09 May How the IRA is driving green jobs in the US
The US Inflation Reduction Act (IRA) included a promise of $370 billion in tax credits for the renewable energy industry. The goal is to reduce national greenhouse gas emissions by 40% below 2005 levels by 2030, but what has the impact been since implementing the new measures?
According to recent studies, over 100,000 green industry jobs emerge in the US within six months of officially introducing the IRA. Non profit organisation Climate Power, believes that from the end of January 2023, 94 clean energy projects were in operation, representing a collective figure of $90 billion in new private industry investments.
The wind, solar an electric vehicle industries are delivering new jobs for technical, mechanical and construction professionals. A recent report suggests that over 9 million green industry jobs could be created over the next decade. According to Lor Lodes, the executive director of Climate Power, thanks to the affordable clean energy plan, businesses are accelerating investment plans and delivering well paid jobs nationwide. Lodes believes this is just the beginning, highlighting that it has only been a few months since the IRA began and the country is already witnessing the benefits, while reducing emissions that impact the health and wellbeing of communities nationwide.
Recent studies highlight several states where billions of dollar have been invested in new green jobs since the IRA came into effect. This includes:
Georgia: currently over $15 billion has been invested, which has resulted in the generation of over 16,000 green industry jobs. This includes over $9 billion invested by Hyundai to develop battery facilities to support EV manufacturing across the US.
Tennessee: Over $10 billion of clean energy investment generating nearly 12,000 regional jobs. The state is due to construct a series of battery sites, a lithium hydroxide plan and Ford Motors is constructing a $5.6 billion EV manufacturing facility.
Michigan: Over $7 billion has been invested, generating 9,500 clean energy jobs and a predicted 167,000 new jobs over the next decade. EV charging business, Flo is introducing the first national manufacturing facility in the state, with a goal to deliver over 250,000 EV chargers for US drivers.
Back in 2021, according to the International Renewable Energy Agency (IRENA) there were approximately 923,000 clean energy jobs in the US and IRENA predict this figure to rise into the millions by 2030. However, the accelerated rise in green industry jobs is happening worldwide. The renewable energy jobs annual review by IRENA states employment in the renewable energy industry could exceed 38 million worldwide by 2030. Global employment in the clean energy industry increased by 700,000 from 2020 to 2021, reaching 12.7 million jobs.
Solar energy was responsible for the largest share of renewable energy jobs (4.3 million) and wind power provide 1.3 million new jobs. The World Economic Forum has highlighted the importance of the green industry on delivering future health and stability for the global economy. In a recent report, the Form notes that the climate challenge an geopolitical tensions are speeing up the shift towards greener economics and greater energy independence. Creating a socially inclusive and environmentally sustainable economy is critical for many nations. In the Jobs of Tomorrow white paper, the discussions intend to quantify the requirement for green and social jobs in ten countries by 2030 in order to achieve its inclusion and environmental goals. It represents a requirement for governments and businesses to prioritise investment in these areas, and the sectors that support them.
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