Energy tax could create 1.9 million euro jobs

The study, carried out by the Fraunhofer Institute, states “an energy/CO2 tax would make an important contribution to the reduction in unemployment.” The Institute cites research that suggests up to 1.9 million jobs could be created by an energy tax.

The study looks at the costs and benefits of measures to tackle global warming – including greater efficiency in manufacturing processes, combined heat and power, renewable energy technologies, energy efficient domestic appliances, better insulation for buildings and improved fuel economy for cars – and finds that all measures would boost employment.

The study concludes that marketing more energy efficient domestic appliances and better insulation standards would create more jobs in the short run while industrial process efficiency, renewable energy technologies, fuel economy of cars and new window systems (for insulation) would trigger “important long-term effects due to their high innovation potential.”

Dr Stephan Singer, Head of climate change and energy policy at WWF Germany, commented “EU leaders cannot ignore the facts. Cutting CO2 emissions means new, clean jobs across Europe. EU leaders should stop trying to get out of their commitments to cut global warming gases. Instead, they should offer strong incentives for energy saving technologies and competitive new industries.”