Cleantech, Labor, and Workers' Rights
As the world grapples with the urgency of the climate crisis and its impact on every area of life and business, the transition to a low-carbon economy catalyzed by clean technology —commonly known as cleantech—has emerged as a key part of the solution. According to the Sustainable Energy in America 2024 Factbook, the U.S. invested more than $303 billion in energy financing in 2023, second only to China, which spent $676 billion.
Estimates show that public and private investments in clean technologies including energy and other sectors in the U.S. have increased by more than 70 percent since 2021.
So, what exactly is cleantech? Cleantech refers to products, services, and processes that use renewable materials and energy sources to reduce emissions and environmental impact. In other words, cleantech refers to technology contributing to sustainability and environmental harm reduction, including a broad set of industries working to reduce the carbon footprint of traditional sectors, such as sustainable agriculture and energy-efficient manufacturing.
With a steady increase in cleantech investments come technological advancements and opportunities to generate new jobs in research and development, installation, maintenance, and other areas. Energy jobs, in particular, tend to pay higher wages than the national average, making cleantech a significant avenue for economic growth. Recently, the industry has seen regional success with about one-third of clean energy jobs in Texas and California, Georgia, leading the country in planned jobs around cleantech, and available clean energy jobs in Minnesota growing nearly five times faster than the state's overall job numbers, illustrating the potential of the green economy to drive rapid job creation.
However, the industry's rapid growth has raised questions about labor and workers' rights issues. As industries transition, how this shift will impact workers and the future of labor must be considered, or the risk of perpetuating and exacerbating existing inequalities is high. For instance, over 1.5 million workers are estimated to be displaced by the decline of fossil fuel industries. This potential job displacement and the continued expansion of cleantech has created a need for worker support through retraining, upskilling, and ensuring that new green jobs are accessible for historically marginalized communities, such as Black and Indigenous people, women, disabled, and low-income workers.
Union and worker advocacy groups must be included in the conversation for a sustainable and just transition. These organizations will be critical in advocating for fair wages, safe working conditions, and long-term job security for workers who otherwise may be overlooked. Their involvement will ensure that workers' voices are heard and that labor standards are upheld. Some states have already launched cleantech transition programs or are working to center workers in their plans for a shift toward cleantech—
Georgia’s Quick Start Program provides customized job training to companies to prepare workers for jobs in clean energy manufacturing.
Illinois has 13 clean job workforce hubs run by community organizations to provide job training programs.
New Mexico’s 2019 Energy Transition Act calls for severance pay and funding for job training for workers who lose their jobs due to a transition away from coal mining.
Michigan has created a Community and Worker Economic Transition Office with their Department of Labor of Economic and Opportunity to create and retain jobs in manufacturing and energy.
The cleantech transition is more than just a shift toward sustainable energy; it is an opportunity to create an inclusive economy that prioritizes environmental sustainability and workers' rights. With careful attention to labor rights, fair wages, training opportunities, and inclusion, we can safeguard the transition to cleantech and a green economy that does not leave workers behind.
