Green with Envy: Low Carbon Economic Growth Creates Jobs

A move to a low carbon, clean energy economy leads to the creation of green jobs. It is happening elsewhere. When the South Korean Government committed to invest in green infrastructure, renewable energy technologies and sustainable design, the $A32.5 billion programme was expected to create one million green jobs. In 2011, Germany accounts for 2.3 million green jobs. With a carbon price and a renewed emissions reduction commitment in Australia, there will be more jobs and they will be green.

The Australian carbon price and its green jobs potential

by Julien Lacave

How many jobs can the new green economy create in Australia and, conversely, how many jobs will be lost in traditional sectors because of the internalisation of the pollution costs created by a carbon price?

What is a ‘green job’?

If we consider that green jobs are only those in the renewable energy sector, then the industry currently employs 2.3 million people worldwide . A broader definition is that a green job is a position where at least some of the responsibilities and objectives are environmentally driven or oriented. 

In other words, green jobs would include work in sustainability, resources management, green building, green transport systems, sustainable agriculture, energy efficiency, recycling and waste management, eco tourism, and ethical finance and not just renewable energy technologies.

Can a carbon tax create green jobs in Australia?

In an ideal economy, a carbon tax would effectively redirect investments from energy intensive industries to low or zero carbon technologies without impacting on traditional local sectors or triggering what some specialists have already called ‘carbon leakage,’ which is the relocation of energy intensive industries (and jobs) to less environmentally-regulated markets, such as South East Asia.

In essence, carbon leakage is exactly what we seek to avoid. Australia needs to protect its carbon intensive economy and make the transition fast, efficient and the least damaging as possible for traditional sectors.      

In 2008, the Australian Council of Trade Unions and Australian Conservation Foundation released the Green Gold Rush Report which had the key message that Australia could become a world-leader in creating green industries generating up to a million green collar jobs by 2030 and multi-billion dollar export opportunities in green technology.

Similarly, in March 2011 the Climate Institute launched the website Clean Energy Jobs in Regional Australia, with the support of Independent MP Tony Windsor. The Clean Energy Jobs in Regional Australia report also re-affirms the potential of job creation.

A carbon tax would surely facilitate the creation of green jobs in existing and new sectors and technologies. Innovation drives growth and growth creates jobs; this is the world that we live in.

Green job creation across the globe

During the global financial crisis, the South Korean Government directed most of their Government bail-out plan towards green infrastructure, renewable energy technologies and sustainable design. In 2009, the government announced a $A32.5 billion program to create one million green jobs. Time will tell if they succeed, but the country will probably get close to this figure.

Germany is an interesting case study too. From 2004–06, Germany doubled the number of green jobs from 160,000 to 250,000 . In 2011, Germany also accounted for 2.3 millions green jobs.

The United States Government invested $A696 billion to rescue Wall Street after the global financial crisis, which had no guarantee of success. However, with $A347 billion investment, some say the Government could retrofit and repower the nation using clean energy and create millions of new jobs in the process.

The New Apollo Program from the United States’ Apollo Alliance (a coalition of business, labour and community leaders who promote a clean energy transition) estimates that the investment of $A497 billion in the clean energy economy over the next three years could create more than five million high-quality green-collar jobs in the US alone. Australia can do this too, on its own scale.

According to the Australian Conservation Foundation, the Australian clean energy economy is currently estimated at $A15.4 billion and is employing 112,000 people through the industries of renewable energy, water, biomaterials, green building, and recycling. 

The report says that this could grow by 2030 to a value of $A241 billion and employ 847,000 people. Australia can specifically succeed in renewable energy power generation, energy efficiency in buildings, sustainable water systems, biomaterials and waste, but also sustainable agriculture and eco-tourism.  

Overall, pricing carbon is not just about creating green jobs; it is about reducing Australia’s carbon emissions through the creation of market conditions that allow large investments in clean technologies. Green jobs creation will be a direct consequence of this.

Nuclear is not the answer

Some experts say that Australia would face major adjustment costs in achieving our 60 per cent clean technology target by 2050 if we do not have nuclear power or coal sequestration options. 

These opinions may have been revised on the matter since the devastating earthquake in Japan in March 2011. Nuclear is a heavily subsided industry, with high risks and low job creation ratio compared to renewable energies. Renewable energies will create more jobs and will enable regional Australia to benefit from those investments. Prime Minister Julia Gillard also recently re-emphasised that there will be no nuclear program under her leadership.  

Time is of the essence

The world economy needs an urgent transformation in order to avoid dangerous climate change. Our international relations are now being reshaped by the necessity to co-operate together in response to climatic events and natural disasters. More investments and jobs are also needed in climate change adaptation in Australia, not just in mitigation.   

This seems to be a case of ‘the sooner the better’, for both Australia’s economic competitiveness and climate. But to effect this, you need to price carbon so that certainty is here for investors. After all, Australia’s greatest resource may not be coal or uranium, but its people.

Julien Lacave is a Senior Consultant in Energy & Carbon at the Bradman Recruitment Group. From 200 to 2009 Julien managed the Australian Solar Energy Society to promote the use of renewable energy technologies in Australia and New Zealand.  In 2003 – 2004 Julien worked in Paris in a leading renewable energy consulting think tank for the European Intelligent Energy Agency.  Julien holds a Master Degree in International Relations & Geopolitics from La Sorbonne University (Paris) with Specialty in Asia Pacific  and a final dissertation on Climate Change International Negotiations & Sustainability in Business (2001). He also holds a Bachelor Degree in Economics and an Advanced Technical Diploma in International Business & Marketing. 

Source: www.bradmanrecruitment.com