Cleaner economy shift can create more jobs compared to polluting sectors: World Bank
New Delhi, July 3
The shift toward a cleaner economy could create significant economic opportunities as sectors generating less PM2.5 pollution per unit output create significantly more jobs and investment, according to a World Bank report.
As per the World Bank report, decoupling economic growth from environmental degradation remains a key challenge for economies as environmental conditions shape employment and productivity.
Natural resource endowments -- fertile soils, healthy fisheries, and forests -- offer a foundation for millions of jobs in agriculture, fisheries, and tourism. "Globally, 3.2 billion people rely on food systems and primary production for their livelihoods, making agriculture the world's largest employment sector," it said.
As per the report, sectors generating less PM2.5 pollution per unit output generate significantly more jobs and investment. For example, forestry generates on average more than 38 jobs per USD 1 million.
The World Bank categorised three main factors driving environmental change -- scale, composition, and efficiency. As economies expand, the scale effect increases resource use and pollution because production and consumption rise. On the other hand, composition effects reflect shifts toward industries that are either more or less resource-intensive, which can worsen or improve environmental outcomes.
On the other hand, the efficiency effect comes from better technology and production processes that reduce environmental impact per unit of output, helping offset some of the environmental costs of economic growth. "For land, air, and water resources, efficiency is the main factor offsetting the scale effect," it noted.
Adding to this, the report highlighted over 50 per cent of nitrogen fertiliser never reaches crops, while just 36 per cent of primary energy provides useful work or heat, as 37 per cent is lost before delivery and 27 per cent at the point of use.
Furthermore, "globally, about 30 per cent of supply, or half the Ganges River's flow, is non-revenue water, lost to leaks, theft, and metering errors."
As a result, these inefficiencies waste resources and reduce economic returns. Notably, pollution, resource depletion, floods, and droughts can threaten jobs, undermining human capital.
"The shift toward a cleaner economy can create new economic opportunities. Investing in renewable energy, sustainable agriculture, and circular economy sectors often generates more employment per dollar invested than investing in more polluting sectors," it said.
— ANI
Reader Comments
I'm from a farming family in Punjab, and I can tell you - the 50% nitrogen fertiliser waste figure is painfully accurate. We've been overusing fertilisers for decades without realising the long-term damage. Sustainable agriculture isn't just an option anymore; it's a necessity if we want our children to have fertile soil.
While I appreciate the optimism, let's not ignore the ground reality. Many polluting industries employ lakhs of people in India - coal mines, thermal power plants, and chemical factories. Transitioning to cleaner alternatives requires significant investment in retraining and social safety nets. Easy to say, difficult to implement in a developing country like ours.
The 30% non-revenue water figure is a national shame! In my city, we have water tankers queuing up while pipelines leak like crazy. Fixing this basic infrastructure alone could create thousands of jobs and save crores of rupees. World Bank reports are good, but we need action on the ground. #WaterConservation
Interesting data about PM2.5 and job creation! As someone working in the renewable energy sector, I can confirm that solar installation and maintenance has created massive employment in rural areas. We need more government subsidies to make this transition faster. Also, that efficiency point about only 36% useful energy is shocking 😮
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