Harnessing Emerging Workforce Competencies and Talents to Attain Carbon Neutrality through Digitalization

Abstract

Aligning with Vision 2030 and SDG 13, Saudi Arabia is leveraging digital technologies and youth competencies to drive its transition toward a carbon-neutral economy. Current research often treats sustainability too broadly, limiting deep insights into its key dimensions. To bridge this gap, the present study examines how digital technologies, through their interaction with the emerging workforce, drive energy efficiency, reduce carbon emissions, and stimulate innovation in renewable energy sectors. The study collected data from 320 participants through a survey. The study is conducted in two folds. Firstly, using SPSS exploratory factor analysis discovered the underlying factor structure and confirmatory factor analysis tested and validated the factor structure. Further, structure equation modeling using AMOS was conducted to test the hypotheses. The study examined the direct link between digital technology and workforce competencies, and the moderating role of workforce competencies in the relationship between digital technology and carbon-neutral economy initiatives. The analysis demonstrated a strong positive association between digital technology and the carbon-neutral economy (β = 0.580, p < 0.001). Workforce competencies also exhibited a modest positive relationship with the carbon-neutral economy (β = 0.239, p < 0.001). In addition, the moderation effect of workforce competencies on the digital technology and carbon neutrality relationship was statistically significant but weak (β = 0.029, p = 0.042). These results suggest that while digital technologies and workforce skills both play important roles in advancing carbon neutrality, their interaction contributes only marginally to strengthening this relationship. The study highlights effective strategies to support Saudi Arabia’s shift toward a carbon-neutral economy. Integrating digital transformation with workforce development, particularly youth empowerment and digital upskilling can drive innovation, support green startups, and enhance economic diversification, advancing the Kingdom’s Vision 2030 goals for sustainable and long-term growth.