The Clean Energy Economy

- Overview

The clean energy economy uses renewable sources (wind, solar) and technologies to drive growth, reducing emissions while creating jobs in manufacturing, EV development, and energy efficiency. 

The clean energy economy is a major economic driver, contributing 10% of global GDP growth in 2023 and offering higher wages than the national average.

1. Key Aspects of the Clean Energy Economy:

• Job Growth and Employment: In the U.S., the clean energy sector employs over 3 million people. It is projected that the global transition to net-zero could create a net gain of 9 million jobs by 2030, with 14 million new jobs in clean energy offsetting 5 million lost in fossil fuels.
• Economic Impact: The sector accounted for roughly $320 billion in global economic growth in 2023. In the U.S., the Inflation Reduction Act has been linked to increased economic output and, as of September 2024, a 7% drop in energy price inflation.
• Investment and Infrastructure: The sector relies on rapid, massive investment in grid infrastructure, as modernizing 80 million kilometers of power lines is required for the transition.
• Key Sectors: The transition is driven by advancements in solar, wind, electric vehicles (EVs), battery storage, and hydrogen. The electric vehicle sector, for example, is experiencing rapid growth, with job opportunities in manufacturing and charging infrastructure.
• Small Business Support: Two-thirds of clean energy jobs in the U.S. are with small businesses with fewer than 20 employees.
• Global Competition: Countries investing heavily in this infrastructure are better positioned to compete globally.

2. Challenges and Opportunities:

• Infrastructure Bottlenecks: Upgrading grids can take 5 - 15 years, requiring swift action to avoid, as the IEA notes, an additional 58 gigatons of 𝐶𝑂2 emissions by 2050.
• Just Transition: The shift presents a need to manage the transition for workers in traditional energy sectors.