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The Greentech Revolution The Potential for Jobs – How can Ireland Benefit? 24 th June 2009 Brendan Halligan Chairman Irish Congress of Trade Unions Seminar.

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Presentation on theme: "The Greentech Revolution The Potential for Jobs – How can Ireland Benefit? 24 th June 2009 Brendan Halligan Chairman Irish Congress of Trade Unions Seminar."— Presentation transcript:

1 The Greentech Revolution The Potential for Jobs – How can Ireland Benefit? 24 th June 2009 Brendan Halligan Chairman Irish Congress of Trade Unions Seminar

2 What is Greentech? The means of reducing GHG emissions. 80% on 1990 levels by 2050. At a time when electricity production will double.

3 What is the Greentech Revolution? The decarbonisation of the economy. Reorganisation of society into efficient and sustainable households and communities. Creation of the “Electric Economy”. Invention of machines, appliances,systems and appliances that will deliver. Educating and training the human resources. Legislating for a “green world”. Managing the transition from “Brown” to “Green”.

4 Vision for 2050 All building stock retrofitted Positive carbon buildings the norm 100% RE power generation Distributed generation and distribution Electrified transport Smart Grids Holistic energy management Low carbon energy

5 The Electric Economy RE Power Generation Electric transport (cars, trains, metro, trucks, buses) Sustainable communities Smart buildings Smart Households and businesses Smart Grid No hydrocarbons!

6 Future Formula Nobuo Tanaka, Executive Director International Energy Agency First Priority: Energy Efficiency Second Priority:De-carbonise the Power Sector Third Priority:Electrify Transport (fuelled by RE)

7 McKinsey Cost Curve


9 Energy Efficiency 1.2 million houses plus 1 million buildings. All need to be retrofitted. 5 €billion for houses plus 10 €billion for buildings. Direct job creation – 60/€1m. Approx 1m man years plus 1m man years indirect. 70,000 p.a. over thirty years.

10 Smart Energy - Efficiency Huge need for smart appliances. Allied to smart local area networks. Opportunities for design and manufacturing. Plus IT system development. Plus green financial products. Jobs potential not yet calculated.

11 How Great is the RE Potential? Energy self sufficiency. Energy security. Economic competitiveness. Major RE exporter. Leader in Green Technologies. Massive job opportunities.

12 Irish “Green” Resources Best wind resources in Europe. Best wave and tidal resources. Climate suitable for biomass. Promising geo-thermal resources. Adequate solar resources. Small manageable communities.

13 1. DG TREN Study “The impact of renewable energy policy on economic growth and employment in the European Union” The Employ RES research agencies conducted on behalf of the European Commission – April 2009

14 EU Situation in 2005 Employment:1,400,000 0.65% of total employment Value added:€58,000,000,000 GDP:0.58% Direct Effect:55% Indirect Effect45%

15 Results - Employment Employment (ADP) 2020 – 2,800,000 new jobs 2030 – 3,400,000 new jobs Ireland’s potential share could be 270,000 new jobs by 2030

16 Ireland’s Share (2005) Lowest percentage GDP and Employment in EU (except Malta and Cyprus) Denmark’s share is 10 times higher Denmark Ltd 320,000 employment in RE Ireland Ltd less than 10,000 Irish potential for 300,000 jobs.

17 2. Copenhagen Climate Council Study “Green Jobs and the Clean Energy Economy” Published by the Copenhagen Climate Council -Thought Leadership Series: No. 4 2009

18 3 Reasons for Clean Industry Greater energy independence Improved environmental benefits Positive economic impacts

19 Here’s a thought… …the renewable energy sector generates more jobs per unit of energy delivered than… …the fossil fuel energy sector!

20 Germany 1990 – fixed Feed-In Tariff for PV 1991 – subsidised individual PV installations 1995 – provided loans Result: Germany is the top solar market in the world

21 Denmark Was 99% dependent on imported energy Since 1980 has promoted energy efficiency and renewable energy GDP grew by 56% Energy consumption remained static 20% of domestic electricity now from wind Danish firms account for 40% global wind capacity 320,000 employed in RE 50% of turbines owned by 150,000 Danish families

22 Navarre Population:620,000 (1/7 th Ireland) Area:10,000 km² (1/8 th Ireland) GDP:€16.5bn (6% of Ireland) 1996:100% energy imported 2008:70% self reliant 2010:100% self reliant (target) Wind:6 th largest producer in Europe (900 MW) Solar PV:1.2 MW plant (previously largest in EU)

23 Navarre Regional government strongly supports wind: 4 wind turbine assembly factories 4 blade factories 2 component factories One of the largest wind turbine testing labs in the world


25 SEI Direct Jobs in 2009 Energy Efficiency3,140 Renewable Energy 840 Support Programmes 395 Total4,375

26 SEI Energy Efficiency ProgrammesDirect Jobs in 2009 Home Energy Savings (HES) Scheme2,400 Warmer Homes Scheme (WHS)700 CHP Programme40 Renewable Energy Programmes Greener Homes Scheme (GHS)540 ReHeat100 Ocean Energy200 Support Programmes Renewable Energy RD&D180 Electric Vehicle Deployment40 Energy Performance of Building Directive (EPBD)175 Total4,375

27 What are Renewable Energies? Wind Energy:Onshore & Offshore Ocean Energy: Wave & Tidal Solar Energy:Thermal & Photovoltaic Bio Energy:Biomass, Biofuel & Bioelectricity Geothermal: District Heating/Power Generation

28 ESB New jobs3,700 Sustained jobs1,300 Engineers & Professionals 800 Apprentices 300 Total6,000

29 Private Sector Open Hydro:tidal energy Wavebob:wave energy C&F (Athenry):unique wind turbines Gaeltech (Cavan):wind farm Glen Dimplex:heat pumps Kingspan:buildings IBF:financing principles

30 Macro-Strategy Comparative Advantage in wind and ocean energy Offshore wind potential limitless Combine wind, wave and tidal Aim to be a RE exporter Create the supporting infrastructure Build the Celtic Supergrid

31 Jobs Potential Wind/Ocean: R&D, manufacturing, construction, logistics, operation & maintenance, exports, IT Buildings:R&D, retrofitting, materials manufacture, IT Transport:R&D, infrastrucutre, car manufacturing, components manufacturing, IT

32 RE Power Generation Limits to onshore wind... But offshore is literally limitless New ports, shipping Ocean Energy is promising Also Solar Energy New manufacturing and construction plus IT support systems and Operations and maintenance

33 RE Exports Vision of a ‘supergrid’ Ireland linked to mainland Europe by three power superhighways: 1. North: Scotland – Norway – Denmark - Germany 2. East: Wales – England – Netherlands - Germany 3. South: Cornwall – Brittany – France –Germany Enables Ireland to link up with the Mediterranean Solar Supergrid


35 Electric Transport Will be achieved by 2030/40. Government target of 10% of fleet by 2020. ESB as major initiator. Strategic alliance with Renault/Nissan. RE to power the transport fleet. Potential for car and component manufacturing. Plus IT systems development.

36 Green Financial Instruments Essential to parallel existing system. Green bonds. A Green Bank – similar to US proposal. And to ICC and ACC. Income stream from sale of carbon allowances. Securitisation of carbon savings. A new philosophy.

37 Key Insight Green is the new blue…. ….blue collar, that is.

38 Key Messages 1.Remove Barriers 2.Create Incentives 3.Impose Penalties 4.Set Legal Limits

39 Final Thoughts Greentech revolution requires revolutionary thinking. Leadership from social partners. Clear TU position essential. Solution to the environmental and employment crises. Plus answer to energy security. Most exciting prospect of this generation.

40 Last Word We are trying to prevent Catastrophic Climate Change. And thrive and survive.

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