The green economy is becoming more and more difficult

Green jobs have shown good progress in recent years, mainly in the construction sector.

Ruled by passive houses

Graphic: Emilie Chesné

The green economy is doing well in Luxembourg. Very well, because it is more dynamic than the economy as a whole. So, between 2008 and 2017, the contribution of the green economy to the GDP was 1.7% on average. Statec has continued to rise since 2018, reaching 3% of GDP in 2020 in its latest edition. That year, Luxembourg’s green economy generated 5.6 billion euros in production and 1.9 billion euros in total added value.

The real estate market is headed for an explosive state. According to Gilles Hempel, director of Agence Immobilière Sociale, the new measures are fighting to revive the housing market.

But what is the green economy? Statec explains that “it integrates the part of the national economy that produces environmental products and services to prevent, reduce and eliminate environmental pollution or any other degradation, as well as to preserve and protect natural resources from depletion.

Employment and gross value added grew faster in the green economy than in the national economy as a whole between 2017 and 2020, while they were marked by periods of convergence and divergence with indicators at the national level until 2017. Thus, the added value of the green economy almost tripled in 2020 compared to 2008, and the national added value increased by 64%.

Statec notes that the greening of the economy, which has been observed for a little more than 5 years, “is mainly due to the construction of passive houses”. Indeed, the construction of this type of residential houses has expanded in recent years.

Green jobs are increasing in a number of areas

Green full-time equivalent (FTE) employment has doubled in 12 years, with growth largely recorded in recent years, while national employment has grown by 36%.

Between 2016 and 2020, there was an increase of 11,185 green jobs, 68% of which was related to the construction of these passive houses. Jobs in traditional wastewater and waste management services contribute 18% of green jobs growth in 2020.

That year, the green economy generated approximately 22,454 full-time equivalent (FTE) jobs. 71% of these jobs were from the green construction sector (16,110), and 10.2% were related to waste management and wastewater services. The rest is shared between employment in minerals management (recovery of materials) and other environmental areas such as air and biodiversity protection.

Green is mainly value added in industry

As for the share of green added value in national added value, it has remained relatively stable at an average of 1.8% between 2008 and 2016. On the other hand, it is heavier since 2017. During 2017-2020, significant increases were observed mainly due to construction services for passive houses.

“The added value of environmental products and services produced by industries and the construction sector accounts for more than 97% of the 1.9 billion euros in green added value in 2020,” Statec emphasizes.

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