initiatives and retraining programs supported by federal and provincial institutions will play a crucial role in preparing workers to transition from fossil fuel-related industries into emerging sectors like clean energy and sustainable construction. This growing demand suggests a pressing need for Employment and Social Development Canada (ESDC) and provincial governments to support targeted upskilling and retraining programs focused on carbon management and process integration, ensuring that professionals can adapt to the technological and regulatory demands of a low-carbon industrial economy.

As CCUS becomes more embedded in industrial strategy, the value of interdisciplinary expertise spanning engineering, environmental science, and data analytics will only grow. Companies demand a high level of technical proficiency from industrial ecologists, particularly in tools such as life cycle assessment (LCA) software, material flow analysis (MFA), and data management systems like Structured Query Language (SQL) and Systems, Applications, and Products in Data Processing (SAP). Industrial ecologists are expected to interpret large datasets, conduct simulations, and evaluate the unintended consequences of sustainability interventions. It also involves autonomy and decision-making, with over 50 percent of professionals reporting a high level of freedom in setting tasks and goals.13 The findings from the O*NET database analysis show that this occupation requires knowledge of production processes, quality control, cost optimization, and manufacturing techniques (74 percent knowledge level). Skills such as judgment, decision-making, systems analysis, critical thinking, and problem-solving are essential, along with strong expertise in sciences (80 percent) and mathematics (71 percent).14

3.3 Logistics and Supply Chain Occupations

Logistics and supply chain management increasingly tie into sustainability, focusing on carbon accounting, renewable energy access, and reducing CO2 emissions. This sector emphasizes collaboration, operational efficiency, and environmental awareness across industries. Required competencies include problem-solving, communication, digital skills, and environmental awareness. While sectors like nanotechnology and wind energy demand specialized expertise, logistics remains accessible to those with less formal education and offers a wide range of roles that prioritize operational efficiency and sustainability over cutting-edge technological innovation.

Logistics spans multiple industries, optimizing the movement of goods while minimizing environmental impact. Key practices in sustainable supply chain management include carbon accounting and logistics tracking to quantify and maximize GHG emissions reductions. These roles emphasize collaboration with customers, supply networks, and industry groups.15 However, stakeholder engagement remains a challenge, particularly in the long term.

Supply chain managers, buyers, transportation, distribution and storage managers, and logistics analysts require skills in:

• transportation system analysis, contract negotiations for green materials, and system evaluation;
• coordination and critical thinking;
• complex problem-solving;
• communication (speaking and reading comprehension);
• digital skills (such as artificial intelligence and blockchain); and,
• continuous enhancement of suppliers’ environmental, safety, and social responsibility practices.

For instance, Schneider Electric’s Zero Carbon Project and STRIVE program aim to reduce CO2 emissions and achieve net-zero carbon operations across facilities.16 Similarly, Walmart’s Gigaton PPA Program, in partnership with Schneider Electric, helps suppliers access renewable energy, aiming to reduce one billion metric tons of emissions by 2030.

Supply chain professionals, including buyers, logistics analysts, and storage managers, play a crucial role in integrating sustainable practices by analyzing logistics data and negotiating contracts for green materials. These examples illustrate the shift in supply chain practices toward decarbonization goals and highlight the need for additional training in sustainability and environmental awareness.

Despite its accessibility relative to high-tech sectors, logistics still faces challenges, particularly in engaging diverse stakeholders over the long term and aligning supply networks with sustainability targets. This reinforces the importance of continuous training in sustainability, environmental regulation, and collaborative communication. As supply chain roles evolve, professionals such as buyers, analysts, and storage managers will increasingly need to integrate data-driven environmental analysis and supplier engagement into their core responsibilities.

The Sustainable Job Training Fund (SJTF), a federal Canadian initiative launched in 2024 with a $99.1 million budget over four years, aims to support workers transitioning to the low-carbon economy through training in areas like green building, low-carbon energy, and electric vehicles (EVs) (ISED 2025).

Since 2017, Canada’s Strategic Innovation Fund networks have supported over 750 SMEs, created more than 1,200 jobs, and attracted $1.7 billion in investment, while directly strengthening supply chain development through innovation, productivity, and commercialization in clean energy and other key sectors. These targeted investments enhance the resilience and competitiveness of domestic supply chains. Complementing this, the Alberta Machine Intelligence Institute’s AI Pathways project is equipping mid-career energy workers with AI skills to support the transition to a low-carbon economy, addressing talent shortages and preparing SMEs, industry associations, and unions for AI integration in the clean energy sector (ISED 2025).

4. Policy Discussion and Recommendations

This study applies a Matching Skills model to identify transitioning opportunities for occupations requiring significant skill shifts, particularly in specialized roles within the energy sector, including oil and gas, electricity, and manufacturing. It stresses the importance of skill compatibility and occupational mobility in facilitating a successful transition to a low-carbon economy. The findings indicate that occupations with lower skills and knowledge gaps (below 35 percent) are more compatible, enabling smoother transitions, while gaps above 65 percent significantly increase the difficulty of transitioning between roles.

Sector-specific insights reveal practical pathways for workforce adaptation. For instance, geological technologists can transition to nanotechnology roles with additional training, while industrial engineers can leverage operations analysis expertise to enter wind energy positions. Chemical engineers demonstrate versatility, potentially transitioning effectively to nuclear energy, hydrogen fuel cells, and even healthcare roles with appropriate training. Additionally, logistics and supply chain professionals are increasingly focusing on sustainability and carbon accounting, highlighting the growing importance of complex problem-solving, digital skills, and environmental awareness. These findings reinforce the need for targeted upskilling initiatives and policies that support occupational mobility to meet the demands of a low-carbon economy.

This section also builds on the jurisdictional scan of workforce training and transition programs in Canada and Europe introduced earlier. The scan offers a comparative review of sector-specific training approaches, labour market strategies, and skills development systems, highlighting successful models that can inform Canadian policy design (see Appendices E-G).

Countries across Europe are actively aligning workforce development with the transition to green energy. For example, Denmark has invested significantly in cultivating a skilled workforce to support its leading wind energy sector.17 Moreover, Germany, the UK, and other European nations, including the Netherlands and Belgium, have partnered with organizations like the International Labour Organization (ILO) and Cedefop to create strategic roadmaps that connect skills training with sustainable economic growth.18

Based on the findings, several key policy recommendations can be offered to help enhance workforce mobility and ensure a successful transition. These recommendations focus on improving skills mapping, sector-specific training, lifelong learning, and innovation in training approaches.

4.1. Improve the OaSIS Database to Build a Dynamic Skills Intelligence System

A comprehensive and reliable database is essential for tracking the evolving skill demands across industries. ESDC should consider updating the OaSIS database to include emerging occupations driven by decarbonization, digitization, and technological advancements. By improving this database to incorporate new skills and competencies, we can support a robust mapping of existing skills and avoid potential workforce disruptions. Accurate skills mapping can help ensure that the labour force is neither underemployed nor underutilized, providing a clear path to more targeted training and employment opportunities. Furthermore, ESDC should upgrade and expand the OaSIS database into a centralized labour market intelligence platform that:

• maps current and emerging green occupations by sector (energy, transport, manufacturing, construction, etc.);
• identifies skills adjacencies and transferable competencies, enabling the design of targeted retraining paths;
• links with training providers and employers to forecast demand and feed curriculum development; and,
• integrates international benchmarks from Cedefop, Centres of Vocational Excellence (CoVEs), and technical and vocational education and training (TVET) systems like Denmark’s, to monitor skill needs in fast-evolving green industries.

Denmark’s wind energy workforce success is rooted in proactive planning and the strategic use of labour-market intelligence to shape its TVET programs. By anticipating the needs of its growing renewable sector, Denmark aligned training with industry demands, creating a skilled workforce that supports its global leadership in wind energy. This model offers valuable lessons for Canada. Through its OaSIS database, Canada could similarly use real-time labour data to guide the development of targeted training, apprenticeship, and academic programs, ensuring its workforce is ready to meet the demands of a clean energy future.

4.2. Align Sector-Specific Training Programs with Decarbonization Goals and Integrate Innovative Training Solutions

To effectively support the transition to a low-carbon economy, sector-specific training programs must align closely with the needs of emerging green industries, including cement manufacturing, EV manufacturing, hydrogen production, and green construction. These sectors demand specialized competencies, adaptable delivery models, and strong partnerships between industry and educational institutions.

The jurisdictional scan reveals that several European countries have adopted highly integrated training ecosystems. They link labour market data with curriculum development, employer partnerships, and public investment in green skills. Scaling targeted programs like the Sustainable Jobs Training Fund (SJTF) is essential to reskill workers from high-carbon sectors – such as oil and gas, steel, and automotive manufacturing – into roles in renewable energy, EV maintenance, and hydrogen technologies. These programs should also offer comprehensive wraparound supports, from job readiness training and soft skills development to industry-recognized certifications and direct connections to employers.

Building strong industry-education partnerships is crucial for co-developing responsive curricula. Leading companies such as Siemens, Volkswagen, and ArcelorMittal are helping to shape training content that meets current and future workforce demands. Work-integrated learning opportunities like apprenticeships, co-op placements, and project-based learning should be embedded into training models. Additionally, increasing the capacity of training providers is vital, including funding for innovative delivery methods such as micro-credentials (short skill-focused digital certifications), blended and hybrid formats, and virtual labs.

The scan highlights CoVEs in countries like Denmark and the Netherlands that serve as regionally focused hubs for green skills development and facilitate collaboration between industry, government, and training institutions. Inclusive access is vital, such as Indigenous-led training programs that respect cultural contexts and local opportunities, and targeted outreach to underrepresented groups in trades. However, to maximize the impact of these programs, several challenges must be addressed: the high costs of training, complex regulatory environments (especially for small and medium-sized enterprises), a lack of national coordination, and significant gaps between current training curricula and the pace of technological change in green industries (European Training Foundation 2023).

Flexible online learning platforms and innovative training methods are key to preparing workers for low-carbon careers. Modular, self-paced courses in areas like sustainable energy and carbon accounting help workers upskill efficiently. Emerging tools such as virtual reality (VR) and simulation technologies offer immersive, hands-on learning that mirrors real-world job challenges. These methods also support the development of essential soft skills like problem-solving and critical thinking. Bluedrop Training & Simulation, an aerospace and defence e-learning company, is enhancing its VR training programs by integrating AI to create adaptive, personalized learning experiences. Supported by a $448,950 contribution from the Atlantic Canada Opportunities Agency, the initiative aims to tailor training content using real-time feedback, improve instruction and assessments, and strengthen mission training while ensuring data security.19 Personalized, adaptive learning experiences hint at the great potential of technology in modern workforce development.

4.3. Improve the Structure of Transition Pathways

As industries decarbonize, it is critical to establish clear transition pathways that ensure workers are not left behind but are instead supported in shifting into sustainable roles within the green economy. This involves a coordinated national effort to map out viable career paths, strengthen training programs, align efforts with industrial investment, and prioritize equity and inclusion.

A key step is the development of national transition frameworks. These should include the creation of “transition maps,” using data from OaSIS to identify pathways that require minimal upskilling. For example, a refinery technician could transition to a hydrogen plant operator or an HVAC energy auditor role with targeted training. These maps can serve as practical tools to guide workers and employers through the changing labour market landscape.

Strengthening the SJTF is essential to ensure that workers receive technical training and comprehensive wraparound supports. This includes sustained funding for income replacement during training periods, as well as subsidies for childcare, transportation, career coaching, and job placement services. It is also important to ensure coordination across provinces and territories to avoid fragmented or duplicative delivery of services.

Workforce transition efforts should be closely aligned with industrial investments supported by federal programs like the Net Zero Accelerator (NZA) and the SIF. Major projects such as Heidelberg Materials’ cement production, Schneider Electric’s Zero Carbon Project, and the STRIVE program present ideal opportunities to integrate workforce development, including co-op placements and guaranteed jobs for trainees from adjacent programs. Public funds should come with conditions requiring employers to offer green job placements and long-term career development opportunities for transitioning workers. Additionally, investing in community-based delivery models, especially in Indigenous and rural communities, helps make these programs more accessible and locally relevant.

Post-secondary institutions in Canada are offering specialized training programs to equip workers with skills for the clean energy transition. The Northern Alberta Institute of Technology (NAIT) delivers a 16-week subsidized Clean Energy Professional Upskilling Program focused on hydrogen production, carbon capture, sequestration, and lifecycle assessment. Graduates earn a certificate and nine micro-credentials, gaining hands-on experience through industry field placements. Similarly, the Southern Alberta Institute of Technology (SAIT) offers a Carbon Capture and Storage (CCS) Micro-Credential Series for professionals in engineering, geoscience, and trades.20 The Engineering Institute of Technology (EIT) provides a comprehensive 12-module professional certificate in CCS, covering capture technologies, storage, transport, and economics.21 These programs help build a technically skilled, low-carbon-ready workforce in Canada.

A leading global example of effective transition programming is Denmark. There, modular wind energy training is integrated into TVET systems. Public-private training centers are aligned with national clean energy strategies, resulting in the creation of over 30,000 wind energy jobs. These programs support domestic labour force transition and equip workers with skills that are in demand globally.22

4.4 Connect the System: A Unified Approach

These three components must be intentionally connected to form a seamless pathway from data to training to employment:

5. Conclusion

Addressing the skills mismatch through the Matching Skills model can help facilitate effective upskilling and reskilling in the face of significant policy and technological changes affecting industry, as demonstrated here in the case of a transition to a low-carbon economy. The integration of both quantitative and qualitative methodologies provides valuable insights into the current workforce, identifying gaps and opportunities for workers across various industries. By implementing policy recommendations like enhancing data accessibility, fostering industry partnerships, and promoting continuous professional development, stakeholders can create a robust framework that supports workforce adaptability.

A unified, data-driven system that connects labour market intelligence (collected by OaSIS), sector-specific training, and equitable transition pathways is essential for an effective and fair – that is, open to all – workforce strategy. When intentionally aligned, these components ensure that workers are not left behind in the policy shift but instead can thrive within it. It is important to involve Canada’s technical workers and professionals in guidance at all levels of government in these transitions. By investing in this integrated approach, Canada can strengthen its local economies, support industrial transformation, and build a workforce equipped for the challenges and opportunities ahead.

Lin Al-Akkad is a Public Policy Analyst. She holds a Master of Public Policy from the University of Calgary.

The author extends gratitude to Charles DeLand, Parisa Mahboubi, Lisa Stephenson, Steven Tobin, and several anonymous referees for valuable comments and suggestions. The author retains responsibility for any errors and the views expressed.

Appendix D: Quantitative Research Results

 

Appendix E: Canadian Programs Supporting Sector-Specific Training