Europe’s journey to decarbonise its energy system is a monumental challenge that hinges on human capability as much as technology. Meeting ambitious targets for renewable energy deployment, heat pump adoption, and electric vehicle uptake demands a highly skilled workforce.
While sectors like manufacturing and energy already face talent shortages, the most pressing gap lies in digital skills, the backbone of the technologies driving the green transition. With 4 out of 10 adults in Europe lacking basic digital skills, it’s essential for European governments and businesses to invest in training and education at a local level. Europe also faces a shortage of digital experts who can drive cutting-edge technologies in preparation for a digitalised future.
Despite ongoing challenges, there has been notable progress by Europe in its energy transition. In 2024, the EU added 65.5GW of new solar capacity, a four per cent increase from the previous year. This brings the total installed capacity to 338GW, marking a fourfold increase over the past decade. While milestones like these are worth celebrating, it’s a small step in a far greater journey. The EU’s current climate ambitions, a 55 per cent reduction in greenhouse gas emissions by 2030 and climate neutrality by 2050, demand accelerated progress across all sectors.
The advancement of Europe’s energy transformation will depend heavily on digital skills. Every step of the energy value chain, from production to consumption, could be revolutionised using cutting-edge technologies like artificial intelligence, the Internet of Things, and big data analytics. These tools enable predictive maintenance, real-time system monitoring, and smarter grids, boosting productivity while reducing emissions. Additionally, AI represents Europe’s biggest economic opportunity, with the potential to contribute over €2.7tn to the EU economy by 2030. As such, ensuring a workforce that is equipped to harness this potential is more urgent than ever.
With programs like the Digital Strategy and the AI Strategy, which specifically link digital transformation with climate goals, the EU has established a solid basis for a net-zero future. Policy is a potent lever, and these frameworks are essential for determining the future course.
The EU’s AI Skills Academy, along with other European Digital Skills academies, showcases the EU’s strong commitment to attracting, training, and retaining indispensable talents. However, development will slow if there isn’t a trained workforce to implement these strategies. In the end, the ability to deliver on a sustainable future is just as important as having a clear vision for one.
This is where Europe faces one of its biggest challenges: a widening digital skills gap. Just 55.6 per cent of EU citizens currently possess at least rudimentary digital abilities, which is much less than what is required to fully utilise developing technology. Even the greatest plans run the danger of failing in the absence of a workforce prepared to support the digital and green shift. Governments and corporations must work together to upskill current employees and draw in fresh talent from other regions and industries to close this talent gap. However, progress is sluggish. According to the World Economic Forum’s Future of Jobs Report, 59 per cent of workers are predicted to need retraining by 2030. The process of reskilling is a continuous learning journey that needs to be prepared for.
According to the same study, employee demand for AI training has increased significantly over the last two years, indicating a surge in interest in AI upskilling. Since the end of 2023, consumer enrolment in AI courses has more than doubled. It is now up to legislators, educators, and business executives to satisfy the evident desire to learn. The digital skills gap will continue to be a significant barrier to the energy transition if it is not addressed, highlighting the pressing need for focused training efforts and expandable educational activities.
Europe must put a high priority on funding educational and training initiatives that develop fundamental digital skills to develop and draw in digital talent. At Schneider Electric, we’ve given 40,000 employees access to a specialised learning portal with chances for career development and upskilling through our Digital Citizenship program. However, no single organisation can narrow the skills gap on its own; significant progress will require group efforts.
Establishing a talent pipeline that meets industrial demands will require strategic cooperation between both companies and academic institutions. In addition to fostering digital expertise, initiatives like collaborative research projects, internships, and scholarship programs help increase the accessibility and attraction of employment in technology. These efforts can be strengthened by collaborating with other organisations; by means of events, workshops, and outreach, we can inspire the upcoming generation of innovators and increase awareness of the critical role that digital skills play in promoting sustainability.
The good news is that the technologies we need for a successful energy transition already exist; what’s needed now is effective upskilling of workforces in digital skills to allow a faster implementation of these technologies. Although we’re making great strides in installing renewable energy, especially solar and wind, that’s just one strand of the journey. Addressing energy consumption and, more importantly, enhancing our management of it to guarantee a sustainable future are equally crucial.
Smart AI-driven technologies can be used to manage building energy consumption patterns, while also integrating weather forecasts to optimise heating and cooling and analyse usage in individual rooms. This preserves the same degree of comfort while reducing expenses and energy use. Furthermore, IoT devices give businesses and consumers access to real-time energy usage data, enabling them to make well-informed decisions that improve energy efficiency even more.
Europe can advance their existing labor force to expedite the continent’s climate ambitions by investing in education, training, and technology. In addition to increasing efficiency and reducing emissions, the energy sector’s adoption of digital technology will open the door to a sustainable future. 2024 was officially the hottest year recorded globally, as well as being the first year that the average global temperature exceeded 1.5°C above pre-industrial levels, continuing a worrying trend. It is imperative that skills development, digitalisation and climate action move quickly to address the difficulties that lie ahead.
Gwenaelle Avice Huet, EVP Europe Operations, Schneider Electric
