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Reducing Pollution, Creating Jobs The employment effects of climate change and environmental policies Clare Demerse Acting Director, Climate Change.

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Presentation on theme: "Reducing Pollution, Creating Jobs The employment effects of climate change and environmental policies Clare Demerse Acting Director, Climate Change."— Presentation transcript:

1 Reducing Pollution, Creating Jobs The employment effects of climate change and environmental policies Clare Demerse Acting Director, Climate Change

2 The Pembina Institute The Pembina Institute is an environmental nonprofit think tank with ~55 staff in eight offices. We work to advance sustainable energy solutions through innovative research, education, consulting and advocacy.

3 Canadas greenhouse gas emissions 2008

4 A long way to go Adapted from: Canada's Greenhouse Gas Target and Emissions Projections, Environment Canada, 2011. Scenarios of Canadian emissions to 2020

5 A long way to go Adapted from: Parallel Paths: Canada-U.S. Climate Policy Choices (NRTEE) Contributions to emission reductions in 2020 from government measures

6 Canada will need stronger policies to meet the 2020 target

7 Tackling climate change Pembina reviewed green jobs and the employment effects of climate policies. What would happen to employment in Canada if the government adopted stronger climate change and clean energy policies?

8 Local labour effects Direct employment Indirect employment Induced employment

9 Clean energy job creation: Ontario Two estimates of job creation : economic modelling (2009): 55,000 additional jobs/year (direct, indirect, induced); Government of Ontario (2011): 50,000 jobs by 2012 (direct, indirect)

10 Clean energy job creation: U.S. US $90 billion in support for clean energy: 83,000 jobs (direct and indirect by Q1 2010) 21,000 induced jobs (by Q1 2010)

11 Economy-wide estimates of employment effects An economic modelling study by the Pembina Institute and David Suzuki Foundation (2009) assessed meeting 2020 national emission reduction targets.

12 Economy-wide estimates of employment effects

13 One reason for this result is a significant shift away from capital-intense (e.g. fossil fuel) to labour-intense (manufacturing and services) industries in all regions.

14 Cleaner electricity creates more jobs Energy technologyTotal jobs-years per GWh Job creation rank (where 1 is highest) Solar photovoltaic0.871 Landfill gas0.722 Energy efficiency0.383 Small hydro0.274 Geothermal0.255 Solar thermal0.236 Biomass0.217 Carbon capture and storage 0.188 Wind0.179 Nuclear0.1410 Coal0.1111 (tied) Natural gas0.1111 (tied)

15 Inverse relationship: higher capital intensity means lower labour intensity Oil and gas extraction is the most capital- intensive industry in Canada

16 Fossil fuels are capital-intensive, not labour-intensive Investing public dollars in other sectors would yield more jobs per dollar Reducing fossil fuel subsidies would increase employment in Alberta and Saskatchewan slightly.

17 Using public clean energy dollars TechnologyPublic fundsJob-Years createdCost per Job-Year Carbon Capture and Storage (Project Pioneer) $779 million (committed) 8,800 (direct and indirect jobs) $88,523 Wind power$1,500 million (requested) 35,764 (direct and indirect; full time; one year) $41,942 (direct and indirect)

18 Competing for clean energy jobs Leaders in low-carbon technology may boost their export potential.

19 Germany generous support for renewable energy 2 out of every 3 jobs in the renewable energy industry are estimated to be export- related

20 Missing out on export opportunities Source: International Energy Agency, World Energy Outlook 2010 Wind turbine manufacturersSolar cell manufacturers ManufacturerCountryMarket shareManufacturerCountryMarket share VestasDenmark12.5%First SolarUnited States8.9% GE EnergyUnited States12.4%Suntech PowerChina5.7% SinovelChina9.2%SharpJapan4.8% EnerconGermany8.5%Q-CellsGermany4.8% GoldwindChina7.2%YingliChina4.3% GamesaSpain6.7%JA SolarChina4.2% DongfangChina6.5%KyoceraJapan3.2% SuzlonIndia6.4%Trina SolarChina3.2% SiemensGermany5.9%SunPowerUnited States3.2% RepowerGermany3.4% Gintech Chinese Taipei3.0%

21 The pace of green growth Clean energy has experienced investment growth of 230 per cent since 2005…. In 2009, US $162 billion was invested in clean energy around the world. The Pew Charitable Trusts, Whos Winning the Clean Energy Race?

22 The pace of green growth between 2004 and 2007, global investments in renewable energy more than doubled…. If large hydropower is included, 2008 was the first year in which renewable power generation attracted more investment than traditional fossil fuel generation. Pew Center on Global Climate Change, Clean Energy Markets: Jobs and Opportunities

23 Defining green jobs Instead of job creation, some researchers count number of workers who fit a definition of green jobs. However, no common definition of green jobs currently exists.

24 Some characteristics of green jobs: Familiar work in a more sustainable setting Geographically dispersed

25 Environmental employment in Canada ECO Canada defines environmental employment as employed individuals who spend 50% or more of their work time on activities associated with environmental protection, resource management, or environmental sustainability.

26 Environmental employment in Canada More than 682,000 environmental employees (2010) 4% of Canadas total employed labour force 5 times larger than total direct employment in auto manufacturing in 2008 In comparison, 300,000 workers in energy production 1.8% of total workforce

27 Support for clean energy investing June 2010 survey by The Gandalf Group for Climate Action Network–Réseau action climat Canada Climate Change and the Environment

28 Support for clean energy investment It will benefit the economy to invest in renewable energy technology now. 91% agreed (72% strongly agree, 16% somewhat agree)

29 Support for clean energy investment Investments in green technologies can create new good jobs now. 90% agreed (74% strongly agree, 16% somewhat agree)

30 Maximizing Canadas clean energy job potential Federal government should Direct public dollars away from fossil fuel subsidies and towards core climate change solutions (energy efficiency, clean energy). Publish and implement a credible plan to meet its 2020 target, with a price on GHG emissions as the centrepiece of that plan. Develop a clean energy employment transition strategy for Canada.

31 Areas for further research Assess Canadas clean energy comparative advantage Develop regionally-specific clean energy statistics Estimate the job creation potential of clean energy policies Estimate economic and employment costs of climate change

32 Thank you Clare Demerse, The Pembina Institute 613-216-1976 ext 24

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