Green Economy Investments of 2% of Countries' GDP Could Create 48 Million Jobs

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--If new investments in the green economy of 2% of global gross domestic product (GDP) were to be made in each of the next five years in 12 countries, 48 million jobs could be created, according to an investment model developed by The Millennium Institute. The countries analyzed in the report are Germany, Spain, Bulgaria, Dominican Republic, the U.S., South Africa, Ghana, Tunisia, Nepal and Australia. Industries analyzed are energy, construction, transport, manufacturing, agriculture, forestry and water.

Middle income economies, including Brazil, Indonesia, South Africa and Bulgaria, could create up to 19 million jobs over five years. In developed countries such as Australia, Germany, Spain and the U.S., 28 million jobs could be created over five years. Nepal, Indonesia and Ghana have the highest ratio of jobs per million dollars of investment, with labor-intensive economies benefiting the most from green investments.

For the first time, economists have used the number of jobs that can be directly created from investments as the key indicator to analyze the impact of the green economy in 12 countries and seven industries.

Armed with this information, the International Trade Union Confederation (ITUC) has called on governments to drive investment of at least 25 of GDP in the green economy as supported by the Millennium Institute's analysis and forecast of the green jobs growth potential.

Sharan Burrow, ITUC general secretary, said: "The economists have demonstrated how public and private investment in the green economy can create hundreds of millions of decent green jobs. Now governments must set targets for green jobs and provide the legislative and regulatory conditions so workers can have secure jobs and living wages, and create a healthy society and environment."

The ITUC and the Millennium Institute have established the first "green job creation benchmark" providing a guide to the jobs creation potential of selected industries with the number of jobs per million dollars invested.

The construction industry in Brazil could create up to 182 jobs per million dollars of investment. In South Africa, the transport industry could create up to 126 jobs per million dollars invested. Agriculture in Ghana would see 291 jobs per million dollars.

"The outlook for transitioning to a greener economy with decent work will benefit workers, business, national economies and future generations," Burrow said.

Burrow will meet with governments, business and workers in Brazil, Bulgaria, Indonesia, Nepal and Germany ahead of the G20 Summit and Rio+20 Summit in June, where world leaders should make commitments on green growth and decent job creation.

The jobs-creation forecasts refer to direct employment in each country and industry. The new jobs also would generate further employment growth with indirect jobs, when taking the multiplier effect into account.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.