The Covid-19 pandemic has disrupted the European labour markets and led to an acceleration in digitalisation and the adoption of new technology on a larger scale. In addition to this, if the European Green Deal becomes a successful growth strategy, it will set in motion a profound industrial transformation towards a greener economy. Such a transformation will affect the labour force in many ways: job creation and destruction, the need for up- and re-skilling and (spatial and sectoral) relocation of dismissed workers, and the potential deterioration of the quality of newly created jobs. This report, prepared in the context of the CEPS Industrial Policy Task Force, proposes a comprehensive and coherent policy framework to bring a social dimension to the new industrial strategy for Europe. To this end, it presents 10 recommendations focusing on skills and job quality. Such policy actions can contribute to making the industrial transition to a green and digital economy more socially acceptable, and enhancing its potential in terms of competitiveness.