Bounce Back Greener: The Economic Impact Potential of a Clean Energy Jobs Fund in the USA

The Coalition for Green Capital commissioned Vivid Economics to assess the economic impact potential of a new US Clean Energy Jobs Fund (CEJF), which could kick-start a step change in green investment by crowding in private investment and generating millions of new jobs. The analysis applies a three step modelling process to consider the total new investment that can be driven by the CEJF, how that financing might be deployed within the CEJF’s target sectors, and how investments in those sectors translate to new jobs.

  • Vivid’s financial modelling identified that the CEJF could translate an initial $35 billion capitalization into a total $105 billion investment capacity through borrowing and drive almost $500 billion dollars of public and private investment across key green sectors within its first five years through direct financing and private co-investment in projects.
  • Over two decades, the CEJF could drive almost $2 trillion worth of investment. Looking at a realistic investment portfolio for the CEJF across six climate mitigation sectors.
  • Vivid’s Investment Impact Model assesses that the CEJF could support the creation of 5.4 million new job-years in its first five years of operation. As initial investments are repaid and then reinvested by the Fund, job creation would continue at approximately the same rate.
  • The CEJF’s clean transport and renewable energy sectors have huge job creation potential, providing more than 60% of new jobs created.

Future analysis during 2020 will expand on this assessment through state-specific analysis to quantify the climate mitigation, economic growth and job creation benefits from the CEJF in more detail.

Client

Coalition for Green Capital

Sectors:

Finance

Capabilities:

Net Zero Transitions
Trade, Investment & Competitiveness

Regions:

North America

Products:

IIM