New Study Projects Clean Energy Transition Could Create More than 150,000 New Jobs in Illinois by 2050

Rhea-AI Summary

The recent study by BW Research, commissioned by ComEd, highlights that Illinois could see a net increase of over 150,000 jobs by 2050 due to the clean energy transition. The report outlines two scenarios: one projects a net gain of 15,000 jobs by 2030 with current policies, while the other predicts 41,000 jobs under enhanced decarbonization efforts. Additionally, the research indicates improvements in job quality, with high-paying positions expected to rise by 17% under the latter scenario.

Positive

• Projected net increase of over 150,000 jobs by 2050 in Illinois due to clean energy transition.
• Job quality improvements with high-paying jobs expected to rise by 17% under moderate electrification scenario.

Negative

• Under the business-as-usual scenario, a more modest job increase of only 15,000 jobs by 2030.

First-of-its-Kind Study of Illinois Energy Transformation Identifies Job Training Needs

Also Projects Clean Energy Transition Could Create More Than 40,000 New Jobs in Illinois by 2030

CHICAGO--(BUSINESS WIRE)-- National economic and workforce applied research firm BW Research today released a first-of-its-kind study in Illinois that found that the transition to clean energy could create a net increase of more than 150,000 jobs for the state by 2050. The study was commissioned by ComEd to better understand the economic and workforce development challenges and opportunities communities will face in the transition to clean energy; the results is a statewide and regional job analyses.

“As evidenced by this foundational study, Illinois stands to gain tens of thousands of good-paying jobs from the transition to a clean energy future – and we must ensure that all communities benefit from this economic opportunity,” said ComEd CEO Gil Quiniones. “This research will help ensure that, working with community partners, we can build a diverse pipeline of talent ready to power the state’s journey to a cleaner, brighter future.”

The study examines the impacts to regional and statewide employment from two scenarios on the transition to a net zero energy future. It captures initial and secondary employment outputs across four sectors of the economy – electricity, fuels, transportation and buildings – and assesses opportunities for growth and areas of displacement across these four sectors to determine employment outcomes.

To complement BW Research’s analysis, ComEd conducted in-depth interviews with more than a dozen local business and community groups, ranging from workforce development organizations and educational institutions to labor unions. The study incorporates insights from these interviews on the impacts of the economy and pandemic recovery on the local workforce, the effect of decarbonization on the region’s future workforce, and the need for public-private partnership to prepare for workforce needs in coming decades.

“This study shows us that we’re at a unique moment in the energy space that offers a tremendous opportunity to create new jobs and bring economic prosperity to communities across Illinois,” said Don Finn, Business Manager and Financial Secretary for IBEW Local 134. “We’re hopeful that we can attract new jobseekers and build a diverse talent pipeline to support Illinois for generations to come.”

The first scenario assumes a business-as-usual approach that examines the impact of decarbonization driven by laws such as Illinois’ Climate and Equitable Jobs Act (CEJA) and the federal Inflation Reduction Act (IRA) on employment across the state. It assumes no additional efforts to accelerate the electrification of transportation, buildings or industry. Under this scenario, Illinois would see a net increase of 15,000 jobs between 2021 to 2030 and an increase of 38,000 jobs between 2021 to 2050.

The second scenario includes the job projections under the business-as-usual approach but also factors in additional actions beyond CEJA and the IRA to achieve economywide decarbonization by 2050, with high levels of electrification and a significant role for hydrogen and gas backup for heating. This scenario finds a net increase of 41,000 jobs in Illinois between 2021 and 2030 and a net increase of 151,000 jobs between 2021 to 2050.

These scenarios are the same as two of the scenarios identified in a recent independent study by national sustainability firm Energy and Environmental Economics, Inc. (E3) that outlines pathways for Illinois to achieve full, economy-wide decarbonization by 2050, consistent with the state’s pledge as part of the U.S. Climate Alliance to pursue the Paris Agreement.

“Our clean energy future is going to create more and better paying jobs, and education and job training will be critical in our work to ensure all communities benefit from this economic opportunity,” said Juan Salgado, Chancellor of City Colleges of Chicago. “This study will help us better expand existing educational programs and build new ones that will ensure the future workforce has the training and stackable skills necessary to thrive in this sector.”

The study also revealed that, under both scenarios, job quality would improve, with high paying and mid-wage jobs expected to increase by roughly seven percent under the business-as-usual scenario to 17 percent under a moderate electrification scenario.

“We are working to ensure underserved communities across Chicago have access to good-paying jobs and the necessary training to qualify for these jobs,” said Andrew Wells, Vice President of Workforce Development for the Chicago Urban League. “Working with ComEd and others, we are committed to maximizing the opportunities presented by the clean energy future to benefit every person, particularly communities who have historically lacked access to these opportunities.”

ComEd will use the study to inform its existing job training programs and internal hiring and training plans to support projected workforce needs, as well as to inform partnerships with state and local organizations to expand and develop job training programs to support the transition to clean energy. The company currently offers or supports a range of in-depth job training and apprenticeship programs, including the CONSTRUCT Infrastructure Academy, which, over the past decade, has helped more than 700 participants from diverse backgrounds prepare for careers in the skilled trades.

Other training opportunities include the Chicago Builds program at Dunbar High School through a partnership with Chicago Public Schools and the ComEd-sponsored Overhead Electrical Line Worker Training at Dawson Technical Institute.

The full study by BW Research can be accessed at https://bwresearch.com/docs/BW_ComED-Jobs&EquitableEnergyTransitionStudyReport2022.pdf.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 200 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, Instagram and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230112005607/en/

ComEd Media Relations

312-394-3500

Source: ComEd

FAQ

What does the BW Research study say about job creation in Illinois due to the clean energy transition?

The study indicates that Illinois could see over 150,000 new jobs by 2050 as a result of transitioning to clean energy.

What are the projected job increases for Illinois by 2030 according to the study?

The study projects a net increase of 15,000 jobs by 2030 under current policies and 41,000 jobs under enhanced decarbonization efforts.

How will job quality change with the clean energy transition in Illinois?

Job quality is expected to improve, with high-paying jobs anticipated to increase by 17% under a moderate electrification scenario.

What company commissioned the BW Research study?

ComEd commissioned the BW Research study to investigate the economic and workforce impacts of the clean energy transition.

What is the significance of the Climate and Equitable Jobs Act in the study?

The Climate and Equitable Jobs Act is mentioned as a driving force behind the decarbonization efforts, impacting job creation in Illinois.