Harnessing Human Capital: Migration and the Workforce Behind the EU Clean Industrial Deal
Migration 30 May 2025Estimated time of reading: ~ 6 minutes
The European Union’s Clean Industrial Deal (CID), launched in 2025, is a transformative policy framework designed to decarbonise Europe’s industrial base and expand its clean technology capabilities. Widely viewed as a cornerstone of the EU’s climate and competitiveness agenda, the CID is mobilising vast public and private investment to modernise energy-intensive sectors, drive innovation, and secure Europe’s position in the global clean tech economy. Yet beyond infrastructure, finance, and regulation, a less visible but increasingly vital factor is coming into focus: migration.
As the EU grapples with structural labour shortages, ageing populations, and intensifying global competition for high-skilled talent, the availability and mobility of human capital are becoming key determinants of industrial resilience. The clean transition is not only capital-intensive—it is workforce-intensive. From engineers designing hydrogen systems to technicians installing smart grids and workers scaling up battery manufacturing, the success of CID projects depends heavily on access to skilled and adaptable labour.
Current demographic trends underscore the urgency. Many European countries are already experiencing stagnating or shrinking working-age populations, especially in rural and industrial regions that are central to the CID’s implementation. Without a sufficient and well-trained workforce, even the most ambitious decarbonisation plans risk delays, cost overruns, or underperformance. Migration offers a strategic solution to this challenge—not merely as a stopgap, but as a structural enabler of sustainable growth.
Attracting international talent, particularly in science, technology, engineering, and mathematics (STEM) fields, will be critical for scaling up clean tech industries. Meanwhile, integrating newcomers into vocational training and upskilling programmes can help meet demand in sectors like construction, manufacturing, and energy services. A coordinated approach that links industrial policy with migration frameworks can also address regional disparities, revitalising areas with declining populations by aligning labour supply with industrial demand.
Financially, migration plays a dual role. It supports economic productivity and public revenue through workforce participation, while also helping to ensure that public and EU-level investments in industrial decarbonisation yield a strong return. Labour shortages can lead to wage inflation, project bottlenecks, and reduced competitiveness—risks that a well-managed migration strategy can help mitigate. Moreover, the presence of a diverse, dynamic workforce enhances Europe’s innovation ecosystem, encouraging entrepreneurship and the exchange of technical know-how.
To fully realise these benefits, the EU must move beyond treating migration as a social issue and start integrating it into economic and industrial planning. This includes reforming visa pathways for skilled workers, recognising foreign qualifications more efficiently, and ensuring fair working conditions and social inclusion. Migration policy should not only be reactive to labour shortages, but proactive in supporting long-term industrial transformation.
The Clean Industrial Deal represents an opportunity to reframe the migration debate within a forward-looking economic narrative—one that sees human mobility not as a challenge to be managed, but as a strategic asset to be leveraged. As Europe positions itself for a new era of green industrial leadership, migration will be a decisive factor in determining whether ambition is matched by execution. The CID’s long-term success will depend not only on investments in infrastructure and technology, but also on investments in people—wherever they come from.
Written by: Nenad Stekić