Clean Energy Economy Report

The Pew Charitable Trusts applies the power of knowledge to solve today’s most challenging problems.Our Pew Center on the States identifies and advances effective policy approaches to critical issues facingstates, and our Pew Environment Group promotes practical, meaningful solutions to some of the world’smost pressing environmental problems.

PEW CENTER ON THE STATES PEW ENVIRONMENT GROUP

Susan Urahn, managing director Joshua Reichert, managing directorProject Team Kevin CurtisKil Huh Brendan Hill Phyllis CuttinoLori Grange Jeannette Lam Laura LightbodyE. Brooks Riley Michele Mariani Vaughn Shannon Heyck-Williams Jill Antonishak Melissa Maynard Jane Breakell Carla Uriona, designSean GreeneResearch Consultants: Collaborative Economics, Inc.

ACKNOWLEDGMENTS

This report benefited tremendously from the insights and expertise of an advisory panel and twoadditional external reviewers. These experts provided feedback and guidance at critical stages inthe project. While they have screened the report for accuracy, neither they nor their organizationsnecessarily endorse its findings or conclusions. Advisory Panel: Marilyn Brown, professor, School of Public Policy, Georgia Institute of Technology;Doug Cameron, managing director and chief science advisor, Piper Jaffray; Joe Cortright, vice presidentand principal, Impresa; Jeff Finkle, CEcD, president and CEO, International Economic DevelopmentCouncil; Tim Woodward, managing director, Nth Power; and Joel S. Yudken, PhD, principal, HighRoad Strategies, LLC.External Reviewers: Mark Z. Jacobson, professor of Civil and Environmental Engineering and director, Atmosphere/Energy Program, Stanford University; and Joe Fargione, Lead Scientist, North AmericaRegion, The Nature Conservancy. We would like to thank our Pew colleagues—Andrew McDonald, Brandon MacGillis, KymberlyEscobar, Lisa Cutler, Janet Lane, Alyson Freedman and Jessica Riordan—for their assistance withcommunications and dissemination. We thank Doug Henton, John Melville, Tracey Grose, DeanChuang, Gabrielle Maor and Tiffany Furrell of Collaborative Economics. And we thank Will Wilsonfor his profiles of companies in the clean energy economy, Mary Jo Waits of the National Governors Association for her suggestions and feedback, Kathy Litzenberg for her editorial assistance, John Tiernofor his graphic assistance, and Mike Heffner, Lucy Pope and Denise Kooper of 202design for their designassistance.For additional information on The Pew Charitable Trusts, please visit www.pewtrusts.org.This report is intended for educational and informational purposes. References to specific products,services, companies and policy makers have been included solely to advance these purposes and do notconstitute an endorsement, sponsorship or recommendation by The Pew Charitable Trusts.©2009 The Pew Charitable Trusts901 E Street NW, 10

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The Clean Energy Economy| The Pew Charitable Trusts

JUNE 2009

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The Clean Energy Economy

June 2009Dear Reader:Public- and private-sector leaders are working hard to create a brighter economic future for ourcountry, one in which new industries create well-paying, enduring jobs for Americans and sparkgrowth from coast to coast.The clean energy economy, still in its infancy, is emerging as a vital component of America’s neweconomic landscape. That’s the finding of

The Clean Energy Economy: Repowering Jobs, Businesses andInvestments Across America

, a groundbreaking analysis by The Pew Charitable Trusts that sheds lighton an increasingly important part of the nation’s economic recovery.Pew counted actual jobs, companies and investments in every state and the District of Columbia aimedat developing clean, renewable sources of energy, increasing energy efficiency, reducing greenhouse gasemissions that cause global warming, and conserving water and other natural resources. We found that jobs and businesses in the emerging clean energy economy have grown at a faster rate than U.S. jobsoverall. And they are poised for even greater growth, driven by increasing consumer demand, venturecapital infusions by investors eager to capitalize on new market opportunities, and policy reformsby federal and state lawmakers seeking to spur America’s fiscal recovery, reduce our dependence onforeign oil and protect the environment.This report reflects the intersection of two of Pew’s lines of work. The Pew Center on the States identifiesand advances effective approaches to improve states’ fiscal health and economic competitiveness, andthe Pew Environment Group promotes practical, meaningful policy solutions to some of the world’smost pressing environmental problems. Across the country, state lawmakers also are pursuing the dual goals of economic growth andenvironmental sustainability. A growing number of states are implementing policies to capitalize onthe clean energy economy, from renewable portfolio and energy efficiency standards to financialincentives for public- and private-sector innovation and investment. At the federal level, the American Recovery and Reinvestment Act provides tens of billions of dollarsto bolster those efforts. But to realize the clean energy economy’s full potential, federal leaders must domore. The nation needs a comprehensive, economy-wide energy plan, a market-based system that willsignificantly reduce emissions that cause global warming and derive more of America’s energy supplyfrom clean, renewable sources. Strong federal policies will accelerate the growth of this economic sectorby generating jobs and businesses that develop clean energy and increase energy efficiency. As federal and state lawmakers consider these and other critical reforms, Pew will conduct follow-upresearch to determine which policy approaches most effectively help America achieve the doublebottom line of economic growth and environmental sustainability. We hope this report will informand guide our nation’s leaders as they seek to expand our emerging clean energy economy.Sincerely,Susan Urahn Joshua ReichertManaging Director Managing DirectorThe Pew Center on the States The Pew Environment Group