New York City announces its Green New Deal – including innovative building efficiency requirements and job creation

In a press release on April 22 , New York Mayor  Bill de Blasio announced  “New York City’s Green New Deal, a bold and audacious plan to attack global warming on all fronts….The City is going after the largest source of emissions in New York by mandating that all large existing buildings cut their emissions – a global first. In addition, the Administration will convert government operations to 100 percent clean electricity, implement a plan to ban inefficient all-glass buildings that waste energy and reduce vehicle emissions.”  The full range of Green New Deal policies are laid out in OneNYC 2050: Building a Strong and Fair City,  which commits to carbon neutrality by 2050, and 100% clean electricity. The full One NYC strategic plan is comprised of 9 volumes, including Volume 3: An Inclusive Economy , which acknowledges the shifting, precarious labour market and envisions green jobs in a fairer,  more equitable environment.

new york skyscraper

Photo by Anthony Quintano, from Flickr

A global first – Energy Efficiency mandates for existing buildings:  The Climate Mobilization Act, passed by New York City Council on April 18,  lays out the “global first” of regulation of the energy efficiency of existing buildings.  Officially called  Introduction 1253-C (unofficially called the “Dirty Buildings Bill”), 1253-C  governs approximately 50,000 existing large and mid-sized buildings- those over 25,000 sq feet-  which are estimated to account for 50% of building emissions. The bill categorizes these buildings by size and use (with exemptions for non-profits, hospitals, religious buildings, rent-controlled housing and low-rise  residential buildings ) and sets emissions caps for each category.  Buildings which exceed their caps will be subject to substantial fines, beginning in 2024. The goal is to cut emissions by 40 percent by 2030 and 80 percent by 2050.

Seen as historic and innovative, the energy efficiency provisions have been highlighted and summarized in many outlets: “New York City Sets Ambitious Climate Rules for Its Biggest Emitters: Buildings” in Inside Climate News ; “Big Buildings Hurt the Climate. New York City Hopes to Change That” in the New York Times (April 17); “’A New Day in New York’: City Council Passes Sweeping Climate Bill in Common Dreams;  and best of all,  “New York City’s newly passed Green New Deal, explained” (April 23) in Resilience, (originally posted in Grist on April 18).

Job Creation in Retrofitting and Energy Efficiency:  The New York City Central Labor Council strongly supports Introduction 1253-C  and cites job creation estimates drawn from Constructing a Greener New York, Building By Building , a new report  commissioned by Climate Works for All.  The report found that 1253-C would create 23,627 direct construction jobs per year in  retrofitting, and 16,995 indirect jobs per year in building operation and maintenance, manufacturing and professional services.  The report includes a technical appendix which details how it calculated the job estimates, based on the  job multipliers developed by Robert Pollin and Jeanette Wicks-Lam at the  University of Massachusetts Political Economy Research Institute.

The Mayor’s Green New Deal press release also states “The City, working with partners, will pursue 100 percent carbon-free electricity supply for City government operations with the building of a new connection linking New York City to zero-emission Canadian hydropower. Negotiations will begin right away, with the goal of striking a deal by the end of 2020 and powering city operations entirely with renewable sources of electricity within five years. ” The National Observer describes reaction from Quebec and Hydro Quebec in “New York City’s Green New Deal music to Quebec’s Ears” (April 23).

 

B.C.’s Energy Step Code estimated to generate 1,700 jobs by 2032 while improving energy efficiency

BCenergySTEP_Logo_NavThe B.C. Energy Step Code, enacted in April 2017, is a voluntary standard  which outlines an incremental approach to achieving more energy-efficient buildings in the province of British Columbia, over and above  the requirements of the B.C. Building Code. According to a report released  on March 7 by the Vancouver Economic Commission, the Energy Step Code has created a local market of $3.3 billion for green building products and the potential to create over 1,700 manufacturing and installation jobs between 2019–2032.

Green Buildings Market Forecast :  Demand for Building Products, Metro Vancouver, 2019–2032 was written for “manufacturers, suppliers, investment partners and other industry professionals to help them understand and prepare for changes in building product demand and performance requirements …”  Along with a companion technical report , BC Energy Step Code Supply Chain Study – Final Report  ( March 2019), it describes the basics of the Energy Step Code, and provides regional data and demand estimates for various products such as high-performance windows, lighting, heat pumps and renewable energy systems.  Employment impacts are not the main focus, but the report also estimates the potential job creation impact to be 925 sustainable manufacturing jobs throughout B.C., as well as 770 ongoing installation jobs in Metro Vancouver.  The Market Demand Forecasting Tool which underlies the report was developed by Vancouver Economic Commission in consultation with real estate and construction industry experts over eight months in 2018; modelling for the report was done by The Delphi Group. The details of the forecasting tool are documented in Appendix One of the report.

Two related, earlier reports: 1.  Energy Step Code Training and Capacity , a consultants report from 2017, discusses the competencies required by professions (including architects and engineers) and trades, and provides an extensive inventory of training agents in the province.

The State of Vancouver’s Green Economy (June 2018) by the Vancouver Economic Commission, which states that the largest segment of jobs in Vancouver in 2016 were in the  Green Building sector, with 7,689 jobs.  The total Green Economy job count,  encompassing Green Building; Clean Tech; Green Mobility; Materials Management; and Local Food was estimated at 25,000 jobs.

The B.C. Energy Step Code launched a new website in 2019.

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.

Global Commission proposals for clean growth forecasts 65 million new low-carbon jobs in 2030

The Global Commission on the Economy and Climate released its 2018 flagship report at the G20 meetings in Argentina  on September 5 . Under the title, Unlocking the Inclusive Growth Story of the 21st Century: Accelerating Climate Action in Urgent Times , the report acknowledges that all models are imperfect, but its extensive research and modelling predicts that its “bold climate action” prescription could deliver at least US$26 trillion in economic benefits through to 2030, and over 65 million new low-carbon jobs in 2030, as well as avoid over 700,000 premature deaths from air pollution.  As the final point in its action road map, it calls for Just Transition measures and a role for civil society and trade unions in their creation.

The report is structured around a sectoral approach, focused on energy, cities, food and land use, water, and industry. Across those economic sectors, every chapter hammers the theme of urgency, calling this the world’s “use it or lose it moment”. “The decisions we take over the next 2-3 years are crucial because of the urgency of a changing climate and the unique window of unprecedented structural changes already underway. The world is expected to invest about US$90 trillion on infrastructure in the period up to 2030, more than the entire current stock today. …. Investing it wisely will help drive innovation, deliver public health benefits, create a host of new jobs and go a long way to tackling the risks of runaway climate change. Getting it wrong, on the other hand, will lock us into a high-polluting, low productivity, and deeply unequal future. “

Unlocking the Inclusive Growth Story of the 21st Century  calls for the following urgent actions:

  1. “governments should put a price on carbon and move toward mandatory climate risk disclosure for major investors and companies.”  (Specifically, the carbon price for the G20 economies should be at least US$40-80 by 2020, with a predictable pricing pathway to around US$50-100 by 2030, accompanied by a phase-out of fossil fuel subsidies and harmful agricultural subsidies and tax-breaks by 2025);
  2. all economies should place much greater emphasis on investing in sustainable infrastructure as a central driver of the new growth approach;
  3. “ the full power of the private sector and innovation needs to be harnessed.” (Specifically, “ By 2020, all Fortune 500 companies should have science-based targets that align with the Paris Agreement.”  Governments need to change regulations, incentives and tax mechanisms that are a major barrier to implementing a low-carbon and more circular economy, and public-private partnerships should be encouraged.
  4. “a people-centred approach is needed to ensure lasting, equitable growth and a just transition. It is good economics and good politics.”….“All governments should establish clear Energy Transition Plans to reach net-zero energy systems, and work with energy companies, trade unions, and civil society to ensure a just transition for workers and communities. Successfully diversifying local economies as we shift away from coal and eventually other fossil fuels will require multi-stakeholder dialogue, strategic assistance, re-training, and targeted social protection.”

The Global Commission  is comprised of government leaders, academics, and business leaders, including Sharan Burrow of the ITUC, and Lord Nicholas Stern. Established in 2013, the Commission published its first, landmark report in the New Climate Economy initiative in 2014:  Better Growth, Better Climate , which established its position that there is no trade-off between growth and strong climate action. In addition to the annual policy document, international climate issues are published  in a Working Paper series, available here .

 

U.S. energy employment report: statistics by gender, age, race, and union status

USEER May 2018 reportThe 2018 U.S. Energy & Employment Report (USEER) was released in May, reporting that the traditional Energy and Energy Efficiency sectors employ approximately 6.5 million Americans, with a job growth rate of approximately 133,000 net new jobs in 2017 – approximately 7% of total U.S. new job growth.   The report provides detailed employment data for energy sectors including Electric Power Generation and Fuels Production (including biofuels, solar, wind, hydro and nuclear) and Electricity Transmission, Distribution and Storage. It also includes two energy end-use sectors: Energy Efficiency and Motor Vehicle production (including alternative fuel vehicles and parts production).  It is important to note that, unlike many other sources, this survey includes only direct jobs, and not indirect and induced jobs.

In addition to overall employment totals, the report provides an in-depth view of the hiring difficulty, in-demand occupations, and demographic composition of the workforce – including breakdowns by gender, age, race and by union composition.  As an example for solar electric power generation: “about a third of the solar workforce in 2017 was female, roughly two in ten workers are Hispanic or Latino, and under one in ten are Asian or are Black or African American. In 2017, solar projects involving PV technologies had a higher concentration of workers aged 55 and over, compared to CSP technologies.”

The previous USEER reports for 2016  and 2017  were compiled and published by the U.S. Department of Energy.  In 2018, under the Trump Administration, two non-profit organizations,  the National Association of State Energy Officials and the Energy Futures Initiative, took over the task of compiling the data, using the identical survey instrument developed by the DOE.  Timing was coordinated so that year over year comparisons with the precious surveys are possible.  Peer review of the report was performed by Robert Pollin, (Political Economy Research Institute) and  James Barrett, (Visiting Fellow, American Council for an Energy Efficient Economy).  The overview website, with free data tables at the state level, is here   .