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Emerging Industries and Job Creation
The federal Inflation Reduction Act (IRA) is set to boost several key industries, including renewable energy, energy efficiency, electric vehicles (EVs), and advanced manufacturing. These industries are expected to create millions of jobs with strong labor standards. For example, the investment in clean energy infrastructure alone could create up to 1.5 million jobs by the end of the decade,60 with the most generous subsidies going to projects that pay prevailing wages and use apprentices on the jobsite. The IRA has already stimulated new investments, with 123 new manufacturing facilities announced, representing over $35 billion in capital investment and supporting nearly 42,000 new manufacturing jobs.61
Additionally, the IRA's investment in clean hydrogen hubs could significantly boost job creation and industrial development. The Biden-Harris administration has allocated $7 billion to establish regional clean hydrogen hubs across the U.S. These hubs aim to prove what’s possible with this clean technology and attract substantial private investment. For example, the Gulf Coast Hydrogen Hub in Texas will leverage renewable energy and natural gas with carbon capture, while the California Hydrogen Hub will use renewable energy and biomass. These initiatives will reduce emissions and create more than 200,000 jobs.62
Complementing the IRA, the 2021 Bipartisan Infrastructure Law invests $550 billion into new projects to improve and modernize the nation’s infrastructure. This includes $65 billion for clean energy transmission and grid improvements, $7.5 billion for building a network of EV chargers, and significant funds for public transit and sustainable transportation projects. These
58BlueGreen Alliance, “State-Based Policies To Build A Cleaner, Safer, More Equitable Economy – A Policy Toolkit”; The White House, “BY THE NUMBERS.”
59 The White House, “BY THE NUMBERS.”
61 American Clean Power, “Clean Power Annual Market Report | 2023.”
investments are expected to create many jobs in construction, engineering, and manufacturing, and they passed with strong union support.63
State and local governments have also invested significantly in equitable climate action in recent years. For example, Illinois' Climate and Equitable Jobs Act (CEJA) sets a comprehensive framework for reducing emissions, promoting renewable energy, and creating jobs in green technologies.64 Unions supported CEJA and were critical in its passage, ensuring that the transition to a clean energy economy also provides good-paying jobs with strong labor standards.65 Further, New York City’s Local Law 97, part of the city’s Climate Mobilization Act, requires buildings over 25,000 square feet to meet new energy efficiency and emissions limits,66 which could create a significant number of jobs in building retrofits.
In addition to strong labor standards, federal and state officials are also prioritizing equity as they disburse funds for climate action. At the federal level, Justice 40, a “whole-of-government” initiative, “has made it a goal that 40 percent of the overall benefits of certain Federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.”67 With similar goals in mind, Illinois lawmakers invested millions of dollars in workforce development programs meant to create pathways for women and people of color into high-quality careers in clean energy and other climate-related fields. The IAM and other unions can play a productive role in advancing these initiatives, diversifying membership, and building power by reaching new communities.
Simply put, our current moment presents a unique opportunity to address the climate crisis while also creating good union jobs, expanding opportunities, and strengthening communities.
64 Illinois Environmental Protection Agency, “Climate and Equitable Jobs Act.”
65 The Natural Resources Defense Council, “Illinois Passes Nation-Leading, Equitable Climate Bill.”
66 New York City Sustainable Buildings, “Local Law 97 - Sustainable Buildings,” 97.
67 The White House, “Justice40 Initiative | Environmental Justice.”