A recent report released by the nonpartisan business group E2 reveals that nearly 3.5 million people in the United States are currently employed in the clean energy sector, with over 1 million of those jobs located in states across the South. The increase in employment in the clean energy industry in 2023 was attributed to the Inflation Reduction Act, which included funding to promote emissions cuts and facilitate the country’s transition away from fossil fuels to combat climate change. Clean energy and clean vehicle companies added close to 150,000 jobs in 2023, with over 54,000 of those positions being in the South, accounting for 36% of all new jobs in this region.
The Inflation Reduction Act, also known as IRA, has represented a significant achievement for the Biden administration in its efforts to address climate change. Vice President Kamala Harris has specifically highlighted her tie-breaking vote in the passing of this legislation during her presidential campaign. The report analyzed various employment sectors within the clean energy industry, including clean vehicles, renewable energy, battery storage, grid modernization, and biofuels. Southern states, which have traditionally leaned towards the Republican party, have seen substantial benefits from the IRA, despite opposition from Republicans in the House and Senate.
Alabama, Kentucky, and Oklahoma were among the states that experienced the fastest growth in clean energy jobs in 2023, based on percentage increases. California, Florida, and Texas, the top three most populous states, led in the total number of jobs within the clean energy industry. Nationwide, clean energy jobs grew by approximately 4.5% last year, significantly surpassing the country’s overall job growth rate of 1.5%. Clean energy jobs now make up about 1 in 16 new jobs created in the U.S. E2 has been publishing annual reports on clean energy job growth in the U.S. since 2015.
The findings of the report may have implications for the upcoming presidential election in November, as Donald Trump has vowed to repeal any unspent funds under the Inflation Reduction Act if he wins the presidency, citing the potential to combat inflation. Conversely, Kamala Harris has pointed to the act as a key example of the Biden administration’s efforts to create jobs. In a statement marking the IRA’s second anniversary, Harris described the legislation as “historic” and “transformational.” Bob Keefe, the executive director of E2, emphasized the report’s indication of the potential for further growth within the clean energy sector, highlighting the importance of maintaining the progress made under the IRA.
As the clean energy industry continues to expand and create new job opportunities, efforts to repeal or roll back parts of the Inflation Reduction Act could pose threats to this progress. Keefe emphasized that the benefits of the legislation extend not only to American workers but also to the communities where they reside. The report underscores the significance of clean energy job growth and the positive impact it can have on both the economy and the environment, emphasizing the potential for continued advancement in this sector.
