5 Million Green Jobs: Address Climate Change Strengthen The Economy Putting Americans To Work

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5 Million

Gree n Jobs
How We Can Address Climate Change
and Strengthen the Economy
by Putting Americans to Work

SKY
1 CLIMATE. 1 FUTURE. 1 CHANCE.

In Collaboration With

1sky.org
1
Global warming is one of the greatest challenges our nation and world
has ever faced. The climate crisis is not a threat in the distant future—
it’s happening now. Worldwide greenhouse gas emissions are increas-
ing so quickly, scientists say, that our society’s response in the next few
years will determine our future.

Global warming represents not just an environmental crisis and individuals nationwide are rallying around a call for 5
but an economic crisis as well. A recent report estimates million new green jobs because we understand that the cli-
that doing nothing to mitigate climate change will cost the mate challenge isn’t just about solving problems—it’s about
U.S. economy more than 3.6% of GDP, or $3.8 trillion.1 Paul creating opportunities. Now is the time to re-build our
Volcker, the chairman of the U.S. Federal Reserve under nation’s economy, making it stronger and more inclusive
President Reagan, has flatly stated that “if [nothing is done,] than ever before.
you can be sure that the economy will go down the drain in
the next thirty years.”2
Yet within this crisis lies a tremendous opportunity. The
solutions to global warming are not just a guard against
future economic ruin; they are also the solutions to our The 1Sky Solutions are grounded in
current economic stagnation and unemployment. Ameri- scientific necessity—they represent
can businesses, communities and households will grow and what is needed to dramatically reduce
prosper if our nation pivots to a clean energy economy.
carbon emissions and avoid the impend-
Public and private investment in wind, solar, geothermal
energy and in energy efficient buildings, automobiles, and
ing climate crisis. They offer enormous
appliances can catalyze new businesses and jobs while solv- economic promise, with a focus on cre-
ing the climate change problem. Building a newer, smarter ating jobs, opportunity and stronger
and more equitable 21st century economy is the critical communities through investments in
next step to keeping our country strong in the face of eco-
clean energy and conservation.
nomic insecurity.
The American people are ready for change, but it will
require bold political leadership to kick our economy into • Create 5 million new green jobs and
high gear. 1Sky and our thousands of allied organizations pathways out of poverty focused on
climate solutions like energy efficiency.
• Reduce global warming pollution at
least 25% below 1990 levels by 2020 and
at least 80% below 1990 levels by 2050.4
• Impose a moratorium on new coal
Green-Collar Job:
n.
plants and end our dependence on
-track job that
a well-paid, career oil through strong standards and
ly to preserving or
contributes direct incentives for energy efficiency and
l quality.
3
g en vi ro nm en ta
enhancin renewable energy.

2
Green-collar jobs are real and are already being created JOBS PER MEGAWATT OF
across America. In Texas, the wind industry is creating ELECTRICITY IN SELECTED INDUSTRIES
12
thousands of jobs and millions of dollars of new income for
landowners and communities.5 In California, the new Mil- 10

JOBS PER MEGAWATT


lion Solar Roofs program6 has created unprecedented demand High End
8
for skilled workers installing millions of cost-cutting solar Low End
panels across the state. As of August 2008, 97 new geothermal 6

power projects were under development in 13 states, produc-


4
ing more than 7,000 permanent full-time jobs.7 Positions in
the green economy run the gamut from entry level to highly 2

skilled and everything in between,8 with opportunities for 0


advancement as high-growth industries continue to expand. Solar Geo- Biomass Wind Landfill Natural Coal Nuclear
PV thermal Gas Gas
Communities everywhere are recognizing that green jobs
POWER SOURCE
can fight poverty, pollution, and global warming at the same
time. Most green jobs are existing occupations that are being Job estimates are attributable to the manufacturing, installation, and operations of
each power source. Variance between high and low end estimates are a  function of
upgraded and repurposed to build a green economy. And deployment scale, and whether or not equipment is manufactured domestically.
most green-collar jobs are community-based, with the poten- Sources: Renewable Energy Policy Project, Renewable Energy and Appropriate Laboratories.
tial to revitalize specific regions and neighborhoods, sharing Nuclear Energy Institute, and The State of California.

new opportunities equitably.9 Since green-collar jobs focus on


transforming the immediate natural and built environment, fuel based infrastructure, creating new jobs and dramatically
they are harder—and in many cases impossible—to move reducing pollution at the same time. For example, a range
offshore. No one will ship a building from Detroit to be retro- of studies show conclusively that renewable energy “gener-
fitted in China. And with transportation costs skyrocketing, ates more jobs per megawatt of power installed, per unit of
manufacturers increasingly rely on domestic production of energy produced, and per dollar of investment,” than fossil
component parts for renewable energy industries. fuel energy11 (see graph).

Green-Collar Jobs Stabilize the Economy 5 Million New Jobs: A Reality If We Act Boldly
Coal, nuclear, and fossil fuel production are capital- Creating 5 million new green jobs in the US is not a pipe-
rather than labor-intensive. Conversely, a program to dream. It is a conservative estimate of what we can do with
retrofit offices, manufacturing plants, and homes with political commitment to a smart, clean energy economy.
energy efficient technologies will create demand for weld- One recent report shows that the U.S. can create two mil-
ers, electricians, carpenters, and thousands of others who lion jobs over two years by investing $100 billion in a green
produce the energy-saving high-efficiency results we need. economic recovery plan. The report also shows that this
If we allow the dirty economy to prevail, we will continue investment would create four times more jobs than spend-
to rely on increasingly expensive fossil fuels. Building a ing the same amount of money within the oil industry.12
vast web of mass transit and converting our auto plants to Public investment and complementary policies will each
produce plug-in hybrid vehicles is a process that will rely result in job creation, and ensure job retention.13 In the
on a steady stream of skilled American workers—not on past few years the nearly-expired Production Tax Credit
fossil fuels. and Investment Tax Credit for wind and solar have sparked
As our economy grows, we have some important decisions huge growth in the renewable energy sector. Over 100,000
to make. Replacing old coal plants with more coal plants cre- jobs could have potentially disappeared if Congress hadn’t
ates no new opportunities.10 However, if we level the playing renewed the tax credits in October 2008. In Ohio specifi-
field for renewable energy and energy efficiency by capping cally, more than 50% of the current green jobs are in the
global warming pollution and creating the right incentives, manufacturing sector and the state boasts many more
high-growth clean technologies will replace our aging fossil middle-skilled manufacturing workers ready to take on new

3
positions as the clean technology sector develops.14 GREEN JOB CREATION IN OHIO
As the graph to the right indicates, “moderate” political
2.5
action, such as a 15% renewable portfolio standard an other Base Case

GREEN JOBS (MILLIONS)


incremental incentives, gives us a few more new jobs, but 2.0 Moderate Political Action

“bold” political action (like the 1Sky solutions) creates almost Bold Political Action
1.5
5 times as many new jobs.15 To solve the climate crisis, and to
realize our economy’s full potential, we’ll need more than
1.0
half measures.
Importantly, the bulk of clean energy investments will 0.5
benefit both rural and urban America. A recent study by the
University of Tennessee16 predicted that 5.1 million jobs could 0
2006 2030
be created in rural areas alone by 2030 if bold measures were
taken to incentivize the next generation of low-carbon fuels17 Data accounts for direct and indirect job creation. Bold political action is
and electricity production. comparable to the 1Sky Solutions.
Source: American Solar Energy Society, 2008.

Green Jobs Are Here to Stay programs aiming to reduce dependence on fossil fuel con-
The renewable energy sector alone, including wind, solar, sumption and electricity use.
and geothermal, already employs half a million people • In five years, over 40,000 Vermonters, predominantly
nationwide. The energy efficiency sector spans several low-income families, small businesses, and public schools,
industries including automobiles, buildings, appliances, were served by the efficiency program, which provided
and power plants. heating and cooling solutions, building retrofits, and appli-
ance upgrades.
Wind Turbine Production in Ebensburg, Pennsylvania:25 • Cumulative lifetime savings of the program are over $313
• Since January 2005, the former Rust Belt town of Ebens- million, substantially reducing the cost of living and doing
burg has been host to a new wind turbine factory. business in Vermont.
• $175 million dollars of private investment in the factory
has created 1,160 new union jobs. Green Pathways Out of Poverty in Los Angeles, California:26
• Local workforce and economic development agencies, in • In 2006, over 500 residents rallied together in a church in
partnership with labor unions, provided an incoming wind South LA to applaud mayor Antonio Villaraigosa, as he signed
energy company with a detailed database of the skills of local the “Apollo Challenge,” committing to work with community
dislocated workers to prove that the region had the skills to groups, labor organizations, and others to shape green work-
staff their plants. force and economic development strategies.
• Gov. Ed Rendell’s forward-thinking state-level policies, such • The groups came together to create a $1.5 million job-train-
as a statewide 18% renewable portfolio standard, have ensured ing program that targets both incumbent workers and youth
the healthy development of the clean energy market and with barriers to employment, such as lack of job skills and
linked its development to jobs, providing new opportunities. education, language and cultural barriers, or history in the
• Another new wind plant is currently being planned on the juvenile and criminal justice system.
site of a nearby abandoned US Steel Co. factory. • The program includes academic coursework and rotations
through hard-skill trainings focused on clean energy and
Energy Efficiency in Vermont: energy efficiency.
• Vermont residents voted to institute a volumetric sur- • Graduates are connected to union apprenticeships, higher
charge on all consumers’ electrical bills, leading to statewide education, and career pathways with emerging energy
investments of over $30 million per year in energy efficiency industries.

4
2 Million green jobs in the next 2 years

* *
*
* ** GREEN JOBS

4,000–15,000
* * 15,000–30,000

30,000–45,000
*
45,000–85,000
*
85,000–250,000
* * *
*
* Green shading is a reflection
of job density (jobs/popULATION).
*
* denotes state-specific data
based on extrapolations from
the authors’ original findings
Green job creation depicted here is contingent on the
$100 billion public investment program proposed in
Green Recovery, September 2008. These investments are Source: Green Recovery. Center for American Progress, and the Political Economy Research
consistent with the 1Sky Solutions. Institute, University of Massachusetts-Amherst. September 2008.

Investments in building efficiency, on the other hand, Green Jobs: Best Bang for the Buck
will drive more green job opportunities in urban areas. A The best way to stimulate the economy is to invest in effi-
2007 McKinsey & Company report found that enough oppor- ciency and renewables. Studies show that with the right
tunities for energy efficiency investments are available incentives, clean energy industries will attract private capi-
to boost energy productivity the equivalent of 64 million tal and produce more jobs per dollar invested than status quo
barrels of oil per day, or almost 150 percent of the entire energy like nuclear power or coal.22
U.S. energy consumption today, all without compromising Smart investments will create good jobs, reduce our
economic growth.18 California for example has stepped up dependence on oil, lower the cost of living and doing busi-
its green building leadership to include statewide green ness, stimulate our economy, and avert catastrophic climate
building standards that will save consumers $23 billion change. According to recent energy efficiency studies,23 a
by 2013,19 creating new opportunities for union-friendly20 public energy efficiency investment of $21.6 billion would:
green career pathways in the process. • replace 22.3 conventional 500 megawatt coal plants;
Automobile efficiency presents another opportunity for • reduce annual CO2 emissions by 86.7 million metric tons
new jobs and smart investments. According to the Union of (about 1/3 of the annual emissions reductions called for by
Concerned Scientists, a modest increase in average fuel econ- the IPCC by 2020);24
omy to 35 miles per gallon would result in annual savings of • save 204 billion cubic feet of natural gas and 10.7 million
$37 billion per year by 2020, creating 241,000 new jobs, and barrels of oil each year;
reducing our oil imports by 1.6 million barrels per day— • save consumers $8.46 billion in energy bills annually; and
more than we currently import from Saudi Arabia.21 create 216,000 permanent new jobs

5
The Green Job Transition million manufacturing jobs due to mergers, bankruptcies,
If we hope to avert catastrophic consequences from global outsourcing, automation, globalization, and trade policy.29
warming and stimulate the creation millions of new jobs, our The twenty states hardest hit by manufacturing job losses
nation must dramatically reduce our dependence on oil and are home to the manufacturing companies and skilled work-
coal and shift towards renewable energy as soon as possible. ers capable of producing the renewable energy and energy
Vulnerable communities, especially those that are currently efficiency components that the U.S. is importing now from
dependent on coal, gas and oil for economic security, need Germany and Japan, like wind turbine blades, solar cells, and
transitional assistance and access to new opportunities.27 green building materials.
On the whole, studies show that we have more than enough
green jobs to offset inevitable job losses in dirty industries
New Jobs and New Hope
Global warming legislation has the potential to build an
such as coal, but geographically concentrated dislocations
inclusive green economy that creates new pathways out of
will be of serious concern. In some cases, older workers will
poverty and expands opportunity for all American workers
need buy-out options and/or early retirement offers that
and communities, particularly those who have been shut
include long-term health benefits and pensions. Younger
out of the current pollution-based economy. As Hurricane
workers will need income and health insurance support and
Katrina dramatically illustrated, low-income people will be
retraining necessary for new career-track jobs.
the most severely affected by the economic downturns and
dislocations that inevitably result from ecological catastro-
phes.30 If we fail to enact bold federal policies that rapidly
“By pushing more renewable energy—something
reduce global warming pollution while stimulating energy
that will fight global warming and protect the envi-
efficiency and renewable energy, we will remain on the path
ronment--Minneapolis and St. Paul can reinvigorate to a climate crisis and economic collapse.
the manufacturing base and create thousands of We stand at a crossroads, between business as usual with
jobs here. Our sweat and brains will get us out of an economy dependent on polluting fossil fuels, and the
the mess we’re in today.” opportunity to build anew. One path leads to ecological disas-
—Minneapolis Mayor R.T. Rybak, 11/27/07 ter and economic instability. The other builds a safe future
for our children while catalyzing millions of new jobs and
prosperity for all Americans—not just the fortunate and the
Meanwhile, demand for green-collar workers is rising well-connected.
dramatically. The National Renewable Energy Laboratories We need strong leadership at the federal level to ensure
recently identified “inadequate workforce skills and train- that the status quo does not prevent us from pursuing this
ing” as one of the primary obstacles to developing energy tremendous opportunity. Right now, thousands of organiza-
efficiency and renewable energy.28 By building on and pro- tions and individuals across the country have come together
viding critical new capacity to our nation’s overstretched in support of change to match the scale of our challenges:
workforce education infrastructure—such as fully funding we’re ready for bold action on global warming, we’re ready
The Green Jobs Act authorized in the 2007 energy bill—we for a sea change in our economy, and we’re ready for 5 mil-
can respond to the needs of the new green economy, skill up lion green jobs.
and employ millions of American workers, and help solve the
climate crisis at the same time. Public job training opportu-
nities can be targeted to reach people who need them most: “Investing in American energy will create 5 million
at risk youth, dislocated and unemployed workers hit hard green jobs—jobs that will revitalize many of our ru-
by the economic downturn. ral communities. Jobs that can never be outsourced
Green economic development can also bring some of the to a foreign supplier.”
biggest benefits to workers and states hit hardest by recent —Kansas Gov. Kathleen Sebelius, 8/27/08
economic transformations. Since 1998, the U.S. has lost 7.2

6
Notes
14
1
Frank Ackerman and Elizabeth Stanton. The Cost of Climate Roger Bezdek. “Ohio Case Study,” in Renewable Energy and Energy
Change: What We’ll Pay if Global Warming Continues Unchecked. Efficiency: Economic Drivers for the 21st Century.” Management Infor-
For Natural Resources Defense Council. May 2008. mation Systems Inc. for the American Solar Energy Society, 2007.
15
2
Associate Press. Economist Paul Volker Says Steps to Curb Global The notion that bolder policy creates exponentially more jobs than
Warming Will Not Devastate the Economy. February 6, 2007. moderate policy is also supported by a UCS analysis of a strong vs
3
This particular definition of “green-collar job” is shared by many moderate Renewable Portfolio Standard in 2007. Source: Union of
other groups working on the connection between workforce Concerned Scientists Cashing in on a Clean Energy Economy. 2007
16
development and climate change, including: Apollo Alliance, B.C. English, et al. 25% Renewable Energy for the United States by 2025:
Green For All, Center for American Progress, The Workforce Alli- Agricultural and Economic Benefits. University of Tennessee. 2006.
ance, and Center on Wisconsin Strategy. 17
1Sky supports agriculture-based energy solutions that steer clear
4
In accordance with the International Panel on Climate Change from inflationary effects on food prices. By investing in next-gen-
(IPCC) recommendation for developed countries. Source: IPCC, eration biofuels, like cellulosic ethanol (rather than corn –based
AR4, WG3, Chapter 13, Box 13.7. 2007. http://www.ipcc.ch/pdf/ ethanol), our farm states can further increase productivity with-
assessment-report/ar4/wg3/ar4-wg3-chapter13.pdf. Cutting GHGs out increasing the cost of food.
25% below 1990 levels is comparable to cutting GHGs 35% below 18
McKinsey & Company. Curbing Global Energy Demand Growth:
2005 levels. The Energy Productivity Opportunity. June 2008
5
Source: Texas State Energy Conservation Office http://www.seco. 19
California Energy Commission. http://www.energy.ca.gov/title24/
cpa.state.tx.us/re_wind.htm 20
For details, see: Andrea Buffa. California’s Global Warming Solu-
6
Source: California’s Public Utilities Commission and Energy Com- tions Act: A Background Paper for Labor Unions. UC Berkeley
mission. http://www.gosolarcalifornia.ca.gov/ Labor Center. August, 2008. “In California, building and con-
7
Jonathan Dorn. World Solar Power Nearing Eruption. Earth struction trades unions have long promoted energy efficiency
Policy Institute. August, 2008. http://www.earth-policy.org/ measures like retrofitting buildings for energy efficiency for their
Updates/2008/Update74.htm promise to reduce greenhouse gas emissions AND create high
8
For a more comprehensive analysis of concrete green-collar job quality jobs. Several of their apprenticeship programs offer train-
pathways and the industries supporting them, see: Sarah White ing in cutting-edge green construction techniques.”
21
and Jason Walsh, Greener Pathways: Jobs and Workforce Develop- Union of Concerned Scientists. Creating Jobs, Saving Energy, and
ment in the Clean Energy Economy. March 2008. Protecting the Environment. October, 2007.
22
9
For examples of existing community and neighborhood revitaliza- Daniel Kammen et al. 2006.
tion projects, see Green-Collar Jobs in America’s Cities: Building 23
Mazria, 2008.
Pathways out of Poverty and Careers in The Clean Energy Econ- 24
86.7 million tonnes of CO2eq, if abated annually from 2012-2020,
omy. Apollo Alliance & Green For All. 2008. would account for almost 1/3 of the annual reductions necessary
10
Replacing old plants with new plants will just recycle old jobs to reduce our annual emissions 25% below 1990 levels, in accor-
without opportunities for career advancement, new positions and dance with the IPCC’s recommendation for developed nations (See
skill sets, or the high-growth and inherently new jobs associated IPCC, 2007).
with renewable energy and energy efficiency. This observation 25
Apollo Alliance. The New Apollo Program: Clean Energy, Good
applies to nuclear or natural gas plants as well. Source: Mazria. Jobs. September 2008.
The 2030 Blueprint. 2008. 26
Sarah White and Jason Walsh, Greener Pathways: Jobs and Work-
11
Daniel M. Kammen, et al., Putting Renewables to Work: How force Development in the Clean Energy Economy. March 2008.
Many Jobs Can the Clean Energy Industry Generate RAEL: Univer- 27
Barrett and Hoerner. Clean Energy and Jobs. Redefining Progress.
sity of California, Berkeley. April 2004/Revised December 2006.
2002. Total transition cost could be covered by just 1% of the rev-
12
Robert Pollin et al. Green Recovery: A Program to Create Good enue taken in by capping carbon emissions.
Jobs and Start Building a Low-Carbon Economy. Political Economy 28
R. Margolis and J. Zuboy. Nontechnical Barriers to Solar Energy
Research Institute, University of Massachusetts Amherst. Septem-
Use: Review of Recent Literature. National Renewable Energy
ber 2008.
Laboratory. September 2006.
13
Robert Pollin & Jeanette Wick-Lim. Job Opportunities for the 29
Apollo Alliance, 2008.
Green Economy: A State-By-State Picture of Occupations That Gain
30
from Green Investments. Political Economy Research Institute, Redefining Progress. African Americans and Climate Change: An
University of Massachusetts, Amherst. June 2008. Unequal Burden. for Congressional Black Caucus Foundation,
Inc. 2004.

7
For more information about 1Sky
and its allies, visit www.1Sky.org
More Resources from our Friends and Allies:

Green Recovery Greener Pathways


Center for American COWS, The Workforce
Progress and PERI Alliance, Apollo Alliance

The New GREEN-COLLAR JOBS IN AMERICA’S CITIES


Green Jobs in
BUILDING PATHWAYS OUT OF POVERTY AND

Apollo Program CAREERS IN THE CLEAN ENERGY ECONOMY

American Cities
Apollo Alliance Green For All, Apollo Alliance

Report prepared by Jason Kowalski, 1Sky Policy Fellow, in collabo-


ration with Green for All, with support and guidance from Robert
Pollin, Heidi Garrett-Peltier, Jefferson Bates, and the 1Sky Team.

1Sky October 2008, version 2.0

Creative Commons License: Attribution-Noncommercial 3.0 United


States http://creativecommons.org/licenses/by-nc/3.0/us/

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