Guest blog by Greg Barker, Minister of State for Energy and Climate Change.
This week, Mr. Barker is leading a six-company business delegation to Pennsylvania, DC, North Carolina and South Carolina.
An interesting lexicon is developing as our society and our global economy changes:
wOOt- an electronic expression of enthusiasm.
Bajillion- a large number.
Shovel-ready.
Game-changer- an idea or event that changes thinking.
Bandwidth- energy and capacity to deal with a situation.
The green economy is also giving us some new language. Green collar. Biochar. Concentrated solar power. Light-emitting diodes. Smart grid.
But most importantly, the green economy is giving us a bajillion game-changing technologies and economic opportunities that we mustn’t let pass by. How will Pennsylvania and its business community ensure that there is bandwidth to participate in the global green economy?
I’m in Pennsylvania this week to see how the UK and US can work together on this exciting agenda. But I’m also here to send a loud and clear message that the UK is open for green business and investment – and that we want to work with our American partners.
In the UK, we know from our experience that many of the businesses involved in the green economy require high-quality and high skilled jobs – such as in renewable energy and the weatherization of homes and businesses.
The UK’s green goods and services sector is already the 6th largest in the world (valued at $180 billion) and, defying the recession, grew by 4.3% in 2009. Over 900,000 workers are employed in the UK’s green goods and services sector, and that number is expected to reach 1.2 million by 2015.
This growth did not just happen by coincidence or by market forces alone — UK policies are supporting this growth, providing the room for the private sector to invest and succeed.
The UK is developing and implementing policies that are boosting energy independence and energy security by encouraging new energy technologies, while at the same time delivering long-term, sustainable economic growth. These are policies that will help brace the UK against energy price shocks, such as those that we are seeing now with the high price of oil. With the support of these policies, the UK is in a prime position of global leadership in the fields of clean energy innovation, energy efficiency technologies, carbon trading, and product innovation in multiple industrial sectors.
When I visit Pennsylvania, I anticipate a strong report on the growth of its green economy. In its recent study, Pennsylvania’s Department of Labor & Industry reported that already over 180,000 Pennsylvanians are employed in the green goods and services sector. And employers in Pennsylvania predict even more new jobs in this sector, with a green jobs growth rate of 6.2% annually for the next two years. Like the UK, energy efficiency and renewable energy account for most of the growth. Pennsylvania is already the fourth leading state in the U.S. for the amount of solar energy installed (38.5 megawatts), and you expect another 130 megawatts by the end of this year.
This isn’t a trend that’s only taking place in the UK and US. It’s a world-wide phenomenon in which clean energy investment has quadrupled since 2004 – hitting a new high of $243 billion last year. The jump was driven by utility-scale clean energy projects as well as small-scale solar projects, just like those cropping up across the UK and throughout the US. And as evidence that the U.S. is participating in and enjoying this expansion, US venture capital investment in clean technology surged to $3.7 billion in 2010 – a 76% increase over 2009.
The foregoing statistics sound great, but the job of greening the economy is only beginning. We must build on that success.
The purpose of my visit to Philadelphia is to meet with policymakers and businesses in the region to examine how the UK and our US partners can ensure that we position ourselves to seize these rich investment opportunities.
I know that the business community has a substantial stake in these issues which is why I will be accompanied on this visit by distinguished business leaders from Great Britain who have already seized economic opportunities in the green economy through new products, new ventures and improved operations. These are businesses that are “walking the talk” when it comes to the green economy. Leaner and greener businesses like these are not just exciting examples of British innovation, but are a non-negotiable part of the UK’s long-term economic recovery and stability.
Rebuilding aging and polluting energy infrastructure to protect our energy security and reorienting our economies on a green path will take time and enormous capital investment, but there are also huge economic opportunities up for grabs.
The UK stands full square behind the new green economy and the actions of Pennsylvania and the Greater Philadelphia region to develop the bandwidth to grab those opportunities.