Green Industries

Green jobs are being created in seven key industry sectors: clean energy, green building, transportation, utilities, green manufacturing, conservation and pollution mitigation and green training and support. The private sector is pouring billions of dollars into green companies, and new government initiatives are adding billions more. Consumer demand for energy efficiency and green products is also driving the growth1.

Watch Videos of Experts Discussing the Green Economy

Clean Energy

Terms such as "clean energy," "renewable energy," "green energy" and "sustainable energy" are used interchangeably by the general public. But federal, state and local government agencies around the world have different definitions for many of these terms and report statistics accordingly.  Most definitions of clean energy incorporate electricity and fuel from solar power, wind power, geothermal power, electricity from landfill gases, ocean power and biomass energy.

Some groups include hydro-electric power projects 2,3,4 and nuclear power projects 5,6,7, but these technologies are often excluded from definitions of "clean energy.". The U.S. Environmental Protection Agency separates "non-hydroelectric renewable energy" into its own category8. Other agencies differentiate between small and large hydropower, including the former in the renewable category while excluding the latter9.

There is disagreement over inclusion of  "clean coal" or "cleaner coal" technologies, as well as biofuels from materials such as corn and soybeans. Cleaner coal technologies are generally not considered renewable because they are made from a fossil fuel. Advocates argue that making coal cleaner-burning could have a greater impact on reducing greenhouse gas emissions than some renewable sources10. Critics say the negative environmental impact from coal mining prevents it from being clean11,12.

In 2007, 11.6 percent of jobs were in the clean energy sector, accounting for 89,000 workers in the United States. Clean energy jobs grew 67 percent between 1998 and 2007. Venture capital funding in clean energy in 2008 accounted for 15 percent of all global investments, up from 9 percent in 2007. Clean energy companies accounted for 69 percent of venture funding between 2006 and 2008, or $8.73 billion.13

Solar

Solar projects produce electricity from sunlight in several ways 14,15,16,17.  Some systems rely on photovoltaic (PV) technologies, which use a semiconductor – usually silicon – to convert sunlight into electricity.  Others rely on solar-thermal technologies, which use the sun's heat to warm liquid into steam, which is then converted into electricity via a turbine. Solar-thermal systems also can be used to heat water or air 18, instead of to produce electricity.  Concentrators, which use lenses or mirrors to magnify the sun's light or heat, increasing the energy or heat output 19,20, can be applied to both photovoltaic and solar-thermal technologies 21. The solar industry refers to these technologies as "concentrating solar-thermal power," or CSP, and "concentrating photovoltaics," or CPV 22.

Aside from traditional crystalline-silicon solar panels, which make up the bulk of the photovoltaic market today, dozens of companies are working to develop thin-film materials, such as cadmium telluride, amorphous silicon, copper indium gallium diselenide and organic solar 23. Advocates say that these materials have the potential to drastically cut solar costs, and the largest thin-film manufacturer, First Solar, earlier this year announced it had surpassed 1-gigawatt of production capacity 24 and reached the lowest manufacturing cost in the industry at 87 cents per watt in the second quarter 25.

A 2007 United Nations Environment Programme study estimated there were 170,000 global jobs in photovoltaic and more than 624,000 in solar-thermal, with most of the solar-thermal jobs in China.  The group projected that photovoltaic jobs could reach 6.3 million by 2030 26. (The report didn't include a forecast for solar-thermal). That study came out before a number of countries passed stimulus packages. Adding the effect of the stimulus, the Solar Energy Industries Association trade group expects solar to create 67,000 jobs this year and a total of 119,000 jobs by 201127 in the United States alone. But a slowdown this year suspended or canceled plans to build solar plants and sparked layoffs28, so it's unclear exactly where the sector stands now in terms of jobs.

The solar energy generation sector grew by 19.5 percent between 1998 and 2007. Solar energy accounted for about 33,000 jobs in 2007, and represented 62.5 percent of renewable energy generation jobs. In 2008, 40 percent of all clean energy venture funding globally went into the solar industry 29.

Wind

Wind power is one of the cheapest and fastest-growing forms of clean energy today. Global wind power capacity exceeded 100 gigawatts in April 2008, up from 94.1 gigawatts at the end of 2007, according to the United Nations Environment Programme 30. The Global Wind Energy Council predicts worldwide capacity could reach 135 gigawatts by 2010 and surpass 1 terawatt – 1 million megawatts or 1,000 gigawatts – by 2020. 31

The industry faces challenges32,33. Finding appropriate project sites and approval from permitting agencies is difficult 34,35. Wind blows intermittently, and doesn't always blow when it's most needed. Utilities and frequency regulators, which balance the load on the electrical grid to maintain electrical frequency at the steady 60 hertz -- 60 cycles per second -- needed to run appliances in the United States, need a way to store wind energy to use as backup power or turn to other sources on calm days36,37. Wind turbines have been growing steadily larger over the last few decades to reduce costs, but adding transmission to deliver electricity from large centralized wind farms has proven difficult and expensive 38,39,40,41. The U.S. Congress is considering several bills to streamline the process 42,43,44.

Some startups are taking a smaller approach to wind power 45. A group of small-wind companies are developing turbines for individual homes and businesses. They argue the project would reduce the need for new transmission capacity 46,47, although others disagree 48. There are few small wind companies at the moment, but the sub-sector is growing. According to the American Wind Energy Association, U.S. small wind capacity grew 78 percent to 80 megawatts in 2008 and is expected to reach 1.7 gigawatts by the end of 2013 49,50,51,52.

The 2007 United Nations Environment Programme study forecast global wind industry jobs growing from 300,000 in 2006 to 2.1 million by 203053. In the United States, wind industry jobs accounted for 85,000 jobs in 2008, up 35,000 from 2007, with construction and manufacturing making up most of the new jobs, according to the American Wind Energy Association54. That number is likely to decline this year, as wind projects have slowed due to economic conditions, the association says55,56. But it expects the stimulus to add about 81,000 jobs to the wind industry 57. According to a study released in February by the Governors' Wind Energy Coalition, a national goal of reaching 20 percent wind energy by 2030 would boost direct wind industry jobs to 150,000, and support more than 500,000 indirect jobs58.

Employment in the U.S. Renewables Sector, 200659

 Source : United Nations Environment Programme 

Biofuels

The biofuels sector accounted for the largest number of renewable energy jobs in 2006, according to the 2007 United Nations Environment Programme study.  It concluded that the sector made up "easily 1 million" jobs, with the potential to grow to at least 10 million in the future60. But after a boom in 2007, the sector declined in 2008 and 2009 61 with falling biofuel prices 62, increased costs for materials to make the fuels 63 and concern about biofuels' environmental 64,65,66,67,68,69 and human impacts 70,71. Companies delayed and canceled proposed factories, shuttered plants and laid off workers 72. When the economic downturn accelerated, some companies – especially those seeking financing – went bankrupt 73. Earth Biofuels, maker of BioWillie biodiesel -- named after country singer Willie Nelson -- filed for bankruptcy in 2009 74.  Pacific Ethanol 75, Changing World Technologies 76, Aventine Renewable Energy 77 and White Energy 78, all went bankrupt in 2009 and GreenFuel closed in May 2009 79.

Some environmentalists question whether biofuels are truly "clean," citing the negative impact on land use and agriculture 80,81,82,83,84,85. They fear that farmers are cutting down forests to grow sugarcane crops, removing trees that absorb carbon emissions86.

Biofuel companies argue that the motivation to sell the wood is driving more deforestation than the biofuel industry.  Advocates for developing countries worry that biofuels could absorb crops normally used for food, raising prices and leaving more of the world's poorest people hungry87,88. Biofuel companies say the industry would have to grow substantially larger before it impacts food supply.  And they point out that the process of making ethanol creates cattle feed89,90,91 so that the same material is used to create both food and fuel.

Studies have reached contradictory conclusions about biofuel emissions.  Some take agricultural and land use changes into account. Methodologies for measuring these emissions vary widely92,93,94,95,96,97,98,99,100. New technologies to make biofuels from waste are expected to make these fuels greener, but could also be too costly101,102.

Companies and researchers are working to address these issues with new technology 103 to create biofuel from waste 104,105, algae 106,107,108 (mainly for biodiesel) and cellulosic feedstocks like switchgrass 109,110 (mainly for ethanol).  Biotech companies are working to increase crop yields, so that less land would be needed to grow biofuel feedstocks - and develop organisms that can more effectively turn the feedstocks into fuels 111,112,113.  Venture capitalists and oil companies have invested heavily in these "advanced" or "second-generation" fuels114,115,116,117,118, leading some to wonder whether the lagging biofuel market has hit bottom and will soon see a comeback119.  Aside from ethanol – which is blended with, or used in place of, gasoline – and biodiesel, which replaces diesel fuel, companies are using biomass to develop jet fuel, industrial chemicals, plastics and electricity.

Green Building

Buildings account for 30 to 40 percent of global energy use, according to the Intergovernmental Panel on Climate Change, which said they also have the largest potential to reduce greenhouse gases 120,121,122. In the United States, a de facto definition for green building has materialized around the Leadership in Energy and Environmental Design (LEED) standards developed by the U.S. Green Building Council 123, although other standards exist. For instance, the National Association of Home Builders has its own standard, National Green Building Certification124.  In both cases, the certification process rates projects based on the sustainability of their sites and materials, water and energy efficiency, indoor air quality and other factors 125.

Companies are developing more energy efficient lighting, heating, cooling and appliances, as well as more energy efficient and sustainable building materials. While building materials haven't traditionally been part of venture capitalists' portfolios, they made exceptions for companies such as Hycrete 126, which sells an additive that makes concrete waterproof, eliminating the need for a plastic membrane, and Calstar Products 127, which has developed an energy efficient brick.

Green design also includes low-tech measures, such as painting roofs white, using better insulation, or placing windows properly to reduce energy for lighting, heating or cooling 128,129. Companies are developing software to evaluate energy choices and manage energy use once the building is occupied 130. In some office and commercial buildings, sensors and software adjust electrical light based on available natural light and turn off unused computers and other electronic equipment. Thin-film solar manufacturers are developing windows and other building materials to convert sunlight into electricity 131.

Transportation

The stimulus package increased investment in plug-in hybrid and electric vehicles and the batteries that power them 132,133. Auto-manufacturer Tesla Motors announced in June 2009 that its $465 million loan guarantee from the federal government would create 1,650 jobs 134, while Fisker Automotive said in September 2009 that its $528.7 million conditional loan guarantee would "save or create" 5,000 jobs 135.

These bulk of green transportation jobs fall under the public transportation category. The United Nations Environment Programme counted more than 1.3 million global jobs in public transportation in 2007, compared with approximately 250,000 in green vehicle manufacturing 136.

Another component of this sector is transportation infrastructure, an area where it is difficult to sort green jobs from traditional jobs. Aside from infrastructure specifically geared toward electric vehicle charging or electric train tracks, much of the work benefits both conventional fossil-fueled vehicles and greener transportation. Much of the stimulus funding defined as environmentally friendly transportation infrastructure goes toward building bridges or repairing roads also used by conventional vehicles137.

Green Vehicles

Major automakers and startups are developing green cars: hybrids, plug-in hybrids, electric cars, clean diesels and cars that run on higher ethanol blends 138,139,140. Fuel-cell cars have been under development for decades, but remain in the demonstration stage because of cost and other issues 141,142,143.

Each type has advantages and disadvantages.  Electric cars run on a widely available power source144,145,146. The range of most electric cars is 100 miles, but the lack of a comprehensive charging network means that drivers may not be able to recharge on the road.   Even though most drivers don't commute more than 100 miles per day, industry analysts say they would prefer cars that can travel further on a single charge 147. Drivers with short commutes may not be able to charge up every night because they are concentrated in urban areas and may not have garages with electrical outlets 148. A Toyota executive said earlier this year that electric cars are too expensive to attract a large market 149.

Diesel cars have a bad reputation in the United States 150, even though they get more miles per gallon than gasoline cars. This is because older diesels emit far more pollution151. Modern diesel cars meet strict emissions requirements, but U.S. drivers still tend to think of them as dirty, analysts say 152. Some companies are developing with diesel-electric hybrids 153.

Biofuels

See Biofuels in "Clean Energy" Section

Energy Storage

Green auto battery development has seen a flurry of recent activity.  The stimulus package, and other grant and incentives are helping battery companies procure increased venture-capital investment so far this year in spite of the recession 154.  Batteries have been described as the key to electric vehicles' success, because they determine both the range of the vehicles and much of their cost 155. Most hybrids use nickel-metal-hydride batteries today, which can't deliver the range that many automakers want for their electric vehicles 156.

Lithium-ions can deliver more than twice the energy density of nickel-metal hydrides, but are too costly to be feasible for the mainstream vehicle market today157.  Tesla Motors uses lithium-ion batteries in its $100,000 Roadster sports car. 158 A number of companies, including Massachusetts-based A123Systems, which scored a $249.1 million grant 159 from the Department of Energy, are working to improve lithium-ions and make them cheaper 160. Meanwhile, other companies are developing different technologies 161, such as Firefly Energy, which is developing more efficient lead-acid batteries, and PowerGenix, which is making nickel-zinc batteries. A123Systems 162, Johnson Controls-Saft 163, GE 164, Boston-Power 165 and Quallion 166 all announced plans to build electric vehicle battery factories in the United States 167.  Asia has dominated battery manufacturing for years 168.

Some companies are working to develop fuel cells, which produce power by mixing fuel with air and water in an electrochemical reaction involving a catalyst 169. Like electric cars, hydrogen fuel-cell cars produce no emissions (aside from water), and major automakers have been developing them for years 170,171,172,173. Technology advancements 174 have reduced the potential costs of these cars and increased their efficiency, but they remain expensive so far, and building the hydrogen infrastructure to fuel them is a major undertaking 175. Automakers now expect to have hundreds of thousands of fuel-cell cars on the roads by 2016 176,177.

According to the 2009 Pew report, hybrid systems, fuel cells, and batteries accounted for over 80 percent of clean technology patents in the past 10 years 178.

Smart Grid

The "smart grid" incorporates everything from advanced electrical metering technology, "demand response" software that monitors and reduces energy use in homes and businesses, and infrastructure to transmit and distribute energy 179,180,181,182. Green jobs in this sector are hard to track, since transmission lines and equipment handle clean and conventional electricity. The Department of Energy has been working to come up with standards 183 to make different pieces of the smart grid work together 184,185,186.

Over the next two decades, smart grid investments are expected to increase more than five times the current levels187,188.  And the smart grid will receive $4.5 billion of federal stimulus funds, according to the DOE's Office of Electricity Delivery and Energy Reliability.

Energy Management

Technologies to monitor and manage energy use in homes, businesses, manufacturing plants and utility-wide are a growing part of the smart grid. They offer the potential to do more with less, and to reduce energy consumption for far less than the cost of building new power plants or other forms of generating electricity 189,190,191,192. "Demand-response" programs reduce energy consumption at peak times to prevent outages. Demand-response providers contract with energy users, who agree to reduce their electricity use when the grid is strained, for a fee.  Utilities offer financial incentives to homeowners or businesses that agree to reduce energy consumption when the grid is strained193. Companies such as EnerNOC and Convergent Group offer demand-response technologies that limit electricity use.

Transmission

Even large, centralized renewable-electricity projects tend to be smaller than power plants fired by coal, oil or natural gas.  Like conventional plants, they are usually located away from population centers. Long-distance electricity transmission is costly and challenging 194,195. Obtaining permits to build a long-distance transmission line can hold up a project for years 196. In early 2009, oilman-turned-wind-advocate T. Boone Pickens indefinitely delayed his plans 197 for a $10 billion, 4-gigawatt wind project after failing to raise enough money to build transmission lines.

The sun and wind don't always cooperate when electricity is most needed 198. Theoretically, large batteries could store energy from wind and solar systems to supply at peak times. Existing battery systems are too expensive and wear out too quickly199. Companies such as A123Systems, Deeya Energy and NGK Insulators are working to make grid batteries more feasible. Making renewable energy more predictable could also help 200. Companies such as GE Energy and labs like the Argonne National Laboratory are developing wind forecasting technologies 201.

Advocates say long-distance transmission connecting different U.S. regions could improve the flow of electricity from renewable sources.  The wind is always blowing and the sun shining somewhere in the country 202,203. Developers of the Desertec project plan to build transmission lines to carry enough solar energy from the Sahara Desert to Europe to meet 15 percent of the continent's electricity needs. 204  Billions of dollars of investment in transmission capability will be needed to meet state renewable electricity goals 205.

Green Manufacturing

Driven by ever-stricter government policies 206 and perhaps pressure from environmentalists, as well as more public awareness about the environment and demand for green products, manufacturers are reducing the environmental impact of making their products 207. Green manufacturing encompasses a wide range of technologies that reduce energy and water use, emissions, pollution and the use of hazardous materials 208. As the market has transformed toward purchasing more sustainable products and services, nonprofit organizations, such as Green Seal, have developed standards to help consumers make environmentally preferable choices209. Scientific Certification Systems is another independent organization that sets standards and vets the eco-claims of agriculture, manufacturing and corporate social responsibility 210.

Wal-Mart recently set a goal of removing non-renewable energy from its products. It's encouraging its suppliers to use renewable energy to make the products they sell to Wal-Mart211. In July 2009, the company said it was working with a consortium to develop a rating system for product sustainability 212. In accordance with the Montreal Protocol, the Dow Chemical Co. in 2009 converted a second Styrofoam manufacturing plant to a technology that has no ozone-depleting compounds213. Ford Motor Co. continues to develop its technology to capture emissions from the automobile painting process 214.

Green Training and Support

Growing attention to green jobs has prompted the development of training programs across green industries. Green training encompasses everyone from vocational teachers who train new workers to university programs that educate environmental scientists and electrical engineers focusing on the smart grid. Some of the programs are designed to make construction workers more aware of green materials or techniques to build energy efficient buildings.215 Other programs are geared to the unemployed, who are enrolling in community college courses that offer training in clean energy, energy efficiency and sustainable landscape design.216

Another important area of green job growth is the support sector.  This includes lawyers, sustainability managers, public relations specialists, financial professionals such as investment bankers, accountants, researcher services including cost estimators in the green building field or those working to develop new clean energy technologies.217,218,219,220

In 2007, more than 50,000 people were employed in the training and support green jobs category221. This small sector comprises 6.8 percent of green jobs. Moving forward, the training category will grow by at least $500 million, as the flow of stimulus money dedicated to workforce training moves into the economy.

Conservation and Pollution Mitigation 

As the United States has moved to conserve water and natural resources and  recycle waste over the last 50 years, the conservation and pollution mitigation sector of the workforce has grown into the largest provider of green jobs. In 2007, roughly 500,000 people in the United States were employed in this sector -- 65 percent of all green jobs222. Companies that  handle recycling and waste management, monitor air quality, restore ecosystems, and treat and conserve water comprise the bulk of jobs in this sector. As a range of industries such as manufacturing seek ways to reduce waste223,224 and decrease water used in products225 greater attention is being paid to the economic benefits of conservation.  

While the number of green jobs in the sector is high, job growth in conservation and pollution mitigation was just 3 percent between 1998 and 2007. 226. Other green jobs have grown at a much higher rate. In addition, average pay for workers is among the lowest in the green jobs sector. The average hourly wage for recycling processing workers is $8.25227. In comparison, the average wage for manufacturing jobs is $18 per hour 228. Local and state efforts to increase recycling and reduce greenhouse gas emissions will drive job growth in this sector. A federal mandate to reduce greenhouse gas emissions will also increase jobs in this field.

On the business side, the conservation and pollution mitigation sector attracted $1.08 billion in funding from venture capital firms between 2006 and 2008, about 9 percent  of venture investments in the green economy 229. One of the innovations in this sector comes from a Canadian company, Enerkem, which in fall 2009 began construction of a $65 million facility that will turn trash into fuel230. The waste industry leader, Waste Management, employs 45,900 workers and is the largest waste collection firm in the country. Waste Management has been building facilities across the U.S. that convert methane gas, created by the natural decomposition of garbage, into electricity231. The company plans on having 160 such facilities by 2012. In fall 2009, Waste Management owned or operated 111 landfill gas-to-energy facilities in North America. As the U.S. tries to conserve natural resources and cut its wasteful habits232, green job opportunities will continue to expand in this sector233.

External Links

• Congress Approves Clean Energy Provisions of Stimulus; Consistent With Apollo Economic Recovery Act (Apollo Alliance)
• ASES Green Collar Jobs report forecasts 37 million jobs from renewable energy and energy efficiency in U.S. by 2030 (American Solar Energy Society)
• Green Jobs: Towards decent work in a sustainable, low-carbon world (PDF) (United Nations Environment Programme)
• UNEP Background Paper on Green Jobs (PDF) (United Nations Environment Programme)
• U.S. Metro Economies: Current and Potential Green Jobs in U.S. Economy (PDF) (Global Insight)
• American Solar Energy Society's Green Collar Jobs in the U.S. and Colorado: Economic Drivers for the 21st Century (PDF) (Management Information Services)
• Non-Hydroelectric Renewable Energy (U.S. Environmental Protection Agency)
• Hydropower as a renewable and sustainable energy resource meeting global energy challenges in a reasonable way (Argonne National Laboratory and the Bureau of Reclamation)
• Clean Energy: Coal (U.S. Environmental Protection Agency)
• FTC Certification for Environmental Marketing Claims (California Green Solutions)

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