Green Jobs

5 Million s b o J n e e r G Address Climate Change and Strengthen the Economy by Putting Americans to Work

How We Can

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 increasing 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 but an economic crisis as well. A recent report estimates that doing nothing to mitigate climate change will cost the U.S. economy more than 3.6% of GDP, or $3.8 trillion.1 Paul Volcker, the chairman of the U.S. Federal Reserve under President Reagan, has flatly stated that “if [nothing is done,] 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 current economic stagnation and unemployment. American businesses, communities and households will grow and prosper if our nation pivots to a clean energy economy. Public and private investment in wind, solar, geothermal energy and in energy efficient buildings, automobiles, and appliances can catalyze new businesses and jobs while solving the climate change problem. Building a newer, smarter and more equitable 21st century economy is the critical next step to keeping our country strong in the face of economic insecurity. The American people are ready for change, but it will require bold political leadership to kick our economy into high gear. 1Sky and our thousands of allied organizations

n. Green-Collar Job: -track job that a well-paid, career ly to preserving or contributes direct 3 l quality. ta en nm ro vi en g enhancin

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and individuals nationwide are rallying around a call for 5 million new green jobs because we understand that the climate challenge isn’t just about solving problems—it’s about creating opportunities. Now is the time to re-build our nation’s economy, making it stronger and more inclusive than ever before.

The 1Sky Solutions are grounded in scientific necessity—they represent what is needed to dramatically reduce carbon emissions and avoid the impending climate crisis. They offer enormous economic promise, with a focus on creating jobs, opportunity and stronger communities through investments in clean energy and conservation. • Create 5 million new green jobs and 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 plants and end our dependence on oil through strong standards and incentives for energy efficiency and renewable energy.

JOBS PER MEGAWATT OF ELECTRICITY IN SELECTED INDUSTRIES 12

JOBS PER MEGAWATT

Green-collar jobs are real and are already being created across America. In Texas, the wind industry is creating thousands of jobs and millions of dollars of new income for landowners and communities.5 In California, the new Million Solar Roofs program6 has created unprecedented demand for skilled workers installing millions of cost-cutting solar panels across the state. As of August 2008, 97 new geothermal power projects were under development in 13 states, producing more than 7,000 permanent full-time jobs.7 Positions in the green economy run the gamut from entry level to highly skilled and everything in between,8 with opportunities for advancement as high-growth industries continue to expand. Communities everywhere are recognizing that green jobs can fight poverty, pollution, and global warming at the same time. Most green jobs are existing occupations that are being upgraded and repurposed to build a green economy. And most green-collar jobs are community-based, with the potential to revitalize specific regions and neighborhoods, sharing new opportunities equitably.9 Since green-collar jobs focus on transforming the immediate natural and built environment, they are harder—and in many cases impossible—to move offshore. No one will ship a building from Detroit to be retrofitted in China. And with transportation costs skyrocketing, manufacturers increasingly rely on domestic production of component parts for renewable energy industries.

10 High End

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Low End 6 4 2 0 Solar PV

Geo- Biomass thermal

Wind

Landfill Gas

Natural Gas

Coal

Nuclear

POWER SOURCE 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 deployment scale, and whether or not equipment is manufactured domestically. Sources: Renewable Energy Policy Project, Renewable Energy and Appropriate Laboratories. Nuclear Energy Institute, and The State of California.

fuel based infrastructure, creating new jobs and dramatically reducing pollution at the same time. For example, a range of studies show conclusively that renewable energy “generates more jobs per megawatt of power installed, per unit of energy produced, and per dollar of investment,” than fossil 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 capitalrather than labor-intensive. Conversely, a program to retrofit offices, manufacturing plants, and homes with energy efficient technologies will create demand for welders, electricians, carpenters, and thousands of others who produce the energy-saving high-efficiency results we need. If we allow the dirty economy to prevail, we will continue to rely on increasingly expensive fossil fuels. Building a vast web of mass transit and converting our auto plants to produce plug-in hybrid vehicles is a process that will rely on a steady stream of skilled American workers—not on fossil fuels. As our economy grows, we have some important decisions to make. Replacing old coal plants with more coal plants creates no new opportunities.10 However, if we level the playing field for renewable energy and energy efficiency by capping global warming pollution and creating the right incentives, high-growth clean technologies will replace our aging fossil

Creating 5 million new green jobs in the US is not a pipedream. It is a conservative estimate of what we can do with political commitment to a smart, clean energy economy. One recent report shows that the U.S. can create two million jobs over two years by investing $100 billion in a green economic recovery plan. The report also shows that this investment would create four times more jobs than spending the same amount of money within the oil industry.12 Public investment and complementary policies will each result in job creation, and ensure job retention.13 In the past few years the nearly-expired Production Tax Credit and Investment Tax Credit for wind and solar have sparked huge growth in the renewable energy sector. Over 100,000 jobs could have potentially disappeared if Congress hadn’t renewed the tax credits in October 2008. In Ohio specifically, more than 50% of the current green jobs are in the manufacturing sector and the state boasts many more middle-skilled manufacturing workers ready to take on new

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GREEN JOB CREATION IN OHIO 2.5 Base Case

GREEN JOBS (MILLIONS)

positions as the clean technology sector develops.14 As the graph to the right indicates, “moderate” political action, such as a 15% renewable portfolio standard an other incremental incentives, gives us a few more new jobs, but “bold” political action (like the 1Sky solutions) creates almost 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 half measures. Importantly, the bulk of clean energy investments will benefit both rural and urban America. A recent study by the University of Tennessee16 predicted that 5.1 million jobs could be created in rural areas alone by 2030 if bold measures were taken to incentivize the next generation of low-carbon fuels17 and electricity production.

2.0

Moderate Political Action Bold Political Action

1.5 1.0 0.5 0 2006

2030

Data accounts for direct and indirect job creation. Bold political action is comparable to the 1Sky Solutions. Source: American Solar Energy Society, 2008.

Green Jobs Are Here to Stay The renewable energy sector alone, including wind, solar, and geothermal, already employs half a million people nationwide. The energy efficiency sector spans several industries including automobiles, buildings, appliances, and power plants. Wind Turbine Production in Ebensburg, Pennsylvania:25 • Since January 2005, the former Rust Belt town of Ebensburg has been host to a new wind turbine factory. • $175 million dollars of private investment in the factory has created 1,160 new union jobs. • Local workforce and economic development agencies, in partnership with labor unions, provided an incoming wind energy company with a detailed database of the skills of local dislocated workers to prove that the region had the skills to staff their plants. • Gov. Ed Rendell’s forward-thinking state-level policies, such as a statewide 18% renewable portfolio standard, have ensured the healthy development of the clean energy market and linked its development to jobs, providing new opportunities. • Another new wind plant is currently being planned on the site of a nearby abandoned US Steel Co. factory. Energy Efficiency in Vermont: • Vermont residents voted to institute a volumetric surcharge on all consumers’ electrical bills, leading to statewide investments of over $30 million per year in energy efficiency

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programs aiming to reduce dependence on fossil fuel consumption and electricity use. • In five years, over 40,000 Vermonters, predominantly low-income families, small businesses, and public schools, were served by the efficiency program, which provided heating and cooling solutions, building retrofits, and appliance upgrades. • Cumulative lifetime savings of the program are over $313 million, substantially reducing the cost of living and doing business in Vermont. Green Pathways Out of Poverty in Los Angeles, California:26 • In 2006, over 500 residents rallied together in a church in South LA to applaud mayor Antonio Villaraigosa, as he signed the “Apollo Challenge,” committing to work with community groups, labor organizations, and others to shape green workforce and economic development strategies. • The groups came together to create a $1.5 million job-training program that targets both incumbent workers and youth with barriers to employment, such as lack of job skills and education, language and cultural barriers, or history in the juvenile and criminal justice system. • The program includes academic coursework and rotations through hard-skill trainings focused on clean energy and energy efficiency. • Graduates are connected to union apprenticeships, higher education, and career pathways with emerging energy industries.

2 Million green jobs in the next 2 years

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GREEN JOBS 4,000–15,000

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30,000–45,000

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45,000–85,000

* * * * Green job creation depicted here is contingent on the $100 billion public investment program proposed in Green Recovery, September 2008. These investments are consistent with the 1Sky Solutions.

Investments in building efficiency, on the other hand, will drive more green job opportunities in urban areas. A 2007 McKinsey & Company report found that enough opportunities for energy efficiency investments are available to boost energy productivity the equivalent of 64 million barrels of oil per day, or almost 150 percent of the entire U.S. energy consumption today, all without compromising economic growth.18 California for example has stepped up its green building leadership to include statewide green building standards that will save consumers $23 billion by 2013,19 creating new opportunities for union-friendly20 green career pathways in the process. Automobile efficiency presents another opportunity for new jobs and smart investments. According to the Union of Concerned Scientists, a modest increase in average fuel economy to 35 miles per gallon would result in annual savings of $37 billion per year by 2020, creating 241,000 new jobs, and reducing our oil imports by 1.6 million barrels per day— more than we currently import from Saudi Arabia.21

15,000–30,000

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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 Source: Green Recovery. Center for American Progress, and the Political Economy Research Institute, University of Massachusetts-Amherst. September 2008.

Green Jobs: Best Bang for the Buck The best way to stimulate the economy is to invest in efficiency and renewables. Studies show that with the right incentives, clean energy industries will attract private capital and produce more jobs per dollar invested than status quo energy like nuclear power or coal.22 Smart investments will create good jobs, reduce our dependence on oil, lower the cost of living and doing business, stimulate our economy, and avert catastrophic climate change. According to recent energy efficiency studies,23 a public energy efficiency investment of $21.6 billion would: • replace 22.3 conventional 500 megawatt coal plants; • reduce annual CO2 emissions by 86.7 million metric tons (about 1/3 of the annual emissions reductions called for by the IPCC by 2020);24 • save 204 billion cubic feet of natural gas and 10.7 million barrels of oil each year; • save consumers $8.46 billion in energy bills annually; and create 216,000 permanent new jobs

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The Green Job Transition If we hope to avert catastrophic consequences from global warming and stimulate the creation millions of new jobs, our nation must dramatically reduce our dependence on oil and coal and shift towards renewable energy as soon as possible. Vulnerable communities, especially those that are currently dependent on coal, gas and oil for economic security, need transitional assistance and access to new opportunities.27 On the whole, studies show that we have more than enough green jobs to offset inevitable job losses in dirty industries such as coal, but geographically concentrated dislocations will be of serious concern. In some cases, older workers will need buy-out options and/or early retirement offers that include long-term health benefits and pensions. Younger workers will need income and health insurance support and retraining necessary for new career-track jobs.

“By pushing more renewable energy—something that will fight global warming and protect the environment--Minneapolis and St. Paul can reinvigorate the manufacturing base and create thousands of jobs here. Our sweat and brains will get us out of the mess we’re in today.” —Minneapolis Mayor R.T. Rybak, 11/27/07

Meanwhile, demand for green-collar workers is rising dramatically. The National Renewable Energy Laboratories recently identified “inadequate workforce skills and training” as one of the primary obstacles to developing energy efficiency and renewable energy.28 By building on and providing critical new capacity to our nation’s overstretched workforce education infrastructure—such as fully funding The Green Jobs Act authorized in the 2007 energy bill—we can respond to the needs of the new green economy, skill up and employ millions of American workers, and help solve the climate crisis at the same time. Public job training opportunities can be targeted to reach people who need them most: at risk youth, dislocated and unemployed workers hit hard by the economic downturn. Green economic development can also bring some of the biggest benefits to workers and states hit hardest by recent economic transformations. Since 1998, the U.S. has lost 7.2

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million manufacturing jobs due to mergers, bankruptcies, outsourcing, automation, globalization, and trade policy.29 The twenty states hardest hit by manufacturing job losses are home to the manufacturing companies and skilled workers capable of producing the renewable energy and energy efficiency components that the U.S. is importing now from Germany and Japan, like wind turbine blades, solar cells, and green building materials.

New Jobs and New Hope Global warming legislation has the potential to build an inclusive green economy that creates new pathways out of poverty and expands opportunity for all American workers and communities, particularly those who have been shut out of the current pollution-based economy. As Hurricane Katrina dramatically illustrated, low-income people will be the most severely affected by the economic downturns and dislocations that inevitably result from ecological catastrophes.30 If we fail to enact bold federal policies that rapidly reduce global warming pollution while stimulating energy efficiency and renewable energy, we will remain on the path to a climate crisis and economic collapse. We stand at a crossroads, between business as usual with an economy dependent on polluting fossil fuels, and the opportunity to build anew. One path leads to ecological disaster 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 well-connected. We need strong leadership at the federal level to ensure that the status quo does not prevent us from pursuing this tremendous opportunity. Right now, thousands of organizations and individuals across the country have come together in support of change to match the scale of our challenges: we’re ready for bold action on global warming, we’re ready for a sea change in our economy, and we’re ready for 5 million green jobs.

“Investing in American energy will create 5 million green jobs—jobs that will revitalize many of our rural communities. Jobs that can never be outsourced to a foreign supplier.” —Kansas Gov. Kathleen Sebelius, 8/27/08

Notes 1

Frank Ackerman and Elizabeth Stanton. The Cost of Climate Change: What We’ll Pay if Global Warming Continues Unchecked. For Natural Resources Defense Council. May 2008.

14

Roger Bezdek. “Ohio Case Study,” in Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century.” Management Information Systems Inc. for the American Solar Energy Society, 2007.

2

Associate Press. Economist Paul Volker Says Steps to Curb Global Warming Will Not Devastate the Economy. February 6, 2007.

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This particular definition of “green-collar job” is shared by many other groups working on the connection between workforce development and climate change, including: Apollo Alliance, Green For All, Center for American Progress, The Workforce Alliance, and Center on Wisconsin Strategy.

The notion that bolder policy creates exponentially more jobs than moderate policy is also supported by a UCS analysis of a strong vs moderate Renewable Portfolio Standard in 2007. Source: Union of Concerned Scientists Cashing in on a Clean Energy Economy. 2007

16

B.C. English, et al. 25% Renewable Energy for the United States by 2025: Agricultural and Economic Benefits. University of Tennessee. 2006.

17

1Sky supports agriculture-based energy solutions that steer clear from inflationary effects on food prices. By investing in next-generation biofuels, like cellulosic ethanol (rather than corn –based ethanol), our farm states can further increase productivity without increasing the cost of food.

18

McKinsey & Company. Curbing Global Energy Demand Growth: The Energy Productivity Opportunity. June 2008

19

California Energy Commission. http://www.energy.ca.gov/title24/

20

For details, see: Andrea Buffa. California’s Global Warming Solutions Act: A Background Paper for Labor Unions. UC Berkeley Labor Center. August, 2008. “In California, building and construction trades unions have long promoted energy efficiency measures like retrofitting buildings for energy efficiency for their promise to reduce greenhouse gas emissions AND create high quality jobs. Several of their apprenticeship programs offer training in cutting-edge green construction techniques.”

21

Union of Concerned Scientists. Creating Jobs, Saving Energy, and Protecting the Environment. October, 2007.

22

Daniel Kammen et al. 2006.

23

Mazria, 2008.

24

86.7 million tonnes of CO2eq, if abated annually from 2012-2020, would account for almost 1/3 of the annual reductions necessary to reduce our annual emissions 25% below 1990 levels, in accordance with the IPCC’s recommendation for developed nations (See IPCC, 2007).

25

Apollo Alliance. The New Apollo Program: Clean Energy, Good Jobs. September 2008.

26

Sarah White and Jason Walsh, Greener Pathways: Jobs and Workforce Development in the Clean Energy Economy. March 2008.

27

Barrett and Hoerner. Clean Energy and Jobs. Redefining Progress. 2002. Total transition cost could be covered by just 1% of the revenue taken in by capping carbon emissions.

28

R. Margolis and J. Zuboy. Nontechnical Barriers to Solar Energy Use: Review of Recent Literature. National Renewable Energy Laboratory. September 2006.

29

Apollo Alliance, 2008.

30

Redefining Progress. African Americans and Climate Change: An Unequal Burden. for Congressional Black Caucus Foundation, Inc. 2004.

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In accordance with the International Panel on Climate Change (IPCC) recommendation for developed countries. Source: IPCC, AR4, WG3, Chapter 13, Box 13.7. 2007. http://www.ipcc.ch/pdf/ assessment-report/ar4/wg3/ar4-wg3-chapter13.pdf. Cutting GHGs 25% below 1990 levels is comparable to cutting GHGs 35% below 2005 levels. Source: Texas State Energy Conservation Office http://www.seco. cpa.state.tx.us/re_wind.htm

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Source: California’s Public Utilities Commission and Energy Commission. http://www.gosolarcalifornia.ca.gov/

7

Jonathan Dorn. World Solar Power Nearing Eruption. Earth Policy Institute. August, 2008. http://www.earth-policy.org/ Updates/2008/Update74.htm

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For a more comprehensive analysis of concrete green-collar job pathways and the industries supporting them, see: Sarah White and Jason Walsh, Greener Pathways: Jobs and Workforce Development in the Clean Energy Economy. March 2008.

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For examples of existing community and neighborhood revitalization projects, see Green-Collar Jobs in America’s Cities: Building Pathways out of Poverty and Careers in The Clean Energy Economy. Apollo Alliance & Green For All. 2008. Replacing old plants with new plants will just recycle old jobs without opportunities for career advancement, new positions and skill sets, or the high-growth and inherently new jobs associated with renewable energy and energy efficiency. This observation applies to nuclear or natural gas plants as well. Source: Mazria. The 2030 Blueprint. 2008. Daniel M. Kammen, et al., Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Generate RAEL: University of California, Berkeley. April 2004/Revised December 2006. Robert Pollin et al. Green Recovery: A Program to Create Good Jobs and Start Building a Low-Carbon Economy. Political Economy Research Institute, University of Massachusetts Amherst. September 2008. Robert Pollin & Jeanette Wick-Lim. Job Opportunities for the Green Economy: A State-By-State Picture of Occupations That Gain from Green Investments. Political Economy Research Institute, University of Massachusetts, Amherst. June 2008.

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

Green Recovery Center for American Progress and PERI



The New Apollo Program Apollo Alliance

Greener Pathways COWS, The Workforce Alliance, Apollo Alliance GREEN-COLLAR JOBS

IN

AMERICA’S CITIES

BUILDING PATHWAYS OUT OF POVERTY AND CAREERS IN THE CLEAN ENERGY ECONOMY

Green Jobs in American Cities Green For All, Apollo Alliance

Report prepared by Jason Kowalski, 1Sky Policy Fellow, in collaboration 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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