Green structural transformation and rural employment: what role can nature-based solutions play?

Nature-based solutions (NbS) are increasingly recognized as having a vital role in addressing the climate change and biodiversity crises. The increased use of NbS will also have impacts on the rural labour market through five channels. First, the increased use of NbS will require increased investment, in rural areas, in restoration and natural resource management activities that are relatively labour intensive and will in turn boost labour demand. Second, the carbon sequestration co-benefits of NbS have the potential to become an important additional source of income for farmers. Third, the increased use of NbS may also require temporary or long-term restrictions on the use of some natural resources, and these restrictions may have negative impacts. The fourth is the impact on yields. In low-income countries improved yields tend to boost labour demand in the short term. The fifth factor is the impacts on labour productivity. Transitioning to sustainable practices can impact on labour productivity in either direction, since some relevant agronomic practices are more labour intensive whereas others increase productivity. Collectively, these factors will impact on the nature of work, labour productivity, and demand for labour. Thus, complementary just transition and sectoral policies are needed to make the overall shift to a greener form of structural transformation a story of net positive employment effects.