Australian Council of Social Service

Jobs growth a feature of new green economy

27 October 2009

Published in The Newcastle Herald

We face major climate change risks unless we move to a low-carbon economy. We can do something about the problem, locally and globally. The benefits of doing something outweigh the costs, and making a start now will be more effective and less expensive.

How we make this change creates both challenges and opportunities.

The introduction of a price on carbon, through a mechanism such as the Federal Government's proposed carbon pollution reduction scheme (CPRS), is a critical step towards a low-carbon economy.

A carbon price sets the scene for decisions by industry to invest in technology for the future. A well-designed CPRS will provide resources for research, development and deployment of new technologies; appropriate assistance for affected industries and regions; and protection for vulnerable individuals and families.

The Australian Council of Social Service (ACOSS) has been working to achieve equitable solutions to the effects of climate change, so that low-income households are shielded from price hikes for essential goods and services and can benefit from new opportunities, such as gaining employment in clean-energy jobs.

On average, low-income earners spend proportionally double of their total weekly household budget on energy and water than wealthier households.

Elsewhere in the world the transition has begun.

Investment in clean energy and low-carbon industry is increasing demand for workers with new skills and ensuring that jobs are available.

There are great opportunities for the Hunter Valley to take part in a new clean-energy future. In conjunction with our partners in the Southern Cross Climate Coalition we have identified the potential for jobs in renewable energy, energy efficiency, and land and water management.

Modelling for the Centre for Full Employment and Equity (CoFEE) in 2008 found that clean renewable energy would create between 7500 and 14,300 new jobs in the Hunter- Wyong region alone.

This would be an overall net gain of between 3900 and 10,650 jobs.

These are conservative estimates, not assuming any wind or solar energy manufacturing in the region.

These would be new, secure, well-paid jobs in the research, design, manufacture, installation, maintenance and export of energy efficiency and renewable energy technologies.

The CSIRO Energy Centre in Newcastle and University of Newcastle are great local assets that can contribute to the Hunter playing a leading role in a low-carbon future.

These jobs will require people with a range of skill sets.

A critical first step is identifying these skills and building them locally. As part of this we need to ensure low-income and low-skilled people don't miss out on the new clean-energy jobs.

Australia can also make huge savings in carbon emissions and create new jobs by transforming office buildings and homes so they are more energy efficient. There are already state and federal government-funded programs to support this refilling in homes and office buildings.

In looking for solutions we must make links to get the full benefits.

For example, projects supported through an economic stimulus should strive for high standards of energy and water efficiency and ensure local disadvantaged jobseekers get a share of the employment generated.

The stimulus has been effective as a short-term spur to employment and mid-term economic stabiliser, but affordable housing and school buildings will be around for many years to come. One legacy of economic stimulus should be a workforce better prepared for a clean-energy future.

Our concerns are to ensure that new industries are genuinely sustainable, jobs are long-term and work is decent. A low-carbon economy provides a major opportunity to unlock thousands of clean energy jobs in the Hunter and across Australia. It also means many existing industries in the Hunter Valley such as horse breeding, wine, crop growing and tourism will thrive from a low-carbon approach. If Australia doesn't take strong action on climate change and invest in clean energy jobs now, the economic opportunities will pass us by.

By Clare Martin, CEO