Exceptional growth in clean energy jobs forecast for Europe and the U.S.

SolarPower Europe, together with consultants EY, published Solar PV Jobs & Value Added in Europe  in early November, concluding that Europe is poised for a solar jobs revival after several years of policy-driven uncertainty.  The report discusses the policy environment, including trade policies, makes job projections, and  estimates the socio-economic impact per segment of the value chain, for roof-mounted and ground-mounted solar.  The job creation forecast:  the  the PV sector workforce will grow from 81,000 full time jobs (FTE) in 2016 to over 174,000 FTE by 2021 (an increase of 145% in the next 5 years). As quoted in an article in PV Magazine, the President of the European solar industry association states that an additional 45,500 jobs could be created across Europe next year if the trade restrictions on modules and cells from Asia were to be removed. SolarPower Europe proposes an industrial competitiveness strategy for solar in Europe which aims to support 300,000 direct and indirect jobs by 2030. It has also released a Policy Declaration, Small is Beautiful which promotes the benefits of small scale, clean, locally owned distributed energy.

In the U.S., the New York State Energy Research and Development Authority (NYSERDA) released the 2017 Clean Energy Industry Report  on October 27, showing a 3.4% employment growth rate for clean energy between December 2015 to December 2016 (surpassing the economy as a whole). Growth is  projected  to double again to 7% by the end of 2017. At the end of 2016, clean energy jobs employed 146,000 New Yorkers, distributed as follows:  110,000 jobs in energy efficiency; 22,000 renewable electric power generation (12,000 of which are found in solar energy); 8,400 alternative transportation;  2,900 renewable fuels, and 1,400 in grid modernization and storage.   The report also discusses a labour market imbalance where demand exceeds supply of clean energy workers, with employers reporting  the most difficult positions to fill are engineers, installers or technicians, and sales representatives.

Finally from the U.S.,  an article by Bureau of Labor Statistics (BLS) economists, appeared in the October issue of Monthly Labor Review with a summary and analysis of  the detailed data of Employment Projections for the entire U.S. economy for 2016-26, released on October 24.  The article notes: “Healthcare and related occupations account for 17 of the 30 fastest growing occupations from 2016 to 2026.   …   “Of the 30 fastest growing occupations, 6 are involved in energy production. Employment for solar photovoltaic (PV) installers is expected to grow extremely fast (105.3 percent) as the expansion and adoption of solar panels and their installation create new jobs. However, because this is a relatively small occupation, with a 2016 employment level of 11,300, this growth will account for only about 11,900 new jobs over the next 10 years. Developments in wind energy generation have made this energy option increasingly competitive with traditional forms of power generation, such as coal and natural gas, and are expected to drive employment growth for wind turbine service technicians. Employment of these workers is projected to grow 96.1 percent. As with solar PV installers, this occupation is small, and its rapid growth will account for only about 5,500 new jobs.”  Surprisingly,  “Faster-than-average employment growth from 2016 to 2026 is projected for a number of oil and gas occupations, including roustabouts, service unit operators, rotary drill operators, and derrick operators. The oil price assumptions in the MA model are expected to cause employment growth in the oil and gas extraction industry, at an annual growth rate of 1.7 percent over the 2016–26 decade. ”

 

$1.5 billion will buy new renewable energy projects, good green jobs, and environmental justice in New York State

On  June 2, New York Governor Andrew Cuomo announced that his state would invest $1.5 billion in renewable energy projects through the Clean Climate Careers Initiative.  The program has three elements:  “supercharge” clean energy technologies, create up to 40,000 clean energy jobs by 2020, and  achieve environmental justice and Just Transition for underserved communities. Both the Governor’s press release and one from the Worker Institute at Cornell University Industrial and Labor Relations School attribute the inspiration for the new renewable energy initiative to the  “Labor Leading on Climate” program at the Worker Institute.

The  Institute has just published Reversing Inequality, Combatting Climate Change: A Climate Jobs Program for New York State (June 2017),  in which Lara Skinner and  co-author J. Mijin Cha argue for an “audicious”  job creation plan which would create decent green jobs in the building, energy, and transport sectors.  The report provides case studies and specific proposals to reduce GHG emissions – for example, to retrofit all public schools in the state to reach 100 percent of their energy efficiency potential by 2025, reduce energy use in all public buildings by 40 percent by 2025, install 7.5 GW of offshore wind by 2050,  rehabilitate New York City public transit, and construct and improve the existing high-speed passenger rail corridor between Albany and Buffalo, and between New York City and Montreal.  The report also includes a recommendation to establish a Just Transition Task Force – a recommendation incorporated in Governor Cuomo’s plan.

In the plan announced  by Governor Cuomo, $15 million has been committed “to educators and trainers that partner with the clean energy industry and unions to offer training and apprenticeship opportunities, with funding distributed to the most innovative and far-reaching apprenticeship, training programs and partnerships.  ”  The state is also committed to the use of a Project Labor Agreement framework for the construction of public works projects associated with the initiative.

A Working Group on Environmental Justice and Just Transition has been appointed and staffed, with a first meeting scheduled for June.  It will advise the administration on the integration of environmental justice principles into all agency policies, and to shape existing environmental justice programs.  The press release includes endorsements from the NYC Environmental Justice Alliance and unions, including: Greater New York Building Construction Trades Council, New York State AFL-CIO, New York City Central Labor Council, AFL-CIO, IBEW Local 3, Transport Workers Union, Utility Workers Union Local 1-2,  United Association Plumbers & Pipefitters, and the past Secretary Treasurer of Service Employees International Union.

Governor Cuomo’s  Renewable Energy initiative was announced one day after Donald Trump’s  withdrawal from the Paris Climate Accord, and after the Governor had signed an Executive Order  reaffirming New York’s  commitment to the Paris goals, and had launched a Climate Alliance with the states of California and Washington.

IRENA forecasts 24 million renewable energy jobs worldwide by 2030

IRENA_REnewable Jobs 2017 coverIn its fourth annual report, Renewable Energy and Jobs – Annual Review 2017 , the International Renewable Energy Agency (IRENA) presents statistics on renewable energy employment, both by technology and in selected countries.  For this 2017 edition, it includes statistics for large-scale hydropower, and also the results for a workplace survey in the Middle East and North Africa on barriers to women in clean energy labour markets.   The worldwide statistics show that renewable energy employed 9.8 million people in 2016 – a 1.1% increase over 2015.  Solar photovoltaic (PV) power was the largest employer, with 3.1 million jobs (an increase of 12% from 2015); global wind employed 1.2 million  people (an increase of 7%); large hydro employed 1.5 million people, with around 60% of those in operation and maintenance. However, given that Canada is the world’s 2nd biggest hydropower producer (after China), and that Canada is not included in the IRENA numbers, this figure could be questioned.  China, Brazil, the United States, India, Japan and Germany accounted for most of the renewable energy jobs.

In general, IRENA reports that the rate of for renewable job growth slowed down in  2015 and 2016, with the exception of the solar PV and wind categories, which have more than doubled since 2012. In contrast, employment in solar heating and cooling and large hydropower has declined.  Nevertheless, IRENA predicts that “the number of people working in the renewables sector could reach 24 million by 2030, more than offsetting fossil-fuel job losses and becoming a major economic driver around the world”.  It also notes that ”significant efforts in training and education is needed to provide the labour market with the required skills.”

The  gender discrimination survey of labour markets in the Middle East and North Africa was  conducted jointly by IRENA, the Clean Energy Business Council (CEBC) and Bloomberg New Energy Finance (BNEF). The   survey found that discrimination seems less pronounced in renewable energy employment than in the energy sector at large, but “challenges remain for women in regard to employment and promotion.”

66% of Canada’s energy in 2015 came from renewable sources, and other facts

NEB Revenewables coverA Canadian Press story in early May highlighted that renewable energy accounted for 66% of energy generated in Canada in 2015, and appeared widely –  for example, in  the Globe and Mail (May 2) and the Toronto Star . The information behind the news was drawn  from  Canada’s Adoption of Renewable Power Sources – Energy Market Analysis May 2017  by the National Energy Board , which provides much more detail about each type of renewable energy, and notes the factors influencing their adoption rates (including costs, technological improvement, environmental considerations, and regulatory issues).  The NEB also compares  Canada to other countries, and perhaps most interestingly,  includes a section on Emerging Technologies , which highlights tidal power, off-shore wind, and geothermal.  Canada has no existing production capacity for either off-shore wind or geothermal, although the report outlines proposed developments.

Some highlights from the Canada’s Adoption of Renewable Power Sources: the 2015 proportion of 66% renewables in our energy mix is an increase from 60% in 2005;  only five countries (Norway, New Zealand, Brazil, Austria, and Denmark) produce a similar or larger share of electricity from renewable sources; China leads the world in total hyroelectricity production – Canada is second; over 98% of Canada’s solar power generation capacity is located in Ontario.

Other useful NEB publications:   Canada’s Renewable Power Landscape (October 2016), which documents historical growth rates for renewable power in Canada, and each province and territory, and for the latest in energy projections, see Canada’s Energy Future 2016: Update – Energy Supply and Demand Projections to 2040 . These projections, which include fossil fuels as well as renewables,  were published in October 2016 and therefore don’t reflect the policies of the Pan-Canadian Framework on Clean Growth and Climate Change.

Case studies of Community and human rights impacts of Renewable energy companies, and a ranking of multinationals in Ag/Food, Apparel and Mining

renewable energy investor briefing coverAn April 2017 report from the London-based advocacy group,  Business and Human Rights Resource Centre asks,  “What adverse impacts can renewable energy projects have on communities around the world?”   Renewable Energy investor briefing: Managing risks & responsibilities for impacts on local communities  (April 2017) is directed at financial and investment professionals who are considering investment in renewable energy projects- in this report, comprised of wind and small-to-medium hydro, but excluding solar .  It starts from the premise that Just Transition principles are essential, then explains the international human rights responsibilities of companies.  The report also provides examples of the kinds of questions that should be asked in shareholder meetings and before investment decisions are made, and gives examples of best practice policies – for example, inclusion of community benefits agreements.  One of the main issues it discusses is the right to free, prior and informed consent of Indigenous peoples, which is an ongoing topic monitored by the BHRC.

The report provides case studies, including  six positive examples, including: the Ixtepec community-owned wind project in Mexico; the Jeffreys Bay Wind Farm in South Africa; and  a cluster of wind projects in Jämtland, Sweden, for which OECD guidelines are being used in negotiations between the company and affected Indigenous people.  The full suite of case studies is presented in a searchable database which allows searching by company name, issue, country, and more.  There are no Canadian projects included in the 2017 report, although a profile of Ontario Power Generation  is available as part of the Centre’s ongoing database  of human rights in the energy sector  .

In March 2017, the Centre also launched an updated and expanded  Corporate Human Rights Benchmark website , which ranked 98 of the world’s largest publicly traded companies, from the  Agriculture, Apparel, and Extractive industries. The Benchmark is intended to drive a “race to the top” and is directed at business, government, and “ to empower civil society, workers, communities, customers, and the media with better public information to reward, encourage, and promote human rights advances by companies and make well-informed choices about which companies to engage with.”  A 50 page summary report is here .  There are six thematic measurement categories, including “ Company Performance: Human Rights Practices”  which  includes rankings related to living wage, freedom of association and right to bargain collectively, health and safety, amongst others.