Green New Deal
Takafumi Ikuta
Research Fellow, Economic Research Center
October 5, 2009 (Monday)
The US “Green New Deal”, which strives to be both an environmental measure and economic stimulus, is garnering attention amidst the global economic crisis. The Obama Administration aims to invest US$150 billion over 10 years and create 5 million new jobs in the field of renewable energy such as wind and solar power generation. “Smart grids” corresponding to the increase in renewable energy producers and the introduction of 40 million smart meters (real-time energy measuring instruments) that will facilitate household energy-saving are planned as infrastructure for effective environmental investment. There are also plans to increase plug-in hybrid vehicles, which can be recharged by connecting to household power sources, to 1 million by 2015.
The economic stimulus package, passed by US Congress on February 17, will allocate US$50 billion (of a total of nearly US$800 billion) towards development of renewable energy and making public facilities and low-income housing more energy efficient. Taking into consideration the energy-saving and environmental conservation effect that will follow public investment into roads and buildings, environmental expenditure will exceed US$100 billion.
Aggressive environmental investment is expected to not only create jobs in the short-term, but also strengthen competitiveness in the long-term through investment and development of infrastructure in new growth areas. Countries introducing economic measures that emphasize environmental investment are on the rise, such as South Korea and around Europe. The Japanese government also plans to announce “Japan’s Green New Deal” this spring. While the environmental business market is attracting more interest as a new global growth area with increasing business opportunities, competition in technology and product development is also expected to intensify.
FRI responds to the needs of our customers regarding environmental issues by conducting research and disseminating information on the latest environmental trends around the world; supporting environmental management and the development of business strategies for companies; and assisting the formulation of environmental policy for both the national and local governments.