US economy added 517,000 jobs as global investment in the low-carbon energy transition totaled $1.1 trillion

According to new data released today by the Bureau of Labor Statistics. The US economy added an astonishing 517,000 jobs in January as unemployment rate fell to 3.4%. President Biden  plans to eliminate fossil fuels as a form of energy generation in the U.S. by 2035. The White House set a target of 80 percent renewable energy generation by 2030 and 100 percent carbon-free electricity five years later.

With 79% of total U.S. energy production still coming from fossil fuel sources as of 2021, achieving this goal will require billions of dollars in investments. Last year, investments in America’s energy transition hit a new record of $141 billion, according to BloombergNEF.

This trend is expected to continue as the Inflation Reduction Act, passed in August, provides about $370 billion in funding and subsidies for green technologies.

Global investment in the low-carbon energy transition totaled $1.1 trillion in 2022 – a new record and a huge acceleration from the year before – as the energy crisis and policy action drove faster deployment of clean energy technologies, according to a new report from research firm BloombergNEF (BNEF).

According to a report by the United Nation, Every dollar of investment in renewables creates three times more jobs than in the fossil fuel industry. The IEA estimates that the transition towards net-zero emissions will lead to an overall increase in energy sector jobs: while about 5 million jobs in fossil fuel production could be lost by 2030, an estimated 14 million new jobs would be created in clean energy, resulting in a net gain of 9 million jobs.

In addition, energy-related industries would require a further 16 million workers, for instance to take on new roles in manufacturing of electric vehicles and hyper-efficient appliances or in innovative technologies such as hydrogen.

US has approved a $500 billion green spending package to curb climate emissions and Japan layed out a plan to issue $150 billion in “green transition” bonds. The EU unveiled this month its own $270 billion plan to subsidize Europe’s green industry.