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This report explores the skills, innovation and workforce dimensions of the transition to a more environmentally sustainable society, with a particular focus on the challenges involved in achieving deep cuts in greenhouse emissions. The report draws on two very different types of national model to explore potential green collar employment futures: the CSIRO ASFF models, representing a technology based 'physical economy' approach, and the Monash University multi-regional computable general equilibrium (CGE) model, a price based 'monetary economy' approach. Key results include: (1) if Australia takes significant action to cut greenhouse gas emissions national employment will still increase by between 2.5 million and 3.3 million over the next two decades; (2) jobs in high environmental impact areas like transport, construction, agriculture, manufacturing and mining are forecast to grow strongly in the next decade; and (3) in high environmental impact industries 3.25 million workers will need to be equipped with new, more sustainable skills. Five key elements are identified for a coherent and systematic response to the skills challenges associated with this transition. They are: (1) incentives and policy settings for environmental performance; (2) green skills and training; (3) performance assessment and accreditation to inform action; (4) access to appropriate business inputs and components; and (5) promotion of a stronger innovation culture. The report concludes that the transition to a low carbon economy will require policy attention to both incentives for environmental performance, and to the skills required to deliver this performance. Substantial action will be required to ensure that the skills, education, and training required are available and ready to contribute. This will involve concerted action by government, businesses, labour, and educational and training institutions to develop and implement new approaches to green education, training and jobs.