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Green Jobs: A Major Opportunity for the US Labor Market

Christine Wörlen | Heinrich Böll Stiftung | October 2010

In the area of renewable energy, the transatlantic flow of ideas is taking place in an unusual direction. Germany is a worldwide leader in this sphere and the United States could benefit greatly by learning from its experience. Faced with an unemployment rate of nearly ten percent in the month of August, Americans might find the effect of green technologies on job creation particularly inspiring as Germany owes 300,000 new jobs to this sector alone. However, for such a transfer of ideas to turn into a success story, the central role of the legislative framework in fostering the renewables sector needs to be appreciated more fully. In this context, the federal level in the US can be equated to the EU in terms of legislative reach, while the German national experience is more applicable to the state level.

Three Midwestern American states appear particularly well suited to implementing a job creation program in the renewables field, inspired by the German example: Indiana, Minnesota, and Michigan. For one, they enjoy climatic conditions similar to Germany. Second, all three states have been particularly hard hit by the decline of the automobile industry. The entire region could really use a new influx of investment. Moreover, because of the harsh climate there, all three Midwestern states could easily attain significant energy savings by improving heating efficiency in buildings through the adaptation of German standards and greater reliance on insulation techniques. Especially in the case of Indiana, exploiting the power of wind energy would dramatically lower heating and energy costs for residents. It would also reduce Indiana's dependence on expensive coal imports. Furthermore, for a great many automobile manufacturers, it would be relatively easy to convert their assembly lines to produce parts for wind turbines. In Minnesota, following the German example by introducing feed-in tariffs for wind and solar power would be even more advantageous. Michigan on the other hand already made a name for itself with a campaign to attract high-tech businesses to the area by offering new firms attractive packages for setting up shop in-state. Targeting such campaigns at green firms would be all that is needed in order to promote the image of Michigan as a national center for research in the field of renewables. Moreover, Michigan stands to gain greatly from copying German financial schemes to promote the speedy construction of wind parks.

It is not only the Midwestern region of the US that would profit from reviving its economy by investing more heavily in clean energy, but the country as a whole. Throughout the United States, greater investment in green technologies would advance the cause of environmental protection and create greater awareness for the interconnected nature of economic growth and its effects upon the environment. Experts expect renewables to account for 40 percent of energy production in Germany by the year 2020. A similar success story in the United States would have significant security ramifications, as renewables would lessen the country's dependence upon foreign suppliers and thereby improve energy security on the national level.

This summary was prepared by the Atlantic Community editorial team from "Three Hundred Thousand Clean Energy Jobs" published here by the Heinrich Böll Stiftung.