Note: Single-source report; awaiting corroboration.

Vulnerable groups and households are disproportionately affected by environmental degradation, including climate change and air pollution, and are more susceptible to its adverse consequences. Climate-friendly policies can also impact economic activities in certain regions or increase the cost of basic services like energy, with particularly negative effects on lower-income households.

According to the OECD, with well-designed policy packages, the transition to a net-zero economy can benefit all social groups and ensure that no one is left behind. The organization examines how the net-zero transition affects labour markets and highlights the need to strengthen education and skills systems to support sectoral transformation.

The OECD also investigates the distributional impacts of climate policies and analyzes public attitudes toward these policies to better understand how to build trust and support for the green transition.