Clean Energy Jobs a pathway to decent work for California’s disadvantaged workers; plus economic benefits of California’s climate policies

Three recent studies from University of California at Berkeley provide evidence of the job benefits of clean energy industries.  The first,“Diversity in California’s Clean Energy Workforce”, from Berkeley’s Center for Labor Research and Education Green Economy Program, claims to be the first quantitative analysis of who is getting into apprentice training programs and jobs on renewables. It states that  “ Joint union-employer apprenticeship programs have helped people of color get training and career-track jobs building California’s clean energy infrastructure”.   The authors attribute this to the recruitment efforts by unions, as well as the location of many renewable power plants in areas where there are high concentrations of disadvantaged communities.  It  presents data for the ethnic, racial and gender composition of enrollment in apprenticeship programs in 16 union locals for electricians, ironworkers and operating engineers. The report finds significant variation in racial and ethnic diversity amongst  unions,with women’s participation minimal, (ranging from 2 – 6%) in all cases. Uniquely, the study also examined the impact of clean energy construction on disadvantaged workers, finding that  43% of entry-level workers live in disadvantaged communities, and 47% live in communities with unemployment rates of at least 13%.  Further, it states:  “Most large-scale renewable energy plants have been built under project labor agreements. These agreements require union wage and benefit standards and provide free training through apprenticeship programs.”

Two other reports were released by the Center for Labor Research and Education, the Center for Law, Energy and the Environment (CLEE) at UC Berkeley Law,  and advocacy group Next 10.   The Economic Impacts of California’s Major Climate Programs on the San Joaquin Valley: Analysis through 2015 and Projections to 2030 (January)   and  The Net Economic Impacts of California’s Major Climate Programs in the Inland Empire: Analysis of 2010-2016 and Beyond  (August)  examine the impact of climate programs on  California’s most environmentally vulnerable regions.  The “Inland Empire” (defined as the counties of San Bernardino and Riverside) report , examined four key policies: cap and trade, the renewables portfolio standard, distributed solar policies and energy efficiency programs.  These policies were found to have brought a net benefit of $9.1 billion in direct economic activity and 41,000 net direct jobs from 2010 to 2016 .  Policy recommendations to continue these benefits:  “reward cleaner transportation in this region; help disburse cap-and-trade auction proceeds in a timely and predictable manner; and create robust transition programs for workers and communities affected by the decline of the Inland Empire’s greenhouse gas-emitting industries, including re-training and job placement programs, bridges to retirement, and regional economic development initiatives.”

The three reports were released to be part of the public debate about extending the cap and trade legislation (passed in July) and about California’s Senate Bill SB100 , which passed 2nd reading in the legislature on September 5.  SB100 would toughen existing targets to  60% renewable electricity by 2030, and  require utilities to plan for 100% renewable electricity by 2045 .

Decarbonizing Canada’s economy offers huge construction job opportunities

Columbia Institute jobs for tomorrowA July report asserts that Canada’s ability to meet our climate goals will be based on multiple paths to decarbonization, including construction of new electricity-generation facilities using renewable sources, including hydro, wind, solar, tidal, biomass and geothermal energy. In addition, it will require the construction and maintenance of more efficient buildings, and transportation infrastructure. The tradespeople who can build such low-carbon solutions include masons, boilermakers, pipefitters, insulators, electrical workers, glaziers, HVAC, linemen, ironworkers and others .

The July report,  Jobs for Tomorrow: Canada’s Building Trades and Net Zero Emissions   makes job creation projections for construction occupations, based on an aggressive emissions reduction target of Net-zero emissions by 2050  (Canada’s current national emissions reduction commitment is 30 per cent below 2005 levels by 2030) . Overall, the report concludes that the Net-zero emissions reduction target could generate nearly 4 million direct building trades jobs, and 20 million indirect, induced and supply chain jobs by 2050. Some examples from the report:  building small district energy systems in half of Canada’s municipalities with populations over 100,000 would create over 547,000 construction jobs by 2050. Building solar installations would create the next-highest level of construction jobs: 438,350. Building $150 billion of urban transit infrastructure (rapid transit tracks and bridges, subway tunnels, and dedicated bus lanes) would create about 245,000 direct construction jobs by 2050.

Jobs for Tomorrow is much more than a laundry list of job projections. Authors Tyee Bridge, Richard Gilbert, and Charley Beresford were supported by advisers Lee Loftus, President BC Building Trades; Bob Blakely, Canadian Operating Officer, Canada’s Building Trades Unions; and Tom Sigurdson, Executive Director, BC Building Trades. As a result, the report provides a depth of understanding of the construction industry, which is put in the context of solidly researched overviews of Canada’s current economic and climate change policy.  The report was commissioned by Canada’s Building Trades Unions (CBTU), an umbrella organization affiliated with 15 international construction unions, and released by the Columbia Institute, Vancouver. A French version, Les emplois de demain : Les métiers de la construction du Canada et les émissions nettes zero  is available here   .

 

Clean energy investment declining in Canada; and a profile of Calgary’s clean energy economy

clean energy transition takes hold coverClean Energy Canada has released the 2017 edition in its Tracking the Energy Revolution series, on March 30.   The Transition Takes Hold  analyzes clean energy markets around the world, with an emphasis on investment trends.  The report states that global clean energy investment in 2016 totalled C$348 billion, with China, the U.S. and India collectively responsible for half of that amount.  This C$348 billion global clean energy investment represents a 26% decrease from 2015; in Canada, investment fell by 53%, from C$4 billion  to C$2 billion. The decrease, for the second year in a row, sees Canada fall from 9th to 11th place in the world for clean energy investment. To provide context, the report states that Canada already derives 80% of its power from emissions-free sources, and that fact, coupled with relatively stable demand for electricity, limits the need or opportunity for new investment. The opportunities for growth clearly lie in export markets.

The Transition takes Hold provides some estimates for employment in clean energy, based mostly on the 2016 Renewable Energy and Jobs publication by the  International Renewable Energy Agency (IRENA).  Since Canada is not an IRENA member, the report states only that in 2015, Canada was home to 10,500 jobs in wind and 8,100 in solar PV – but no source for that information is provided.  Based on figures from the U.S. Department of Energy, the report states that  the solar industry created one out of every 50 new jobs in the U.S. in 2016,  with wind turbine technician as the country’s  fastest-growing occupation.

At the local level, and  providing a window into the growing green culture of Alberta, is Calgary Region’s Green Energy Economy: Summary Report , published by the Calgary Economic Development department.   It states that the city’s green energy economy was responsible for generating $1.78 billion in gross domestic product, and employed approximately 15,470 jobs in 2015, equal to 1.8% of all workers in the Calgary Economic Region.  The report points out that “Calgary is a well-established ‘talent hub’ of high-value added, service-oriented workers that are experienced in the energy industry”, with the suggestion that the traditional energy sector provides a talent pool for the growing green sector. For this report, the green energy economy is categorized into four sub-sectors: renewable power supply and alternative energy; energy storage and grid infrastructure; green building and energy efficiency; and green transportation, and for each sub-sector, the report provides statistics as well as “on the ground” information about existing companies , supply chains, policies and programs . Green building and energy efficiency account for the largest GDP and number of jobs.   Interesting Appendices include a SWOT analysis, and a brief comparative look at policies of other cities around the  world.   Research and analysis was conducted by The Delphi Group.

Calgary_skyline _Kevin_Cappis

Calgary Skyline by Kevin Cappis.  Creative Commons 4.0 license.

B.C. Cleantech start-up companies show dramatic growth and a confident future

BC cleantech coverIn mid-March, the B.C. Cleantech CEO Alliance released British Columbia Cleantech: Status Report 2016 , the result of a survey conducted by consultants KPMG in Fall 2016.   The new Status Report  shows “dramatic growth” since the previous report in 2011, supporting the Alliance branding of B.C. cleantech as “the next pillar of the Canadian economy”.

Between 2011 and 2016,  “the number of Cleantech companies is up 35% to 273, the number of BC-based employees is up 20% to 8,560, average wages have increased by 24% to $84,000 and the amount of equity raised is also up 25% to $6 billion.” The sector employs highly trained workers, such as engineers, designers, and sales and marketing professionals, resulting in that high average salary. 91% of companies are located in the Greater Vancouver area.

The survey respondents were only those early-stage companies whose primary purpose is developing new technologies – respondents were distributed as follows:  20%  energy generation; 16%   transportation; 12 % Building efficiency; 12% Resource recovery and waste management; 11% industrial efficiency; 11% water and waste water; 7% transmission and storage; 4% sustainable agriculture,  and a miscellaneous 7% remainder. Given the early stage of these companies, the key focus in the survey was on the sources of finance and the business climate for entrepreneurs. Results show that there is a heavy reliance on federal and provincial government incentive programs – for example, 75% of respondent companies had applied to the Scientific research and experimental development (SR&ED) program and over half had applied to the federal Industrial Research Assistance Program (IRAP).

Clean Energy creates more jobs than fossil fuels, with a wage premium

Following on the January 2017  report US Energy and Employment  from the U.S. Department of Energy, more evidence of the healthy growth of the clean energy industry comes in a report  by the Environmental Defense Fund Climate Corps and Meister consultants.  Now Hiring: The Growth of America’s Clean Energy and Sustainability Jobs    compiles the latest statistics from diverse sources,  and concludes that “sustainability” accounts for an estimated 4.5 million jobs (up from 3.4 million in 2011) in the U.S. in 2015. Sustainability jobs are defined as those in energy efficiency and renewable energy, as well as waste reduction, natural resources conservation and environmental education, vehicle manufacturing, public sector, and corporate sustainability jobs.  Statistics drill down to wages and working conditions – for example,  average wages for energy efficiency jobs are almost $5,000 above the national median, and wages for solar workers are above the national median of $17.04 per hour.  Comparing clean energy with the fossil fuel industry, the report states that the  1.4 million jobs  in energy efficiency construction and installation alone is more than double the number of workers in fossil fuel mining, extraction and electric power generation combined.  Now Hiring states that for every $1 million invested in building retrofits and industrial efficiency,  8 direct or indirect jobs are created;  in comparison,  3 are created by a comparable investment in the fossil fuel industry. This final comparison of job multiplier effect  is based on  “Green versus brown: Comparing the employment impacts of energy efficiency, renewable energy, and fossil fuels using an input-output model”  by Heidi Garrett Pelletier at PERI, and appears in the February 2017 issue of Economic Modelling.