Green Biz in the Black

  • A green "stop-n-shop." Locali's in L.A. (Photo by Devine Browne)

When the banks failed and the recession
hit last fall, lots of people predicted
that the burgeoning green economy would
get nipped in the bud. But that’s not
what happened. Julie Grant spoke with
some business experts about the status
of green companies:

Transcript

When the banks failed and the recession hit last fall, lots of people predicted that the burgeoning green economy would get nipped in the bud, but that’s not what happened. Julie Grant spoke with some business experts about the status of green companies.

Last fall, the iconic supermarket of the green movement was in trouble. After years of growth, Whole Foods’ stock prices were plummeting.

Nancy Koehn is professor of the history of retailing and consumer behavior at the Harvard business school.

She says despite the lingering high unemployment rate and the store’s notoriously high prices, things are looking better today for Whole Foods.

“They’ve rebounded very effectively over the last six months. their stocks trading up considerably, traffic is up in the stores, per customer tabs, or receipts, if you will, are up.”

But Koehn says Whole Foods customers might be a core group that’s committed to buying green. The jury is still out on whether green companies will win over mainstream consumers.

Lots of people rushed to Wal-Mart last Christmas – to get things as cheaply as possible in the wake of the financial meltdown. But Koehn says the large-scale flight to Wal-Mart has mostly run its course.

“The question now is – are consumers now, in this post crisis world, going to move to a new normal? – which includes a different way of thinking about the impact of our dollars on how what we buy affects a whole range of issues and people in the world.”

In other words, will people re-consider buying cheap goods made in China since many American jobs have been lost to that country, environmental concerns about products from China and that country’s record on human rights.

And, Koehn says even Walmart is becoming greener both in its operations and its products. For example, it now sells only energy efficient lights bulbs.

Joel Makower is editor of GreenBiz –dot-com. He says changes at WalMart are just a small part of the green business story today. Although, he might not have said that a year ago.

“I think the remarkable story of 2009 is that the green economy did not disappear when the overall economy went south. that it’s not only remaining in place, but the number of products and services from better cars to better cosmetics to computers are coming in to the market.”

Even though we’re the ones who buy these things, Makower says the future of the green business isn’t really about consumer demand. He says there’s a confluence of green technology, government regulation and available capital that’s driving the green economy forward.

“We’re going to be seeing that in energy, we’re going to be seeing that in buildings, we’re going to be seeing that in vehicles. We’re already seeing that in information technology. Where these things are coming together and regardless of consumer demand are being made available and attractive to consumers.”

Makeower gives the example of the IPOD. He says it wasn’t developed because people demanded it, or because we were running out of material to make CDs – it just offered a better technology – and so consumers have been buying it. In the process, the IPOD saved tons of material that was to be used on CD packaging.

These new products aren’t necessarily being labeled green products. And Business historian Nancy Koehn says American companies are going through a huge transition that won’t make such labels necessary.

“Because pretty soon the core aspects of what we define as green today will be such a part of so many businesses that we won’t make this distinction, we won’t have this kind of differentiation by the word green.”

Koehn says companies that have already started going green might be ahead of their competitors right now – in terms of energy efficiency and offering a wider array of green- products. But because of stockholder demands, government incentives– and eventually consumers – other businesses will likely start catching up to them.

For the Environment Report, I’m Julie Grant.

Related Links

The Great Depression and Green Jobs

  • The CCC worked on soil conservation projects, built 3,000 state parks, and replanted forests. The men in the CCC planted three-billion trees - that’s estimated to be half of the trees ever planted by humans in the U.S. (Photo courtesy of the National Resources Conservation Service)

Today we hear a lot of news calling
this “the worst recession since the
Great Depression.” Tonight, PBS
begins airing a series of documentaries
from American Experience called
“The 1930s.” Lester Graham reports
the series looks back at the Great
Depression:

Transcript

Today we hear a lot of news calling
this “the worst recession since the
Great Depression.” Tonight, PBS
begins airing a series of documentaries
from American Experience called
“The 1930s.” Lester Graham reports
the series looks back at the Great
Depression:

The documentaries in “The 1930s” series look at the stockmarket crash, the Dust Bowl, and the government’s response – such as President Franklin Roosevelt’s New Deal.

Robert Stone directed one of the five documentaries. He looked at the Civilian Conservation Corps – the CCC. Stone says it was the first of Roosevelt’s work programs, but it also tackled the biggest environmental disasters.

“We’d spent hundreds of years just chopping down all of the forests in this country and over-using all of the farmland. The topsoil was all running into our rivers and off into the ocean. And it reached a sort of crisis point in the 1920s and early ‘30s.”

FDR had watched the forests disappear and soil erode near his home in Hyde Park, New York. Putting men to work correcting those problems made sense to him.

“FDR was very aware of that. He started a sort of mini-Civilian Conservation Corps in New York state when he was Governor and then when he went to the White House he came up with the Civilian Conservation Corps.”

FDR: “We are planning within a few days to ask the Congress for legislation to enable the government to take on public works, thus stimulating directly and indirectly the employment of many others in well-considered projects.”

But this was new for government. At that time, helping the poor was something for charity, not government.

Harley Jolley is one of four CCC veterans who tell their stories in the documentary.

He says hiring unemployed young men to work in the Civilian Conservation Corps was new to politicians. But they saw it for the practical politics it was.

“And because all those politicians were well aware that they had young men in their hometown, in their home state that could vote for them next time around, ‘Yeah, yeah, we’ll go with you.’ And very quickly it came to pass.”

FDR’s Civilian Conservation Corps was the first, but several work programs followed.

The CCC worked on soil conservation projects, built three-thousand state parks and replanted forests. The men in the CCC planted three-billion trees – that’s estimated to be half of the trees ever planted by humans in the U.S.

This revolutionary idea got off the ground quickly. Camps were set up in every state. Men worked under military officers. The Civilian Conservation Corps members were required to send most of their pay back home.

Sometimes nearby towns welcomed the young men. CCC veteran Vincente Ximenes says, other times, people were wary of Roosevelt’s army of workers.

“And there were some farmers who didn’t like FDR and what he did. He was called a Communist, a Socialist, any name you could find. So, therefore, the CCC-ers also, of course, were no good as far as they were concerned.”

And it wasn’t just farmers.

The documentary’s director, Robert Stone says, in the beginning, President Roosevelt faced a lot of opposition to his government ‘green jobs’ program.

“Well, there were concerns very similar to what you have today with concerns about deficit spending.”

“The national debt today is 30-billion as compared to 19-billions under Hoover. And God knows Hoover was bad enough.”

“So that was on the right. And on the left there were concerns about paying these people a dollar-a-day. The unions were upset about it. But the success of it was such that it really quelled most any opposition.”

The Civilian Conservation Corps documentary, like the other documentaries in the 1930s American Experience series, looks at the connections between environmental damage and economic collapse in a way that still resonates today.

For The Environment Report, I’m Lester Graham.

Related Links

Emissions Down With the Economy

  • The Energy Information Administration projects that in 2009 we'll cut our greenhouse gas emissions by 5%. (Photo courtesy of the US EPA)

The recession doesn’t have a lot of upsides,
but there is an environmental silver lining.
Carbon dioxide emissions are down. But,
as Tamara Keith reports,
greenhouse gas emissions are expected to
rise as the economy improves:

Transcript

The recession doesn’t have a lot of upsides,
but there is an environmental silver lining.
Carbon dioxide emissions are down. But,
as Tamara Keith reports,
greenhouse gas emissions are expected to
rise as the economy improves:

The Energy Information Administration projects that in 2009 we’ll cut our greenhouse gas emissions by 5%. Emissions were down in 2008 too.

Elias Johnson is an energy analyst. He says the economy is expected to pick up next year. That means coal, natural gas and petroleum use will pick up too.

“It’s not all going to happen at one time, so that will be gradual. And then visvis the emissions from that energy consumption will probably increase gradually.”

In 2010, Johnson says emissions are projected to rise 0.7%. Not much, really. And emissions will still be lower than they were when the economy was booming.

“For one thing, the economic activity is not going to be getting back to those levels.”

For The Environment Report, I’m Tamara Keith.

Related Links

What Counts as Green Collar?

  • President Obama has said that a move toward clean energy production has enormous job creation potential. But some researchers say that’s overblown. (Source: Kmadison at Wikimedia Commons)

At the heart of President Obama’s economic recovery plan is the promise of new green collar jobs. Workers concerned about being laid off from their blue collar jobs are starting to wonder what those new jobs will look like. Julie Grant reports:

Transcript

At the heart of President Obama’s economic recovery plan is the promise of new green collar jobs. Workers concerned about being laid off from their blue collar jobs are starting to wonder what those new jobs will look like. Julie Grant reports:

Michelle Forte has been a dye maker at the General Motors plant in Parma, Ohio for 15 years. She says everyone at work is worried about the future of the plant, and the prospects of the whole company.

“It’s a scary industry to be in right now. They keep on sending our work to China. And my job could be next, you just don’t know. It’s scary to live in that environment every day. You go into work and it’s negative all the time.”

Forte hasn’t gotten a raise in 6 years. And in the future, if she stays as autoworker, she’s going to be making a lot less.

“I will tell you what I made last year, and that was $80,000. And this year, with the concessions that we’ve took and the overtime that we’ve lost, I will be lucky to make $60,000. So, yeah, it’s a drastic cut.”

Forte decided to take advantage of job training money available at GM. She gets up a five in the morning to start work, then after her shift she heads to school.

She and two co-workers have started taking courses at the new Green Academy at Cuyahoga Community College. They’re learning what it takes to install solar panels, wind turbines, and to make buildings energy efficient. It’s tough getting home after 10 at night. But Forte says learning to work in the clean energy field is a positive step for their future.

“Because we wanted to get in on the ground floor. If it breaks open like we think it is, we want to have the education under our belt already.”

But most autoworkers aren’t betting on an explosion of green jobs. At least, they aren’t spending their time in training classes – even if they’ve already been laid off.

Joe Rugola is president of the AFL-CIO of Ohio. The union represents everyone from musicians to office workers to electricians.

Rugola says people who’ve been laid off have to make impossible choices if they decide to start training in a new industry – do they continue looking for jobs to keep the unemployment check coming in – or do they go to school for retraining?

“Am I going to go for training, if I’m already laid off, am I going to risk my unemployment benefits, and go for training in an industry that may or may not produce real work down the road? A person in that situation should not have to make that choice.”

And that’s the big gamble. Do they invest time and effort to retrain for jobs that might never materialize?

President Obama has said that a move toward clean energy production has enormous job creation potential. But some researchers say that’s overblown.

Andrew Dorchak is a researcher with the Case Western Reserve University law library. He coauthored a study titled Green Job Myths.

The first myth: that there is a common understanding of what makes something a green job.

“We’ve figured out that there wasn’t a really good definition of green jobs. Especially if there are political subsidies involved that might be problematic.”

Problematic because many of the jobs classified as green today aren’t making wind turbines and solar panels in the Midwest. They’re lobbyists, administrative assistants, and janitors working for environmental organizations in New York and Washington.

And he’s concerned the definition of green jobs will get even wider as government pockets get deeper.

“It’s subject to maneuvering. To people fighting to classify their jobs as green.”

Dorchak says companies will chase the subsidies. That could take away from government money to create productive jobs.

Jobs that could help people like Michelle Forte find work – and improve the environment at the same time.

For The Environment Report, I’m Julie Grant.

Related Links

Energy Future and Jobs

  • Critic's of the President's plans for a green economy say switching from fossil fuels will make energy costs higher and eliminate jobs. (Photo courtesy of whitehouse.gov)

President Obama’s critics say his plan for a green economy is a jobs killer. Lester Graham reports the blogosphere was full of criticism for his plan to reduce greenhouse gases:

Transcript

President Obama’s critics say his plan for a green economy is a jobs killer. Lester Graham reports the blogosphere was full of criticism for his plan to reduce greenhouse gases:

During Tuesday night’s news conference, President Obama talked about moving to a new energy era:

“That means moving away from polluting energy sources toward cleaner energy sources. That is a potential engine for economic growth.”

Conservatives said ‘No, No, No. Switching from cheap fossil fuels, and putting a price on greenhouse gases to reduce global warming will be a jobs killer.’

David Kreutzer is a Senior Policy Analyst at The Heritage Foundation:

“Cutting that energy is going to cut economic activity. Yes, we may see some windmill jobs, but the higher energy costs are going to destroy so many other jobs that the net impact will be significant job loss.”

The President’s critics argue greenhouse gas emissions can’t be reduced enough to really affect global warming.

Meanwhile, recent reports indicate less ice cover on the Great Lakes each winter, polar ice is melting faster than expected, and oceans are rising to the point that people are starting to notice.

For The Environment Report, I’m Lester Graham.

Related Links

Money Over Mother Nature

  • A Gallup poll finds people feel the economy should be given priority over the environment (Photo by Rebecca Williams)

A new poll shows Americans put money over Mother Nature. Lester Graham reports it amounts to a real shift in attitudes:

Transcript

A new poll shows Americans put money over Mother Nature. Lester Graham reports it amounts to a real shift in attitudes:

A Gallup poll finds people feel the economy should be given priority over the environment.

51% think so. 42% still think the environment is more important.

Frank Newport, Gallup Poll Editor-in-Chief, says Gallup has been asking this same question every year for 25 years.

“This is the first time that we have had more Americans say growth should be given the priority not the environment. So, it’s a fairly dramatic and significant change this year.”

Newport says the results reflect people’s concerns about keeping their jobs and keeping their homes in this economy.

He concedes the issue is not just black and white – the environment versus the economy.

Jobs are being created in a shift to greener fuels and energy efficiency. But apparently that’s not clear to the American public. Newport suggests that might be the challenge facing people in the environmental movement.

For The Environment Report, I’m Lester Graham.

Related Links

Jobs Versus Environment Debate

Congress will soon debate a carbon-cap-and-trade program. Lester Graham reports that debate will renew arguments about jobs versus the environment:

Transcript

Congress will soon debate a carbon-cap-and-trade program. Lester Graham reports that debate will renew arguments about jobs versus the environment:

This is an old argument with a new twist.

It goes like this. The economy is a mess. We need jobs. So right now we should worry less about the environment and more about jobs.

Putting a price on carbon emissions will gradually make fossil fuels like coal more expensive to burn.

That will cost big corporations that use a lot of energy. Opponents of cap-and-trade say it’s a job-killer.

But at the same time, carbon-cap-and-trade will make solar and wind more attractive. And that could create green collar jobs.

Environmental activists such as the Environmental Defense Fund’s Tony Kreindler say that won’t stop the critics.

“You’re always going to have defenders of the status quo claiming that it’s going to be economic ruin.”

But, a growing number of business leaders see carbon-cap-and-trade as a way to invest in an energy future that pollutes less and makes the U.S. more energy independent.

For The Environment Report, I’m Lester Graham.

Related Links

Obama’s Budget Address & Green Recovery

  • President Obama's address to a joint session of Congress on February 24 (Photo by Pete Souza, courtesy of the White House)

President Barack Obama outlines his budget tonight before a joint-session of Congress. Lester Graham reports many people will be watching for more investment in what’s be called the “green recovery”:

Transcript

President Barack Obama outlines his budget tonight before a joint-session of Congress. Lester Graham reports many people will be watching for more investment in what’s be called the “green recovery”:


The stimulus package includes money for making government buildings and some homes more energy efficient… and pursuing alternative energy such as wind and solar power.

Robert Heilmayr is a research analyst with World Resources Institute. He says so far the Obama administration has recognized there are long term payoffs in green investments.


“The key next step that I think is missing and I’ll really be paying attention to as Obama addresses Congress is whether he recognizes the stimulus is only the first step, that comprehensive energy and climate policy is necessary and should be a priority moving forward as a follow-up to the stimulus is a big question.”


Heilmayr says the long-term savings in energy conservation will help businesses and everyone else by keeping fuel prices lower in the short-term and give us a step up when the world markets start taking greenhouse gas emissions seriously.


For The Environment Report, this is Lester Graham.

Related Links

President Calls for Profitable Green Energy

  • President Obama's address to a joint session of Congress on February 24 (Photo by Pete Souza, courtesy of the White House)

Health care and education are always
top priorities in a Presidential budget.
But last night President Barack Obama
told Congress in his budget address,
“It begins with energy.” Lester Graham
reports:

Transcript

Health care and education are always top priorities in a Presidential budget. But last night President Barack Obama told Congress in his budget address, “It begins with energy.” Lester Graham reports:


The President reminded us the recent stimulus package included doubling the supply of renewable energy in the next three years, investments in basic research – including energy, a better power grid and making buildings and homes more energy efficient.


“But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy.”


And to do that the President called on Congress to pass legislation that places a market-based cap on carbon pollution. A carbon cap and trade program would make fossil fuels more expensive… and encourage solar, wind and other renewable energy.


Climate change legislation opponents say a carbon cap-and-trade program would be a jobs killer. By tying it to creating new green jobs, President Obama hopes to challenge that argument.


For the Environment Report, this is Lester Graham.

Related Links

Green Projects and Stimulus Bill

  • At least 62-billion of the 789-billion dollar package are for green investments (Source: Man-ucommons at Wikimedia Commons)

The stimulus package before Congress spends an unprecedented amount of money on issues important to environmentalists. Lester Graham reports it looks like the interests of the environment and the economy are aligning:

Transcript

The stimulus package before Congress spends an unprecedented amount of money on issues important to environmentalists. Lester Graham reports it looks like the interests of the environment and the economy are aligning:

The stimulus package is packed with things that make environmentalists smile.

There are billions for renewable energy and research for alternative energy sources. There are billions for making federal buildings and homes more energy efficient. There are billions for mass transit and Amtrak, and a half-a-billion to training workers for green collar jobs.

Melinda Pierce is with the Sierra Club.

“Well, I tell you, what has struck me is the ‘billion’ word instead of ‘million’. So many of these projects – in terms of weatherization, energy efficiency, high-speed rail – have suffered from a lack of funding for the last eight years. This package will funnel literally billions of dollars into the programs that we think are America’s clean energy future.”

So, how many billions total in green investments? At least 62-billion of the 789-billion dollar package.

And many environmentalists, some economists and business leaders, and, apparently, a good number of the Members of Congress think the growth sector of the economy is going to be the green sector.

For The Environment Report, I’m Lester Graham.

Related Links