Is global warming heating up the U.S. job market?

I spent the last few weeks asking that question, and found a trove of answers. Yes, experts explained, the way our country is beginning to confront climate change is spurring jobs now, and has the capacity to create more in the future.

But how and when they’ll shake out is yet to be seen.

One of the clearest signals of growth is that venture capitalists
are backing "cleantech" industries–those that use new technology that
performs better while reducing costs and negative impacts on the
environment.

A May 2006 report by the Natural Resources Defense Council and the
Cleantech Venture Network LLC says venture capital investing in U.S.
cleantech startups was $1.4 billion in 2005, meaning it was tied as the
sixth biggest investment sector among venture capitalists.

Also according to the report:

… every $100 million of VC money invested could help spur the
creation of 2,700 direct jobs at venture-backed companies, many more
indirect jobs, and $500 million in incremental annual revenue over the
subsequent two decades, while also benefiting the environment.

MarketWatch, New York Times Coverage

A Feb. 20 article from MarketWatch.com pointed to venture capitalists’ growing interest in the cleantech arena:

In what could eventually become the biggest economic groundswell
since the dot-com craze, venture capitalists and entrepreneurs have
doubled their attendance to about 1,000 at this year’s Cleantech Forum
as investment interest in alternative energy and other related
industries continues to rise. …

Nicholas Parker, chairman of the Cleantech Group, a venture capital
network based in Ann Arbor, Mich., said clean technology "may be the
biggest job and wealth creation opportunity of the 21st century."

Drivers for growth include carbon emissions trading, the growth of
China, interest in biofuels, concern about global warming, job
creation, Internet technology, the need for more clean water, and
executives at Fortune 500 companies pushing for uniform regulations to
improve efficiency.

A March 14 New York Times article looks at how venture capitalists
are focusing on energy startups and compares the momentum to the
dot-com era:

Out of the ashes of the Internet bust, many technology veterans have
regrouped and found a new mission in alternative energy: developing
wind power, solar panels, ethanol plants and hydrogen-powered cars.

It is no secret that venture capitalists have begun pouring billions
into energy-related start-ups with names like SunPower, Nanosolar and
Lilliputian Systems. …

This time around, entrepreneurs say they are not expecting such
quick returns. In the Internet boom, the mantra was to change the world
and get rich quick. This time, given the size and scope of the energy
market, the idea is to change the world and get even richer — but
somewhat more slowly.

Those drawn to the alternative-energy industry say that they need
time to understand the energy technology, and to turn ideas into solid
companies. After all, in contrast to the Internet boom, this time the
companies will need actual manufactured products and customers.

Experts in both stories advise caution, pointing to hurdles and potential risks involved in backing cleantech.

On the Brink of a Climate-Change-Job-Boom?

I have a sense we’re riding a wave still in its infancy.

Many experts I interviewed spoke with a sense of urgency. They
underscored the tremendous opportunity that awaits, particularly on the
job market, as America continues to respond to challenges presented by
global warming. 

There likely will be letdowns along the way. There probably are
still more questions than answers. And a future climate-change-job-boom
might not be as speedy as the dot-com mad dash.

But lessons from the dot-com era could help make a
climate-change-job-boom stronger and more lasting, as the above
articles suggest.

Our fast-forward culture may want results yesterday, but after all, it took longer than a day to build Rome.

Stay tuned for my upcoming coverage of climate-and-jobs on PayScale.com and, as always, share your thoughts.
–kc

• Are Green Careers the Next Google? (PayScale.com)
• Green Careers Galore (PayScale.com)
• A Sustainable Career: A Look at Sustainability Jobs at Colleges, Universities and Beyond. (PayScale.com)
• Start-Up Fervor Shifts to Energy in Silicon Valley (The New York Times)
• Clean tech attendance doubles (MarketWatch.com)
• Creating Cleantech Clusters: 2006 Update (Natural Resources Defense Council and the Cleantech Venture Network LLC report)
• Cleantech Defined (Cleantech Indices LLC)
• The Power of Green (The New York Times Magazine)