Green growth

Renewable energy technologies are expected to create 500,000 new jobs in the next decade, according to a report from the German Association of Renewable Energy.

The report also found that investments in renewables are expected to total 235 billion euros by 2020 as annual expenditure on alternative energy reaches 28 billion euros.

According to the report, much of this job growth and investment will be generated by German companies, but will take place outside of Germany.

"The results of our study show that renewable energy can a very important impact on Germany in the coming years, if the industry develops as expected," Jens Hobohm, an energy industry expert with Prognos, said in a statement announcing the findings.

Technological know-how

Germany is widely considered one of the world leaders in incorporating green technology and renewable energy into its economy. It has made leaps and bounds from the 1970s, when heavy industry made the nation one of the worst environmental offenders.

Now, Germany ranks 13th on the Yale and Columbia's Environmental Performance Index, with report author Daniel Esty praising Germany for making its economy "green by design." Germany is also a leader among European Union members in terms of environmental awareness, and is one of the primary backers of Brussels' efforts to introduce environmental reforms across the bloc.

German energy firms E.ON Climate and Renewables, Siemens, Nordex and Conergy are all considered among the top renewable companies in the world. Their future growth prospects, while positive in Germany, are more attractive in the international market.

Exporting expertise

Mark Tomkins, vice president and director of consulting services at the German American Chamber of Commerce in Chicago, told Deutsche Welle that Germany must capitalize on its expertise in environmental technologies in order to maintain its competitive edge as one of the world's export giants.

German Chancellor Angela Merkel, who is visiting California this week, met with high ranking officials in the state's energy sector Thursday to discuss further cooperation between Germany and California.

Germany is the fourth largest foreign investor in California, with German or German-affiliated companies employing some 3,000 people earning $150 million in combined wages each year. As California emerges as one of the US leaders in green technology, it is imperative that German companies expand their foothold in this market, Tomkins says.

According to a report released in conjunction with the chamber's German American Energy Conference held last month in Berlin, more than 50 percent of US and German companies surveyed expect growth in the green sector in the coming years. 87 percent of these firms anticipate adding jobs as well.

Tomkins said the Merkel's visit to California will give German firms the opportunity to highlight their expertise in producing solar energy.

"There is a very particular focus on solar (in California)," he told Deutsche Welle. "When the chancellor visits, she can draw attention to German business opportunities and expertise. It's clearly a good thing."

Author: David Francis
Editor: Sam Edmonds