Over 400,000 Clean Energy jobs lost in the U.S. since the start of the pandemic

U.S. government employment figures for December 2020 show that the U.S. clean energy sector added 16,900 jobs in December. However, analysis released on January 13 reveals that the recovery is slow, and the industry now has its lowest number of  workers since 2015, having suffered a loss of over 400,000 jobs (12%) during the Covid-19 pandemic.

Clean Energy Employment Initial Impacts from the COVID-19 Economic Crisis, December 2020  was prepared by BW Research Partnership, commissioned by industry groups E2 (Environmental Entrepreneurs), E4TheFuture, and the American Council on Renewable Energy (ACORE) . The 17-page report provides data by state and by technology, with energy efficiency leading the losses with 302,164 total jobs lost nationally between February and December 2020. California was the hardest hit state. 

This is the latest in a monthly series of reports tracking the impact of Covid-19 on clean energy jobs – the series is available at the E2 website here. These reports document the dramatic shift in clean energy employment in the U.S; the E2 Clean Jobs America 2020 annual report  outlines the industry’s policy recommendations for recovery as of April 2020.     

  

Fall Economic Statement paves the way for a Green Recovery: energy efficiency, care economy, electric vehicle infrastructure, and nature-based solutions

On November 30, Canada’s  Finance Minister Chrystia Freedland presented the government’s Fall Economic Statement to the House of Commons, Supporting Canadians and Fighting COVID-19.  At over 200 pages, it is the fullest statement to date of how the government intends to finance a green recovery from the Covid-19 pandemic, but Canadians must still wait for a full  climate change strategy, promised “soon”.

The government press release summarizes the spending for health and economic measures, including, for employers, extension of the Canada Emergency Wage Subsidy Canada, the  Emergency Rent Subsidy and Lockdown Support , and new funding for the  tourism and hospitality sectors through the new Highly Affected Sectors Credit Availability Program.  In Chapter 3, Building Back Better,  the Economic Statement addresses the impacts of Covid-19 on the labour market and employment. It includes promises to create one million jobs, invest in skills training, reduce inequality, attack systemic racism, support families through early learning and child care, support youth, and build a competitive green economy.  Most budget allocations will be channeled through existing programs, but new initiatives include “the creation of a task force of diverse experts to help develop “an Action Plan for Women in the Economy”;  launch of “Canada’s first-ever Black Entrepreneurship Program”;  and a task force on modernizing the Employment Equity Act to promote equity in federally-regulated workplaces.  Under the heading, “Better working conditions for the care Economy” comes a pledge: “To support personal support workers, homecare workers and essential workers involved in senior care, the government will work with labour and healthcare unions, among others, to seek solutions to improve retention, recruitment and retirement savings options for low- and modest-income workers, particularly those without existing workplace pension coverage.”

Climate change provisions and a Green Recovery:

Another section in Chapter 3 is entitled A Competitive, Green Economy, which  reiterates the government’s commitment to achieve net-zero emissions by 2050, and reiterates the importance of the Canadian Net-Zero Emissions Accountability Act, currently before Parliament. Funding of  $2.6 billion over 7 years was announced to go towards grants of up to $5000 for homeowners to make energy-efficient improvements to their homes, and to recruit and train EnerGuide energy auditors. A further $150 million over 3 years was announced for charging and refuelling stations for zero-emissions vehicles, and  $25 million for “ predevelopment work for large-scale transmission projects. Building strategic interties will support Canada’s coal phase-out.

Under the heading of Nature-based solutions, proposed investments address the goal of 2 billion trees planted with a pledge of  $3.19 billion over 10 years, starting in 2021-22.  A further $631 million over 10 years is pledged for ecosystem restoration and wildlife protection, and $98.4 million over 10 years, starting in 2021-22, to establish a new “Natural Climate Solutions for Agriculture” Fund.

Reactions from unions, think tanks:

Among those reacting quickly to the Economic Statement, the Canadian Labour Congress  stated generally  “While today’s commitments on key priorities remain modest and reflect past promises, the government has signalled it will make further investments as the recovery begins to take shape.” Unifor issued two press releases, the first stating “This fiscal update shows that Canada’s workers are being heard, and must continue to advocate for the lasting changes required to secure a fair, resilient and inclusive economic recovery”, but a second complains “Canada’s fiscal update fails to support all airline workers .  The Canadian Union of Public Employees similarly issued two statements on December 1:  “Liberals’ economic update offers more delay and disappointment”  and “Canada’s flight attendants union disappointed by the federal economic update” .

Bruce Campbell reacted in The Conversation (Dec. 7)  that “The pace of government action to date does not align with the urgency of the twin climate and inequality crises. Nothing it has done so far is threatening to the corporate plutocracy and its hold on power.”   Several experts from the Canadian Centre for Policy Alternatives contributed to a blog,  A fiscal update for hard times: Is it enough?”, with the answer from Hadrian Mertins-Kirkwood re the climate change provisions : “Planting trees, retrofitting buildings and increasing ZEV uptake doesn’t go far enough without a clear timeline for winding down oil and gas production.”  Climate Action Network-Canada agrees with Mertins-Kirkwood when it states: “ today’s update includes a summary of new and existing spending that we hope will provide an important foundation for Canada’s new national climate plan that we expect in the coming weeks.  ….As part of a larger package, along with Bill C-12, the Canadian Net-Zero Emissions Accountability Act, and the pending new national climate plan, today’s fiscal update provides the backbone to guide Canada through some of the most important global transitions in generations.”

Other reactions:  “Feds’ fall economic statement shortchanges climate” (Corporate Knights, Dec. 2) quotes one observer who calls it  a “meek” effort, and offers a comparison of  the allocations in the Fall statement with earlier proposals from Corporate Knights  and the Task Force for a Resilient Recovery in September . The Energy Mix also cites the Task Force for a Resilient Recovery in its analysis of  the energy efficiency provisions of the Economic Statement , stating, : “the  recommended by C$2.6 billion allocated for a seven-year program raises questions about how seriously the Trudeau government is prepared to confront the climate crisis. In mid-September, the Task Force for a Resilient Recovery called for a $26.9-billion program over five years.”

British Columbia tops in Canada’s Energy Efficiency Scorecard

Efficiency Canada has released its 2020 Energy Efficiency Scorecard , self-described as “a comprehensive benchmarking of provincial energy efficiency policies.”  The 2020 edition is the 2nd produced, and has expanded to include new information on Indigenous energy efficiency, heating fuel savings, building code adoption activities, active transportation, and geo-targeted efficiency.    A complex website offers a database with policy summaries sorted by province and by policy areas:  energy efficiency, enabling policies, buildings, transportation, and industry. Provincial fact sheets describe and rank  each province, with  British Columbia retaining its rank as #1 in Canada, followed by Quebec ; Nova Scotia ; Ontario, which dropped from third place in 2019 to fourth rank; Prince Edward Island (highlighted as most improved province); Manitoba ; New Brunswick in 7th place;  Alberta (slipped from 6th to 8th place); Newfoundland and Labrador at 9th, and in last place, Saskatchewan. The press release notes that “All provinces have significant room to improve. On a scale with 100 available points, the highest score this year is 58 and the lowest 17. ”

Efficiency Canada is housed at Carleton University’s Sustainable Energy Research Centre. The website also offers two highly useful reports: Less is More: A win for the economy, jobs, consumers, and our climate: energy efficiency is Canada’s unsung hero  (co-published by Clean Energy Canada and Efficiency Canada in 2018) and The Economic Impact of Improved Energy Efficiency in Canada Employment and other Economic Outcomes from the Pan-Canadian Framework’s Energy Efficiency Measures, prepared for Clean Energy Canada by Dunsky Consulting in April 2018.

Energy efficiency policies could create 1.3 million job years in the U.S.; jobs require skills standards

The American Council for an Energy Efficient Economy (ACEEE) released three reports in September. Growing a Greener Economy: Job and Climate Impacts from Energy Efficiency Investments considers policy proposals for investments in homes and commercial buildings, electric vehicles (EVs), transportation infrastructure, manufacturing plants, small businesses, states, and cities. Those investments are projected to achieve 660,000 added job-years in the U.S. until 2023, and 1.3 million added job-years over the lifetime of the investments and savings. In addition, the proposed programs would result in 910 million tons of lifetime reduced carbon dioxide emissions and $120 billion in lifetime energy bill savings for consumers.  A 3-page Fact Sheet summarizes findings.

A second  ACEEE report released in September identifies the skills required to ensure a workforce prepared to build and maintain highly energy efficient buildings.  Training the Workforce for High-Performance Buildings: Enhancing Skills for Operations and Maintenance is summarized in this blog . The report includes a literature review and responses to a survey of 111 building owners/managers, operators, tradespeople, technicians, and service providers. 92% of survey respondents ranked operations and maintenance (O&M) skills as most critical. The report provides an insight into the job duties and tasks, as well as an overview of the state of education and training in the U.S., and case studies of exemplary training programs . The main recommendation: utilities, program administrators, and policymakers should establish skill and credentialing standards .  Training the Workforce for High-Performance Buildings: Enhancing Skills for Operations and Maintenance is available from this link  (registration required).

Finally, Programs to Promote Zero-Energy New Homes and Buildings identifies and analyzes twenty programs in British Columbia, Washington, D.C., and 12 other U.S. states. British Columbia’s Zero Energy Challenge is briefly highlighted-  an incentive program and juried design competition for buildings built to the highest standard of the B.C. Building Energy Step Code .  (Much more detail is available at the Net-Zero Ready Energy Challenge website and the BC Energy Step Code website, which includes case studies). The ACEEE report highlights as “particularly notable” the Energy Trust of Oregon commercial program, NYSERDA multifamily and commercial programs, and Efficiency Vermont programs addressing single-family housing, multifamily housing, modular housing, and commercial buildings.  

International Energy Agency roadmap for a sustainable recovery forecasts job growth led by retrofitting and electricity

The International Energy Agency, in cooperation with the International Monetary Fund, released a roadmap which would require global investment by governments of USD 1 trillion annually between 2021 and 2023 to create jobs and accelerate the deployment of clean energy technologies and infrastructure.  The World Energy Outlook Special Report: Sustainable Recovery , released on June 18th states:  “Through detailed assessments of more than 30 specific energy policy measures to be carried out over the next three years, this report considers the circumstances of individual countries as well as existing pipelines of energy projects and current market conditions.” The report data and analysis will form the basis for the IEA Clean Energy Transitions Summit on July 9 2020, where decision-makers in government, industry and the investment community will meet to discuss policy options for economic recovery post Covid-19.

From the report: ” Our new IEA energy employment database shows that in 2019, the energy industry – including electricity, oil, gas, coal and biofuels – directly employed around 40 million people globally. Our analysis estimates that 3 million of those jobs have been lost or are at risk due to the impacts of the Covid-19 crisis, with another 3 million jobs lost or under threat in related areas such as vehicles, buildings and industry. “ The recommendations promise to save or create approximately 9 million jobs per year, with the greatest number in building retrofitting for energy efficiency, and in the electricity sector.  The Sustainable Recovery Plan also seeks to avoid the kind of rebound effect which occurred after the 2008/2009 recession, claiming that it would stimulate economic growth while achieving annual energy-related greenhouse gas emissions which “would be 4.5 billion tonnes lower in 2023 than they would be otherwise”,  decreasing air pollution emissions by 5%, and thus reducing global health risks.

Under the heading of “Opportunities in technology innovation”, the report examines four specific technologies: “hydrogen technologies, which have a potentially important role in a wide range of sectors; batteries, which are very important for electrification of road transport and the integration of renewables in power markets; small modular nuclear reactors, which have technology attributes that make them scalable as an important low-carbon option in the power sector; and carbon capture, utilisation and storage (CCUS), which could play a critical role in the energy sector reaching net-zero emissions. We also compare the near-term job creation potential of some of these measures.” The IEA is preparing an Energy Technology Perspectives Special Report on Clean Energy Technology Innovation, which will be released in early July 2020.