The rapid transformation of industries due to digitalization and sustainability imperatives—the so-called Twin Transition—requires a workforce equipped with new skills at an unprecedented pace. Higher education institutions (HEIs) are increasingly challenged to offer flexible, targeted, and career-relevant learning opportunities that align with evolving industry needs. Microcredentials have emerged as a powerful response, enabling professionals to upskill and reskill efficiently through short, stackable learning units.

This paper presents the development of a modular and stackable microcredential framework at University of Technology Graz, designed to bridge the skills gap in digital and sustainable transformation. The learning format—comprising three key stages: an online phase, an in-person applied learning phase, and a transfer phase - has been directly shaped and further developed by experiences and insights gained from the "DeCarb" Qualification project, an industry-driven continuing education initiative focused on sustainable industrial transformation.

Decarb has served as a real-world testing ground for applied learning approaches, particularly in its Innovation Camps, where interdisciplinary teams from various companies work on hands-on sustainability and digitalization projects. Observations from these camps revealed that effective workforce education requires a mix of self-paced online preparation, intensive collaborative problem-solving in physical settings, and structured follow-up phases to integrate newly acquired competencies into professional practice. These principles have been embedded into the microcredential structure, ensuring alignment with industry needs and work-integrated learning strategies.

A key feature of this initiative is its cross-institutional and industry collaboration, involving a second Austrian technical university, the Mining University Leoben, specializing in sustainability and circular economy. Together, these universities co-develop comprehensive curricula that support professionals in navigating the Twin Transition, ensuring that digital and green competencies are seamlessly integrated. The modular structure allows learners to accumulate credits toward higher qualifications, from short-term industry-recognized certificates to full master’s degrees.

This paper outlines the theoretical foundations, curriculum design principles, and practical implementation strategies for these microcredentials. It further explores the role of industry co-creation, credential recognition, and lifelong learning ecosystems in future workforce development. By leveraging insights from DeCarb and fostering transdisciplinary partnerships, HEIs can create a more adaptable, future-ready workforce capable of driving sustainability and digital innovation.

Keywords: Microcredentials, Green and Digital Transition, Co-creation, Industry collaboration, Life Long Learning.