STEM (Science, Technology, Engineering, and Mathematics) education is pivotal in fostering innovation and promoting Germany's position in global industries and in several sectors. This paper explores selected cases of STEM education and STEM related VET in Germany, focusing on how learning outcomes are aligned with the evolving demands of a sustainability-driven economy. By examining ESD educational frameworks, government policies, and industry collaboration, the research explores key competencies developed through STEM curricula, such as green skills, innovative problem-solving, and critical thinking. Despite Germany's progress in STEM education and VET, challenges such as gender disparities, lack of systematic integration of Education for Sustainable Development (ESD) into VET curricula, and increasing demand on green talent as well as digitalisation, climate change and increased migration to Germany, present opportunities for further policy refinement on a governance level. Focusing on STEM education in Germany, the paper provides recommendations to better align STEM learning outcomes with labour market needs, emphasising the integration of emerging trends like AI, digitalisation, and Education for Sustainable Development (ESD). It also contributes to the better understanding of adult learning and education policy and practice and the international political economy of education policy, both in the context of sustainable development.