Building a Green Economy The Race for International Innovation and Competitiveness Christopher Flavin Worldwatch Institute Seoul Forum 2010 Seoul, 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 health of 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 Energy Source: NEF 2009

Average Energy Growth Rates by Source: Source: Worldwatch, BP.

Global Electricity from Renewables 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 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 Recycling China United States Brazil 10,000,000 1,100, ,000 Aluminum Can CollectingBrazil 170,000 Electronics RecyclingChina 700,000 Steel Scrap Production United States World 30,000 [225,000] Aluminum Scrap Production Japan Western Europe United States 12,700 >10,000 6,100 Recycling / 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.

Germany World 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 Germany Source: BMU 2008

Spain Currently 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

California Goal 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

Green Provisions of Obama Stimulus 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 % 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/Region 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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