ILO launches Green Employment Diagnostic to guide just transition in Montenegro, North Macedonia and Serbia

Budapest (ILO News) - Representatives from Montenegro, North Macedonia, and Serbia convened at the ILO-GIZ Just Transition Practitioners' Workshop early October to discuss policies that can usher in a just energy transition based on decent work for all and social justice.

The event launched the three reports based on the ILO methodology "Green Employment Diagnostic for Just Transition (GED)" for Montenegro, North Macedonia, and Serbia.

Findings for Montenegro show that the green transition represents both risks and opportunities for an economy heavily reliant on tourism, agriculture, and coal-based energy.

The ILO has warned that unless measures are taken, up to 8% of Montenegro's Gross Domestic Product (GDP) could be lost by 2050 due to climate change.

Montenegro's northern coal region Pljevlja, in particular, faces important transition challenges. The only thermal power plant, which provides 45% of the electric power supply for Montenegro, is situated outside Pljevlja, as well as the biggest coal mine with 100% of the coal production in Montenegro. The report stresses the need for social dialogue to find a consensus on a roadmap focussing on diversification of the local economy and support measures for the local labour force. 

Montenegro's priorities include reskilling workers in the most affected sectors, embedding green skills in technical and vocational education and training (TVET), and extending social protection to the most vulnerable. The report highlights the need for a Just Transition coordination platform and better data systems to monitor progress and impact. 

The GED report for North Macedonia found that the country could generate 10,000 new green jobs by 2035 if targeted investments are made, supported by social dialogue. Four sectors - energy, agriculture, basic metals production, and construction - emerge as most vulnerable, but also as strategic entry points for employment creation in renewable energy, circular agriculture, and sustainable construction.

The ILO report calls for urgent action to adopt a Climate Action Law, modernize emissions databases, and strengthen climate budget monitoring.

The Government of North Macedonia has taken the essential step of including representatives of the Employers and Business Membership Organizations and Trade Unions in the planning and implementation of the country's Nationally Determined Contribution (NDC) 3.0 process.

No transition can be just unless it involves the social partners. The unions must be the voice of workers, ensuring that their needs and concerns are heard before any national policy decisions are made.

"No transition can be just unless it involves the social partners. The unions must be the voice of workers, ensuring that their needs and concerns are heard before any national policy decisions are made," said Elena Petrova, from the Federation of Trade Unions of Macedonia. 

Serbia's GED report underlined both climate vulnerability and opportunity. The country has reduced greenhouse gas emissions by nearly 29 percent compared to 1990. Still, it remains one of the most coal-dependent economies in the region, with 62 percent of power produced from lignite. 

"A just energy transition is both a possibility and an opportunity - for new jobs, new skills, and stronger economic development," said Biljana Ramić, from the Ministry of Mining and Energy of Serbia. "We must think about the future in a positive and constructive way, working together to identify the best solutions for everyone." 

The Serbia report estimates that Serbia could create up to 150,000 green jobs by 2035-especially in manufacturing, renewable energy, construction, agriculture, and waste management - if policies are well-coordinated. A Just Transition Plan for the energy sector was adopted in July 2025, but without full involvement of the workers' and employers' organisations, and effective implementation and financing remain key challenges. The ILO report therefore calls for stronger inter-ministerial coordination and social dialogue, the adoption of a definition of green jobs, and integration of just transition mechanisms into national and local policy frameworks. Moreover, climate resilience and social protection must go hand in hand to prevent rising inequalities, particularly in mining and affected communities. 

Throughout the discussions, participants emphasized the centrality of social dialogue between governments, employers' organisations, and trade unions to bringing about a just transition. 

"Social dialogue is not only a cornerstone of labour protection and legislation, but also a vital mechanism for highlighting the challenges that employers face in the green transition," underlined Mile Boshkov, President of the Business Confederation of North Macedonia. 

Employers expressed concerns about the Carbon Border Adjustment Mechanism (CBAM) and the risk of double taxation, urging for dialogue-based solutions to balance climate ambition with business competitiveness. 

Across the three countries, the path to a just green transition is clear: building a strong evidence base, ensuring inclusiveness through social dialogue, and strengthening inter-ministerial coordination. 

"The workshop provided an opportunity for learning from each other, using evidence to support better policies, and preparing for the next phase of NDCs with a stronger focus on decent work and just transition," stressed Claire Harasty, ILO Director for Central and Eastern Europe.

The ILO reaffirmed its commitment to supporting further peer learning, policy and social dialogue, and capacity building to ensure that no worker or community is left behind in the shift toward low-carbon economies.