The Clean Energy Economy: The United States and its Position in a Competitive, Global Marketplace

www.pewglobalwarming.org/cleanenergyeconomy

The Clean Energy Economy

The United States and its Position in a Competitive, Global Marketplace

Phyllis CuttinoDirector

Climate and Energy ProgramsPew Environment Group

www.pewglobalwarming.org/cleanenergyeconomywww.pewglobalwarming.org/cleanenergyeconomy

• the first-of-its-kind hard count of the jobs, businesses and investments in the U.S. Clean Energy Economy

• the first-ever state-by-state analysis of the Clean

Energy Economy over time (1998-2007)

• offered a clear definition and framework on the Clean Energy Economy

Pew’s Clean Energy Economy study was…


Defining the Clean Energy EconomyWhat is a Green Job?

• While clean energy jobs and businesses will change over time, these specific categories will not.

• Categories provide a framework and allow for innovation in the clean energy sector.


• Job growth in the clean energy economy outperformed overall job growth in 38 states and the District of Columbia between 1998 and 2007.

• Jobs include engineers, plumbers, construction workers, machine setters, teachers and others with annual incomes ranging from $21,000 to $110,000.

• In 2007, there were over 770,000 jobs in the clean energy economy

Clean Energy Jobs in the United States



Missouri


StateJobs

(2007)Relative Growth

(1998-2007)Businesses

(2007)Venture Capital

(2006-2008)Patents

(1999-2008)Arkansas 4,597 7.8% 448 $22,844,701 8

Illinois 28,395 -2.5% 2,176 $108,519,023 297

Indiana 17,298 17.9% 1,268 $26,000,000 174

Iowa 7,702 26.1% 729 $149,237,274 46

Kansas 8,017 51.0% 591 $13,274,882 15

Kentucky 9,308 10.0% 778 $0 17

Michigan 22,674 10.7% 1,932 $55,099,376 749

Minnesota 19,994 11.9% 1,206 $49,937,944 218

Missouri 11,714 5.4% 1,062 $24,479,634 25

Nebraska 5,292 108.6% 368 $0 15

Ohio 35,267 7.3% 2,513 $74,224,203 309

Tennessee 15,507 18.2% 1,090 $16,328,927 47

Wisconsin 15,089 -5.2% 1,294 $46,742,521 214

Midwest States



Who’s Winning the Clean Energy Race?Growth, Competition, and Opportunity in the World’s Largest Economies

• How was the sector faring in the face of the economic downturn? Effect of stimulus funds?

• How were countries competing?


• tracks overall clean energy finance and investment for every G-20 member country

• offers competitive snapshots of the clean energy

economy in each of the G-20 member countries

• highlights certain domestic policies that are successful in spurring clean energy growth

Pew’s G-20 Clean Energy Factbook…


Growth in the Clean Energy Economy

• 90% of investments occur in G-20 member economies.

• Globally clean energy investment has grown 230% since 2005.

• $162 billion was invested in 2009.

• An average of $32 billion invested in each of the last three quarters.


Measuring Competition



Investment intensity is clean energy investment as a percentage of a nation’s gross domestic product (GDP).



• Total global renewable energy capacity at the end of 2009 was 250 GW.

• The U.S. led in installed wind, biomass, and geothermal, but very close to losing this lead to China.



The U.S was the undisputed leader in innovation, with 60% of global venture capital investments. This trend is likely to continue as U.S. has been an engine of energy technology innovation.


Global Stimulus Funding for Clean Energy

• An estimated $184 billion was earmarked for clean energy by the various government stimulus packages.

• U.S. led with $66 billion and China was second with $47 billion.

• Two-thirds of financial recovery funding is projected to be spent in 2010 and 2011.


Countries Leading the G-20 Have Enacted Multiple Clean Energy Policies


Policy and the U.S. Clean Energy Economy

• The U.S. has a patchwork of state renewable energy standards and no national carbon policy.

• Federal financial support to the sector has been episodic and short-term, up one administration, down the next.


The U.S. Is At A CrossroadsPredictable policy instruments are needed• The U.S. is going to be left

behind in the global clean energy race unless sufficient policy is implemented.

• A national carbon cap, strong RES and predictable financial incentives would provide long-term market security to clean energy investors.

• Comprehensive federal legislation would create new technologies that could be exported to meet global demand.


Opportunity in the Global Clean Energy Economy

• Projected 25% growth in the sector this year – to a record $200 billion by the end of 2010.

• 80% of future energy demand will come from developing countries.


Opportunity in the Clean Energy Economy

The International Energy Association estimates that $38 trillion will be needed globally between now and 2030 to meet demand and C02 goals.


What They’re Saying About the Clean Energy Economy

• “Right now, the United States has no long-term market signal to tell companies and consumers that it values low-carbon energy. It has no policies to discourage sending hundreds of billions of dollars a year overseas for energy. It does not offer adequate sustained R&D funding to be a serious competitor in this huge business.”

- John Doerr, venture capitalist



Arkansas


Illinois


Indiana


Iowa


Kansas


Kentucky


Michigan


Minnesota


Nebraska


Ohio


Tennessee


Wisconsin

Technology

The Clean Energy Economy: The United States and its Position in a Competitive, Global Marketplace