Green Jobs: A New Employment Niche in the World

Renewable energies, construction, transport, industry…, the sectors most impacted by the emergence of green jobs. Investments made to improve the energy efficiency of buildings could create 2 to 3.5 million additional green jobs in Europe and the United States.

The emergence of a global "green economy" and its impact on the world of work shows that efforts to address climate change could generate millions of new "green jobs" in the coming decades. This is the conclusion of a landmark study on the emergence of green jobs, funded and commissioned by the UN Environment Programme and carried out by the Worldwatch Institute, with technical assistance from Cornell University's Global Labour Institute.
The report, entitled "Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World," indicates that the evolution of employment and investment related to actions taken to address climate change and its effects have already generated new jobs in many sectors and economies and could create millions more, in both industrialized and developing countries.

However, the report also indicates that the already underway climate change process will continue to have negative effects on workers and their families, particularly those who earn their living in agriculture and tourism. As such, measures to address climate change, as well as to address its effects, are urgent and should be designed to create decent jobs.

While the report is generally optimistic about the creation of new jobs to address climate change, it notes that many of these new jobs risk being "repetitive, dangerous and difficult." Worrying sectors in this regard, particularly in developing economies, include agriculture and recycling, where precarious contracts, low wages and exposure to health-hazardous materials are frequent and are sectors that need to evolve rapidly.

Furthermore, the report points out that too few green jobs are being created for the world's most vulnerable: the 1.3 billion poor workers (43% of the global workforce) whose incomes are too low to lift themselves and their families above the poverty line of $2 per person per day, or the some 500 million young people who will need to find a job over the next ten years.

Green jobs reduce the environmental impact of businesses and economic sectors, ultimately bringing it down to a viable level. The report thus focuses on jobs that, in agriculture, industry, services and administration, contribute to preserving or restoring environmental quality. It also advocates for measures to ensure that these green jobs constitute "decent jobs," contributing to poverty reduction while preserving the environment.

The report indicates that climate change itself, the adaptation it requires and the efforts to curb it by reducing emissions have profound implications for economic and social development, production and consumption patterns and therefore for employment, income and poverty reduction. These consequences are both full of risks and promises for the working populations of all countries, but particularly for the most vulnerable populations in the least developed countries and small island states.

The study advocates for a "just transition" for those affected by the shift towards an environmentally friendly economy and for those who must adapt to climate change by providing economic alternatives and job opportunities for businesses and workers. According to the report, a fruitful social dialogue between governments, workers and employers is essential, not only to ease tensions and encourage better informed and more coherent social and environmental economic policies, but also to ensure that all social partners are involved in the development of such policies.

Renewable energies generate more jobs than fossil fuels

Among the highlights from the report, the global market for environmentally related products and services is expected to double from $1,370 billion per year currently to $2,740 billion by 2020, according to a study cited in the report.

Half of this market concerns energy efficiency and the other half sustainable transport, water supply, sanitation and waste management. In Germany, for example, environmental technology is expected to quadruple to reach 16% of industrial production by 2030, with employment in this sector surpassing that of the country's major industries, namely automobiles and machine tools.
The sectors particularly important in terms of environmental, economic and employment impact are energy supply, particularly renewable energies, construction, transport, heavy industries, agriculture and forestry.

In the United States, the flow invested in clean technologies is already the third largest sector of venture capital investment after information and biotechnology, while in China, venture capital invested in clean technologies has more than doubled in recent years, reaching 19% of total investments.

In recent years, 2.3 million people have found work in the renewable energy sector alone, and the potential for job growth in this sector is enormous. The number of jobs in alternative energies could rise to 2.1 million in wind power and 6.3 million in solar thermal by 2030.

Renewable energies generate more jobs than fossil fuels. The forecast to invest $630 billion by 2030 should translate into at least 20 million additional jobs in this sector.

In agriculture, 12 million people could be employed in biomass used for energy and related industries. In a country like Venezuela, a 10% blend of ethanol in fuels could generate one million jobs in the sugar cane sector by 2012.
A global transition to energy-efficient buildings could create millions of jobs, as could the "greening" of existing jobs for a large number of the 111 million people already working in the construction sector.
Investments made to improve the energy efficiency of buildings could create 2 to 3.5 million additional green jobs in Europe and the United States, with much higher potential in developing countries.

Recycling and waste management currently employs some 10 million people in China and 500,000 in Brazil. This sector is expected to grow rapidly in many countries in the face of rising prices of basic necessities. The report notes that it is when high-level political support has been strong and consistent that markets have prospered most and transformations have progressed most. This support has taken the form of targets, fines and incentives such as "feed-in" laws (minimum guaranteed tariff for renewable energies), efficiency standards for buildings and appliances, and a dynamic research and development sector.

Published December 2, 2011

Online December 6, 2011

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