Economic Development
There is not a single “green economy.” At least four categories of business are essential to solving the climate crisis. They are all large and diverse:
Industries devoted to decarbonization;
Industries that can absorb greenhouse gases and regenerate natural systems;
Industries that reduce energy and materials demands and the emissions they generate, by incorporating reuse and recycling to turn waste into wealth; and
Technologies and skills that contribute to resilience, from greenhouses to cool roof systems.
Every emissions reduction strategy identified in the Scoping Plan is also a job creator. By organizing for rapid scaling up of climate action, the Hudson Valley is poised to create a marketplace for all these solutions. One way to solidify this marketplace is to focus on organizing business-to-business initiatives that can demonstrate commercially viable climate solutions in the visible public spaces that business workplaces provide (as illustrated by the extensive native landscaping on Regeneron’s Westchester campus) Ulster County recently piloted the organization of a Green Business Network as an informal platform for business-to-business market development; its demonstration year achieved a member base of 113 diverse companies. Sustained commitment to such a network, on a regional basis, could efficiently strengthen the green economy in every county by engaging business leaders collaboratively. Much of the practice of economic development in the Hudson Valley falls into conventional categories such as incubation of businesses, workforce development, and mobilizing investment resources – valuable but arguably not sufficient to support the maturing of entire industries to achieve the rapid changes that are called for by the climate crisis. A more targeted regional economic development strategy could be built on working in a systemic way to nurture industry clusters, investment and financing resources, and the workforce supports such as housing and transportation that – together – will create widely accessible good jobs doing necessary work to stabilize the climate and revitalize communities. The organization and capacity of the private sector are clearly needed, in partnership with community organizations and government, in order to translate policy into climate results and mobilize the levels of financial resources that are needed.A regional economic development strategy must work in a systemic way to nurture industry clusters, investment and financing resources, and the workforce supports such as housing and transportation that – together – will create widely accessible good jobs doing necessary work to stabilize the climate and revitalize communities. Every single emissions reduction strategy in the Scoping Plan is also a job creator. The organization and capacity of the private sector are clearly needed, in partnership with community organizations and government, in order to translate policy into climate results and mobilize the levels of financial resources that are needed.
Nurturing climate solutions as industries
Each of the Climate Act’s goals – and each of our regional strategies – translates into abundant work to be done. Although they are not equally recognized, there are at least four “green economies” that must be developed:
The decarbonization economy that includes renewable energy, clean transportation, energy efficiency, energy storage, renewable heating and cooling, low-impact hydropower, carbon capture technologies and more. Analyzed in depth by the Just Transition Working Group’s Jobs Study, this economy is expected to grow by a net 189,000 jobs by 2030.
The bioeconomy includes local food and nutrient production, farms, forests, soil enhancements, biofuel for hard-to-electrify needs, bio-based building and structural materials. The Scoping Plan calls for a strategic planning process to better understand and nurture this economy.
The circular economy is a system of re-envisioned materials management, in which waste hauling to distant landfills is replaced by reuse and recycling of materials, recycling-based industries and zero waste practices.
The resilience economy is defined here as the materials, products and services needed to preserve quality of life and protect natural systems in a changing climate. This is not commonly considered a sector but should be explored in light of the obvious need – for example, cool roof materials, stormwater capture and green infrastructure systems and components, renewably powered and energy-efficient greenhouses, and probably much more.
An integrated regional green economy strategy requires understanding of these industries, who is active in them in our region now, and the challenges they face in scaling up.
Appendix 9 provides a framework for considering these industries and their state of development. Working with industries rather than individual enterprises is a strategy for identifying more systemic barriers and opportunities to benefit more businesses, faster and more equitably. A robust model for working at this level is the Vermont Sustainable Jobs Fund, a more than twenty year old nonprofit organization created and initially financed by the State Legislature. VSJF’s model is to identify clusters with growth potential and work with member businesses and industry associations as a group to identify barriers and ways to overcome them. Supply chain, market building, workforce training and development, and enabling policies can all be addressed through this framework. The business-to-business relationships created in the VSJF model lay groundwork for the creation of industry associations that can continuously build their own capacity and advocate for their interests, using focused public investment to build their capacity for privately funded growth. This model could be an excellent fit for the emerging and growing industries in the Hudson Valley’s climate solutions economy.
Case Study: Workforce Development
Since the Climate Law was passed, workforce development efforts have become much more systematic, including both technical training and engagement of potential clean energy workers through internship and fellowship opportunities. Key programs come from NYSERDA and the Northeast Energy Efficiency Partnership.
NYSERDA
Clean Energy Internship Program: Provides students and recent graduates with hands-on experience in the clean energy industry.
On-the-Job Training (OJT) for Energy Efficiency and Clean Technology: Supports employers in training new workers in clean energy sectors, including energy efficiency and renewable energy.
Energy Efficiency and Clean Technology Training: Offers grants to training providers for developing and delivering training programs that align with the state’s clean energy goals.
Building Operations and Maintenance Workforce Development: Focuses on upskilling building operations personnel to improve energy efficiency in commercial buildings.
Northeast Energy Efficiency Partnership also provides training in:
Building Energy Codes Training: Provides education and resources for building professionals on energy codes and standards.
Energy Efficiency: Partners with educational institutions and organizations to develop training programs that prepare workers for energy efficiency jobs.
Home Energy Rater Training: Trains professionals in energy rating systems for residential buildings.
Groundwork Hudson Valley offers workforce training programs focused on urban forestry, environmental stewardship, and sustainable land management.
Green City Force Impacts
Con Edison recently announced a substantial investment of $4 million in grants over three years, allocated to four non-profit organizations. This initiative is aimed at providing training and career development opportunities in clean energy fields to over 1,200 participants from underserved communities. The funding supports programs designed to equip individuals with the skills and knowledge necessary for careers in clean energy with 4 nonprofit partners:
The Bronx Community College (BCC) Foundation: BCC’s programs include training in renewable energy technologies and energy efficiency, focusing on equipping participants with technical skills and industry certifications.
Green City Force: This organization provides training and career pathways in clean energy and sustainability to young adults from underserved communities, including energy efficiency, urban agriculture, and environmental advocacy.
The New York City Department of Environmental Protection (DEP): DEP offers educational programs and training related to water and wastewater management, which include aspects of energy efficiency and environmental sustainability.
Urban Future Lab: This non-profit provides entrepreneurship and workforce development programs in clean energy, helping participants gain skills and access opportunities in emerging green technologies.
Climate solutions as market opportunities
A sea change is taking place in the private sector’s understanding of its responsibilities and opportunities in relation to the climate crisis. The science-based targets movement for climate, water and biodiversity protection has over 1000 corporate members reorganizing their operations to adhere to the dictates of science for shifting to renewable energy, conserving water and protecting biodiversity. Additional companies with a major Hudson Valley presence that have committed to carbon neutrality by 2040, or sooner, include Amazon, Apple, Fedex, Ford and other giants.
The Public Benefit or B Corporation is a recent invention that is now legal in New York, allowing companies to organize around social benefit and not solely pursue the maximization of shareholder profit. This model has attracted major companies, including Danone, based in Westchester County.
Investment dollars have been moving out of industries that are most implicated in terms of climate risk, such as fossil fuels, pressed by activist shareholders and specific “divest / invest” strategies.
Over the decades of efforts made to engage business, the language of sustainability has matured, making it increasingly possible to integrate it with business strategy; financing instruments and strategies have also matured, providing more opportunities than ever to finance best practices and translate them into business opportunities.
In preparation for widespread carbon pricing (including New York’s Cap-and-Invest system coming online in 2024), there is increasing availability of assessment and valuation tools to help investors as well as companies understand their risk exposure, creating greater incentives for transparency and strong ESG practices simply to manage business risk.
Within this framework, industries will identify their own strategies for financing the changes they adopt. For example, hospitality, tourism, and recreation industries have some latitude to pass costs on to their clientele. As the carbon fee-and-dividend system is rolled out, opportunities for savings and profits through early adoption of greener practices will be clearer. County and regional resources need to be in place to advise businesses with reliable, consistent information.
A key strategy at the state level for implementing the Climate Act with minimum economic disruption and maximum benefits to companies is to support commercial and industrial energy upgrades, especially for the most energy-intensive industries such as manufacturing, and work concertedly to help them remain competitive in the global marketplace. There is a service economy dedicated to helping businesses to achieve these efficiencies in facilities, fleets, and operations. Every climate initiative taken by a business provides work for an allied service business to implement.
Investing in the workforce
The Hudson Valley faces an acute labor shortage in spite of significant unemployment. Multiple Workforce Development Summits have been hosted in Ulster County to tackle this disconnect. The NYS funded Clean Energy Hub will be conducting its own assessment of workforce needs and gaps, mainly associated with the decarbonization economy. So will Ulster County’s planned Center for Workforce Innovation. This type of connectivity will be essential to ensure a consistent, capable workforce for the green economy.
Support for sunsetting industries
At the same time, a few industries will face the need to downsize and adapt. Though they are few, the impacts will be felt by extensive workforces now involved in fuel delivery and gas station management, as well as fossil power production. The Scoping Plan commits to developing conversion supports for these industries. While someone who has been delivering propane for twenty years may not be enthused about starting a new career installing solar panels on roofs, we can expect growing opportunities in distribution and collection of materials – such as pickups of compostables and private recycling services – that use similar skills. The Scoping Plan notes an emerging opportunity to involve power plant personnel in new power generating infrastructure such as utility-scale solar and storage, grid upgrades and district geothermal. A large-scale solar and energy storage installation was conceptually designed by Scenic Hudson for the fossil-powered Danskammer Energy Center, similar to the model for “Coal to Sol” that was implemented at a former coal plant in Holyoke, Massachusetts. Similarly, gas stations are being re-imagined as travel centers offering charging along with convenience stores as other kinds of commercial and social hubs that fit with longer use of the facility during EV charging – Potentially these could include bookstores/ cafés/ laundromats/ gym complexes and other creative partnerships to provide value to drivers while they are charging. Economic development initiatives should plan for specific industry conversation supports for these industries.
Ensuring access and equity
The Climate Act requires that at least 35% - and ideally 40% - of investment resources and benefits be directed into marginalized and overburdened communities – what we call “priority” communities for reinvestment in economic institutions, local environment, and people in a concerted manner. Thanks to a consensus-building process driven by the Climate Action Council to define these communities, geographies of focus are now clear. While federal and state funding incentives for clean energy and transportation investments are already activated, the communities themselves are not consistently organized to identify their own priorities and strategies for utilizing these historic resources, not just to access new technologies but to own assets in the new economy. Understanding this opportunity requires a systemic look at environmental justice issues and how to leverage clean energy investments to achieve broader redistribution of power and ownership of assets.