 So morning everyone, I just want to start by just thanking and congratulating Ricky and Wolfgang and Uta and Phillip for just a remarkable initiative over these past seven or eight years just phenomenal So I am here from the land of sprawl and climate denial to talk about the green economy And let's understand why because the United States is essentially going through a shock decade We need to grow about eleven point one million jobs to make up the jobs. We lost during the great downturn And to keep pace with population dynamics. We don't need just more jobs We need better jobs because we've seen the growth of our poor and near poor move from about 81 million in 2000 to about a hundred and seven million people a third of our population in 2010 That's the recession. That's also the loss of six million manufacturing jobs During the 2000s at Brookings what we've been trying to understand is the economic impact of the so-called clean green economy What is it? Where is it and how do we move it and here's what we have found? First we find that the clean economy is a significant diverse emerging market in the United States 2.7 million jobs strong and to put that in perspective That means the clean economy is nearly twice the size of the biosciences field 60% of the 4.8 million strong IT sector and as you can tell it actually has more jobs than the fossil fuel related industries Now our definition which we worked on with Battell and the Obama administration is as follows any economic activity measured in terms of Establishments and jobs that produces goods and services with an environmental benefit or adds value to such products Using skills or technologies that are uniquely applied So that yields a very broad and varied picture of economic activity old and new Public and private green and blue at the highest level We see the clean economy grouping along five discernible categories renewable energy Energy and resource efficiency greenhouse gas reduction environmental management and recycling Agriculture and natural resources conservation and education and compliance But the interesting piece is they begin to break down into 39 separate segments and all Renewable energy you see has nine solar and geothermal renewable energy energy and resource efficiency 13 separate segments from EV technology to water efficient products greenhouse gas environmental management and recycling and so on you get the idea We are trying to disaggregate what is essentially in the United States been almost a cartoon, right? Solar and wind and yet it cuts across all these different areas Now each of these segments in turn then has a very distinct economic profile cuts across activities Occupation skills and a very distinct spatial geography given the special assets of distinct places Let's drill down a little bit more and you'll see under energy and resource efficiency We can look at green architecture and construction services over 56,000 jobs a decent growth rate but also you see the Physical space of the key companies in this area Burns and McDonald in Kansas City or McKinstry and Seattle or Gensler in San Francisco We then gone further and identified a group of young Super innovative clean tech industries they cross multiple categories and they show enormous growth potential and essentially they are very young They're only about 15 years old in many parts of the country in these segments have grown very fast Particularly compared to the economy as a whole since 2003 So the clean economy is not just broad and diverse It's disproportionately productive and this is particularly important to the United States as we move out of the recession From an economy that was characterized with consumption and debt to an economy That hopefully is fueled by innovation and power by low carbon and driven by exports global engagement engagement and rich with opportunity The clean economy is export intensive as you'll see In 2009 clean economy establishments export almost 54 billion and the bulk of that is in goods only a small portion in Services and significantly clean economy establishments are twice as export intensive as the national economy Now that gives us a platform as the world urbanizes to provide more goods and more services to the rising cities in China India and Brazil so that they can both grow and prosper but also meet their sustainable goals second piece innovation We find that the clean economy employs a higher percentage of scientists than the national economy 10% of clean Clean economy jobs are in science and engineering We're to 5% in the US as a whole and as we know a Dieter Lappell is here Manufacturing and innovation are inextricably linked and by our account the clean economy is a vehicle for production 26% of all clean economy jobs in the United States are involved in manufacturing compared to just 9% as a whole and manufacturing accounts for a majority of the jobs in Over half of the clean economy segments with many segments having a super majority of production oriented jobs Solar and wind energy more than two-thirds in manufacturing and some segments appliances water products EV technologies over 90% of their jobs in manufacturing good news clean manufacturing is growing Finally clean economy is opportunity rich It provides prospects for a wide range of workers and good wages up and down the skills level It's easy to enter Available to people of all skill levels 45% of all clean jobs are held by workers with a high school diploma or less Once a worker enters a field She's more likely or he or she is more likely to receive career building training 41% of clean jobs offer medium to long-term training and of course we know the pay-off is higher wages Getting at that more and better jobs challenge that we have in the United States so Beyond the rhetoric and beyond the hype the clean economy is exactly the kind of economy the United States needs to build post Recession export driven innovation fueled opportunity rich Second piece obviously this economy does not spread across the American landscape. It is highly concentrated This is what we call the real heart of the American economy a hundred metropolitan areas They sit on 12% of our landmass and after decades of growth harbor about two-thirds of our population and generate three-quarters of our GDP and this is the new geography in the United States Cities and suburbs exerbs in rural towns that pack a powerful punch because of that agglomeration that Ed Glaser talked about With regard to the clean economy, they're driving it They constitute an increasing share of clean economy jobs about 64% But an outside share 74% of the jobs in the young growing clean tech industries solar PV battery technology smart grid, etc and They obviously are located in these places because the major cities and metros Have the assets that drive innovation What we find is the clean economy has as I've said before Enormous shares in the clean tech sector, but they're also leading the growth In in areas that are critical to the sustainable development of American cities and metros 78% of jobs in public mass transit 90% of the jobs in green architecture design and construction You know in some respects clean economy is going to be a metropolitan act because that's where most people live and travel and businesses Locate now ironically because America cities and metros have sprawled so much They actually have a pretty decent share of rural clean economy jobs Not something we should all be too excited about but hydro sustainable forestry biofuels and either organic food and farming Now we all know the cumulative power is interesting But metro economies do not exist in the aggregate they exist in very specialized distinctive ways So we've tried to dig deep and understand the starting point of each of the top hundred metros on the clean economy What we find not surprisingly New York, LA Chicago and Washington are super-sized job centers More than 70,000 jobs a piece in the clean economy in 2010 New York Metro loan more than a hundred and fifty two thousand clean economy jobs Other major metros Philly San Francisco, Atlanta Boston Houston Dallas also key players more than 38,000 jobs a piece and yet this is not just about the large metros Different set of metros have high shares of their of their economy in the clean economy particularly starting with Albany Where general electric is primarily located? So this is the power of networks It's the power of agglomeration and clusters and what you see across the United States are different parts of the u.s Beginning to excel in critical areas of the clean economy Now final point is about policy policy is absolutely critical here in an ideal world What you would have in the United States is a federal government right that actually worked with each other and the federal government would do three things They would try to scale up innovation They would try to drive Innovation and they would catalyze finance and to some extent that's what the president Obama did in his first term with the cafe standards out of EPA with this new ARPA e R&D center out of the Department of Energy And with regard to loan guarantee programs and even production tax credits between 2009 and 2014. It's estimated Okay, I'm getting the stop sign. Oh, that went really fast. Okay. Well, let me try to sum up in this following way This is what our national government did Unfortunately, this is where we are today. We have a fiscal cliff we have a lot of Challenges with the way in which many of these programs were Did I go over or I'm fine. Oh, I got a zero sign back here. Oh Okay, I'll keep going. Okay Five minutes and then I'll be done and she's gonna hurt me if I'm not so Here's the critical thing to understand the Obama administration with the Congress Basically dedicated about a hundred and fifty billion dollars between 2009 and 2014 to essentially stand up Catalyze leverage a clean economy sector, but this is what they face now They face the overriding imperative in Washington to scale back because of the fiscal cliff and the fiscal crisis and also because of our political campaign what Republicans particularly focus on were a few isolated cases of firms that receive government subsistence Going bankrupt it is hard to imagine that the Obama Administration over the next several years even in the aftermath of Hurricane Sandy are gonna be able to do what's necessary to scale up markets and Basically drive innovation and do the other kinds of things that you want a national government to do So we have a default proposition in the United States. It's called the states, right? The states are laboratories of democracy They have enormous power and what you're seeing are states particularly large states like, California Themselves moving to set a standard for the clean economy through renewable portfolio standard through cap and trade programs You see states like Wisconsin and Ohio beginning to invest in advanced R&D centers at their major Universities in college so that we can then catalyze innovation do the technology transfer do the product prototyping and production And finally you see states like Connecticut and increasingly New York and others Beginning to actually engage in the kind of financing where the market hasn't taken hold yet So we can catalyze again the growth of new firms and begin to move to sort of a market normal now Cities of metros are also not standing by Because they are the engines of the economy. They're the centers of trade and investment And the national government is not going to act and states because there's 50 of them and let's say seven or ten are gonna act That that doesn't cover the whole country So cities and metros are beginning to stand up and they're going through a process that we call business planning They're beginning to understand their particular distinct Assets and advantages in the clean economy. They're then beginning to build on those particular Advantages and there's particular attributes and they're doing that not just with government But in the ways cities work cities are networks, right? So what you have is government working with the university working with business working with the civic sectors and the unions To basically engage in Seattle. They went through a business planning process for a period of time Microsoft McKinstry, right? So what does Seattle think about itself in the clean economy? We could be the global hub of energy efficient technologies and working with the state and working partly with the federal government They're standing up a facility so that they can verify and test energy efficient technologies for residential Business and industrial now. This is obviously not just about Economy right this is about place and I think cities in the United States finally understand that perhaps their principal role in advancing the clean economy and creating a clean economy a place is by Changing their physical form. So what we see in the port of LA is greening the port what we see in Denver Mostly off of a local tax base, right? Some federal money some stuff This is primarily driven by the residents and citizens of Denver Largest light rail system in the world what we say in San Diego is beginning to put in place the electric vehicle Infrastructure technology and what we see in Boston is the beginning of innovation district thinking primarily coming out of Europe So we can see the clustering of fact between anchor institutions the eds and meds Entrepreneurial firms and residential in many respects Ricky. I mean we're taking all the urban age thinking about physical form about density About transit connectivity and we're applying it to the clean economy So this is where we go. There's a big if big question mark with the United States because of our federal government Which is mired in partisan? Ranker and really driven by ideological polarization So at a time when you want a national government to sort of set the policy floor set the policy platform for the restructure of the economy There's somewhat a wall. They're on a frog and detour. They're mostly referenced on themselves So the states and frankly the cities and metropolitan areas are going to drive The transformation of the American economy and this remarkable transition to the clean economy. Thank you very much