Pembina proposes a low-carbon blueprint to create 67,2000 jobs in Alberta

alberta emerging economyA report released on June 15 calculates  that, with supportive government policies, 67,200  jobs could be created in Alberta by 2030 in four key areas: renewable electricity; transit and electric vehicle infrastructure; energy efficiency in buildings and industry; and environmental cleanup and methane reduction in the oil and gas industry.  Alberta’s Emerging Economy: A blueprint for job creation through 2030  was funded by the Alberta Federation of Labour  and written by researchers at the Pembina Institute.  It provides detailed data for each of the four sectors, along with well-informed policy discussion. Notably, the number of jobs forecast represents a significant diversification of the labour market for the province: 67,200 jobs is equal to 67% of the total workforce of the mining, and oil and gas extraction industry in 2019.

Alberta’s Hydrogen initiative

Alberta’s Emerging Economy does not consider the potential jobs from new technologies such as carbon capture and storage, or hydrogen production.  Fundamental to understanding that technology is the difference between “grey hydrogen”,  “blue” hydrogen and “green” hydrogen”- explained by an expert at the International Energy Agency here , or in Green Tech Media in “The Reality Behind Green Hydrogen’s Soaring Hype”.

On May 14, the Alberta Industrial Heartland Hydrogen Task Force was launched as “an independent working group created to develop a framework to implement a hydrogen economy in the region” and “produce a public report detailing the approach and steps needed to advance a zero-emission fuel economy in Alberta’s Industrial Heartland.” The Task Force includes local mayors from Alberta and Saskatchewan (including  Edmonton Mayor Don Iveson). The full list of Task Force members and advisors is here , and is organized by Transition Accelerator – itself launched in 2019, by the University of Calgary research group CESAR.  A recent report in their  “The Future of Freight” series, Implications for Alberta of Alternatives for Diesel  advocates for “blue hydrogen” production (hydrogen made from natural gas by steam-methane reforming (SMR) coupled to carbon capture and storage (CCS)).

Hydrogen production is described in the Globe and Mail on June 14, “Ottawa, Alberta develop new hydrogen strategies” .  An overview in Corporate Knights magazine on May 14  claims “Hydrogen can make Canada an energy superpower again”.  It concludes:

We live in Alberta, so know the danger in including the words ‘national’ and ‘energy’ in the same sentence. But picture a Canada where hydrogen is the focus of a pan-Canadian strategy that would have all provinces working together for a net-zero emission energy future that revitalizes our economy and again positions Canada as an energy superpower.

 

Updating Job proposals for a Green Recovery: Canada, U.S., Europe

Green Recovery proposals in Canada:

The Work and Climate Change Report  has previously highlighted  proposals for a Green Recovery from Covid-19, including   Labour’s Vision for Economic Recovery by the Canadian Labour Congress, the Just Recovery for All  coalition campaign and the Task Force for a Resilient Recovery  .  Another very focused campaign is  Inclusive Recovery , which states that Canada’s federal government is planning to invest over $187 billion dollars on infrastructure projects over the next ten years as part of its Green Recovery funding.  The Inclusive Recovery campaign, organized by the Toronto Community Benefits Network, Toronto & York Region Labour Council, the Labour Education Centre, and other unions and social service agencies,  is seeking support and endorsement of a joint letter to the Federal government calling on them  “to integrate and expand community benefit expectations in publicly funded infrastructure projects”.

On June 4,  Corporate Knights magazine  published “Building Back Better: A roadmap to the Canada we want ” , which consolidates the already-published articles and roundtable discussions from its Green Recovery series.   The resulting “roadmap” , written by consultants Ralph Torrie and Céline Bak, with Toby Heaps, argues that “ By 2030, Canada could create more than five million quality job-years of employment by greening the power grid, electrifying transport and upgrading our homes and workplaces to be more comfortable and flood resilient.” In estimating the cost, that job-creation number goes even higher: “the federal investment in the programs we have proposed would total $106 billion, crowding in an additional $730 billion in private and other sector investment, creating 6.7 million years of employment – more than twice the jobs that have been lost due to COVID-19”, and continues: “These investments would reduce greenhouse gas emissions by an estimated 237 million tonnes from 2018 levels. That would meet our Paris Climate Agreement commitments and put us on a path to a carbon-free economy within a generation.”   In a postscript, the authors state: “The best chance we have for the green economy to prevail is by marrying the green economy movement with social justice movements, which on a practical level means Building Back Better with vastly enhanced supports for eldercare, childcare and living wages, and as we’ve noted repeatedly throughout the series, by supporting thriving Indigenous communities.”

Green recovery studies: United States

The Sierra Club in the U.S. released a new report in June, Millions of Green Jobs:  A Plan for Economic Revival . It lays out estimates and a policy options for  the “multiple, mutually reinforcing crises” of Covid-19 , economic inequality, and global heating, and importantly, states that “All investments in this economic renewal plan must uphold the following environmental, labor, and equity standards”  – which include Buy America and domestic procurement policies to stimulate manufacturing.   Also included:  “All construction and related contracts should require community benefit agreements; a mandatory “ban the box” policy to ensure fair employment opportunities for all; hiring preferences for low-income workers, people of color, people with disabilities, and returning citizens; and contracting preferences for businesses led by women and people of color.”  Using job creation estimates produced by Robert Pollin, the report argues for “family-sustaining jobs for over 9 million people every year for the next 10 years while building an economy that fosters cleaner air and water, higher wages, healthier communities, greater equity, and a more stable climate. That includes supporting over 1 million manufacturing jobs each year.”  The report offers a  sectoral breakdown of the 9 million jobs per year, in  infrastructure for clean water, clean transportation, and clean energy; renewable energy;  energy efficiency; and  regenerative agriculture.

Millions of Green Jobs:  A Plan for Economic Revival is based on a technical report released in May 2020: Job Creation Estimates Through Proposed Economic Stimulus Measures:  Modeling Proposals by Various U.S. Civil Society Groups; Macro-Level and Detailed Program-by-Program Job Creation Estimates  , written by Robert Pollin and Shouvik Chakraborty at the Political Economy Research Institute (PERI) of the University of Massachusetts at Amherst.

Another data-driven report from researchers at the University of California Berkeley Goldman School of  Public Policy is  2035: The Report:  Plummeting solar, wind and battery costs can accelerate our clean electricity future . It  “uses the latest renewable energy and battery cost data to demonstrate the technical and economic feasibility of achieving 90% clean (carbon-free) electricity in the United States by 2035.” Two central cases are simulated using state-of-the-art capacity expansion and production-cost models from the National Renewable Energy Laboratory.  “The 90% Clean case avoids over $1.2 trillion in health and environmental costs, including 85,000 avoided premature deaths, through 2050”… and “supports a total of 29 million job-years cumulatively during 2020–2035. Employment related to the energy sector increases by approximately 8.5 million net job years, as increased employment from expanding renewable energy and battery storage more than replaces lost employment related to declining fossil fuel generation. The “No New Policy” case requires one-third fewer jobs, for a total of 20 million job-years over the study period. These jobs include direct, indirect, and induced jobs related to construction, manufacturing, operations and maintenance, and the supply chain. Overall, the 90% Clean case supports over 500,000 more jobs each year compared to the No New Policy case.”

A dedicated website  offers downloads of the report and an interactive “Data Explorer” which includes  a jobs component.

Green Recovery plans: Europe

Influential consultants McKinsey published “How a post-pandemic stimulus can both create jobs and help the climate” on May 27 , written by  McKinsey partners from  Frankfurt, London, Paris, Stockholm, as well as San Francisco.  The report focuses on 12 potential stimulus measures with a strong emphasis on European experience, and estimates the jobs created per Euro spent, as well as total jobs created, for each of its twelve low-carbon strategies. The McKinsey report highlights the  2017 econometric study of the U.S.,  “Green vs. Brown” by Heidi Garrett-Pelletier, which concluded that “on average, 2.65 full-time-equivalent (FTE) jobs are created from $1 million spending in fossil fuels, while that same amount of spending would create 7.49 or 7.72 FTE jobs in renewables or energy efficiency. Thus each $1 million shifted from brown to green energy will create a net increase of 5 jobs.”

In the U.K.,  the Local Government Authority released Local green jobs – accelerating a sustainable economic recovery, on June 11 . It predicts that “”Soaring demand for green jobs will require a diverse range of skills and expertise to roll-out clean technologies”. Specifically, the report forecasts that by 2030,  an estimated 693,628 low-carbon jobs  and “between 2030 and 2050, the low-carbon workforce in England could increase by a further 488,569, taking the total level of jobs to more than 1.18 million by 2050.”

In its own interest, the LGA argues for increased funding at the local level, to “ fast-track green jobs” with concentrated action to introduce national skills programmes for training and retraining.  Local Green Jobs is supplemented by an interactive regional breakdown of statistics by local authority , and a supportive policy framework document .

U.S. cities are training young workers for clean energy jobs

The American Council for and Energy-Efficient Economy released their 2019 City Clean Energy Scorecard in the summer of 2019 , surveying and ranking clean energy policies amongst U.S. cities. Workforce development programs were included in the survey, and the report found that 37 out of 75 cities surveyed had clean energy workforce development programs, many in partnerships with utilities, non-profits, colleges, and others. The programs include  clean energy and energy efficiency job training directed at traditionally underrepresented groups, as well as clean energy contracting programs promoting minority- or women-owned businesses.

In January 2020, the ACEEE released an update in a Topic Brief titled Cities and Clean Energy Workforce Development  . It offers an overview of best practices, along with brief case studies of Orlando, Florida and Chattanooga, Tennessee.  An accompanying blog, “How are US cities prepping workers for a clean energy future?” summarizes  other equity-driven initiatives  –  for example: the Work2Future program in San Jose California which trains young adults from disadvantaged populations in energy-efficient building construction, achieving an  82% job placement rate; and Birmingham, Alabama, which offers energy efficiency training opportunities to Minority Business Enterprise contracting partners.

The blog and Topic Brief update a larger 2018 ACEEE report, Through the Local Government Lens: Developing the Energy Efficiency Workforce, available from this link (free, but registration required). Even more information is available from an ongoing ACEEE database, Energy Efficiency and Renewable Energy Workforce Development ,which lists cities by name and provides descriptions of their programs.

Australian companies are moving to renewable energy to meet employee expectations for climate action

reenergizingREenergising Australian business: the corporate race to 100% renewable energy was released by  Greenpeace Australia Pacific on December 4.

Drawing on public information as well as 34 responses to a survey sent to 80 “big-brand” companies, the report presents analysis of the corporate move to renewable energy, covering seven major industry sectors, as well as case studies of individual companies. Of the 80 companies profiled: 30% have committed to move to 100% renewable energy ;  26% have signed a corporate power purchase agreement , and  65% have invested in rooftop or onsite solar.

Regarding job creation: The report estimates the impact if companies moved to 100% renewable energy to power their operations: for 3 of Australia’s largest companies  (Woolworths, Coles and Telstra)  it would create 4194 construction job-years and 232 ongoing jobs ; the 10 largest companies in the property and construction sector would create more than 1000 construction job-years, and the 14 largest telecommunications, IT, and technology companies would create around 2000 construction job-years.

What is driving the corporate move to renewables? “The UComms polling found 67% of Australians would prefer to work for a company that uses renewable energy, rather than one that doesn’t, while 100% of companies surveyed by Greenpeace reported that a key reason for shifting to renewable energy is employee expectation. In 2019, the Edelman Trust Barometer found 67% of employees “expect that prospective employers will join them in taking action on societal issues” and 76% say “CEOs should take the lead on change rather than waiting for government to impose it.”

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.