Green Jobs for the Green Economy George Bouma, Team Leader, Sustainable Development Cluster Mihail Peleah, Programme Specialist Green Economy and Employment

Green Jobs for the Green Economy

George Bouma, Team Leader, Sustainable Development ClusterMihail Peleah, Programme Specialist Green Economy and Employment

Istanbul Regional Hub for Europe and the CIS

http://www.mdgmonitor.org/goal1.cfm








Sub-regional Workshop on Employment and Social Inclusion/ 16-17 April 2015, Skopje, Macedonia FYR

Presentation Outline

1. Key aspects2. Trends – green jobs and trade3. Structural issues4. Constraints/Opportunities5. Targeting sectors 6. Some examples7. Policy implications


Green Economy

• Green economy: improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities

• Green economy:– low carbon– resource efficient– socially inclusive

Economic growth

Social development Environmental

sustainability


Key Aspects• Sustainability issues (eg climate change) require us to

de-couple environmental impacts and economic growth• Increasing protection and management – evolution of

the ‘eco-industry’ • Maintaining the environment as a primary natural

resource input for sectors dependent on quality – eg agriculture and tourism

• Improving efficiency and reducing consumption – eg low carbon growth

• Increasing amount of trade in ‘environmental goods’ and associated employment in green growth


What are the trends – EU27

• 2012 (est) around 3,4 million - ~1% of the total workforce

• Ave. growth (2000 - 2008) approx 2,72 %• Induced and indirect effects - turnover of €

750 billion and 4.6 million jobs• Broader definition, some 19 million jobs or 5%

of the total working population (2010)


Global market in environmental technology


SEE: Export of environmental goods per capita is growing

Based on UNDO (2012) “Green sectors in Eastern Europe and NIS”


SEE: Imports of environmental goods per capita is growing as well

Based on UNDO (2012) “Green sectors in Eastern Europe and NIS”


Trends (cont)• However, SEE share of EG trade has remained

relatively static • Reflecting a limited focus and development of

green sector/s (Albania and Croatia)• Exclusion from international value chains – will

mean catch up• Behind technological frontiers and import cost• National value chain boundaries remain static• Skills development challenges


Structural issues - What do we know?

• What is the effect of environmental policy on the economy?

• From a macro-economic perspective environmental policies do not come at the cost of growth and employment

• Positive trends in productivity and employment• Contribute to structural change which shifts costs

between sectors and this leads to trade-offs• Hence the links to social inclusion to manage a

changing workforce in the shift to green growth


Industry issues - What do we know?

• Aggregate productivity declines not prevalent• Technology is key factor at the industry and

firm level• Environmental targets are not a factor in

competitiveness • Design of policy frameworks are critical• Institutions, governance capacity, technology

and skills are key drivers


Policy instruments – at early stage of implementation

Source: OECD questionnaire to Labor Ministries in 27 countries, 2010


Constraints/Opportunities• Not dissimilar to ALMP include:– Much greater integration of development planning

and sector coordination– Design of overall policy approaches and signals– Investment in technological transfers and

capacities, – Weak private sector vs public sector– Poor technical specialization for trade (incl. intra-

trade EU region)



Green Jobs: Key sectors• Energy

– High energy use per GDP (BIH, SRB, KOS*, MNE)– Big share of oil-coal-gas, marginal other renewables (comparing to 11% EU)

• Agriculture– Still a major employer (42% ALB, 24% TUR, 22% SRB, 20% BIH)– Migrants receiving sector (HRV, MNE, SRB)– Outdated technologies, practices

• Tourism– Major export service (MNE, ALB, HRV, TUR)– Huge seasonal employment, migration

• Waste management– Heavily informal – not decent jobs, not green jobs– Scope of regional cooperation

• +Migration


Energy

• High energy use per GDP (BIH, SRB, KOS*, MNE)• Dirty energy:– Big share of oil-coal-gas, marginal of other renewables

(comparing to 11% EU)– High carbon intensity of energy

• Potential for development– Renewables (solar, wind)– Energy efficiency of new building, refitting existing

• Green Jobs– Primary: Limited number of high-skill jobs– …but significant secondary effects


Towards Green Economy


Brown energy intensive

Tons of CO2 equivalent emitted per ton of energy equivalent consumed


Energy: maturation of innovations drives costs down

IRENA Renewable Power Generation Cost 2014 Report

Cost reductions for small-scale residential solar PV, Q2 2008 to Q2 2014


UNDP experience—Croatia

• UNDP, Global Environmental Facility programme on public-sector energy efficiency

• Results (2006-2010):– Energy systems in 5900 public buildings refitted

– Energy audits conducted in 1346 public buildings

– $18 million in initial annual public-sector energy savings

– Annual CO2 emissions reduced by 63,000 tons

– “Energy charter” signed by all 127 municipalities

– 17 new companies, 150 energy efficiency expert jobs created– $4 million in UNDP-GEF funding leveraged $30 million in additional investment

Louisa Vinton, “Going green with Gašpar”, Development and Transition 18


Tourism

• Major export service (MNE, ALB, HRV, TUR)• Huge seasonal employment, incl. migration (HRV, MNE,

SRB)• Potential for development– Eco- and agri-tourism (HRV, MNE)– Energy efficiency of transport– Energy efficiency of accommodation

• Green Jobs– Primary: big number of low to medium skill jobs, some high skill

jobs– Significant secondary effects


Tourism footprint: transport and energy efficiency matters

Two weeks vacation for two in Montenegro, some 1000 km from home.

Air travelLow EE hotel

Rental cars/taxis

Own carMedium EE hotel

TrainHigh EE hotel

Public transport

—30%

—75%

Source: Project Towards Carbon Neutral Tourism in Montenegro


UNDP experience—Montenegro• Project “Towards Carbon Neutral Tourism in Montenegro” (EUR 3.09 mln. GEF,

2014-2019)• Scope to reduce emissions of greenhouse gases in the Montenegrin tourism sector • How to?

– Policies and regulations to reduce the level of carbon dioxide (CO2),– Sustainable funding mechanisms,– Major investments in tourism infrastructure with low CO2 emissions– Raising public awareness on environmentally friendly tourism.

• Expected results:– Eco-certificate for at least 200 officially registered tourist facilities (100 large facilities

and 100 private accommodations)– Direct effects on reducing emissions of greenhouse gases 77 kt of CO2 equivalent per

year for a period of 20 years after the investment in this project.– Indirect effects on reducing emissions of greenhouse gases 174 kt of CO2 equivalent by

the end of 2023, more than 360 kt of CO2 equivalent by the end of 2028.


Migration is not standalone issue but a part of labour market issues


Migration as a potential source of green skills remittances?

Source: IOM “Labour Mobility as a Factor of Development in South-East Europe”, 2015

MontenegroAgricultureConstrictionTradeTourism

CroatiaAgricultureConstrictionTourism ↘ Shipbuilding


Skills profile for green jobs

• Future employment in green jobs (changes):– Additional jobs in several areas (eg pollution-

control)– Substitution of employment (eg from fossil fuels to

renewable, landfill to recycling)– Particular jobs may be eliminated (eg banned

packaging)– Re-skilling of existing jobs (eg plumbers,

construction etc)• Skills forecasting and investment required


Skill mismatch for Green Economy

Green demand

Green demand

Students enrolled in tertiary education Serbia 2012/2013

Green demand


Policy Implications• Coordinate environmental, economic and social concerns in national

development policies• Coordinate investments in jobs and skills, improve flexibility (life-long

learning)• Better match skill supply to labour market• Specific training and expanding opportunities for disadvantaged groups• Use peer learning to spread sustainable practices and use of new green

technologies (B2B)• Public private partnership in key sectors for green jobs• Mobilize highly skilled nationals in the diaspora and migrants to contribute

to green transitions• Raise awareness and link it with skills development


Thank you very much!

[email protected]@undp.org

@UNDPEurasia

mailto:[email protected]

mailto:[email protected]

https://twitter.com/UNDPEurasia











Documents

Green Jobs for the Green Economy George Bouma, Team Leader, Sustainable Development Cluster Mihail Peleah, Programme Specialist Green Economy and Employment