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

labor than their inefficient counterparts, thus leading to not only a larger number of jobs, but also

higher-skilled, higher-paying employment.

Induced jobs are also created as money that would have been spent on energy services is respent back into the community. This effect can be larger than the direct and indirect generation

of green jobs themselves, particularly where energy is imported. Sectors such as manufacturing,

construction, education, services, finance, and agriculture, which are more labor intensive than

traditional energy services, stand to benefit from the re-spending effects associated with energy

efficiency. Workers in coal, oil, gas extraction, and fuel refining could see a reduction of jobs in the

traditional energy sector.

The IPCC’s Fourth Assessment Report, published in 2007, identifies buildings as having the capacity

to reduce projected emissions 29 percent by 2020, the single largest potential of any sector, but

for the most part the green building sector is limited to a small fraction of workers in a handful of

countries. (The 2007 ASES study concluded that only 3 percent of buildings in the United States

qualified for LEED (Leadership in Energy and Environmental Design) certification. Similarly, Canada

reported only 150 LEED projects in 2005.) Fortunately, much of what is needed for greening

the building sector can be done on the basis of existing technology with little or no net cost.

Governments must play a key role in creating mandates and standards, increasing research and

development funds, and providing financing incentives.



© Martin Bond / Still Pictures

Arrays of photovoltaic cells on the roof

of a government office building. In

background, Swiss federal parliament

buildings. Berne, Switzerland.



Executive Summary



11



Greening the building industry in the European Union and the United States would create at least

2 million jobs (3.5 million jobs using the European Trade Union Confederation (ETUC) goal of a 75

percent reduction of carbon emissions by 2030). Although exact figures are unknown, it is easy to

imagine that a worldwide transition to energy-efficient buildings could create millions or even tens

of millions of jobs and would green existing employment for many of the estimated 111 million

people already working in the sector. Furthermore, greening municipal, commercial, industrial, and

residential buildings will radiate out to people who work in these energy-efficient buildings.



Transportation

Characterized by a heavy reliance on cars and trucks—and increasingly airplanes—for both

passenger and freight movement, transportation is a major consumer of fossil fuels and a big

contributor to climate change. It is responsible for an estimated 23 percent of energy-related

greenhouse gas emissions, with the fastest-rising carbon emissions of any economic sector.

Air traffic is growing by leaps and bounds, but is by far the most fuel-intensive mode—and thus

extremely difficult to make more green at present or projected levels of activity. New aircraft are

70 percent more fuel-efficient than those designed 40 years ago. A further 20 percent gain by

2015 over 1997 levels seems attainable, and perhaps a 40–50 percent gain by 2050. However, such

improvements are insufficient in view of aviation’s rapid expansion. Soaring fuel prices may alter

the trajectory of global air travel in future years, and are becoming a major incentive for airline

companies to pursue fuel efficiency more vigorously.

Road transport is heavily tilted toward cars and trucks. Producing more fuel-efficient vehicles is

the most immediate way in which environmental impacts can be reduced. An assessment of the

most efficient passenger cars available today suggests that relatively green auto-industry jobs

may number about a quarter million. (See Table ES-3.) This estimate is based on carbon emission

thresholds of 120 grams of CO2 per kilometer for passenger vehicles made in Europe, Japan, South

Korea, and the United States, which together account for more than 4 million car-manufacturing

jobs, or half the global total. Under a more lenient threshold of 140 grams, the number rises to

about 800,000.

Comparable calculations are not possible for other car-producing countries, but the number of

green jobs elsewhere can be assumed to be very limited at present. The situation is likely to change

significantly in China in the next few years, as it implements rules to produce more efficient and

cleaner cars. Thailand has launched a promising initiative to produce more fuel-efficient cars and looks

to be on track to green a good portion of its 182,000-strong vehicle-manufacturing workforce.

Hybrid vehicles can be an important part of the solution, provided the added electric motor is

used to reduce gasoline consumption instead of adding to a vehicle’s power and acceleration.

The pursuit of plug-in electric and hydrogen/fuel cell-powered vehicles promises greener jobs in

future years (however, the environmental acceptability of plug-ins depends critically on changing

the mix of fuels used to generate electricity, relying less on coal).



12



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



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

Manufacturing

European

Union



Japan



South Korea



United

States



2,000,000



952,000



247,000



1,095,000



7.5



6.3



4.3



n.a.



Share of vehicles achieving 40 miles per

gallon or more (percent)



n.a.



n.a.



n.a



1.2



Jobs in Manufacturing “Green” Vehicles



150,000



62,000



10,000



13,000



Passenger Car Manufacturing Workforce

Share of vehicles emitting ≤ 120 grams of CO2

per kilometer (percent)



The onslaught of ever-growing motorized transportation threatens to overwhelm the gains

derived from per-vehicle efficiency measures. A more sustainable system will have to be based

on shorter distances. Reduced distances and greater density of human settlements enables a rebalancing of transportation modes—giving greater weight to public transit systems, as well as

walking and biking. A modal shift away from private vehicles and toward rail and other public

transport can generate considerable net employment gains, while reducing emissions and

improving air quality.

Railways are more environment-friendly and labor intensive than the car industry. But the trend

over the last few decades has been away from railways in many countries, and employment—both

in running rail lines and in manufacturing locomotives and rolling stock—has fallen accordingly.

Even in China (where the rail network grew by 24 percent in 1992–2002) railway employment

was cut from 3.4 million to 1.8 million. India’s railway jobs declined from 1.7 million to 1.5

million. In Europe, railway employment is down to about 900,000 jobs; the number of workers

in manufacturing rail and tram locomotives and rolling stock there has declined to 140,000. A

sustainable transport policy needs to reverse this trend. A strategic investment policy to build and

rebuild rail networks, integrating high-speed inter-city lines with regional and local lines would

offer a substantial expansion in green jobs.

Buses, trams, and railways use far less energy per passenger- or freight-kilometer than road vehicles.

Jobs in manufacturing the requisite rolling stock and equipment and in operating these systems

are, in principle, green jobs. Modern “Bus Rapid Transit” systems are being put in place in growing

numbers of cities around the world. Still, improvements are needed especially with regard to

emissions of air pollutants. Older diesel buses are notorious polluters. There are substantial green

employment opportunities in retrofitting buses to reduce particulate matter and nitrogen oxides

emissions, and in manufacturing new buses that run on alternative fuels including compressed

natural gas (CNG) or hybrid-electric buses. China, India, and Pakistan are among the countries that

have invested heavily in CNG. For instance, in India’s capital New Delhi, the introduction of 6,100

CNG buses by 2009 is expected to lead to the creation of 18,000 new jobs.



Executive Summary



13



© Martin Bond / Still Pictures

A hydrogen fuel cell-powered electric

bus in service crossing Tower Bridge in

London. Part of the CUTE (Clean Urban

Transport Europe) demonstration

project testing 27 such pollution-free

buses in 9 European cities. UK.



Similar retrofits are needed for the highly polluting two-stroke engines that are ubiquitous in twoand three-wheeled vehicles in developing countries, and particularly in Asia. Pilot projects in the

Philippines suggest that retrofits cut fuel consumption by 35–50 percent and emissions of air

pollutants by as much as 90 percent. Jobs can be created through installing and servicing the kits.

Hundreds of millions of people in developing countries suffer from insufficient mobility. They

may never be able to afford an automobile, and may not even have access to public transit. Yet,

bicycles and modern bicycle rickshaws offer a sustainable alternative and create employment in

manufacturing and transportation services. Nevertheless, their growing essential mobility needs

must be met, and this will require the development of innovative approaches that should also

generate new employment opportunities.



Basic Industry and Recycling

Industries producing basic materials—iron and steel, chemicals, cement, aluminum, and pulp and

paper—are among the most energy-intensive industries. It may be difficult to regard them as

“green.” However, boosting energy and materials efficiency, curtailing pollution, and enhancing

use of scrap for recycling (which offers substantial energy savings over virgin production) are key to

bringing these industries’ environmental footprints more into balance with environmental needs.



Steel

China’s steel production has surged to account for 38 percent of global output in 2007, but despite

improvements the country’s mills are still lagging behind those of Japan, South Korea, and Western

Europe in terms of energy efficiency, carbon emission reductions, and waste avoidance.

Steel recycling saves 40 to 75 percent of the energy needed to produce virgin steel. Scrap-based

production keeps rising, but accounts for a stagnant share of total output (41 percent in 2006). Turkey,

the United States, South Korea, the Commonwealth of Independent States (CIS) countries, Germany,

Japan, and Spain rely to a significant degree on scrap for their steel production, and their steel

employment can thus be regarded a shade of green. In the United States, some 30,000 people work in



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