Green Jobs:

Towards decent work in a sustainable, low-carbon world

Cover Photos

Wolfgang Steche / VISUM / Still Pictures

Solar panels being installed at a former mining site in Germany.

Wolfgang Maria Weber / argus / Still Pictures

E-recycling of old mobile phones: employee is repairing mobile phone for re-usage.

Peter Frischmuth / argus / Still Pictures

Construction of a wind engine by workers.

ISBN: 978-92-807-2940-5

Job Number: DRC/1069/PA

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Green Jobs:

Towards decent work in a sustainable, low-carbon world

Copyright September 2008, United Nations Environment Programme

This Report has been commissioned and funded by UNEP, as part of the joint UNEP, ILO, IOE, ITUC

Green Jobs Initiative.

Produced by:

Worldwatch Institute

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with technical assistance from:

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ii Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World

UNEP, ILO, IOE, ITUC

Green Jobs Initiative

United Nations International Labour International International

Environment Organization Organisation Trade Union

Programme of Employers Confederation

Report produced by

with technical assistance from

iii

Disclaimers

The content and views expressed in this publication do not necessarily reflect the views or policies

of the United Nations Environment Programme (UNEP), the International Labour Organization (ILO),

the International Organisation of Employers (IOE), and the International Trade Union Confederation

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For bibliography purposes this document may be cited as:

Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World,

UNEP/ILO/IOE/ITUC, September 2008

iv Green Jobs: Towards decent work in a sustainable, low-carbon world

Production Team

q Authors

Michael Renner, Sean Sweeney, Jill Kubit

q Research Assistance

Daniel Cerio, Leif Kindberg, Efrain Zavala Lopez, Laura Phillips

q Contributors

Hilary French, Gary Gardner, Brian Halweil, Yingling Liu, Danielle Nierenberg,

Janet Sawin, Arthur Wheaton

q Coordinator

Larry Kohler

q UNEP Reviewers

Olivier Deleuze, Fatou Ndoye, Cornis Van der Lugt

q ILO Reviewers

Peter Poschen

q ITUC Reviewers

Lucien Royer, Tim Noonan

q IOE Reviewers

Peter Glynn

q External Reviewers

Heather Allen, Charles Clutterbuck, Harriet Friedman, William Kramer,

Sue Longley, Laura Martin Murillo, Magnus Palmgren, Philip Pearson, Jules Pretty, Bob Ramsay,

Anabella Rosemberg, Ana Belen Sanchez, Bill Street

q Editor

Lisa Mastny

Acknowledgments

The authors are grateful for the generous assistance of the individuals listed above in sharing

relevant data, information, and expertise, as well as critical reviews of drafts. This report would not

have been possible without their collegial energy and persistence.

UNEP acknowledges the contributions made by the International Labour Organization (ILO), the

International Organisation of Employers (IOE), the International Trade Union Confederation (ITUC),

the Worldwatch Institute, and the Cornell University Global Labor Institute in the preparation and

publication of the present report.

v

Explanatory Notes

This report is written in American English. All units are metric unless otherwise indicated.

Currency values are reported in U.S. Dollars throughout the report. Original currency values other

than Dollars are reported in parentheses and are translated into U.S. Dollars using the following

2007 average exchange rates: 1 (Euro) = $1.37; 1 (British Pound) = $2.00 (Federal Reserve

Bank of New York ( Foreign Exchange Rates Historical Search, at www.ny.frb.org/markets/fxrates/

historical/home.cfm).

vi Green Jobs: Towards decent work in a sustainable, low-carbon world

Foreword by UNEP, ILO, IOE, ITUC

Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World is the first comprehensive

report on the emergence of a green economy and its impact on the world of work in the 21st

Century.

Until now, there has been much anecdotal evidence indicating that the pattern of employment

is indeed changing and that new jobs are beginning to emerge in favor of greener, cleaner and

more sustainable occupations. This report shows for the first time at global level that green jobs

are being generated in some sectors and economies.

This is in large part as a result of climate change and the need to meet emission reduction targets

under the UN climate convention. This has led to changing patterns of investment flows--flows

into areas from renewable energy generation up to energy efficiency projects at the household

and industrial level.

The bulk of documented growth in Green Jobs has so far occurred mostly in developed countries,

and some rapidly developing countries like Brazil and China. Green Jobs are also beginning to be

seen in other developing economies. A project in Bangladesh, training local youth and women as

certified solar technicians and as repair and maintenance specialists, aims to create some 100,000

jobs. In India, an initiative to replace inefficient biomass cooking stoves in nine million households

with more advanced ones could create 150,000 jobs. It now appears that a green economy can

generate more and better jobs everywhere and that these can be decent jobs.

Despite such optimism, it is clear that urgent action is needed. In some areas, especially in the

developing world, new jobs being created in the food, agriculture and recycling sectors as a result

of climate change and environment leave much to be desired and can hardly be considered as

decent. Climate change is also having a negative impact on jobs in some areas. Sectors consuming

large amounts of energy and natural resources are likely to see a decline in jobs. Climate change is

already damaging the livelihoods of millions, mostly poor people in developing countries. Thus, just

transitions to new opportunities and sustainable jobs and incomes are needed for those affected.

So what of the future? Clearly much depends on a deep and decisive response to climate change

at the UN climate convention meeting in Copenhagen in late 2009. Equity is going to be a key

condition for a new agreement, between countries as well as between social groups within

countries. This report provides important pointers for how this can be achieved.

A climate deal is also likely to support payments to countries for managing forests for their carbon

absorption potential opening up new opportunities for Green Jobs in the forestry sector of the

Tropics.

An agreement by 2010 under the Convention on Biological Diversity on Access and Benefit Sharing

of Genetic Resources could trigger similar North-South funding flows with job implications in

conservation and natural resource management.

vii

The future trajectory of the Green Jobs Initiative will therefore depend on a wide range of factors

and actors. Governments, as well as the private sector will play a key role. Changes in the decisions,

practices and behaviors of millions of managers, workers and consumers will be needed. This

report attempts to contribute the necessary awareness about Green Jobs and a green economics

to help make those changes happen.

The report also comes amidst a visible period of transition: trade unions, employers organizations,

the private sector and the UN are natural allies in this quest. Each has a critical role to play, not

least in the areas of boosting efficiency in the use of energy and raw materials through better work

organization and of retraining and retooling the global workforce to seize the new opportunities

and to master the transition to green production and consumption.

Certainly there will be winners and losers, so support for workers and enterprise adaptation will

be key. But if the international community can get it right there is the real prospect of generating

and fostering Green Jobs and Decent Work for ever more people. Green Jobs and Decent Work are

a new and powerful force for achieving a more resource efficient and equitable global economy

that mirrors all our aspirations for true sustainable development.

This report was commissioned and funded by the United Nations Environment Programme (UNEP) as

part of the Green Jobs Initiative of UNEP, the International Labour Organization (ILO), the International

Organization of Employers (IOE) and the International Trade Union Confederation (ITUC). It has been

compiled by the Worldwatch Institute with technical assistance from the Cornell University Global Labor

Institute.

Achim Steiner Juan Somavia

UN Under Secretary-General Director-General

Executive Director International Labour Organization

United Nations Environment Programme

Antonio Pe alosa Guy Ryder

Secretary-General General Secretary

International Organisation of Employers International Trade Union Confederation

viii Green Jobs: Towards decent work in a sustainable, low-carbon world

Contents

Executive Summary 1

Part I Definitions and Policies 31

1. Definitions, Scope, and Concepts 33

Defining and Counting Green Jobs 35

Green and Decent Jobs 38

Shades of Green 40

Employment Shifts 43

Labor, Energy, and Materials Productivity 48

2. Green Policies and Business Practices 53

Opportunity and Innovation 53

The Policy Toolbox: Financial and Fiscal Shifts 56

The Policy Toolbox: Mandates 63

3. Toward a New Production/Consumption Model 73

Durability and Repairability 74

A New Service Economy 77

Rethinking Consumption 80

A New Approach to Work Hours 81

Part II Employment Impacts 85

1. Energy Supply Alternatives 89

Employment Trends In Extractive Industries 91

Investment in Renewables 92

Renewables Employment Potential 96

Wind Power 103

Solar Photovoltaics 109

Solar Thermal 115

Biofuels 117

Summary 126

2. Buildings 131

Energy Efficiency 133

Green Buildings 137

Retrofitting 140

Energy-Efficient Building Components 143

3. Transportation 149

Aviation 149

Road Transport 150

Transportation and the Wider Economy 162

Urban Mobility 163

Public Transport 164

Rail 169

Implications of a Modal Shift 170

ix

4. Basic Industry 173

Iron and Steel 174

Aluminum 186

Cement 195

Pulp and Paper 203

Recycling 212

5. Food and Agriculture 223

The Environmental Footprint of Global-Industrial Agriculture 224

Employment Trends 228

Opportunities for Green Employment in the Existing Food System 234

Beyond the Agro-Industrial Model 243

6. Forestry 255

Employment Estimates 256

Avoiding Deforestation 261

Afforestation and Reforestation 264

Agroforestry 265

Sustainable Forest Management (SFM) 266

Part III Outlook and Conclusions 275

1. A Fair and Just Transition 277

The ILO Framework 278

Business Approaches to Just Transition 280

Trade Union Approaches 282

Just Transition in National Contexts 285

Greening the Workplace 286

Job Losses and Retraining 288

The Flexicurity Option 291

Challenges to Just Transition 292

2. Conclusions and Recommendations 295

Key Job Findings 295

Main concepts 299

Real Potential, Formidable Challenges 300

Pathways to a Sustainable Future 303

Endnotes 313

x Green Jobs: Towards decent work in a sustainable, low-carbon world

List of Tables, Figures, and Boxes

Tables

Table ES-1. Estimated Employment in the Renewable Energy Sector, Selected Countries and

World, 2006

Table ES-2. Job Projections from Energy-Efficiency Measures in the Building Sector

Table ES-3. Fuel-Efficiency, Carbon Limits, and Green Jobs Estimates in Vehicle Manufacturing

Table ES-4. Selected Employment Estimates in the Recycling Sector

Table I.1-1. Working Poor and Workers in Vulnerable Employment Situations, 2007

Table I.1-2. Shades of Green: Pro-Environmental Measures in Major Segments of the Economy

Table I.1-3. Greening the Economy: Types of Employment Effects

Table I.1-4. Energy Consumption and Energy Intensity, Selected Countries and World, 2003

Table I.2-1. Overseas Development Assistance for Renewable Energy, 1999 2003

Table I.2-2. Environmental Tax Revenue, European Union, Selected Years

Table I.2-3. Extended Producer Responsibility Laws, Selected Industries

Table I.2-4. Vehicle Fuel Efficiency and Greenhouse Gas Emissions Standards, Selected

Countries

Table I.2-5. Renewable Energy Production Targets in China

Table I.2-6. Policies in Support of Renewable Energy Development

Table I.3-1. Employment Implications of Durable, Repairable, and Upgradable Products

Table I.3-2. New Approaches to Work Time in Europe

Table II.1-1. Mining Employment in Selected Countries, 1996 2006

Table II.1-2. Global Production Capacities for Renewable Sources of Energy, 2005 and 2006

Table II.1-3. Employment in Germany s Renewables Sector, 1998, 2004, and 2006

Table II.1-4. Employment in Spain s Renewables Industry, 2007

Table II.1-5. Employment in China s Renewables Sector, 2007

Table II.1-6. Employment in the U.S. Renewables Sector, 2006

Table II.1-7. Estimated Employment per Megawatt, Renewable and Fossil Fuel Power Plants

Table II.1-8. Share of Global PV Cell Production, by Geographical Area and Manufacturer, 2006

Table II.1-9. Estimated Employment in the Renewable Energy Sector, Selected Countries and

World, 2006

Table II.2-1. Selected U.S. Goods and Industrial Equipment Considered Energy-Efficient

Table II.2-2. Countries with Green Building Councils

Table II.2-3. Selected Municipal Energy Targets in the Building Sector

Table II.2-4. Policy Recommendations for Energy Efficiency in the Building Sector

Table II.3-1. Estimated Jobs Producing Low-Emission Vehicles in Japan, 2006

Table II.3-2. Estimated Jobs Producing Fuel-Efficient Vehicles in Europe, 2004

Table II.3-3. Energy Use by Urban Transport Mode

Table II.4-1. Energy and Carbon-Emission Implications of Steelmaking Processes

Table II.4-2. Energy Efficiency in the Steel Industry, Selected Countries

xi

Table II.4-3. Total and Recycled Steel Production, Selected Countries, 2005

Table II.4-4. Employment in the Steel Industry, Selected Countries and Years

Table II.4-5. Steel Industry Wages, Selected Countries, 2000 and 2005

Table II.4-6. Estimated Global Aluminum Product Life and Recycling Rates, by Major End

Market

Table II.4-7. Primary and Secondary Aluminum Production, Selected Countries, 2007 and Earlier

Years

Table II.4-8. Primary and Secondary Aluminum Production in the United States, Selected Years

Table II.4-9. Primary and Secondary Aluminum Production in Europe, 2003

Table II.4-10. Main Concerns of Cement and Concrete Production

Table II.4-11. CO2 Emissions per Ton of Cement Produced, Selected Countries, 2000

Table II.4-12. Lafarge Employees and Share of Sales, by Region, 2006

Table II.4-13. Employment Levels at China s Top 10 Cement Companies

Table II.4-14. Paper and Paperboard Production by Country, 2006

Table II.4-15. Top 10 Forest and Paper Product Companies, 2006

Table II.4-16. Benefits of 100% Recycled Content Compared with 100% Virgin Forest Fiber

Table II.4-17. Examples of Green Paper Practices by Major U.S. Multinationals

Table II.6-1. Formal Forest Sector Employment by Region, 2000

Table II.6-2. Employment Characteristics and Trends within the Forestry Sector

Table II.6-3. Global Employment in the Forest Sector, by Type

Table II.6-4. Estimates for Illegal Logging, Selected Countries

Table II.6-5. Forest Stewardship Council Participation by Region

Table II.6-6. PEFC-Certified Forests, 2007

Table III.2-1. Green Job Progress To-Date and Future Potential

Figures

Figure I.1-1. Green and Decent Jobs? A Schematic Overview

Figure I.2-1. Energy Research and Development Budgets, IEA Members, 1974 2006

Figure II.1-1. U.S. Coal Mining, Output and Jobs, 1958 2006

Figure II.1-2. Global Wind Power Employment Projections, 2010 2050

Figure II.1-3. Global Solar PV Employment Projections, 2010 2030

Figure II.3-1. Actual and Projected Fuel Economy for New Passenger Vehicles, by Country,

2002 2018

Figure II.3-2. U.S. Light Vehicles Sales, by Fuel Economy Segment, 1975 2007

Figure II.4-1. Global Production of Seven Energy-Intensive Industrial Commodities, 1975 2005

Figure II.4-2. World Steel Production, 1950 2007

Figure II.4-3. Primary Steel Production and Recycling

Figure II.4-4. Energy Consumption per Unit of Steel, Selected Countries, 1970 1996

Figure II.4-5. World Primary Aluminum Production, 1970 2007

Figure II.4-6. Electricity Consumption in Aluminum Smelting, by Region, 1980 2006

Figure II.4-7. Cement Production by Country, 2005

xii Green Jobs: Towards decent work in a sustainable, low-carbon world

Figure II.4-8. Cement Plants Owned and Operated by Lafarge

Figure II.4-9. Stages of the Papermaking Process

Figure II.4-10. Labor Productivity in the Pulp and Paper Industry, by Region, 1990 2000

Figure II.6-1. Growth of PEFC-Certified Forests, 1999 2007

Boxes

Box I.1-1. Occupational Profiles in the Wind Power Industry

Box I.2-1. China s Fuel Economy Standards: Policies and Current Status

Box I.3-1. The Interface Experience

Box II.1-1. From Rustbelt to Windbelt

Box II.1-2. Polysilicon: The Dangers of Stormy Solar Development

Box II.1-3. Solar Entrepreneurs in Bangladesh

Box II.1-4. Solar PV Assembly in Kibera, Nairobi

Box II.1-5. Jatropha Project in Mali

Box II.1-6. Exploitation of Plantation Labor

Box II.2-1. Green Building, Slums, and the Millennium Development Goals

Box II.2-2. Energy Service Companies (ESCOs)

Box II.3-1. Thailand s Eco-Car Initiative

Box II.3-2. BRT in Mexico City

Box II.3-3. Engine Retrofits in Southeast Asia

Box II.3-4. Rickshaws and Livelihoods in India

Box II.4-1. Simplifying Blast Furnaces at POSCO

Box II.4-2. China Steel Corporation s Zero-Waste Program

Box II.4-3. ULCOS: Europe s Ultra-Low CO2 Steelmaking Initiative

Box II.4-4. Energy and Greenhouse Gas Emissions Initiatives at Alcoa

Box II.4-5. Japan Paper Association s Voluntary Action Plan

Box II.4-6. European Declaration on Paper Recycling

Box II.4-7. Cairo s Zabaleen

Box II.4-8. Remanufacturing at Xerox

Box II.5-1. Agricultural Employment in the United States

Box II.5-2. Decent Work Deficits in Agriculture

Box II.5-3. The Cuban Experience

Box III.1-1. The Oakland Green Jobs Corp: Opening Doors to the Green Economy

xiii

List of Acronyms

ABVAKABO Civil servant union (Netherlands)

Association des Constructeurs Europ ens d Automobiles (European Automobile

ACEA

Manufacturers Association)

ACEEE American Council for an Energy-Efficient Economy

ADB Asian Development Bank

ADM Archer Daniels Midland

ALMP Active Labour Market Policies

APP Asia Pacific Partnership

ASES American Solar Energy Society

AWEA American Wind Energy Association

BASF Largest chemical company in the world (German)

BAU Business as usual

BEA Berlin Energy Agency

BEE Bundesverband Erneuerbare Energien (Federal Association for Renewable Energy, Germany)

BIR Bureau of International Recycling

BMRA British Metals Recycling Association

Bundesministerium f r Umwelt, Naturschutz und Reaktorsicherheit (Federal Ministry for Environment, Nature

BMU

Protection and Reactor Safety, Germany)

BOI Board of Investment (Thailand)

BREEAM Building Research Establishment Environmental Assessment Method (UK Green Building Standard)

BRT Bus Rapid Transit

BTU British Thermal Unit (heat value of fuels; 1 BTU is equivalent to about 1,054 1,060 joules)

BWI Building and Woodworkers International Union

C&DW Construction and demolition wastes

CAFE Corporate Average Fuel Economy (U.S. fuel-efficiency standard)

CALPIRG California Public Interest Research Group

Comprehensive Assessment System for Building Environmental Efficiency (Japan Green

CASBEE

Building Standard)

CBI Confederation of British Industry

CCI Clinton Climate Initiative

CCOO Confederaci n Sindical de Comisiones Obreras (Trade Union Federation, Spain)

CCS Carbon capture and sequestration/storage

CDM Clean Development Mechanism (Kyoto Protocol)

CEMPRE Entrepreneurial Commitment for Recycling (Brazil)

CFLs Compact fluorescent lamps

CGIAR Consultative Group on International Agricultural Research

CGT Conf d ration G n rale du Travail (General Confederation of Labor, France)

Commonwealth of Independent States (an alliance consisting of eleven former Soviet Republics: Armenia,

CIS

Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Ukraine, and Uzbekistan.

CNG Compressed natural gas

CNMIA China Nonferrous Metals Industry Association

xiv Green Jobs: Towards decent work in a sustainable, low-carbon world

CO2 Carbon dioxide

CO2e Carbon dioxide equivalent

COG Coke oven gas

COSATU Congress of South African Trade Unions

CREIA Chinese Renewable Energy Industries Association

CSC China Steel Corporation

DEFRA Department of Environment, Food and Rural Affairs (United Kingdom)

DOE Department of Energy (United States)

DRI Direct reduced iron (steel-production process)

EAA European Aluminium Association

EAF Electric Arc Furnace (steel-production)

EBI Environmental Business International

EC European Commission

ECOTEC British-based consulting firm

EE Energy efficiency

EEN Energy Efficiency Network

EFTE European Federation for Transport and Environment

Exajoule (exa denotes 1018, or 1,000,000,000,000,000,000)

EJ

EPA Environmental Protection Agency (United States)

EPIA European Photovoltaic Industry Association

EPR Extended producer responsibility

EREC European Renewable Energy Council

Energy Research Institute (China; part of the National Development and Reform

ERI

Commission, see NDRC)

ESCOs Energy Service Companies

ETUC European Trade Union Confederation

EU European Union

EU ETS European Union Emission Trading Scheme

EU-15 European Union prior to eastward expansion, with 15 members

EU-25 European Union after expansion, with 25 members

EWEA European Wind Energy Association

FAO Food and Agricultural Organization of the United Nations

FNV Federatie Nationale Vakbonden (trade union confederation, Netherlands)

FSC Forest Stewardship Council

FTE Full-time equivalent

GAO Government Accountability Office (United States)

gCO2/km Grams of carbon dioxide per kilometer

GDP Gross domestic product

GEF Global Environment Facility

GFRA Global Forest Resource Assessment

GHG Greenhouse gas

xv

List of Acronyms (continued)

GJ Gigajoule (giga denotes 109, or 1,000,000,000)

GJ/t Gigajoules per ton

GS Grameen Shakti (microcredit bank, Bangladesh)

GW Gigawatt

GWEC Global Wind Energy Council

GWth Gigawatts-thermal

HGV Heavy Goods Vehicle

HVAC Heating, ventilation and air conditioning

IATA International Air Transport Association

ICCT International Council on Clean Transportation

ICFPA International Council of Forest and Paper Associations

IEA International Energy Agency

IFAD International Fund for Agricultural Development

IISI International Iron and Steel Institute

ILC International Labour Congress

ILO International Labour Organization

ILUMEX Illumination of Mexico

IOE International Organization of Employers

IPCC Intergovernmental Panel on Climate Change

IPRs Intellectual property rights

ISRI Institute of Scrap Recycling Industries (United States)

ISTAS Instituto Sindical de Trabajo, Ambiente y Salud (Spain)

ITDP Institute for Transportation and Development Policy

ITUC International Trade Union Confederation

International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied

IUF

Workers Associations

JAA Japan Aluminium Association

JAMA Japan Auto Manufacturers Association

JI Joint Implementation (Kyoto Protocol mechanism)

Joule (J) The Joule replaces an older unit, the calorie (one calorie equals 4.2 joules)

JPA Japan Paper Association

KAMA Korea Automobile Manufacturers Association

KCYP Kibera Community Youth Program (Nairobi, Kenya)

kgce Kilograms of coal equivalent

km/l Kilometers per liter (vehicle fuel consumption measure)

kW Kilowatt

kWh Kilowatt-hour

l/100 km Liters per 100 kilometers (vehicle fuel-consumption measure)

LBNL Lawrence Berkeley National Laboratory (United States)

LED Light-emitting diode

xvi Green Jobs: Towards decent work in a sustainable, low-carbon world

LEED Leadership in Energy and Environmental Design (building efficiency standard, United States)

LFGTE Landfill gas-to-energy

U.S. vehicle category (encompassing passenger cars as well as heavier vehicles, such as

light trucks

SUVs, pick-up trucks, and minivans)

LLL Reliable and responsive lifelong learning

LPG Liquid petroleum gas

MDGs Millennium Development Goals

MIT Massachusetts Institute of Technology

mpg Miles per gallon (vehicle fuel-consumption measure)

MSN The Microsoft Network

Mt Million tons

MTCC Malaysian Timber Certification Council

MW Megawatt

NAFTA North American Free Trade Agreement

NAPEE National Action Plan for Energy Efficiency (United States)

NDRC National Development and Reform Commission (China)

NGO Non-governmental organization

NOx Nitrogen oxides

NTFP Non-timber forest products

OCAW Oil, Chemical and Atomic Workers

ODA Official development assistance

OEA European Aluminium Refiners and Remelters

OECD Organization for Economic Co-operation and Development

OFARM Organic Farmers Agency for Relationship Marketing

PBB Polybrominated biphenyls, also called brominated biphenyls or polybromobiphenyls

PBDE Polybrominated diphenyl ethers

PCB Polychlorinated biphenyl

PEFC Programme for Endorsement of Forest Certification

PES Payment for environmental services

PFCs Perfluorocarbons

PTC Production Tax Credit (United States)

PV Photovoltaics

R&D Research and development

RATP R gie Autonome des Transports Parisiens de France (public transit agency, Paris, France)

RE Renewable energy

RE&EE Renewable Energy & Energy Efficiency

REDD Reducing Emissions from Deforestation and Degradation

REN21 Renewable Energy Policy Network for the 21st Century

REPP Renewable Energy Policy Project (United States)

RFP Request for proposal

RITE Research Institute of Innovative Technology on Earth (Japan)

xvii

List of Acronyms (continued)

RoHS Restrictions on Hazardous Substances (EU directive)

ROI Return on investment

RPS Renewable Portfolio Standard

SAI Sustainable Agriculture Initiative

SEBRAE Small Business Support Services (Brazil)

SEIA Solar Energy Industry Association (United States)

SEIU Service Employees International Union (United States)

SFM Sustainable Forest Management

SMFEs Small and medium sized forest enterprises

SOx Sulfur oxides

sqm Square meter

STIB Soci t Transport Intercommunaux de Bruxelles (public transit agency, Brussels, Belgium)

SUV Sport utility vehicle

SWEEP Southwest Energy Efficiency Project (United States)

TCO Confederation of Professional Employees (trade union, Sweden)

TRIPs Agreement on Trade-Related Aspects of Intellectual Property Rights

TRT Top-pressure turbines

TUAC Trade Union Advisory Committee to the OECD

TUC Trades Union Congress (United Kingdom)

TWh Terawatt-hours

UCS Union of Concerned Scientists (non-governmental organization, United States)

UITP International Association of Public Transport

Ultra-Low CO2 Steelmaking (European Union initiative)

ULCOS

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

UNFCCC United Nations Framework Convention on Climate Change

UNIDO United Nations Industrial Development Organization

USGS U.S. Geological Survey

VAT Value-added tax

VC Venture capital

WBCSD World Business Council for Sustainable Development

WEEE Waste Electronic and Electrical Equipment Directive (European Union)

WRAP Waste and Resources Acton Programme (United Kingdom)

WRAP Waste and Resources Action Programme (UK)

WTO World Trade Organization

WWEA World Wind Energy Association

ZEDP Zabaleen Environmental Development Programme (Cairo, Egypt)

xviii Green Jobs: Towards decent work in a sustainable, low-carbon world

xix

xx Green Jobs: Towards decent work in a sustainable, low-carbon world

Executive

Summary

1

Wolfgang Maria Weber / Argus / Still Pictures

E-recycling of old mobile phones: employee is

repairing mobile phone for re-usage.

Defining Green Jobs

T

he latest assessment report by the Intergovernmental Panel on Climate Change (IPCC) and

the widely-noted Stern Review on the Economics of Climate Change have lent new ur-

gency to countering the challenge of global warming a calamitous development in its

own right and a phenomenon that further aggravates existing environmental challenges. There is

now a virtual avalanche of reports by international agencies, governments, business, labor unions,

environmental groups, and consultancies on the technical and economic implications of climate

change as well as the consequences of mitigation and adaptation strategies. Many declaim a fu-

ture of green jobs but few present specifics. This is no accident. There are still huge gaps in our

knowledge and available data, especially as they pertain to the developing world.

Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World assembles evidence

quantitative, anecdotal, and conceptual for currently existing green jobs in key economic

sectors (renewable energy, buildings and construction, transportation, basic industry, agriculture,

and forestry) and presents estimates for future green employment. The pace of green job creation

is likely to accelerate in the years ahead. A global transition to a low-carbon and sustainable

economy can create large numbers of green jobs across many sectors of the economy, and indeed

can become an engine of development. Current green job creation is taking place in both the rich

countries and in some of the major developing economies.

We define green jobs as work in agricultural, manufacturing, research and development (R&D),

administrative, and service activities that contribute substantially to preserving or restoring

environmental quality. Specifically, but not exclusively, this includes jobs that help to protect

ecosystems and biodiversity; reduce energy, materials, and water consumption through high-

efficiency strategies; de-carbonize the economy; and minimize or altogether avoid generation of

all forms of waste and pollution.

From a broad conceptual perspective, employment will be affected in at least four ways as the

economy is oriented toward greater sustainability:

q First, in some cases, additional jobs will be created as in the manufacturing of pollution-control

devices added to existing production equipment.

q Second, some employment will be substituted as in shifting from fossil fuels to renewables, or from

truck manufacturing to rail car manufacturing, or from landfilling and waste incineration to recycling.

q Third, certain jobs may be eliminated without direct replacement as when packaging materials

are discouraged or banned and their production is discontinued.

q Fourth, it would appear that many existing jobs (especially such as plumbers, electricians, metal

workers, and construction workers) will simply be transformed and redefined as day-to-day skill

sets, work methods, and profiles are greened.

3

Executive Summary

Green jobs span a wide array of skills, educational backgrounds, and occupational profiles. This is

especially true with regard to so-called indirect jobs those in supplier industries. Even for new

industries like wind and solar power, supply chains consist largely of very traditional industries. For

instance, large amounts of steel are incorporated into a wind turbine tower.

Technological and systemic choices offer varying degrees of environmental benefit and different

types of green employment. Pollution prevention has different implications than pollution control,

as does climate mitigation compared with adaptation, efficient buildings vis- -vis retrofits, or

public transit versus fuel-efficient automobiles. These choices suggest that there are shades of

green in employment: some are more far-reaching and transformational than others.

Greater efficiency in the use of energy, water, and materials is a core objective. The critical question

is where to draw the line between efficient and inefficient practices. A low threshold will define

a greater number of jobs as green, but may yield an illusion of progress. In light of the need

to dramatically reduce humanity s environmental footprint, the bar needs to be set high: best

available technology and best practices internationally will need to be replicated and adopted

as much as possible. And, given technological progress and the urgent need for improvement,

the dividing line between efficient and inefficient must rise over time. Seen in this context, green

jobs is a relative and highly dynamic concept.

A successful strategy to green the economy involves environmental and social full-cost pricing of energy

and materials inputs, in order to discourage unsustainable patterns of production and consumption. In

general, such a strategy is diametrically opposite to one where companies compete on price, not quality;

externalize social and environmental costs; and seek out the cheapest inputs of materials and labor. A

green economy is an economy that values nature and people and creates decent, well-paying jobs.

Green jobs need to be decent work, i.e. good jobs which offer adequate wages, safe working

conditions, job security, reasonable career prospects, and worker rights. People s livelihoods and

sense of dignity are bound up tightly with their jobs. A job that is exploitative, harmful, fails to pay

a living wage, and thus condemns workers to a life of poverty can hardly be hailed as green. There

are today millions of jobs in sectors that are nominally in support of environmental goals such

as the electronics recycling industry in Asia, or biofuel feedstock plantations in Latin America, for

instance but whose day-to-day reality is characterized by extremely poor practices, exposing

workers to hazardous substances or denying them the freedom of association.

As the move toward a low-carbon and more sustainable economy gathers momentum, growing

numbers of green jobs will be created. Although winners are likely to far outnumber losers, some

workers may be hurt in the economic restructuring toward sustainability. Companies and regions

that become leaders in green innovation, design, and technology development are more likely

to retain and create new green jobs. But workers and communities dependent on mining, fossil

fuels, and smokestack industries or on companies that are slow to rise to the environmental

challenge will confront a substantial challenge to diversify their economies. Public policy can

and should seek to minimize disparities among putative winners and losers that arise in the

transition to a green economy, and avoid these distinctions becoming permanent features.

4 Green Jobs: Towards decent work in a sustainable, low-carbon world

Drivers

What are the key drivers of green employment? Green innovation helps businesses stay at the

cutting edge, retaining existing jobs and creating new ones. While some companies have barely

progressed past green sloganeering or worse, greenwashing a growing number have

announced ambitious goals to reduce their carbon footprint or make their operations carbon

neutral. The global market volume for environmental products and services currently runs to about

$1,370 billion ( 1,000 billion), according to German-based Roland Berger Strategy Consultants,

with a projected $2,740 billion ( 2,200 billion) by 2020.

Forward-thinking government policies remain indispensable. They are important for providing

funding of green projects; overall goal- and standard-setting beyond the time horizons typical in

the business world; providing infrastructure that private enterprises cannot or will not create; and

creating and maintaining a level playing field for all actors. Key policies include:

q Subsidies. Phase out subsidies for environmentally harmful industries, and shift a portion or all of those

funds to renewable energy, efficiency technologies, clean production methods, and public transit.

q Carbon Markets. Fix the current shortcomings inherent in carbon trading and Kyoto Protocol-

related innovations like the Clean Development Mechanism so that they can become reliable and

adequate funding sources for green projects and employment.

q Tax Reform. Scale up eco-taxes, such as those adopted by a number of European countries, and

replicate them as widely as possible. Eco-tax revenues can be used to lighten the tax burden falling

on labor while discouraging polluting and carbon-intensive economic activities.

q Targets and Mandates. Ensure that regulatory tools are used to the fullest extent in the drive to

develop greener technologies, products, and services and thus green employment. This includes

land-use policies, building codes, energy-efficiency standards (for appliances, vehicles, etc.), and

targets for renewable energy production.

q Energy Alternatives. Adopt innovative policies to overcome barriers to renewable energy

development, including feed-in laws that secure access to the electrical grid at guaranteed prices.

q Product Takeback. Adopt extended producer responsibility laws (requiring companies to take back

products at the end of their useful life) for all types of products.

q Eco-Labeling. Adopt eco-labels for all consumer products to ensure that consumers have access to

information needed for responsible purchasing decisions (and hence encouraging manufacturers

to design and market more eco-friendly products).

q R&D Budgets. Reduce support for nuclear power and fossil fuels and provide greater funding for

renewable energy and efficiency technologies.

q International Aid. Reorient the priorities of national and multilateral development assistance agencies

as well as export credit agencies away from fossil fuels and large-scale hydropower projects toward

greener alternatives.

5

Executive Summary

Modern economies mobilize enormous quantities of fuels, metals, minerals, lumber, and agricultural

raw materials. Although some changes have been made in past decades to reduce the world

economy s environmental impact, these gains are insufficient and may simply be overwhelmed

by continued economic growth.

In view of the gathering environmental crisis, and especially the specter of climate change, there

is an urgent need to make economies far more sustainable and thus to re-examine the prevailing

production and consumption model. Concepts such as dematerialization, remanufacturing, zero-

waste closed-loop systems, durability, and replacing product purchases with efficient services

(such as performance contracting ) have been discussed for some time and tested in some

instances, but by and large have yet to be translated into reality.

Economic systems that are able to churn out huge volumes of products but require les

Copyright © September 2008, United Nations Environment Programme

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