Green businesses create sustainable economic growth and job opportunities for both high and lower skilled workers, while optimizing the use of natural resources by offering products or services that reduce environmental impacts

1. Galen Nelson, GreenTech
Business Manager
Green Businesses
Green Jobs
Green Economy
I. Defining Green Businesses
II. Indicators, Trends & Analysis

2. I. Defining Green Businesses
 Definition Challenges
 Green Jobs Definition
 Green Business Core Sectors
 Recent Efforts to Define/Quantify Clean/Green
Tech in Boston/MA

3. “Green businesses create sustainable economic growth and job
opportunities for both high and lower skilled workers, while
optimizing the use of natural resources by offering products or
services that reduce environmental impacts.”
“Green businesses add economic value over conventional business
models, create healthier communities and workplaces, and reduce
liability for business owners and the communities in which they
operate.”

4. Definition Challenges
 A “green” business definition is not established by the federal
government, the Commonwealth of Massachusetts or in terms of the
North American Industrial Classification System (NAICS) codes
 Though some sectors can be easily categorized and defined
(renewable energy), what characterizes a green business often
hinges on process and methods in addition to outcomes and
products.
 Further complicating matters, some conventional businesses may
have a green product line or service (i.e., Toyota’s Prius).

5. Green Jobs Definitions
 Green jobs are full time equivalents spent
increasing the efficient or restorative use of
natural capital or protecting life from that
capital's past pollution or waste.
 Green jobs are family-supporting jobs that
contribute significantly to preserving or
enhancing environmental quality.

6. Green Business Core Sectors
 Energy Efficiency
 Renewable Energy
 Green Building
 Waste Management
 Alternative Transit (i.e., Electric Vehicle
Infrastructure)

7.  Industrial processes
 Nearly all businesses
 Political subdivisions
 Food systems
 Waste management systems
 Transportation systems
 Energy delivery and production infrastructure
 Finance, Insurance …

8. How to Define Green Businesses
 Most quantitative industry analyses are based on the
North American Industrial Classification Index (NAICS)
codes.
 This tool which focuses on products rather than process
or impacts will likely not completely serve our
classification needs.

9. Green Industry NAICS Codes
 Renewable/Clean Energy
– 237130 Alternative energy (e.g., geothermal, ocean wave, solar, wind) structure
construction
– 333414 Solar energy heating equipment manufacturing
– 926130 Solar energy regulation
– 237130 Co-generation plant construction
– 237130 Solar power structure construction
– 237130 Wind power structure construction
 Resource Management
– 221119 Power generation, electric (except fossil fuel, hydroelectric, nonhazardous solid
waste, nuclear)
– 562920 Removal of recyclable materials from a waste stream
– 562920 Waste recovery facilities
 Alternative Transit
– 336991 Bicycles and parts manufacturing
 Green Building
– 238- Insulation

10. Recent Efforts to Define/Quantify
Clean/Green Tech in Boston/MA
 Massachusetts Technology Collaborative (MTC) Clean
Tech Census (2007): Boston - Roughly 90 businesses,
1,000 jobs in Boston.
 UMASS Lowell Clean Tech Report (2008):
Recommends state provide market incentives/resources
to develop 5 clean tech sectors
 Northeast Recycling Council (NERC) 2009 Recycling
Economic Information study: 14,000 jobs in
Massachusetts

11. Proposed Definition
“Green businesses create sustainable economic
growth and job opportunities for both high and
lower skilled workers, while optimizing the use of
natural resources by offering products or
services that reduce environmental impacts.”

12. II. Indicators, Trends and Analysis
I Standard Industry Indicators
II GreenTech Specific Indicators
Sector Overview
III Sub-Sectors
IV Sector Trends
IV Policy Market Drivers

13. Standard Industry Indicators
1. Industry’s growth – employment
Location Quotient (LQ)
Shift Share Analysis
Additional Specific Data Needs:
- Employment in Boston
- total and by major subsectors – 2001-2007 and how it
compares to state/nation
- worker–per-establishment metric
- total and by major subsectors
2. Occupations (LMAT)

14. GreenTech Specific Indicators
 Cost of energy (oil, natural gas, coal)
 Cost of water
 State, federal regulation
 Waste hauling tipping fees
 Construction starts
 Venture capital investment in clean tech
 Patent applications
 Renewable energy credit markets
 Public sector policy/procurement

15. Energy Efficiency
Sub-Sectors
Building Retrofits
EE Product Design, proto-typing, manufacturing
Building Management System (software)
development
Building modeling software
Financial instruments
Trends/Developments
Energy management in residential sector
Market expansion rate
Policy Market Drivers
Building code
Financing instruments for residential/commercial
sectors (Renew Boston)

16. Renewable Energy
 Sub-Sectors
Solar (Photovoltaic, Thermal)
Wind
Biomass
 Trends/Developments
Thin Film
Building Integrated PV/Design
Solar financing
Market consolidation
 Policy Market Drivers
Building code
Renewable Portfolio Standard
Carbon Cap and Trade
Financing instruments for residential/commercial
sectors (Renew Boston)

17. Green Building
 Sub-Sectors
Materials
Design/Engineering
Distribution
Construction
 Trends/Developments
Conventional manufacturers adding green lines
Broad market adoption
Insurance/Finance industry on board
 Policy Market Drivers
Building code
Zoning code (Article 37)
Carbon Cap and Trade

18. Waste Management
 Sub-Sectors
Recycling
Compostables
Waste to Energy
Anerobic Digestion
 Trends/Developments
Divergent paths: single stream vs. greater segregation
 Policy Market Drivers
State Solid Waste Management Planning
City recycling initiatives

19. Alternative Transit
 Sub-Sectors
Bicycling
Electric Vehicles
Bike/vehicle sharing programs
 Trends/Developments
Electric vehicles coming on line
V2G
Bikeshare
 Policy Market Drivers
Bikeshare
Carbon cap and trade

20. Barriers to Market
 Clean Energy/Energy Efficiency
– Capital
– Market friendly policy
 Green Building
– Workforce training/skilled workforce
– Market friendly policy
 Alternative Transit
– Planning/infrastructure dictates market viability
– Culture

21. United States Built Environment:
Environmental Impacts
12%
Water Use
30%
Greenhouse
Gas Emissions
65%
Waste
Output
70%
Electricity
Consumption

22. 2000 2001 2002 2003 2004
$792 MILLION
$3.24 BILLION
$3.81 BILLION
$5.76 BILLION
$7.73 BILLION
2006
$10
BILLION
$60 BILLION
PROJECTED
2010
Estimated Value
of LEED – New
Construction (NC)
Projects

23. Green Building Benefits for Boston
 Help meet aggressive green house gas reduction goals
 Help tackle energy management, energy cost, grid
challenges
 Help reduce storm water flows/increase ground water
recharge capacity
 Reduce urban heat island effect and related human
health impacts and related expenses
 Green Jobs
 Grow green design and engineering sector
 Help meet growing demand for green commercial interior
(leased) space
 Alignment with Green Affordable Housing Program

24. Renewable Energy Component
Supply Demand Bottleneck

25. Galen Nelson
GreenTech Business Manager
galen.nelson.BRA@cityofboston.gov
617.918.4447