Leaders big on green stimulus promises

If you're new here, you may want to subscribe to our or .

| Sourced From |

Calls for a ‘Green New Deal’ to ward off the worst of the worldwide recession and steer a recovering world economy onto a greener footing grew to a roar by the end of 2008. In the first weeks of the New Year, politicians around the world are responding to those calls with announcements of green stimulus packages coming thick and fast.

But it will take the full course of 2009 and beyond to tell just how substantive these measures will be – whether our leaders really are plotting a course for a greener world or paying lip service to the idea to be seen to be doing something during a time of great political and economic pressure.

The idea is that governments have a unique opportunity at the moment to shift their economies onto a low carbon footing while things are down. Massive government spending programs are needed to underpin recessed economies to create jobs and keep a lid on unemployment. So why not choose to spend these vast amounts on renewable energy capacity, low-emissions technologies and energy efficiency measures to get a double win – for people and the environment at the same time.

The United Nations is at the forefront of the push for a green revolution, launching both a Global Green New Deal and Green Economy Initiative campaigns in late 2008. Achim Steiner, executive director of the UN Environment Programme (UNEP) renewed the call last week to “counter recession and unemployment” and lay the basis for more sustainable economic growth in the 21st century. UNEP also believes it will help pave the way toward a new global climate agreement facing a deadline of December 2009 in Copenhagen.

So far, leaders in the United States, Great Britain, Japan, Germany and Korea are among those announcing plans for large-scale, green-rescue expenditure.

Last week, US President-elect Obama put more meet on the bones of his election and post-election commitments to spend big on a green energy revolution to reduce foreign oil dependence and cut greenhouse emissions. As part of a wider $775 billion American Recovery and Reinvestment Plan, Obama plans to spend $150 billion over ten years on energy and environment measures. They include doubling alternative energy supplies in three years, overhauling 75 per cent of federal government buildings and two million private homes for greater energy efficiency, and building a new “smart” electricity grid.

“In the process, we will put Americans to work in new jobs … building solar panels and wind turbines, constructing fuel-efficient cars and buildings, and developing the new energy technologies that will lead to even more jobs, more savings, and a cleaner, safer planet in the bargain,” Obama said in his speech.

Obama cited economic analysis produced for his incoming administration showing that of three to four million jobs potentially created by the overall stimulus plan, 500,000 stand to be in clean energy and energy efficiency.

Japan’s environment minister Tetsuo Saito last week announced plans to create a “green business market” worth $11 billion and adding one million new environment-related jobs by 2015. The full stimulus programme will not be released until March but will include zero-interest loans to environmentally-friendly companies.

In Britain, business minister Peter Mandelson talked of similar goals at a government-initiated jobs summit yesterday. Mandelson also targeted one million green jobs for the UK by the middle of the next decade – by capitalising on the country’s position already as a major player in the $4.4 trillion (€3.3 trillion) global market in green goods and services. The government will unveil a low carbon industry strategy within a month or so.

South Korea says it will invest $38 billion in 36 projects to create 960,000 jobs building green transport networks, energy-saving homes and cleaning up the country’s rivers.

German Chancellor Angela Merkel this week promised a $67 billion (€50 billion) subsidy for the country’s car industry tied to the development of world-leading green vehicles with the lowest greenhouse emissions. One in seven Germans are employed directly or indirectly in the high-export automotive sector and sales have collapsed in recent months

In Australia, environment groups and trade unions have joined forces to call on the Rudd Government to follow the lead of the US and others in a multi-billion dollar green stimulus package including building retrofitting, sustainable infrastructure and green jobs policies. The government has delayed finalising a policy to meet an election promise to meet a renewable energy target of 20 per cent by 2020. It’s not expected before mid-2009.

Around the world, the promises are enormous – billions upon billions in public money to be spent putting industry and homes on a cleaner, greener footing. By the beginning of 2010, if governments and leaders follow through, these commitments should be starting to bear fruit and the puclic can begin to hold them to account. The first evidence of a green shift and job creation (or reduced job shedding) should be appearing.

Sources: Agence France-Presse 11-12/1/09, Environment News Service, Business Green, Climate-L.org 12/1/09.