Green stimulus yields economic benefits
Kathleen Rogers considers the pragmatic benefits of a green stimulus for the world economy.
BY Kathleen Rogers | Mar 26, 2009

A quick fix does not exist for the worldwide economic crisis. Unemployment rates continue to climb and banks are still on the edge of financial collapse. Around the world, governments are pushing for billions of dollars in economic stimulus to rebuild.

The “green” industry is no different. Large-scale wind and solar projects shut down as credit dried up in the financial crisis. Renewable energy companies were forced to cut jobs.

Yet earlier this year at the World Economic Forum, it was announced that an estimated US$550 billion investment in green technologies was needed each year to achieve the goals set for emission standards. Despite these difficult economic times, the renewable energy sector is expected to grow this year.

World leaders will, by all accounts, be there to help. The economic environment is dismal, but it presents an opportunity for what has been called the "Green New Deal". Governments around the world are attempting to fill the financial void left when creditors backed out. They have pushed investments in green technologies to be included in stimulus packages and have provided incentives for people to choose green solutions.

World leaders recognise the long-term economic impact the assistance will provide by creating jobs, keeping greening projects on track, and providing energy savings.

The US stimulus package is expected to put about US$40 billion toward energy efficient and renewable energy costs such as weatherising and the "smart electricity grid". In addition, US$4.3 billion in tax credits will be handed out to homeowners who make their homes more energy-efficient.

The UK is expected to announce a campaign in which more than one in four homes would be offered an eco-makeover to combat global warming and fuel usage. The project would provide skills training and thousands of jobs for years to come.

Japan’s Prime Minister has ordered the creation of a "Green New Deal" focusing on cutting greenhouse gasses.

The second stimulus packages in Australia and Germany are both considering picking up the funding of current green projects and efforts to cut emissions.

Economic recovery packages around the world have taken advantage of the opportunity to retool the global economy by providing incentives so corporations, schools, and homeowners can gain access to and implement "greening" resources in their businesses and lives.

These efforts can be a catalyst to a sustainable, green economy rather than continuing funding to shovel-ready projects - training yesterday’s workers with the skills for today’s green jobs; changing the way the infrastructure of nations is built through green schools and homes; making it easier to implement the green technologies we have possessed but never fully used before.

It is time to build a new economy. Like the economic stimulus packages, the impact of green technologies may not be seen today or tomorrow. But a month from now, a year from now, homes, schools, offices and communities will see the financial, health, and environmental benefits.

Kathleen Rogers is the President of the Earth Day Network.


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