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Green Jobs for a Just Transition in Asia & the Pacific

A review of the preliminary steps for action

By Vincent Jugault, Senior Environment and Decent Work specialist, ILO Regional Office for
Asia & the Pacific

Background paper for the Conference on the Environments of the Poor, 24-26 November
2010, New Delhi.

Summary

The emergence of ‘Green Jobs’ has become emblematic of a more sustainable economy –
and society – that provides for quality jobs and preserves the environment. A world that is
more equitable and inclusive of all people and all countries. Green Jobs promote opportunity,
equity, and a just transition process encouraging governments, employers, and workers to
collaborate on coherent policies and effective programmes that will, at their heart, support a
green economy, with green jobs and decent work for all.

This paper looks into the potential provided by Green Jobs policies in engaging the Asia &
Pacific region on a path to sustainable development while at the same time contributing to
jobs and decent work, in particular for the poor. It provides an overview of the actions that are
already taken in the Asia & Pacific region and suggests possible avenues for the development
of a coherent and inclusive approach to optimize the employment and social objectives in
climate and environment challenged societies.

As a first step, a better understanding of the impacts of environmental changes and the likely
policy responses on the labour market would be important. As of today, uncertainty still
remains on the socio-economic dimensions of climate mitigation and adaptation measures
and the dynamics of carbon intensive and green employment i. This is an area where data and
information is still limited and these issues will be the subject of the first section of the paper.

The concept of green jobs is new and its technical boundaries not necessarily clear to all. In
this context, examples of green jobs being created through public and private investments
and activities will be given in section two to illustrate what types of jobs are green jobs and in
which economic activities can they be found.

A third section will look into what may constitute available strategic options for the fostering of
poles of green growth in developing countries. It may be widely acknowledged that climate-
smart policies can enhance development, reduce vulnerability, and provide short term social,
economic and environmental benefits while directing the economy toward a path of low-
carbon growth. The potential for quality jobs creation in the context of a green recovery in
every country is real. However, the process of greening economies must be piloted carefully
and in accordance with the demographic, economic and environmental profiles of every
country.

Finally, the last section of this paper will highlight both the potential for, and the benefit of
engaging collectively the Governments, worker and employer organizations in the forging and
implementation of balanced policies in the context of a job-centered, green recovery. As
brokers of the ‘real economy’ just transitions are needed that will allow them to implement
changes on the ground and in turn assist their own constituents – those most directly affected
by the impacts of climate change. Some relevant initiatives in the Asia-Pacific region will be
shared as well as suggestions for key steps for policy formulation. This is a field that is still

i
In international climate change negotiations, a working group on the economic and social consequences of
climate response measures has been set up in accordance with paragraph 1 (b)(vi) of the Bali Action Plan (2007).

1
evolving (though with relative speed) and for which the sharing of expertise and experience
within this region and with other regions remains of utmost importance.

1. Understanding the impacts of the environment on the labour market

The direct impacts of climate change and climate variability and other environment
related issues

A thorough understanding of the various mechanisms through which the environment

including climate change and the resulting response measures will affect the labour market is
a prerequisite to the development of labour and social policies in support of a transition to a
more sustainable path. These mechanisms can be of various types and include firstly the
direct effects on businesses and workforces from the environment and climate change itself
(figure 1).

Direct
natural
effects

Public
Labour Policies
Market &

Changing Livelihood
Consumption
Patterns
Voluntary actions by
socio-economic actors &
civil society

Figure 1 - Impacts on environmental and climate changes on the labour market and on livelihoods

In the Arab States, Asia and the Pacific, agriculture, water resources, forestry, energy,
ecosystems, human health and the urban environment are the most exposed sectors. This
vulnerability comes mainly from three factors. The first relates to heavily populated coastlines
and low-lying islands1 . The effects of coastal erosion, the intrusion of saline waters and land
losses are already visible and their impacts felt in many low lying areas of the region. In more
severe climate-change scenarios, rising seas would submerge much of the Maldives and
inundate nearly one-fifth (18 per cent) of Bangladesh2. Due to the unprecedented rapid
growth and development of the region’s urban areas, six of the world’s eight cities most
exposed to flooding and damage from unpredictable weather patterns are located in Asia 3.
Across all cities, about 40 million people are exposed to a 1-in-100 year coastal flood event 4.
Studies show that building protective and climate resilient infrastructure and effective coastal
defences will take 30 years or more. These efforts will represent an increased share of the
budget of local and provincial governments with important repercussions in terms of jobs
creation.

A second driver of vulnerability is the strong reliance on agriculture and water resources for
income and employment. The agriculture sector in developing countries in Asia is expected to
see a decrease of 4 per cent of GDP share due to climate change5. Rising temperatures and
extreme weather events will likely reduce crop yields by as much as 10 per cent as early as
2020, putting 132 million people at risk of extreme hunger by 20506. South Asia in particular is

2
expected to be the worst affected region (together with Southern Africa) by the negative
impacts on important crops7.

Water shortage is a persistent and growing challenge in the agricultural sector which is
responsible for 70 per cent of water consumption. The increase in competitive uses of water,
changing climatic patterns, deforestation and soil erosion, droughts and melting glaciers, all
contribute individually to imposing a major stress on water resources. An estimated 1.2 billion
people could experience freshwater scarcity by 2020 as the fresh water supply is expected to
decrease in Southeast, Central, East and South Asia8. Securing water resources will become
increasingly a critical dimension of climate change adaptation objectives. In this regard, there
is empirical evidence that financing water and wastewater projects creates scores of new
quality ‘green’ jobs and much enhanced economic activity. In addition to valuable public
health and quality of life benefits, one dollar invested in water infrastructure and sanitation
would bring in return 4 to 12 dollars in value9.

A third driver of vulnerability in the region is the dependence on marine resources affecting
primarily, but not limited to, those who depend directly on them. These highly fragile
resources are greatly deteriorating from the effects of municipal, agricultural and industrial
pollution, unsustainable costal management practices and over-fishing. A total of 24-34 per
cent of coral reefs could be lost by 202010.

These drivers of vulnerability have an additional and combined multiplier effect when viewed
together - massive deforestation, loss of biodiversity, soil erosion, water contamination, and
poor waste management. The Stern Review Report11 considers that climate change will
reduce welfare by an amount equivalent to a reduction in consumption per head of between 5
and 20 per cent. Without further mitigation or adaptation, Indonesia, Philippines, Thailand,
and Viet Nam could suffer a mean loss of 5.7 per cent of gross domestic product (GDP) over
the long-term on an annual basis12.

The impacts on the labour market of governments’ policies and actions related to
environmental management

Introducing a low carbon, climate resilient path into the economy will not be possible without a
strong government intervention based on a clear vision and a long term strategy. Market
forces will play an important role but can not, on their own, bring about the conditions of
change that such transformation of the global economic model would necessitate.
Furthermore, a concerted approach for reducing green house gases emissions in an
equitable and effective manner remains a decisive factor for shaping the international and the
regional climate policy framework for the years to come, and much will depend on the
outcome of the on-going climate discussions. In this context, some of the measures that are
crucial for the development of Green Jobs policies and which will have important impacts on
the labour market are laid out below:

Example 1: the setting of ambitious green-house gases (GHGs) emissions targets

The setting of reduction targets for GHGs emissions help give the direction and the long term
vision economic actors require to prepare, finance and implement those reduction plans
which will decisively determine the trends and magnitude of change in labour markets. In
accordance with the Copenhagen Accord, the parties were required to submit national
pledges indicating the levels of cuts and limitations to GHG by 2020 and how these emissions
targets would be met (see table 1). These pledges to the Copenhagen Accord, however, are
voluntary with no accompanying enforcement provisions for the signing countries but the
measures taken by different countries in different sectors will have varying impacts on their
economy. China for instance plans to increase the share of renewable energy in the mix of
energy supply and expand the forestry sector. Both are expected to create large numbers of
(green) jobs. Yet, the magnitude of the climate response policies and the extent to which they
will affect the labour market requires further elaboration. Some projections are made on the
basis of possible policy scenarios which entail the use of a mix of economic and new
technological options.

3
 Table 1 - Information provided by Annex I Parties relating to Appendix I and by non
Annex I Parties relating to Appendix II of the Copenhagen Accord
Non-Annex I Reduction targets by 2020
Comments
Parties compared to 2005 levels
Bhutan Sequesters more than is emitted. Bhutan ensures emissions not exceed sequestration capacity
China 40-45 % per unit of GDP 15% increase of non-fossil fuels in primary energy
consumption, increase forest coverage by 40 million ha.
India 20-25% per unit of GDP by 2020 Targets for renewable energy.
Indonesia 26 % 41 % reduction of GHGs if additional funding available
Jordan - Transport, Energy, Waste, Agricultural and Forestry Sector.
Maldives Carbon neutrality by 2020. -
Marshall Islands 40 % based on 2009 levels -
Mongolia - Energy supply, Building, Industry, Transport, Agriculture,
Papua At least 50% before 2030 Becoming carbon neutral before 2050.
NewGuinea
Rep. Korea 30%. -
Singapore 16 % -

Annex I Reduction targets by 2020

Comments
Parties compared to 2005 levels
Australia 5% up to -15% or -25% 25% on 2000 levels by 2020 in the case of a global deal
stabilising concentration at 450 ppm CO2 -eq or lower.
Japan 25% -
New Zealand Between 10 % and 20 % below If there is a comprehensive global agreement.
1990 levels by 2020

Example 2: the pricing of CO2 emissions

The main instruments in achieving environmental targets at a minimum cost are carbon tax,
cap-and trade schemes and green subsidy reforms. Carbon taxes allow for a broad
application, including energy supply, major carbon emitters from the public and the private
sector, and households. But as they increase production costs, they may lower investment in
employment and yield little employment benefits if not combined with job support policies. In
some developing countries, carbon tax policies may be difficult to implement for lack of
institutional capacity and weaknesses in collecting public revenues.

Cap & trade systems (C&T systems) are the favoured options when considering market
based approaches to reducing GHG emissions. Under this scheme, overall target emissions
are set by Governments (or international organizations) and emissions permits issued for
emitters which trade them among themselves through a supply and demand based
mechanism (as opposed to a fixed rate system as in carbon taxes). The assessed drawbacks
associated to C&T systems are unstable prices, speculation, and the need to institute strict
enforcement mechanisms.

Carbon taxes, cap & trade regimes and the green subsidies reform aim at internalizing the
costs of carbon emissions within the decision-making processes of companies and
consumers. Several studies show that such green policies could help achieve the much
pursued double dividend target: a decrease in emissions levels and an increase in overall
employment. For instance, the ILO World of Work report (2009) has estimated that green
policies (carbon tax or cap & trade), if accompanied by job support such as cuts of non-wage
labour costs, even without technological change, could raise employment by 2.6 million in
developed countries and 14.3 million for the world as a whole over a five year period.

Example 3: Green Jobs regulations

4
Regulatory measures and programs for green jobs address shifts in the labour market
emerging from the drive to a low carbon, environmentally friendly economy
through, for instance, investments in vocational training and skills development
programs. These measures have a direct impact on the labour market in the
short term and help address gaps in the supply of skilled workers. In some
cases, these measures also have a social function by facilitating the entry into
the labour market of long-term unemployed or socially marginalized youth, as
happens in Australia and the USA respectively through their Green Jobs
programs. Some examples of such measures are given below.

• The Green Jobs Act (2007), implemented by the US Department of Labor, enacted
under the Energy Bill (2007), sets a multi-stakeholders committee which reports
periodically on assessed needs for Green Jobs and facilitates access to financial
schemes for the development of a skilled workforce in energy efficiency and
renewable energy (USD $500 million from the Stimulus Package);

• Green jobs and training opportunities program for 50,000 new green jobs (2009),
(Australia) which creates a 10,000 member National Green Jobs Corps, a 30,000
apprentices new Green Skills program, 4,000 training places for insulation installers
and 6,000 new local green jobs contributing to environmental sustainability in priority
local economies (see also Box 3)13 (AUS $94 million investment).

• The National Employment Centre and National Employment Fund (2009) (Fiji) aim to
provide for quality services relating to employment creation and productivity, the
promotion of green jobs and green industries

The impacts of changing consumption patterns and voluntary actions by business and the civil
society

Actions and initiatives taken by socio-economic actors and members of the civil society can
contribute effectively in particular where public policies are less effective, institutions are
powerless such as in the context informal economies or in remote areas. For instance,
employers and industries contribute actively to creating employment and generating livelihood
through voluntary initiatives that aim at reducing the environmental impact and promoting
socially responsible practices beyond the work place. Some national and international
companies and their suppliers have taken the initiative of creating Green Jobs Councils with
the aim of creating green jobs throughout the supply chains, sites rehabilitation works and
greening of the work place14. Coordinated actions by local and international NGOs in the field
of fair trade have also reported positive results over the long term on the creation of
environmentally friendly productive jobs and income generation15. Women’s associations and
local cooperatives have been responsible for the creation of thousands of productive jobs,
improving decent work and maintaining more jobs in the field of renewable energy, waste
management and organic farming16.

Grassroots organisations of “waste pickers” are committed to promoting re-use, recycling and
composting of waste which can represent alternatives to informal and marginalized sectors of
the population and contribute significantly to the climate crisis17. Some organizations in Asia
have fought for and won changes that have facilitated the formal integration of “waste pickers”
into municipal waste management schemes and gained social benefits arguing that they are
performing socially and environmentally useful labour that benefits the society18.

The growth of Social Business in the field of environment is another way to contribute
effectively to employment and livelihood diversification. Social business is a sub-set of social
entrepreneurship that is driven by the desire to address social and environmental objectives
in a market based economy context19. The potential of social business in the environment is
best illustrated by the actions of Grameen Shakti which purpose is to enhance renewable
energy sources for rural Bangladesh, or through the joint Grameen Danone venture which
produces and provides affordable nutritious foods for the local poor in an environmentally
friendly way through the creation of green jobs. Although in its infancy in the Arab States, Asia

5
and the Pacific, social businesses yield an important potential to increase income and
diversify livelihood to low-skilled women and men.

2. Examples of green jobs creation in Asia & the Pacific through environment related
employment programs

Millions of green jobs already exist globally in industrialized countries, emerging economies
and developing countries alike20. International research and regional consultations have
identified that Green Jobs concentrated in particular sectors of economic and climate
relevance, e.g. agriculture and forestry, basic industry, sustainable construction and retrofit of
existing built stock, renewable energy, energy efficiency, public transport, waste
management, water resource management and regeneration of natural resources21. These
‘green’ sectors were those where most of the investments by the G20 countries were directed
in the context of the economic recovery packages (see table 2).

Strategizing public and private investments

In the context of the recent green fiscal stimulus packages, important support was channelled
through tax cuts, credits and extra spending to key climate change investment themes
including rail transportation, water infrastructure, grid expansion and improved building
building-efficiency22. These investments aimed at matching the dual objectives of short-term
economic revival and job creation by using low carbon growth as a key lever for economic
recovery. Governments have claimed that large numbers of jobs (green jobs) would be
created on the way (see table 2). In the case of China, half of the amount is allocated to
railway infrastructure and the construction of water infrastructure will contribute directly to the
achievement of the Millennium Development Goal (MDG7). Even before the outbreak of the
financial crisis, the government had projected the need for green investments in about 1.35
per cent of GDP in the context of the 11th Five Year Plan (2006-2010)ii.

South Korea allocated almost 80 per cent of the total stimulus package to environmental
themes such as renewable energies, energy efficient buildings, low carbon vehicles and the
restoration of Korea’s four major rivers to enhance adaptation to climate change and promote
rural development. The country is operating a major shift in orienting its economy towards a
long-term strategy for green growth and the creation of green jobs. Under the Five-Year
Green Growth Plan adopted in July 2009, 2 per cent of GDP will be spent in the area of
climate change and energy, sustainable transportation and the development of green
technologies. The plan is expected to create 1.56-1.81 million jobs in green industries.

Figure 2. G20 Green Stimulus package (US$Bn)

Source: HSBC Global Research, UNEP

ii
Under this plan, US$214 billion would be invested in renewable energy. By 2020, China’s investment in energy
efficient buildings alone is expected to reach US$214 billion. Source: UNEP/Green Economy Initiative, An
Update for the G20 Pittsburgh Summit, September 2009.

6
 Table 2 - Green Investments as part of the stimulus packages

Energy Green
and Fund %
Green
Environm of
Fund % Estimated increase
Country ent- Econo Comments
of total in Employment
related mic
GDP
Spending Stimul
(USD) us
Australia 0.87 2.5 billion 21% N/A Construction, transport, energy.
China 5.24% 218 billion 34% N/A Railway infrastructure, grid, energy
efficiency in buildings, low carbon
vehicules, waste water treatment, forestry.
Japan 0.74% 12.25 6% 1,000,000 jobs in The “green” initiatives cover energy-saving
billion eco-friendly and new energy technologies;
industries, energy, development of high-speed railway;
transport, investments in energy-saving and new-
construction, energy; research and development,
manufacturing including for carbon dioxide capture and
storage:
Philippine N/A N/A N/A 110,000 jobs Jobs to be created in reforestation,
s renewable energy in rural areas,
retrofitting of public utility vehicles and the
building of bicycle lanes for out of school
youth.
South 6.99% 37 billion 79% 960,000 jobs over 4 The Green New Deal Job creation Plan
Korea years invests $5.8 bn in renewable energy and
in transport, energy, energy conservation (170,000 jobs), $1.7
manufacturing bn in forest restoration (130,000 jobs),
$690 million in water resource
management (160,000 jobs), $10 bn in
river restoration (almost 200,000 jobs).
Singapor 0.68 4.96% 11,000 jobs for Dedicated support for environment
e billion environment and sustainability.
water technology,
7,000 for clean
energy industry by
2015
Thailand N/A N/A 40’000 clean and Targets an alternative energy mix of 20%
new jobs of energy demand by 2022. Jobs to be
created in bio-fuels, co-generation from
biomass and biogas.

Public investment programs and green jobs

Labour intensive, environmentally friendly, public works constitute a viable way of ensuring a
sustainable income for a large number of low-income households in rural areas. They can
help put in place cash transfers and take the form of any number of ‘green works’ that can
contribute to preserving the natural capital and develop productive assets in particular in rural
areas such as water conservation, irrigation infrastructure, dams, sustainable buildings, flood
control and protection, drought proofing and land development. Such programs have been
assisted by the ILO in Bangladesh, the occupied Palestinian territory (Gaza), India, Indonesia,
Nepal and the Philippines. There is also a great demand in other countries as well, in
particular in disaster prone areas.

An ILO study on India’s National Rural Employment Guarantee Scheme has demonstrated
the potential for green jobs creation when and where it can also bring decent work iii. The
study found that although the program was creating large number of jobs that contribute to
achieving environmental outcomes, it needed to improve the Social Protection and Social
Dialogue dimensions to achieve decent work (see Box 2 below). Such public works programs
can also offer an option for reducing vulnerability to climate change in the context of cyclones
and floods.

iii
Development Alternatives/ILO: NREGA: A study on Decent Work and Green Jobs undertaken in the Kaimur
district of Bihar (New Delhi, March 2010).

7
However, a rapid response requires rapid access to funding and pre-established rules and
procedures to identify people in need and public works rely on sound professional guidance
for their selection, design and implementation. In this regard, a set of priority, ready-to be
launched programs could be developed in the region in such fields as water resource
management including water conservation, integrated coastal management, waste
management including debris collection and management and, reforestation. Jobs that are
related to climate adaptation including coastal management, water course management and
sustainable construction, are critical sectors for green jobs in developing countries in Asia
(see in this regard the case of Bangladesh in table 4 in the next section). The results of this
study on NREGA, Decent Work and Green Jobs, are promising but preliminary and should be
completed by more comprehensive researchiv.

Box 2 - NREGA
The Mahatma Gandhi National Rural
Employment Guarantee Act has two main
components: the cash transfer and the
creation of productive assets relevant to local

C om parative G raph D e
needs, such as water conservation and water
harvesting, drought proofing, micro irrigation
work, flood control and protection, land

N R E G S A gainst B en
development and renovation of traditional
water bodies. A study conducted in Kaimur
district with a view to measuring performance
of the works under NREGA in terms of
decency of the jobs created and
environmental sustainability found that the
jobs created under the NREGA could be
considered Green Jobs for a big part, as these
jobs are decent jobs and contribute to
environmental sustainability. However, not all jobs surveyed were found complying with
minimum qualifying criteria on Social Protection and Social Dialogue and required further

80
improvements in these particular areas. Source: NREGA: A study on Decent Work and
Green Jobs undertaken in the Kaimur district of Bihar, DA/ILO, March 2010.

3. Promoting a job-centred Green Economy in the context of sustainable development

and poverty reduction.

The Green Economy Initiative (GEI)23 aims to enable economically viable and socially

70
acceptable public and private investments in key priority ‘green sectors’ (12) which hold the
promise of fuelling a sustainable recovery24. Under this policy framework, there are
demonstrated opportunities for job-centered green policies that should already be grabbed
without much delay. The approach suggested here would be to first identify where those
dynamic synergies are found in the economy and make sure the right policies are developed
to target those ‘poles’ of green growth that could also create decent work in the limit of every
country’s capacity25.

60
Box 3 - The Green Economy Initiative

The Green Economy Initiative (GEI) is designed to assist governments in “greening” their
economies by reshaping and refocusing policies, investments and spending towards a range
of sectors, such as clean technologies, renewable energies, water services, green
transportation, waste management, green buildings and sustainable agriculture and forests.

50
Greening the economy refers to the process of reconfiguring businesses and infrastructure to
deliver better returns on natural, human and economic capital investments, while at the same
time reducing greenhouse gas emissions, extracting and using less natural resources,

iv
On the ILO study, see also the report of the Preparatory Committee for the United Nations Conference on
Sustainable Development, at its First session, 17-19 May 2010 paragraph 54 (A/CONF.216/PC/2).
core

40 8
 creating less waste and reducing social disparities.

Source: UNEP

The creation of employment and income opportunities through new production methods that
can create jobs occupy a central location in this approach. Renewable and clean energy is an
example of a new economic sector where labor intensive activities lead to the creation of
decent work that can also benefit the environment (see table 3 below).

Table 3 - Green Jobs in renewable & clean energy

Job intensity
Long-Term cost CO2 Security of
reduction reduction supply
Building
High Moderate High Moderate
Refurbishment
Switch to clearer car Moderate Moderate Moderate High
Wind, solar High High Moderate Moderate
Smart Metering High High Low Moderate
Battery Development Moderate High High High
Clean Energy R&D Moderate High Moderate Moderate
CCS Low Moderate High Moderate

Source: IEA, 2009

The prospect for the creation of new green jobs or the ‘greening’ of existing jobs is important,
including in Asia and the Pacific. However, the constant failure in adequately incorporating
public environmental capital, and its degradation, into economic performance measurements
hinders the development of coherent, inclusive policy. Adequately assessing the linkages
between environment, economy and employment, and the dynamics of green, decent
employment also remains a priority for targeted advocacy on green jobs. As of today, this is
an area that remains poorly studied in developing countries, let alone in least developed
ones.

The experience gained by the ILO organization from a pilot study in Bangladesh (2010)
shows that a large number of the green jobs encountered in the country originate from climate
adaptation related activities and the total estimated direct green jobs would represent at least
1.9 per cent of the labour force (table 4). The study indicates that very important differences
are to be expected in the profiles and numbers of green jobs between developing countries.
Climate adaptation related green jobs are likely to be found in large numbers in the most
exposed countries in the region, a fact that had not been properly accounted for in the past.

Table 4 - Estimation of direct green jobs, related indirect jobs in Bangladesh (2010)

Core Direct ‘Green’ Indirect jobs Total

environment- jobs associated with jobs
related jobs core
environment-
related or
green jobs
Sustainable agriculture 41,548 n.p. 47,482 89,030
Sustainable and participatory forestry 28,813 n.p. 28,121 56,934
Sustainable energy 18,823 18,823 50,561 69,384
Waste management and recycling 189,180 n.p. 212,753 401,933
Collection purification/distribution of 8,441 n.a. n.a. n.a

9
water 1,726,755 616,052 967,849 1,583,901
Climate adaptation activities 10,934 10,934 21,472 32,406
Manufacturing and energy efficiency 178,510 178,510 54,049 232,559
Sustainable transportation 1,340,000 536,000 – 1,416,364 2,019,364
Sustainable construction 3,543,004 670,000 2,798,651 4,485,51
Total 1,427,319 1
Source: Looking at the relationship between environment, economy and jobs in

Direct
Indirect
Sectors Sub-sectors Employmen Sub-total
Employment
t
Afforestation &
7,600 11,085 18,685
Reforestation
Forestry
(2005- Sustainable Forest
188 61 249
2020) Management
Forest tourism 3,154 3,616 6,770

Power Thermal Power 251 29 279

Industry
Wind power 848 2309 3,157
(2005-
2020) Solar power 50 1,237 1,287
Core Iron and
-200 － -200
Industry Steel（2007~2011）
Green
175 357 532
investment（2008~2011）
Total[1] 30,759
Bangladesh. A study by
ILO/GHK, 2009/2010.

In China, research and the modeling on low-carbon development suggests net positive
employment effects over the medium-term. From 2005 to 2020, new green investment in
sectors such as forestry, power generation, iron and steel will create more than 30 million
green jobs (see table 5 below). Although policies to encourage energy-efficiency and emission
reductions and eliminate outdated production facilities will translate into a large number of jobs
being lost in traditional sectors such as thermal power generation and iron and steel, green
sectors like forestry and clean energy show a great potential for creating green jobs and will
largely compensate for these losses. As well as the direct employment effects contributed by
these sectors, forest tourism, wind power and solar power generation will also play a role in
driving output expansion and indirect employment promotion in the upstream and downstream
industry chains.

Table 5 - Total employment effects of low-carbon development in major sectors in

China (2005-2020)(1’000jobs）
Source: Chinese Academy of Social Science (CASS)/ILO project, 2010.

Some of these economic areas that possess a high potential for the creation of green jobs in
Asia and the Pacific are briefly reviewed further below. The examples of policies and
programs that are mentioned illustrate the objective of achieving environmental outcomes and
social/employment outcomes in a combined manner, including through the introduction of
decent work enhancement measures.

Material and resource efficiency

Materials and resource efficiency can be promoted through the setting of ambitious recycling
and waste reduction targets (such as the 3Rs program, Zero Waste Program) which yield

10
important employment potential in the Asia and Pacific region. Such policies must find
solutions to progressively ‘formalize’ this sector and improve working conditions of workers,
including occupational health and safety and access to technology and skills, as an equally
important priority for the creation of productive work.

Box 5 - The 3R (Reduce, Reuse, and Recycle)

Initiative towards a ‘Sound Material Cycle Society’
To attain the mutual achievement of environmental protection and economic development,
people, businesses and the central and local governments in Japan are working
cooperatively to establish a sound material-cycle society in which waste is reduced, reusable
products are reused and waste is recycled as a resource under the Fundamental Law for
Establishing a Sound Material-Cycle Society and the Fundamental Plan for Establishing a
Sound Material-Cycle Society. The economic effects of the recycling sector, including the
manufacture of recycling equipment, supply of recycling services and manufacture of
products using recycled materials, are equivalent to 1.6%t of Japan’s GDP. In many parts of
Asia, ’waste pickers’ alone represent 1% of urban populations, including waste collectors and
recyclers in the informal economy.

Energy and materials efficiency

Energy efficiency improvements and price reductions incurred, for example, in the context of
green recovery efforts can have employment benefits that continue well beyond crisis time26.
They are also the fastest and most economical ways to increase access to energy, mitigate
climate change, and reduce national expenditure on imports of fossil fuels and control air
pollution. Globally, one additional dollar invested in energy efficiency avoids more than two
dollars in investment on the supply side, with even higher payoffs in developing countries 27.
Those economically viable, labour intensive situations brought forward by the demand side of
the ‘greening’ processes include buildings retrofits with energy-saving solutions such as solar-
water heaters, insulation, and better lighting control28.

Energy efficiency programs rely on existing technologies and proven policy options. However,
strategies for the removal of identified obstacles must be in place such as access to capital,
proliferation of inefficient equipment, lack of supply of alternative clean fuels, and subsidized
energy prices. They must promote and clarify the respective roles of the public and private
sector, propose financial incentives for technical and technological improvements and invest
in skills development programsv. Building energy efficiency is one example that can help close
the mismatch between the vast pool of current and future workers and available jobs. In
Australia, the Government has initiated a large green housing package to reduce greenhouse
gas emissions while creating 160,000 jobs in auditing and installation services. Chinese local
authorities have made energy efficiency in building a priority for action under the well
developed Energy Efficiency and Conservation legal regime and have initiated numerous
local programs and initiatives in this area (see box 6).

v
An example of the need for the deployment of techniques and technologies with technical and financial support
includes the manufacturing of geo-polymer and alternative fuels and materials based cement.

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 Box 6 - Provincial initiatives in China

The Shandong Province promulgated the Energy Conservation Regulations and

established a special provincial fund for energy and water conservation. Hotels rated above
three star, provincial universities, vocational schools that use solar water heaters capable of
producing more than 20 tons of water above 30 degrees each day, as well as basic
education schools that use systems capable of producing more than 5 tons of water above
30 degrees each day, can be subsidized up to an equivalent of 30 ％ of the total
construction costs. The amount of funds for subsidizing each project shall not surpass
RMB1.5 million yuans.

The Government of Dezhou, China, is implementing a "one million roofs" plan that
promotes the integration of solar energy within urban residential buildings, a "100 Village
Bathroom Project" in rural areas and, gradually expands the integration of solar energy with
public buildings. The local government's goal is for the area of solar energy application to
account for more than 50% of the area of newly built buildings in the city and 80% in urban
areas by the end of the "Eleventh Five-Year" period.

Source: A Case Study in the City of Dezhou, ILS, Ministry of Human Resources and Social
Security/ILO, November 2009.
Renewable energy in rural areas

The up-scaling of the deployment of renewable energy technologies in rural areas in Asia and
the Pacific constitutes a prerequisite for poverty reduction in rural areas, the acceleration of
growth, generation of employment and economic diversification. Successful implementation of
rural energy access programs in the recent past tells us that decentralized, stand alone, small
power generating units are suitable to remote rural parts but, to be more efficient and
economically viable on the long-run (and independent of subsidies), they must also address
cooking and lighting issues, commercial and mechanical purposes (such as water pumping),
and be sustainably delivered to a minimum circle of households and small businesses.

Wherever possible, this should involve local content to help maximize local manufacturing
and the use of simple technology. For example, China, India and Nepal are forcefully
promoting the production of biogas digesters while developing the national market for such
equipment29. Under such conditions these countries can decentralize renewable energy units
and provide a cost effective solution to improve social and employment opportunities in
isolated poor rural areas. This provides a solid basis for the development of village specific
energy supply plans30. In this context, the policy steps include explicitly targeting
demonstrable social and poverty reduction benefits through enhanced access to energy
services and developing synergies and coherence with existing rural development, job-
creation and SMEs promotion programs.

A development approach must guide the design of energy access policies, whereby capacity-
building and training for entrepreneurship, installation and maintenance and access to
financial support are fully integrated, such as by engaging rural banks, often the only financial
institutions that reach out to grassroots communities. Subsidizing the initial or operational
costs is often indispensable until clean energy becomes truly competitive. Subsidies have
been widely used for the deployment of new technologies such as China and India (biogas
digesters), Sri Lanka and Thailand (Solar Heater Systems) 31. However, poorly targeted
subsidies for renewable energy technologies can distort competition between them.
Subsidies for fossil fuels need to be removed as a priority to avoided perverting the outcome
of these initiatives.

Sustainable agriculture

Agriculture is the largest sector in the Asia and Pacific region in terms of employment (741
million, 200932), and the sector where the majority of poor and extremely poor are
concentrated. The sector is affected by a whole array of distortions, including perverse
subsidies, wastage of water, low incomes, decent work deficits and unsustainable land use

12
management practices. Although still at an initial stage of development, organic agriculture
can play an important rolevi.

Higher investments in sustainable agricultural production would be necessary, including in

infrastructure for production, storage and transportation of organic products. A recent survey
shows that global markets for sustainable products are growing at rates far beyond the growth
of markets for conventional products. The production of voluntary sustainable initiatives (VSI)
compliant goods is now reaching significant levels of market penetration, accounting for over
10 per cent of global production. The supply remains highly concentrated among a small
number of countries in Latin America and Africa which suggests a high growth potential in
Asia still not fully exploited. The findings of the study over the past five years indicate a 180 %
increase in land areas for sustainable forestry which accounts for 18 per cent of global
managed forests, a 430% increase in the sale of sustainable coffee, and a 5.5 thousand per
cent increase in sustainable tea production that is accounted for approximately 7.7 per cent of
global tea production for export33.

At the same time, improving the sustainable use of water through upgrade or construction of
canals and water systems will be much necessary to address the issues of water losses,
estimated at half to two-thirds of the volume transported in surface irrigation, while at the
same time creating millions of low to medium-skill jobs in developing countries34. However,
such actions would require an important shift of public funds towards sustainable ecosystem-
based agriculture. Perverse subsidies for agro-chemicals, mineral fertilizers, fuels or specific
crops like maize which make organic techniques less competitive are part of the policy
instruments that would need to be revisited35. A significant number of jobs will be created in
water infrastructure, as is reflected by the orientation given to the green stimulus packages in
Korea (four river program) and China.
4. Core elements for national strategies on green jobs and a just transition for workers,
enterprises and employers

The changes in the production and consumption patterns that are called for in the context of
the drive to a climate and environmentally friendly economy require better integration of the
social and employment dimensions in policy discussions and decision making. The ILO
Governing Body paper has looked at the decent work challenges associated with sustainable
development and climate change and has recognized the potential for synergies and for the
need to make the response to climate change part of wider efforts for sustainable
development. vii However, there are still very few examples where the labor authorities and the
social partners altogether have participated in climate policy development at the national
level.

The debates on reaching a post-Kyoto agreement have highlighted the fact that the
consequences of climate change will not only be environmental but that there are also clear
economic and social consequences expected. In light of this, the response to climate change
needs to be mainstreamed into development strategies at all levels: national, sectoral and
local. Inclusion of the labor authorities, trade unions and employers in this policy
development will be critical to improve the expected outcomes and institutionally embed
these. In India, under the leadership of the Ministry of Labour and Employment, a multi-
stakeholder forum has been established to help raise awareness of the social dimensions of
climate change and to promote the involvement of the social partners in developing action
plans and solutions in response to same.

Past experience has shown that the process of dialogue and consensus building that is
required on climate change is extremely important to ensure the political sustainability of the
policies that are being developed. A critical component of this process is the recognition of
the need for a just transition to those that are being and will be affected by the
transformations taking place. This includes those enterprises that will need to adapt and
comply with more stringent environmental/energy standards and greenhouse gas emissions
vi
Global certified organic sales are expected to triple from a $22 billion level in 2002 until 2012 and sales have
continuously grown at rates of 15 per cent per annum over the past two decades. Source (Sahota, 2009).
vii
ILO: Decent work for sustainable development – The challenge of climate change, Governing Body, 300th
Session, Geneva, Nov. 2007, GB.300/WP/SDG/1. p. 6.

13
targets as well as workers who will be faced with a labour market demanding new skills for
greener production processes and technologies. Of increasing importance is to ensure that
adaptation and mitigation policies include strategies for enhanced enterprise development
and employment generation, extended social protection for those who suffer most from this
changing economic environment and are directly affected by the impact of climate change.

Just transitions through consensus building and dialogue will aim to address skills mismatch,
safety nets for displaced workers, linking of green job creation with job training, social justice
and labour rights, including occupational health and safety. A critical element is the
addressing of decent work deficits in ‘green sectors’ such as OHS in the recycling sector.
Transitions should also benefit those most affected by the direct natural effects of climate
change and climate variability, such as farmers and fishermen. Needs in particular in disaster
prone areas may include risk based safety nets and assistance for diversification of livelihood,
maximizing community benefits and partnering towards building adaptive capacity.viii

Enhancing social dialogue.

The ILO’s long experience of international standard setting and the promotion of dialogue
mechanisms is a strong foundation for engagement in strategies to address climate change.
This strategy development can take place at the policy level as was witnessed in the
Philippines with the signing of the Green Pact, under which government, workers, and
employers, inter alia, agreed to take active steps to promote sustainable growth, greener jobs
and workplaces. It can also take place at the workplace level through enterprise level
initiatives involving workers. Examples of such dialogues are the mechanisms established to
promote safe working conditions. Those are increasingly being seen as a possible platform to
introduce environmental issues as well and if designed appropriately (and not used as an
avenue to side step legitimate rights to organise) these platforms provide a foundation for
marrying environmental and labour issues. ILO’s WARM project on Work Adjustment for
Recycling and managing Waste in the Pacific is an example of this. Through the
implementation of the Green Jobs Initiative in the Asia Pacific region, it is expected that there
will be more examples of the critical role of social dialogue in developing sustainable solutions
to climate change and of the way that this dialogue itself can be strengthened through the
incorporation of new themes and issues for discussion.

Linking employment policies, social protection and green jobs.

Green Jobs policies are guided by the need to match labour market supply and demand
through well coordinated job placement and promotion, providing unemployment benefits in
the context of a Just Transition and provide for active labour market services. The
employment issue must be studied from a dual point of view. First, it is necessary to examine
whether the conditions of a just transition from existing jobs into the jobs of tomorrow’s low
carbon economy are based on social dialogue between Government, industry and trade
unions; what assistance is being given to displaced workers from affected industries to
transition to employment in green and decent jobs; and what investment is taking place in low
carbon technologies and new green skills. In this framework and in line with the call of the
UN-CEB (Chief Executive Board) for a Social Protection Floor, social protection programmes
and safety nets can play a very significant role to assist workers and put them in the right
conditions to approach the labour market and find jobs.

Second is the prospect of growth in specific sectors of the economy with important business
opportunities as demand expands for low carbon goods and services with possible high
environmental and employment dividends. Although some countries are doing well in
particular sectors, specific actions are required to maximize the potential for green jobs
employment opportunities. These measures include increasing the capacity of employment
services for identifying opportunities for productive jobs creation (e.g. the setting of
observatories for green jobs at the provincial level, in cities, and by sector), improving green
job market demand through better communication on employment needs and creating an
enabling environment for the creation and expansion of small and medium size enterprises

viii
UNDAF/ILO pilot project on Climate Resilient Farming Communities in Agusan del Norte, The Philippines.

14
through for example adequate fiscal and tax policies, including tax rebates for investments in
environmentally sustainable technologies.
Developing skills development program for green jobs

In preparing for a greener economy, countries face two major skills tasks. The first is to re-
skill workers and complement existing skills sets so that they can ‘green’ existing enterprises
and industries, which is particularly important in sectors with high environmental impact,
including building and construction, energy, transport and – in developing Asia – agriculture.
The second skills task is to ensure that the next generation acquires the skills they will need
to work in the expanding green economy and with the new green technologies that will be
applied.

As of today, very few countries have developed a skills development program for green jobs
as part of their response to climate change and environmental degradation (see the example
of Australia in box 7 below). Many countries are reporting important shortages of skilled
labour in various environment and renewable energy related sectors, such as solar panel
manufacturing and installations, organic business, sustainable buildings and sustainable
tourism. As demonstrated by the ILO Global report on skills for Green Jobs (2010) that was
carried out in 21 countries worldwide and several countries in Asia and the Pacific, the full
potential of green jobs creation is far from being fully exploited. These rather manageable
gaps in skills are likely to become more severe as countries engage firmly into a low carbon
development path in the years to come. Such human resource development strategies on
low-carbon and other environmental issues must become an integral part of the national skills
development frameworks. Thorough skills development programs negotiated with the social
partners and anchored within the national climate change policies will therefore become
essential for the successful implementation of national climate mitigation and adaptation
action plans in the context of a just transition.

15
LITERATURE

16
1
Over 130 million people in China, roughly 40 million or more than half the population in Vietnam alone. Source: World
Bank 2010 Human Development Report.
2
Source: World Bank 2010 Human Development Report.
3
Mumbai, Guangzhou, Shanghai, Miami, Ho Chi Minh City, Kolkata, Greater New York, Osaka-Kobe.
4
ENV/WKP(2007)1, OECD, 2008.
5
FAO, Finance High Level Panel, 5th World Water Forum, Istanbul, 2009.
6
ADB, June 2009.
7
Lobell et al., 2008.
8
ADB, June 2009.
9
Clean Water Council (CWC) “Sudden Impact Report”, 2009.
10
ADB, June 2009.
11
The Economics of Climate Change, Nicholas Stern, 2006. http://www.hm-treasury.gov.uk/sternreview_index.htm.
12
The Economics of Climate Change in Southeast Asia. A regional Review, ADB, 2009.
13
Prime Minister’s Office, Australia, http://www.pm.gov.au/node/6078
14
Wall-Mart. http://walmartstores.com/pressroom/news/8835.aspx.
15
Examples include Alter Trade Corporation, Artisans du Monde, Minga.
16
SEWA (India), Metro Manila Eco Aide, Eco Green, Ecowaste Management (Philippines), etc.
17
Global Declaration of the First World Conference of Waste Pickers, March 2008.
18
Organizing the unorganised: A case study of the Kagad Kach Patra Kashtakari Panchayat (Trade Union of Waste
Pickers)”, 2005.
19
“Creating a world without poverty”, Muhammad Yunus, 2009.
20
Green Jobs - Towards Decent Work in a Sustainable, Low-carbon World, UNEP/ILO/IOE/ITUC, September 2008.
21
ILO Research Conference: Green Jobs for Asia and the Pacific 21-23 April 2008: Niigata, Japan.
22
A Climate Recovery. The colour of stimulus goes green. HSBC, 2009.
23
http://www.unep.org/greeneconomy/
24
UNEP’s Green Economy Report, 2010 (to be published in late 2010).
25
See also on this, the 2009/2010 Trade & Environment Review, UNCTAD.
26
Trevor Houser and al., February 2009, Peterson Institute of International Economics.
27
Bosseboeuf and others, 2007.
28
McKinsey Global Institute, 2008.
29
REN21, 2007.
30
World Bank, 2008b.
31
IEA, 2006.
32
ILO, 2009.
33
The State of Sustainability Initiatives Review 2010: Sustainability and Transparency A Joint Initiative of IISD, IIED,
Aidenvironment, UNCTAD and ENTWINED, November 2010.
34
Edward B. Barbier, “A Global Green New Deal“, February 2009.
35
Urs Niggli, Research Institute of Organic Agriculture, FiBL, 2009.