International clean energy experts discuss investment levels, zero emissions vehicles, building emissions, gender equality in Vancouver meetings

CEM10-MI4_LogoIn the week of May 27, representatives from global government, industry, and NGO’s met as Canada hosted the 10th Clean Energy Ministerial in Vancouver. Several announcements were made against that backdrop:

Investment support for clean energy: The federal government announced it will contribute up to $30 million to Breakthrough Energy Solutions Canada (BESC),  a public-private initiative to support “cutting-edge companies to deliver game-changing clean energy innovations to the market.” This Canadian program will be administered by Natural Resources Canada – in collaboration with Breakthrough Energy Ventures, a $1 billion investment fund launched in 2016 by billionaires such as Bill Gates and Michael Bloomberg.  The Canadian press release quotes Gates: “ We are hopeful that this Breakthrough Energy partnership with Canada will be a model for developing more collaborations…” A summary appears in “Canada launches homegrown version of Bill Gates-led clean energy fund”   in the National Observer (May 27).

The National Observer hosted a panel discussion on clean energy investment on May 28. The panel included the Vice-President of the European Investment Bank, the European Commissioner for Research, Science and Innovation, Canada’s Minister of Natural Resources, and Céline Bak, president of Analytica Advisors and author of the 2019 report,  Leveraging Sustainable Finance Leadership in CanadaA summary and video of the panel’s discussion is hereThe discussion revealed that, unbeknownst to Canada, the  European Commission and the European Investment Bank  have also reached agreement with Breakthrough Energy Ventures on a new €100 million fund to support clean energy investments – described in a May 29 press release.

Clean energy investment trends are worrying, as reported by the International Energy Agency in  World Energy Investment 2019 (May 14) : “Global energy investment stabilised in 2018, ending three consecutive years of decline, as capital spending on oil, gas and coal supply bounced back while investment stalled for energy efficiency and renewables.”  In May,  BankTrack and others published  Fool’s Gold – the Financial Institutions Bankrolling Europe’s Most Coal-dependent Utilities , naming the financial institutions behind almost €16 billion in support to the coal industry since the Paris Agreement was signed in December 2015.

electric truckZero emissions  vehicles: The International Energy Agency released the 2019 edition of one of their flagship publications, Global EV Outlook, which provides historical analysis, projections to 2030, and insights on electric vehicle and charging infrastructure deployment, ownership cost, energy use, carbon dioxide emissions and battery material demand. As part of the discussions on electrification of transportation at the CEM10, Canada became the first national government to endorse the Global Commercial Vehicle Drive to Zero (Drive to Zero) campaign, with British Columbia and the City of Vancouver also signing on . A press release explains “Drive to Zero is a strategic international initiative designed to catalyze the growth of the zero-emission (ZE) and near-zero-emission (NZ) medium- and heavy-duty vehicle sector (MHDV), which includes everything from transit buses to eighteen wheelers to box trucks to school buses. Pledge partners promise to collaboratively put in place supporting mechanisms to speed the early market for these vehicles and equipment.”  Drive to Zero is a program of CALSTART,  a nonprofit consortium with offices in New York, Michigan, Colorado and California, and international partners which include Clean Energy Canada.  As Canada’s Minister of Natural Resources stated in the press release, this is in line with Canadian priorities: the Final Report of the Advisory Council on Climate Action  ( May 28) recommends policies concerning zero-emissions vehicles, including “The Government of Canada, working with partners and stakeholders, should develop an integrated strategy to reduce emissions across modes of transportation, including actions to support modal shifts.”  Related: on May 2, the Pembina Institute published Fuel Savings and Emissions Reductions in Heavy-Duty Trucking : A blueprint for further action in Canada  . 

Gender Equality in Clean Tech:  Over 100 organizations have now signed onto the Equal by 30 initiative, an international campaign begun in 2018. It “ encourages companies and government to adopt gender-equal principles, advance the participation of women in the clean energy transition and take concrete actions to support women in the sector.” A summary of the Gender Diversity participants and events is here . 

Hydrogen as a source of clean energy: A new “Hydrogen Initiative was announced  under the leadership of Canada, the United States, Japan, the Netherlands and the European Commission, with the International Energy Agency as co-ordinating body. The initiative is intended to drive international collaboration on policies, programs and projects to accelerate the commercial deployment of hydrogen and fuel cell technologies across all sectors of the economy, especially industrial and transportation applications.

Building efficiency: Heating and cooling strategies in the clean energy transition: Outlooks and lessons from Canada’s provinces and territories is a report released at the Clean Energy Ministerial meetings on May 27. It is the result of collaborative research between the International Energy Agency and the National Energy Board of Canada. Using Canadian provincial data, it examines energy demand patterns and energy policies regarding  heating and cooling services in buildings, urging policies to move from natural gas to existing, cleaner technologies.  The National Observer summarizes the report in “Cutting fossil fuels could save Canadians  $24 billion a year by 2050”  .

The clean economy workforce in the U.S. and proposals to make it more inclusive

brookingsclean-energy-jobs_wages Figure2-finalAdvancing inclusion through clean energy jobs  is a report  released  by the Brookings Institution in April 2019,  with a goal to determine “ the degree to which the clean energy economy provides labor market opportunities for historically disadvantaged groups, with a particular focus on equity”.  It examines a range of occupations, not just the traditionally-identified “green jobs”,  identifying approximately 320 unique occupations in three major industrial sectors: clean energy production, energy efficiency, and environmental management.  The report includes detailed discussion of its methodology and data sources, and emphasizes the size of the clean energy economy and its potential to make an impact on the equity of the U.S. labour market.

Some highlights about the “nature” and “ quality” of clean energy economy jobs:

  • Workers in clean energy earn higher and more equitable wages when compared to all workers nationally. Mean hourly wages exceed national averages by 8 to 19 percent.
  • Roughly 50 percent of workers in the clean energy economy have a high school diploma yet earn higher wages than similarly-educated peers in other industries – for example, plumbers, electricians, and carpenters.
  • Some occupations within the clean energy production and energy efficiency sectors require greater scientific knowledge and technical skills than the average American job.
  • The clean energy economy workforce is older, dominated by male workers, and lacks racial diversity when compared to all occupations nationally. Fewer than 20 percent of workers in the clean energy production and energy efficiency sectors are women, while black workers fill less than ten percent of these sector’s jobs.

In the accompanying press release , first author Mark Muro states: “Clean energy occupations are varied, accessible to workers without a bachelor’s degree, and good paying, but they are not yet as inclusive as they should be. To deliver on the sectors’ full promise for economic inclusion, more work needs to be done in front-line communities to ensure under-represented communities and women are more widely included.”  The report concludes with  proposals directed at state and local policy makers, education and training sector leaders, and community organizations.  Broadly, the policy proposals include: “modernizing and emphasizing energy science curricula, improving the alignment of education and training offerings, and reaching underrepresented workers and students.”

Women and minorities still at a disadvantage in U.S. solar industry

solar industry 2019 diversity infographicThe U.S. Solar Industry Diversity Study 2019  was released by The Solar Foundation ,  in partnership with the Solar Energy Industries Association on May 6, reflecting  a growing  industry awareness of the need to promote inclusion. The 2019 study is based on survey responses from 377 employers and 398 employees in the winter of 2018, and reports on  job satisfaction, career paths and progression, and wages.

Some highlights: 

  • Among the senior executives reported in the survey, 88% are white and 80% are men.
  • Three of the top five recruitment methods rely on professional and personal networks – putting minority applicants at a disadvantage to be hired  (Only 28% of Hispanic , Latino, and African American  respondents reported that they found their jobs through a referral or by word of mouth, compared to 44% of white respondents).
  • There is a 26% gender wage gap across all position levels. 37% of men earn in the range of $31 to $74 per hour, compared to only 28% of women.  The median wage reported for men was $29.19, and for women it was only $21.62.

The full report is available here (registration required). This is the second Diversity Report, but the first, in 2017, is no longer available online. An accompanying  Best Practices Guide  is a brief guide aimed at HR managers to encourage diversity and inclusion programs.  A summary  of the report appears in Think Progress .

Other reports which confirm the need for more diversity in the solar industry: 

Solar Empowers Some  (February 2019)  focused on the state of diversity and inclusion in Baltimore and Washington D.C.

Advancing inclusion through clean energy jobs  (April 2019)  by the Brookings Institution goes beyond just the solar industry to include all clean energy and energy efficiency occupations. It reports that fewer than 20 percent of workers are women, and less than 10 percent are black, confirming that the clean energy economy workforce is older, dominated by male workers, and lacks racial diversity compared to all occupations nationally.  This report, importantly, also documents skills and educational requirements, and is written in the context of labour market issues for a transition to a clean economy.

We have little comparable research in Canada. As reported in the WCR  previously,  Bipasha Baruah at Western University in London researches the gender issue in the renewable energy industry, and in 2016 presented a report,  Creating and Optimizing Employment Opportunities for Women in the Clean Energy Sector in Canada, at Imagining Canada’s Future, an SSHRC Knowledge Synthesis Symposium at the University of Calgary.

Growth and diversity in the U.S.clean energy industry

Two new reports foresee employment growth in the U.S. renewable energy industry – despite the chilling effect of the tariffs on solar equipment imposed  by the Trump administration, as described in a Solar Energy Industry Association press release in December.   The first study, Clean Energy sweeps across rural America  (November 2018) by the Natural Resources Defence Council examines job growth in wind, solar, and energy efficiency in rural regions throughout the Midwest U.S., and finds that the number of clean energy jobs grew by 6 percent from 2015 to 2016 (a higher rate than the economic in general), to a total of  nearly 160,000 in 2017.  In 2017, in the rural parts of every midwestern state except North Dakota and Kansas, more people worked in clean energy than in the entire fossil fuel industry.  The report emphasizes the outsized impact of job opportunities in rural areas in which job growth is normally negligible or even negative. The report also profiles examples of  community solar programs operated by co-ops and investor-owned utilities.

A second report  models the impact of  replacing Colorado’s coal plants with a mix of wind and solar backed by battery storage and natural gas.  This report was prepared by consultants Vibrant Clean Energy and commissioned by energy developer Community Energy Inc., with a main focus on cost savings and carbon emissions.  However, it also forecasts job impacts under three scenarios (keeping coal plants to 2040, gradually retiring coal plants, and retiring all coal plants in 2025), and overall,  it forecasts a 52% increase in employment in the electricity industry.

The January 9 press release  quotes a representative from Community Energy Inc:  “The key to unlocking these benefits is to create a legal framework that enables utilities to voluntarily retire the coal plants. Otherwise, it could take years to negotiate or litigate utility cost recovery, replacement power costs and impact on local communities.” The full Coal Plant Retirement study is here .

Finally, the Solar Energy Industries Association issued a press release in early December, highlighting its 2018 initiatives to improve gender equity and diversity – including the creation of the Women’s Empowerment Initiative, which includes summits to increase women’s leadership and various industry opportunities.  In September 2018,  the SEIA signed a Memorandum of Understanding  to help the solar industry recruit and employ more students from the 101 Historically Black Colleges and Universities.  This will include hosting a national jobs fair, individual jobs fairs at the HBCU schools and bringing solar companies to campuses for recruitment.   A webinar series on diversity and inclusion is scheduled for SEIA member companies in 2019.

How to increase women`s representation in green industries

women in trainingTwo  new reports were released in May in the Smart Prosperity Clean Economy Working Paper Series.  Identifying Promising Policies and Practices for Promoting Gender Equity in Global Green Employment by Bipasha Baruah, synthesizes and analyses existing literature  on women’s  employment in manufacturing, construction and transportation –  “brown” sectors which are important in the transition to a green economy. From the paper: “The literature points to four overarching barriers that exist for women who seek to enter and remain in these fields: lack of information and awareness about employment in these sectors, gender bias and gender stereotyping, masculinist work culture and working conditions, and violence against women. … Most policies designed to address women’s underrepresentation in these fields tend to be reactive responses that do not engage adequately with broader societal structures and institutions that produce and maintain inequality. Improving lighting in construction sites in order to prevent sexual assaults against women and requiring women to work in pairs instead of alone are classic examples of reactive policies that end up reinforcing social hierarchies rather than challenging them… …. Raising broader societal awareness about the benefits of gender equity, and about women’s equal entitlement to employment in all fields, is as crucial as policy reforms and state or corporate actions that protect women’s interests and facilitate their agency. “ The discussion includes interesting observations about women’s challenges  in engineering professions and in apprenticeships.

The second paper, also by Bipasha Baruah, is  Creating and Optimizing Employment Opportunities for Women in the Clean Energy Sector in Canada .  This paper has been released previously and was highlighted in April 2018 in the Work and Climate Change Report, along with  Women and Climate Change Impacts and Action in Canada: Feminist, Indigenous and Intersectional Perspectives , published by Adapting Canadian Work and Workplaces in Canada`, the Canadian Research Institute for the Advancement of Women and the Alliance for Intergenerational Resilience. Both reports note the underrepresentation of women in the clean energy industry and call for improvements in workforce training and hiring; the working paper by Bipasha Baruah emphasizes the need for change in societal attitudes.

The publisher, Smart Prosperity is  based at the University of Ottawa, and announced major new funding at the end of  March 2018 , which will enable new research in a “Greening Growth Partnership” initiative.  Click here for information about the funding and the international experts who will be participating in Smart Prosperity research.