Clean energy economy growing roots, sprouting green jobs

While the clean energy sector is still a relative sapling, a new study shows it will become an important player in the U.S. economy.

From 1998-2007, the clean energy economy grew 2.5 times faster than overall jobs, according to a study by the Pew Charitable Trusts. And with the wheels of government slowly churning out greener policies, the future of clean energy looks bright.

California leads the way with 125,390 clean jobs and 10,209 of America’s 68,203 clean businesses, according to the report. These companies include everything from hydrogen fuel cell makers to solar wind power transmitters to the designers of traffic monitoring software.

“In 2008, there was a quantum leap in talent, resources and institutional appetite for clean technologies. Now, more than ever, clean technologies represent the biggest opportunities for job and wealth creation,” said Nicholas Parker, chairman
of the Cleantech Group.

States are amping up double bottom line policies – those that help the economy and environment simultaneously. At this time, 46 states give tax incentives for the use of renewable energy, and 29 states have renewable energy power standards.

Obama’s $85 billion stimulus for energy and transportation doesn’t hurt either. By 2025, Obama’s plan calls for 25 percent of the nation’s energy to come from renewables.

But the green economy still has a long way to go. While there were 770,385 green jobs in the U.S. in 2007, the traditional energy sector boasted 1.2 million.

During the current recession, some states are truly banking on green jobs to bring back dismal unemployment figures. As the heart of the U.S. auto industry and with more than 12 percent unemployment, Michigan could use a big dose of green.

One of the most exciting aspects of the green economy is the amount of venture capital currently flowing in. The amount of venture capital in this sector has increased by $1.6 billion a year. In 2008, it made up 15 percent of global venture capital investments.

The time is ripe to take advantage of the growing number of opportunities in the green economy. Policymakers, entrepreneurs and venture capitalists who act fast are likely to flourish.