in collaboration with The World Government Summit is a global platform dedicated toshaping the future of governments worldwide. Each year, the Summitsets the agenda for the next generation of governments with a focuson how they can harness innovation and technology to solve universalchallenges facing humanity.The World Government Summit is a knowledge exchange center at theintersection of government, futurism, technology, and innovation. Itfunctions as a thought leadership platform and networking hub forpolicymakers, experts and pioneers in human development.The Summit is a gateway to the future as it functions as the stage foranalysis of future trends, concerns, and opportunities facing humanity.It is also an arena to showcase innovations, best practice, and smartsolutions to inspire creativity to tackle these future challenges.To Inspireand EnableThe Next Generationof GovernmentsWorld Government Summit01 “ Live as if you were to dietomorrow. Learn as if youwere to live forever. ”- Mahatma Gandhi03 Table of ContentsAcknowledgmentsAuthorsExecutive SummaryIntroductionThe Risks and Opportunities of the Twin TransitionsCountry Readiness for Smart Green GrowthSolving the Upskilling PuzzleTopicsHow Governments can Unleash the Skills EconomyConclusionAppendix 06060711132126374951 AcknowledgmentsThe authors would like to thank the followingexperts for their insights during our interviews:Vickie Dekocker, co-author of The Learning SocietyMargareta Drzeniek, Horizon Group, author of the 2020 UN report “FuturePossibilities”Ekkehard Ernst, Chief Macroeconomist, International Labor OrganizationBruno Lanvin, Director of Global Indices, INSEAD Business SchoolTill Leopold, Head of the Inclusive Economies Practice, Centre for the NewEconomy and Society, World Economic ForumFabio Manca, Head of Skills Analysis, Organisation for Economic Co-operation and DevelopmentCarlota Perez, Honorary Professor, UCL Institute for Innovationand Public Purpose2Laurent Probst, PwC, author of the Lost WorkforceOlga Strietska-Ilina, Senior Skills & Employability Specialist, InternationalLabor OrganizationBruno Tindemans, co-author of the Learning SocietyJan Willem Velthuijsen, Chief Economist in Europe, PwCAuthorsRanda Bahsoun, Partner, Government and Public Sector, PwC Middle East.Donia Aqel, Director, Labor Market and Social Policy, PwC Middle East.Eduardo Rodriguez Montemayor, PwC UKJing Teow, Senior Economist, PwC Middle East.Special thanks to the following colleagues whocontributed significantly to our research:Alain Dagher, Alhassan Omar, Aryan Tah,Vayana Skabrin, Yumu Chen and Yuval Fertig. 1 ExecutiveSummary07 Since it began in 2019, COVID-19 has resulted in millions of joblosses around the world. International Labor Organisation (ILO)analysis suggests that around 8.8% of global working hours,equivalent to 255 million full-time jobs, are estimated to havebeen lost, with significant social and economic costs.3Beyondthe pandemic however,the seismic shifts wrought by the twintransitions - toward a greener and digitalized economy-posea far greater threat to jobs and livelihoods globally. Estimatessuggest that around 30% of jobs are at high risk of automationand this risk could be significantly higher in some countries.4It is not all doom and gloom. While automation poses a clearrisks to jobs, the digitalization of many economic activitieswill also create new jobs and demand for new skills. Fromthe displacement of farming over the course of the industrialrevolution, humans have adapted, created new jobs and boostedproductivity. In the same manner, artificial intelligence (AI)and robotics will also create new jobs in a greener and digitizedeconomy that will boost productivity and provide service-relatedemployment that is harder to automate.4Similarly, the imperative to move towards decarbonization willlead to job losses in energy and emissions-intensive sectors,but also bring opportunities in new industries ranging fromsustainable energy production and storage to efficient resourceuse and waste management. According to our estimates,applying digital and AI solutions to the green transition couldcontribute up to US$5.2 trillion to the global economy by 2030,while reducing worldwide greenhouse gas (GHG) emissions by4%.The jobs and opportunities created by the twin transitionswill require new skills. People will need to adapt to workingalongside digital technologies, including AI. AI provides somepromising solutions that have important implications for agreener economy. Solutions such as AI-infused clean distributedenergy grids, precision agriculture, environmental monitoringand enforcement, and enhanced weather and disaster predictionand response.5It will also call for core transversal skills,including leadership, management, creativity, communicationand adaptability. These skills are likely to command a risingpremium in a digitalised economy.However, our research suggests that many countries are notready for the twin transitions.Firs