Block’s Indicator of Sustainable Growth

by Ray Block

Two recent studies of the job creation potential in the new era of a low carbon economy have been completed for both Europe and United States.

Part 1 deals with Europe

WWF (World Wide Fund for Nature) in its study “Low Carbon Jobs for Europe” June 2009 is hopeful that by 2020, the European Union as a whole will have reached a goal of a 30 per cent domestic greenhouse gas (GHG) reduction target.

“Europe now has close to 400,000 jobs in the renewable energy sector, with good prospects that the numbers will mushroom to a few million in the next decade.”

In transport, the “one-sided concentrated policies of the past now look like a dead-end strategy.” A new transport orientation is needed, both in regard to a smaller carbon footprint in greater fuel efficiency, and new propulsion systems including electrification of transport.

This “may require an almost unprecedented conversion of auto industry capacities and job skills, and a strategic commitment to a smart grid and other forms of public infrastructure.”

WWF say that an estimated 150,000 people are directly involved in producing efficient autos. Close to 2 million people are working in urban transport, railway operations, and manufacturing railway rolling stock. Including indirect jobs, these numbers would at least be doubled.

Energy efficiency holds “enormous” promise to cut carbon emissions and to create jobs in smart buildings and lighting, appliances and office equipment, industrial processes etc. “We have only seen modest beginnings.” WWF makes the point that the only way of being certain in keeping industries and jobs in Europe in the light of global competition is to pursue energy efficiency opportunities.

Once you add the “400,000 renewable energy jobs (direct and indirect), 2.1 million in efficient transport, and more than 900,000 in energy efficiency goods and services, you come to 3.4 million green jobs in Europe today. Indirect jobs not included above are likely to add another 5 million to the employment figure.”

The 3.4 million green jobs in Europe compares favourably with the 2.8 million jobs in traditional industries – mining, electricity, gas, cement, iron and steel, and other polluting heavy industries. Currently, only a small number of countries, with Germany and Spain in the lead, account for the bulk of the green jobs.

WWF say the job estimates are conservative, since they do no include additional green jobs in manufacturing efficient appliances, lighting, other equipment and industrial machinery. Compared to United States, a much lower per capita electricity and fuel consumption is likely to generate additional employment in the service industries.

European stimulus funds in billion of euros are in the order of 490.1 billion, of which Green funds are 41.9 billion, 8.5 per cent of the total. The make up of the stimulus funds include 2.7 billion euros in renewable energy and 9.7 billion in carbon capture and storage initiatives.