The Pew Charitable Trust recently released a first of its kind analysis titled "The Clean Energy Economy: Repowering Jobs, Business and Investments Across America". The report analyzes the increasingly important role clean energy plays in the economic recovery of the country.

What is Clean Energy Economy and what happened to "Green Economy" and "Green Jobs"?

Their footnote 12 states that the word "green" has become so ubiquitous that it has lost its meaning and value and hence a growing number of policy wonks, opinion leaders have started to use the term "clean energy economy" as it provides a clear focus on developing renewable energy sources that expand market opportunities, strengthen America?s fiscal health, reduce our nation?s dependence on traditional fossil fuels, and mitigate pollution from global warming. So remember "Green" is so yesterday.

Where are the jobs?

They are already here. The clean energy economy jobs started coming into the picture in the mid - 1990s. With the right policy guidance, a sustained public and private investment, and a growing demand for sustainable development from consumers, this sector of the economy has tremendous potential to grow and create new jobs in the years to come. Even in this recession, the report finds that job losses and a decrease  in private investment was lesser in this sector than the general economy.

So, what constitutes the "Clean Energy Economy"?

This is where the report is path breaking. As far as I know, they are the first to come up with a stringent definition of what business and companies constitute the clean energy economy. They counted only companies and jobs on the supply side, not the demand side, of the
clean energy economy. i.e. the included only companies and businesses that delivered products and services and not companies/business that consumed them to make them "greener".  They defined it as "A clean energy economy generates jobs, businesses and investments while expanding clean energy production, increasing energy efficiency, reducing  greenhouse gas emissions, waste and pollution, and conserving water and other natural resources". The clean energy economy cuts across the following categories

1. Clean Energy
2. Energy Efficiency
3. Environmentally Friendly Production
4. Conservation & Pollution Mitigation
5. Training & Support

What is different now?

Sure, these areas and jobs in these areas have existed for some time, so what is different now and why the excitement.

Public policy, public funding and private VC funding.

A new focus of public policy towards clean, sustainable technologies and jobs, the recently passed American Recovery & Re-investment Act and an increased private investment in clean energy sectors are the reasons for the new excitement. The American Recovery and Re-investment Act (popularly known as the Federal Stimulus Bill) has earmarked more than $130 billion of federal spending and assistance to this sector.

Federal Stimulus for Clean Energy Economy

Energy & Transportation	$85 billion
Wind Solar & Renewable Manufacturing	$21 billion
Energy Grid Modernization	$11 billion
Battery Technology	$2 billion
Energy Efficiency	$6 billion
Weatherization Program	$5 billion

 In 2008, private venture capital firms invested $5.9 billion in this area, a 48% jump from 2007. Increasing adoption of emission standards, stress on alternate fuels at both the federal and state level is also a big contributor to the excitement in this area.

Conclusion

The report concludes that although this sector has a tremendous potential to create new jobs, maybe even jobs that are hard to off-shore, achieving full potential is not a given. The report recommends a comprehensive national economy-wide energy plan. "Federal and state policies, together with continued private-sector support, will position the United States as a leader in the global clean energy economy".

 

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