A major study of the impact of energy efficiency on job creation found that investments in energy efficiency could also offer important job creation potential. This is because the manufacturing and installing of energy efficiency measures is a relatively labour intensive activity. This work is, by its nature, local and accessible to people who traditionally suffer the highest rates of unemployment.
The study also found that where energy savings are cost effective, the result is that consumers divert expenditure from energy into the general consumption sector. Overall these effects accounted for direct employment gains of up to 60 person years of employment per £1 million spent and an additional 70 person years of employment in the wider economy.
Improving the energy efficiency of residential property can also help address fuel poverty. Those with the lowest incomes are increasingly vulnerable to rising energy prices due to the bad energy performance of housing. Promoting energy efficiency upgrades can help to ease this social burden on society.
More globally, Europe’s investments in energy-efficient buildings will boost investment in Research and Development and in manufacturing capacities of energy-efficiency industries. It will contribute to maintaining Europe’s industrial lead in the worldwide race for sustainable production and green product development.