Green Jobs

1. Green Jobs 1. Green Jobs Concept 2. Current Situation and Future Prospects in China 3. ILO Technical Cooperation Programme Constance Thomas, Director, ILO Office for China and Mongolia, Guiyang, Guizhou, August 2009

2. 1. Introduction to Green Jobs Initiative and green jobs concept

3. Green Jobs Initiative • Green Jobs Initiative, started in 2007, is a joint initiative by • International Labour Organization (ILO) • United Nations Environmental Programme (UNEP) • International Employers Organization (IOE) and • International Trade Union Confederation (ITUC). • The objective of the Green Jobs Initiative is to help countries in realizing the potential for green jobs and positive labour market transition in the face of climate change. • The Green Jobs Initiative responds to the dual challenge of climate change and decent work deficit.

4. “The mounting cost of energy-intensive production and consumption patterns is widely recognized. It is timely to move towards a high-employment, low carbon economy. Green jobs hold the promise of a triple dividend: sustainable enterprises; poverty reduction; and a job-centered economic recovery.” (Juan Somavia, ILO Director-General, March 2009)

5. “Achieving sustainable development and protecting the earth – our common homeland – is closely bound up with the fundamental interests of peoples of the world as well as the immediate interests of vast numbers of workers. Pursuing the civilized development road of faster productivity growth, better standard of living and sound ecosystem and realizing economic and social development while living harmoniously with nature so that workers live and work in a good ecological environment is the basic purpose of achieving sustainable development as well as important precondition for decent work for all workers.” (President Hu Jintao, China, January 2008)

6. ILO • ILO is a tripartite specialized UN agency, dedicated to bringing decent work and livelihoods, job-related security and better living standards to workers all around the world. • ILO’s Decent Work Agenda consists of four strategic objectives: • Promote and realize standards and fundamental principles and rights at work • Create greater opportunities for women and men to secure decent employment and income • Enhance the coverage and effectiveness of social protection for all • Strengthen tripartism and social dialogue • ILO green jobs programme is a crosscutting initiative combining elements from each of the four ILO strategic areas.

7. What does the Green Jobs Initiative bring into environment debate? • The Green Jobs Initiative brings employment, labour market and social justice perspectives into the environmental and climate change discussion • ILO Green Jobs Initiative promotes better balance between the three pillars of sustainable development.

8. What are green jobs? “Green jobs reduce the environmental impact of enterprises and economic sectors, ultimately to levels that are sustainable.” • I.e. jobs that that contribute to reducing energy consumption, avoid greenhouse gas emissions, improve energy efficiency, minimize waste, and restore ecosystems etc. • Green jobs can be found at all skills levels in different industries, both in rural and urban areas. • E.g. farmers working in carbon sequestration forestry • E.g. R&D engineers in a solar water heater production company • Development and expansion of green industries has also many indirect or induced employment impacts • E.g. job creation in the value chains supplying to solar water heater production or in sales, installation and maintenance of equipment.

9. What are green jobs? • Dynamic, evolving and relative concept • Given technological progress and the urgent need for improvement, the dividing line between what is “green” and what is “not green “ rises overtime. • Different shades of green • Some jobs are only “light green”, e.g. jobs in manufacturing of electric cars • Some jobs are “darker green”, e.g. jobs in public transport with fuel cell buses

10. Employment impacts of LCD Transition to low-carbon economy will affect employment in four ways: • New jobs will be created • Some employment will be substituted (e.g. from fossil fuels to renewables) • Certain jobs may be eliminated • Many jobs will be transformed and redefined (e.g. new skills sets, work methods) ILO concerns: job creation, greening enterprises, refining skills profiles, safe and healthy working conditions, just transition, equitable distribution of jobs, equal access to green jobs, rights protection, social dialogue etc.

11. Sectors with potential for green jobs creation • Energy efficiency: buildings, industry, transport • Renewable energy • Mobility: mass transportation • Recycling and waste management • Sustainable agriculture and forestry • Environmental services

12. 2. Current green jobs situation and future opportunities and challenges in China

13. Current situation and high potential sectors in China Renewable energy • Close to a million people are employed in the wind, solar PV, solar water heating and biomass industries in China. • More than 600,000 of these people are employed in solar water heating(96% of world’s total employment in solar water heating) • China’s installed capacity of solar water heating systems was 100 million square meters in 2006, and the government aims to triple the capacity by 2020. Domestic production is expected to more than double. • This development can have substantial employment effects, both in R&D, production, installation and maintenance

14. Current situation and high potential sectors in China Recycling • In China around 10 million people are involved with recycling, but most of them are in hazardous jobs where labour protection is minimal. • Electronics recycling industry alone employs around 700,000 persons in China, up to 98% of whom work in informal settings. • China is a major destination for e-waste, receiving up to 70% of global shipments in addition to domestic discards. • Improper techniques used during the recovery of raw materials pose severe health and safety risks to employees and the environment. • The sector has great employment potential, but the jobs need to be turned into decent work, i.e. jobs with safe and health working conditions and adequate social protection and rights protection.

15. Current situation and high potential sectors in China Forestry • The Chinese Government plans to increase the afforestation area six-fold in the coming ten years, from current 12 million hm2 to 76 million hm2. • The planned six key projects are estimated to create up to 20 million jobs. • E.g. in Ningbo, Zhejiang, afforestation related projects employ already over 1 million farmers. • Forest sideline industry (e.g. bamboo industry, flower industry) and forest tourism offer enormous employment potential

16. Current situation and high potential sectors in China Energy efficiency in buildings (EEB) • Currently more than 50 percent of all new building construction is taking place in Asia, mainly China. • Construction and operation (i.e. heating and cooling) represents almost 1/3 of China’s total energy consumption. • EEB has huge potential for improving energy efficiency and creating employment, but know-how and skills regarding the use and application of EEB technologies is often lacking. • International example: In Germany a tripartite plus “Alliance for Work and Environment” has created over 200,000 jobs and reduced CO2 emissions around 1 million tons per annum in 2006-2008. With increased investment, the programme expects to triple both results in 2009-2010.

17. Current situation and future challenges in China Declining “brown” industries • The closure of small coal fired thermal power plants caused loss of about 200,000 jobs in 2003-2008, and is estimated to eliminate further 300,000 jobs in 2009-2020. • Employment in coal, quarrying and mining is declining. • China’s shift away from non-wood pulp and paper manufacturing will impact up to 1 million jobs. • Proactive measures need to be taken to support laid-off workers smooth transition to new jobs (e.g. skills training, employment services) and adequate social protection.

18. Five challenges to just transition In order to realize the potential for green jobs and positive labour market transition, China - as elsewhere - needs to respond to five challenges: 1. Employment challenge • In China, 30 million new jobs are needed every year: Why not prioritize creation of green and decent jobs? • E.g. renewables more labour intensive than fossil energy • China’s active labour market policy could advance green economy, e.g. use the employment fund to finance green jobs • Lay-offs, re-employment, planning • Skills gap, skills development • SME development, greening enterprises • Need to involve labour market actors to achieve environmental objectives.

19. Five challenges to just transition 2. Rights and working conditions challenge • Quality of the employment, working conditions, application of labour law, rights protection, security of the employee, procedural protection 3. Social Protection Challenge • Extension of unemployment benefits, enhancing social security 4. Social Dialogue Challenge • Meaningful worker participation, collective bargaining, consultation 5. The equity challenge • Equal access to green jobs for all without discrimination • E.g. ensuring that also women have access to new green jobs in traditionally “male” sectors

20. 3. ILO green jobs programme and technical cooperation activities in China

21. ILO green jobs programme five priorities 1. Developing tools for diagnosis of labour market impacts and for policy formulation 2. Practical approaches to just transition (adaptation, restructuring, skills) 3. Practical approaches to the greening of enterprises 4. Promotion of green jobs in waste management and recycling 5. Promotion of green jobs in renewable energy and energy efficiency

22. ILO green jobs country programme activities • Bangladesh: waste management and renewable energy • Brazil: biofuels, green jobs in social housing • China: greening enterprises, job creation, mapping climate change impacts on employment • Costa Rica: sustainable agriculture and eco-tourism • Haiti: infrastructure for adaptation to climate change • India: local development and renewable energy, green jobs and employment guarantee • Philippines: local development for adaptation to climate change • Somalia: adaptation to climate change • Tanzania: waste management • Thailand: greening enterprises

23. ILO green jobs country programme activities - examples India: local development and renewable energy • ILO and Development Alternatives established a livelihood training academy and community centers to facilitate green SME development, job creation, vocational skills training • Inclusion of green jobs concerns in national environmental policy and skills policies Bangladesh: renewable energy and waste management • ILO partners with Grameen Shakti to extend renewable energy supply to rural areas and to train women for jobs in installment and maintenance • Bio-slurry treatment, biogas plants, organic fertilizer production • Matching micro credits with ILO entrepreneurship training

24. ILO green jobs programme in China Three pronged approach: • Building knowledgebase on green jobs and sharing experiences to inform policy making: • Promoting green business start-up • Supporting enterprises in transition

25. ILO green jobs programme in China 1. Building knowledgebase on green jobs and sharing experiences to inform policy making: • Research on employment impacts of transition to low carbon economy: Quantification of employment impacts in energy sector, forestry and basic industries, and projections for future impacts. (RCUDE/CASS) B. Research on green jobs and fair transition in the energy sector: Empirical study on fair transition challenges, conditions of employment, employee profiles and skills gaps in energy sector companies in Inner Mongolia and Tianjin. (CALSS/MOHRSS)

26. ILO green jobs programme in China • Value Chain Assessment in solar water heater clusters in Dezhou, Shandong: Value chain analysis to identify good practices, support needs (incl. skills gaps), job creation potential, and intervention points for support measures at different levels of the value chain – including production, installation and maintenance. (CALSS/MOHRSS) D. “Skills for Green Jobs” country study in China:Mapping of changing skills requirements in eight different occupations or skills sets in different sectors (both new green occupations and transforming traditional occupations). (CALSS/MOHRSS)

27. ILO green jobs programme in China E. International experience sharing: ”China Green Jobs Experience Sharing Meeting” in Beijing, March 2009, incorporated technical inputs from six international experts, six ILO specialists and over 20 Chinese specialists and company representatives. (MOHRSS) • National experience sharing and interagency dialogue: ”Green Jobs briefing and consultation meeting” in Beijing, January 2009, brought MOHRSS, NDRC, MEP, CEC, ACFTU, academia and civil society organizations for the first time together to discuss green jobs in China. (MOHRSS) • Green Jobs training course in ILO International Training Center, Turin: The Chinese tripartite delegation joined the course with participants from six countries, including India and Bangladesh, February 2009.

28. ILO green jobs programme in China 2. Promoting green business start-up • Green Business Options (GBO) training module has been developed to supplement the existing ILO Start and Improve Your own Business (SIYB) training course. GBO module supports entrepreneurs in formulating a green business plan, assessing its feasibility and putting it into practice. (MOHRSS) • GBO trainings are piloted with two target groups: • In Sichuan earthquake area to help local entrepreneurs rebuild their businesses “better and greener” • In 20 universities and training institutions throughout the country targeting young graduates interested in business start-up.

29. ILO green jobs programme in China 3. Supporting enterprises in transition • Continued cooperation with UNIDO to support enterprises in upgrading their human resources management and environmental management systems, and to train workers and managers on workplace cooperation, energy saving and environmentally sound work practices. (CEC) • Piloted in 5 renewable energy enterprises in Beijing and Hebei. • Implemented as part of the ILO “Sustaining Competitive and Responsible Enterprises” (SCORE) project, which continues the work of the previous “CSR in Chinese Textile Industry” project (2007-2008).

30. ILO green jobs programme in China Funding: Current ILO technical cooperation activities on green jobs are funded from two sources: • China Climate Change Partnership Framework (CCPF), Joint UN project under the Spanish GovernmentMDG Achievement Fund (May 2008 – December 2010) • ILO RBSA Green Jobs Initiative pilot activities (August 2008 – December 2009)

31. Lessons learned from ILO green jobs pilot activities • Interagency cooperation and policy coherence are a key to effective promotion of high-employment low-carbon economy • MOHRSS + CEC, ACFTU • NDRC • MEP • Environmental sustainability goals need to be taken into account in formulation of labour market measures and policies! • Employment promotion considerations need to be incorporated into environmental protection and climate change policies!

32. Thank you! _________________________________________________________ Learn more about green jobs: Key publication: “Green Jobs: Towards decent Work in a Sustainable Low Carbon World”, Worldwatch Institute/ UNEP, ILO, OIE, ITUC, 2008 • ILO Green Jobs website, www.ilo.org/greenjobs • ILO International Training Center green jobs website, greenjobs.itcilo.org • ILO Office for China and Mongolia green jobs website, www.ilo.org/china