Block’s Indicator of Sustainable Growth

by Ray Block

This is Part 2 of a study of Green Job Growth in Europe and the US.

The US study, “The Clean Energy Economy” by the Pew Charitable Trusts was released in June 2009. Prepared with the assistance of research consultants, Collaborative Economics, the authors are upbeat about the green job growth in the US.

Pew counted actual green jobs, companies and investments in every state and Washington DC. The count was in jobs developing clean, renewable sources of energy, increasing energy efficiency, reducing greenhouse gas emissions that cause global warming, and conserving water and other natural resources.

The count was based on 2007 actual employment. “More than 68,200 businesses accounted for 770,385 jobs” that “achieve the double bottom line of economic growth and environmental sustainability.”

The green job numbers may seem small against the current US recession, with unemployment is moving towards 10 per cent. Three quarters of a million green jobs represent only half a per cent of all jobs in the US to-day. But Pew’s research shows that between 1998 and 2007, clean energy economy jobs- a mix of white and blue collar positions grew by 9.1 per cent, while total jobs grew by only 3.7 per cent.

Signalling new market opportunities, venture capital investment in clean technology crossed the US$1 billion threshold in 2005, and continued to grow substantially, totalling about $12.6 billion during the past three years.

Between 2006 and 2008, 40 states and the District of Columbia  attracted venture capital investments in technologies and industries aimed at economic growth and environmental sustainability. Every state has a piece of America’s clean energy economy.

Texas as the No1 wind energy state had more than 55,000 clean energy economy jobs in 2007, and attracted more than $716 million in venture capital funds for clean technology between 2006 and 2008.

Tennessee has succeeded in cultivating jobs in recycling waste investment and water management. These jobs grew more than 18 per cent between 1998 and 2007, compared with 2.5 per cent a year for all jobs in the state.

Colorado has raised the amount of power electricity utilities must supply from renewable energy sources to stimulate job growth in solar and wind power, and other forms of clean energy generation.

Ohio ranked among the top five states, with the most clean energy, energy efficiency, and environmentally friendly production in 2007. All told, in the 10 years to 2007, average annual growth of jobs in the clean energy economy outperformed traditional industry job positions in 38 of the 50 states and DC.

Pew’s actual count of jobs in all 50 states and DC is the first of its kind in the US. “Our numbers are conservative based on a stringent definition of the clean energy economy.”

The Pew data show that 65 per cent of today’s clean energy economy jobs are in conservation and pollution mitigation, reflecting the need to recycle waste, conserve energy, and mitigate emissions of greenhouse gases and other pollutants.

Three other job categories-clean energy, energy efficiency and environmental friendly production are growing at a much faster rate than conservation and pollution control. In 2008, about 80 per cent of venture capital investments were in the sectors of clean energy and energy efficiency.

Clean energy initiatives on a regional basis include 23 states participating in three major schemes to increase renewable energy generation and reduce carbon emissions from power plants.

14 states and Washington DC., with three additional states set to join are in the process of adopting stringent vehicle emission standards.

On Pew’s count, there were in 2007, 68,201 clean businesses employing 770,385 clean jobs, with a clean job growth rate over the 10 years of 9.1 per cent a year. This compared to the overall job growth in that period of 3.7 per cent. Venture capital in the two years to 2008 was $12.57 billion.

With the rapid decline in US manufacturing employment over the decade to 2007, as globalisation in goods and services with outsourcing to China and India took place at a rapid rate, there is growing interest in all US states in developing green jobs and new manufacturing services.

The five job categories of the clean energy economy comprise:

Clean Energy requires large numbers of electricians, electrical   engineers and plumbers to install new energy systems, while plant operators ensure that renewable sources, such as wind and solar are being converted to electricity.

Mechanics rebuild ailing energy infrastructure by installing sensors and controls that monitor and distribute clean energy more effectively, such as making the grid smarter.

Researchers and technicians perfect and implement battery technologies that improve how we store and distribute clean energy.

Energy Efficiency involves engineers developing energy efficient lighting, meters, software programs that monitor energy usage, while electricians and technicians install them in homes, businesses and government buildings.

Environmentally Friendly Production requires multiple job opportunities.

Transportation jobs are involved in the production of hybrid diesel buses, traffic  monitoring software, and liquid biofuels; industrial chemists and technicians who produce environmentally sound packaging equipment, and surface cleaning products, that are less caustic than traditional products.

Construction workers who produce and install green building materials, such as alternative cement and manufactured wood products made from offcuts, and consultants who provide green building designs and construction services.

Agriculture requires plumbers and technicians, who install smart irrigation systems, as well as chemists, who design alternative pest controls, and consultants who provide agricultural sustainability planning.

Energy Production includes jobs that design and apply      cleaner technologies to coal, such as gasification, pyrolysis, and carbon capture and storage.

New Materials includes product designers and engineers, who develop biodegradable products and chemical engineers, who research new chemical catalysts to break down wastes and reduce toxins naturally.

Conservation and Polllution Mitigation

Skilled workers who safely remediate hazardous materials from industrial sites; scientists and technicians who develop, install and supply products to capture and treat noxious greenhouse gases and pollutants; machinists and system operators to treat water and waste; and environmental consultants to help companies and government agencies to improve emissions monitoring, water conservation.

Training and Support

Financial analysts and consultants specialising in clean tech investments; lawyers and paralegals; researchers and engineers who develop new energy generation technologies; and vocational teachers who train new workers for the clean energy economy.

Posted under Carbon Abatement Scheme, Climate Change, Economies, Renewable Energies