Green Horizons: Biden’s Economic Blueprint for Sustainable Growth and Resilience

Civil engineers at construction site. Photo by John Kakuk via Pexels.
Civil engineers at construction site. Photo by John Kakuk via Pexels.

Legislative Milestones and Economic Goals

Between November 2021 and August 2022, President Bident signed into law three significant economic policy laws: the Bipartisan Infrastructure Law (BIL), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act. These laws aim to significantly boost U.S. investments in clean energy, manufacturing, and infrastructure and thereby create millions of new jobs while also laying the foundation for sustainable economic growth and environmental resilience.

Impact Analysis: Job Creation and Sector Growth

The February 2024 report Labor supply, labor demand, and potential labor shortages through new U.S. clean energy manufacturing and infrastructure laws by Jeannette Wicks-Lim and Robert Pollin, professors at the Political Economy Research Institute (PERI), University of Massachusetts Amherst, considers the BIL, the IRA, and the CHIPS Act in relation to their employment impacts within the U.S. economy.

Construction and manufacturing sectors stand to gain immensely from these policies, with substantial investments earmarked for infrastructure projects, renewable energy initiatives, and semiconductor manufacturing. The service sector is also poised for growth, benefiting from increased demand and investment in green technologies and services.

Occupations in engineering, construction, renewable energy, and technology are witnessing the largest increases in labor demand. These high-demand occupations vary in job entry requirements, offering opportunities for workers with diverse skill sets and educational backgrounds.

Overcoming Labor Market Challenges

While these policies are set to boost job creation, they also pose challenges in terms of labor supply, potentially leading to shortages in certain sectors. A detailed analysis of sectoral and demographic composition highlights the need for strategic interventions to address these gaps.

To mitigate labor shortages, the focus has shifted towards apprenticeships, job training programs, and enhancing the role of community colleges and unions in workforce development. These measures are crucial for equipping workers with the skills needed for the jobs of tomorrow.

Economic and Social Ripple Effects

The ripple effects of enhanced job creation are vast, impacting regional economies and contributing to narrowing demographic disparities in employment. These policies are instrumental in promoting economic equity and social mobility across the United States.

The evolving job market presents both challenges and opportunities for the U.S. workforce. Adapting to new job requirements and investing in upskilling and reskilling are imperative for workers to thrive in this new economic landscape.

Comparative Analysis with Previous Employment Trends

A comparative analysis with previous administrations reveals the significant impact of government policy on job creation and economic growth. The Biden administration’s proactive approach marks a notable departure from past trends, emphasizing long-term investments over short-term fixes.

Final Thoughts

The Biden administration’s economic policy reforms signify a bold step forward. By fostering job creation, stimulating growth, and addressing environmental challenges, these policies are setting the stage for a prosperous and sustainable future. As these policies unfold, their full impact on employment and economic dynamics across the nation will become increasingly clear, heralding a new era of prosperity and resilience for the American workforce. Continuous monitoring of these initiatives’ impact on the job market and the broader economy helps ensure that the benefits are felt by all Americans.

Latin America and the Caribbean: Pioneers in the Global Energy Transition

Latin America Energy Outlook 2023 report cover
Latin America Energy Outlook 2023

The latest IEA report, Latin America Energy Outlook, shines a spotlight on Latin America and the Caribbean, underscoring their pivotal role in the global energy landscape amidst rising geopolitical uncertainties and rapid energy transitions. This region, rich in energy and mineral resources and a leader in clean energy, is poised to significantly influence both regional and global energy sectors.

A Resource-Rich Region with a Clean Energy Legacy

The Latin America Energy Outlook, IEA’s first comprehensive analysis covering all 33 countries in the region, reveals a treasure trove of resources. From renewables like hydropower, wind, and solar to oil, gas, and vital minerals, the region is well-equipped to contribute to global energy security and clean transitions. This report is a culmination of extensive collaboration with regional governments, experts, and stakeholders, building on IEA’s long-standing engagement with the area.

Renewables account for 60% of the region’s electricity production, double the global average, with hydropower leading the charge. Countries like Brazil, Mexico, Chile, and Argentina are also home to some of the best wind and solar resources globally. Furthermore, the region is a significant bioenergy player and a leading biofuel exporter.

A Potential Global Energy Powerhouse

Latin America and the Caribbean hold about 15% of the world’s oil and natural gas resources. The region is also crucial for producing minerals essential for clean energy technologies, boasting about half of the world’s lithium reserves and significant proportions of copper and silver. This clean electricity supply is the backbone for sustainable mining and processing of these materials.

IEA Executive Director Fatih Birol highlights the region’s potential in the new global energy economy, emphasizing the need for supportive policies and international cooperation to fully harness this potential.

Challenges and Opportunities Ahead

Despite the promise, the report identifies a policy implementation gap. While 16 of the 33 countries have committed to net-zero emissions by mid-century, current policies still heavily rely on fossil fuels, especially for road transport. However, if pledges are realized, renewables could meet all new energy demands this decade, increasing oil exports and driving low-cost, low-emissions hydrogen production. This shift would also double long-term revenues from critical minerals to nearly USD 200 billion.

Key Actions and Investments for a Sustainable Future

To reduce energy-related CO2 emissions, the report suggests four key actions: ramping up renewable energy, electrifying industry and transport, advancing energy efficiency, and improving access to clean cooking solutions. Investment in clean energy projects needs to double by 2030 to USD 150 billion and rise fivefold by 2050.

Towards a Greener Future

The region, already engaged in the Global Methane Pledge and the Glasgow Pledge to halt deforestation, is on a promising path. The IEA is committed to supporting these transitions, as Latin America and the Caribbean stride towards a secure and fairer global energy system.

Fossil fuel emissions still increasing

Photo by Patrick Hendry on Unsplash
Photo by Patrick Hendry on Unsplash

‘This year we see yet another rise in global fossil CO2 emissions, when we need a rapid decline.’

By Brendan Montague, The Ecologist (Creative Commons 4.0)

Global carbon emissions in 2022 remain at record levels – with no sign of the decrease that is urgently needed to limit warming to 1.5°C, according to the Global Carbon Project science team.

If current emissions levels persist, there is now a 50% chance that global warming of 1.5°C will be exceeded in nine years.

The new report projects total global CO2 emissions of 40.6 billion tonnes (GtCO2) in 2022. This is fuelled by fossil CO2 emissions which are projected to rise 1.0% compared to 2021, reaching 36.6 GtCO2 – slightly above the 2019 pre-COVID-19 levels. Emissions from land-use change, such as deforestation, are projected to be 3.9 GtCO2 in 2022.

Schematic representation of the global carbon cycle
Global Carbon Budget 2022 — Schematic representation of the overall perturbation of the global carbon cycle caused by anthropogenic activities averaged globally for the decade 2012–2021. See legends for the corresponding arrows and units. The uncertainty in the atmospheric CO2 growth rate is very small (±0.02 GtC yr−1) and is neglected for the figure. The anthropogenic perturbation occurs on top of an active carbon cycle, with fluxes and stocks represented in the background and taken from Canadell et al. (2021) for all numbers, except for the carbon stocks in coasts, which are from a literature review of coastal marine sediments (Price and Warren, 2016). (Creative Commons Attribution 4.0 License)

Atmospheric

Projected emissions from coal and oil are above their 2021 levels, with oil being the largest contributor to total emissions growth. The growth in oil emissions can be largely explained by the delayed rebound of international aviation following COVID-19 pandemic restrictions.

The 2022 picture among major emitters is mixed: emissions are projected to fall in China (0.9%) and the EU (0.8%), and increase in the USA (1.5%) and India (6%), with a 1.7% rise in the rest of the world combined.

The remaining carbon budget for a 50% likelihood to limit global warming to 1.5°C has reduced to 380 GtCO2 (exceeded after nine years if emissions remain at 2022 levels) and 1230 GtCO2 to limit to 2°C (30 years at 2022 emissions levels).

To reach zero CO2 emissions by 2050 would now require a decrease of about 1.4 GtCO2 each year, comparable to the observed fall in 2020 emissions resulting from COVID-19 lockdowns, highlighting the scale of the action required.

Land and ocean, which absorb and store carbon, continue to take up around half of the CO2 emissions. The ocean and land CO2 sinks are still increasing in response to the atmospheric CO2 increase, although climate change reduced this growth by an estimated 4% (ocean sink) and 17%  (land sink) over the 2012-2021 decade.

Meaningful

This year’s carbon budget shows that the long-term rate of increasing fossil emissions has slowed. The average rise peaked at +3% per year during the 2000s, while growth in the last decade has been about +0.5% per year.

The research team – including the University of Exeter, the University of East Anglia (UEA), CICERO and Ludwig-Maximilian-University Munich – welcomed this slow-down, but said it was “far from the emissions decrease we need”.

The findings come as world leaders meet at COP27 in Egypt to discuss the climate crisis.

“This year we see yet another rise in global fossil CO2 emissions, when we need a rapid decline,” said Professor Pierre Friedlingstein, of Exeter’s Global Systems Institute, who led the study.

We are at a turning point and must not allow world events to distract us from the urgent and sustained need to cut our emissions.

—Professor Corinne Le Quéré, Royal Society Research Professor at UEA’s School of Environmental Sciences

“There are some positive signs, but leaders meeting at COP27 will have to take meaningful action if we are to have any chance of limiting global warming close to 1.5°C. The Global Carbon Budget numbers monitor the progress on climate action and right now we are not seeing the action required.”

Emissions

Professor Corinne Le Quéré, Royal Society Research Professor at UEA’s School of Environmental Sciences, said: “Our findings reveal turbulence in emissions patterns this year resulting from the pandemic and global energy crises.

“If governments respond by turbocharging clean energy investments and planting, not cutting, trees, global emissions could rapidly start to fall.

“We are at a turning point and must not allow world events to distract us from the urgent and sustained need to cut our emissions to stabilise the global climate and reduce cascading risks.”

Land-use changes, especially deforestation, are a significant source of CO2 emissions (about a tenth of the amount from fossil emissions). Indonesia, Brazil and the Democratic Republic of the Congo contribute 58% of global land-use change emissions.

Transparent

Carbon removal via reforestation or new forests counterbalances half of the deforestation emissions, and the researchers say that stopping deforestation and increasing efforts to restore and expand forests constitutes a large opportunity to reduce emissions and increase removals in forests.

The Global Carbon Budget report projects that atmospheric CO2 concentrations will reach an average of 417.2 parts per million in 2022, more than 50% above pre-industrial levels.

The projection of 40.6 GtCO2 total emissions in 2022 is close to the 40.9 GtCO2 in 2019, which is the highest annual total ever.

The Global Carbon Budget report, produced by an international team of more than 100 scientists, examines both carbon sources and sinks. It provides an annual, peer-reviewed update, building on established methodologies in a fully transparent manner.