Building a Green Economy The Race for International Innovation

and Competitiveness

Christopher FlavinChristopher FlavinWorldwatch InstituteWorldwatch Institute

Seoul Forum 2010Seoul Forum 2010Seoul, KoreaSeoul, Korea

Today’s economy is profoundly out of balance with the world’s ecological resource base.

The economic model pioneered by today’s industrial countries is not viable for the world as a whole

The transition to a sustainable global economy is the great economic challenge of the coming decades.

It will shape the future of the next generation.

Solving environmental problems will entail substantial costs for some of today’s industries.

But it will also create thousands of new companies and millions of jobs, laying the foundation for a green economic transformation.

Successful green economies will require visionary systems thinking and smart, effective government regulations & economic incentives.

At stake are international economic competitiveness—and the healthof the planet on which the economy depends.

Energy & Resource Productivity

Key to a Sustainable Global Economy

Potential for Factor Five Increase by 2050—Will Become the New Benchmark for Global Economic Success

Investment in Renewable Investment in Renewable EnergyEnergy

2004-20082004-2008

Source: NEF 2009

Wind

Solar

Other

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008

Bil

lio

n D

oll

ars

($U

SD

)

Average Energy Growth Rates by Source: 2004-2009

Source: Worldwatch, BP.

55%

27%

23%

3.2% 2.9% 1.8% 0.4% -0.5%

-10%

0%

10%

20%

30%

40%

50%

60%

Solar Wind Biofuels Coal Hydro NaturalGas

Oil Nuclear

Gro

wth

Rat

e

Global Electricity from Renewables 2002-2008

Source: NEF 2009

Renewable power generation additions as share of global power generation additions

Renewable generation as % of global power generation

The Race for Green Jobs

Each $1 million invested in energy efficiency creates 21.5 new jobs versus 11.5 for gas power generation.

Renewable energy has already created 3 million new jobs—most of them in the past five years.

Solar electricity creates 7 -11 times more jobs per megawatt hour than coal or gas.

Retrofitting Europe's residential buildings to cut emissions 75% would create 2.6 million jobs by 2030.

Job Growth in Renewable Energy: Germany

13

Employment Estimates

All RecyclingChinaUnited StatesBrazil

10,000,000 1,100,000 500,000

Aluminum Can Collecting Brazil 170,000

Electronics Recycling China 700,000

Steel Scrap ProductionUnited StatesWorld

30,000 [225,000]

Aluminum Scrap ProductionJapanWestern EuropeUnited States

12,700 >10,000 6,100

Recycling / Scrap-based ProductionRecycling / Scrap-based Production

SOURCE: UNEP/ILO Green Jobs Report

Green Jobs in Renewable Energy, Present and Future

• 2.3 million people are currently employed in the renewable energy sector globally.• Projected investments of $630 billion by 2030 would translate into at least 20 million additional jobs.

GermanyWorld leader in installed renewable

capacity

Unilateral reductions of carbon emissions of 36% below 1990 levels by 2020

Highly effective feed-in tariff system has boosted renewable energy industry – earned over €16 billion in 2005

Renewable Electricity in Germany1990 - 2007

Source: BMU 2008

SpainCurrently generates one-quarter of

electricity from renewable sources

Goal to generate 40% of electricity from carbon-free sources by 2020

Feed-in tariffs and low-interest loans have boosted renewable energy industry

CaliforniaGoal to reduce GHG emissions to

1990 levels by 2020

$75 million green jobs training program to train over 20,000 skilled clear energy workers

California Green Corps – place at risk young adults in green jobs

Electricity Use Per Capita 1960-2007

Green Provisions of ObamaStimulus in United States

The $787 billion American Recovery & Reinvestment Act of 2009 includes more than $71 billion for clean energy—more than tripling spending :

$4.5 billion for upgrading energy efficiency in government buildings

$500 million for job training in energy efficiency and renewables

$2.5 billion for research on energy efficiency and renewable energy

$9.3 billion for investments in rail transportation $5 billion for home weatherization for low income

families

The stimulus also includes $20 billion in clean energy tax incentives.

China$35 billion in clean energy investment in 2009

Goal to reduce carbon intensity of the economy by 40-45% by 2050

World’s largest producer of wind turbines and solar panels

8% electricity from wind, solar, biomass by 2020

Solar PV Production by Country/Region2000-2008

Source: Maycock, Prometheus Institute, CREIA, Bradford.

Korea is a late comer to the green economy

Its economic miracle has relied heavily on energy and resource-intensive manufacturing

But Korea’s 97% dependence on imported energy suggest that a new model is needed.

The Low-Carbon, Green-Growth Strategy launched by President Lee Myung-Bak could make Korea a global leader.

Korea Green Growth Strategy

$59 billion “Green New Deal Package” 78% of stimulus spending—highest in world

Renewable Electricity Standard and Feed-In Tarrif are being introduced

Tough new energy efficiency standards for industry, transportation, and buildings

Pledge to cut GHG emissions 30% below BAU by 2020

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