12.3.1.3 Cross-sectoral sustainable development impacts

Implementation of mitigation options often creates new industries, for example, for energy efficient products such as cooking stoves, efficient lamps, insulation materials, heat pumps, and efficient motors, or for solar panels, windmills, and biogas installations. The success of these new industries depends on various factors, such as the degree of information, costs, the image of the product and its traditional competitors or its attributes other energy efficient. New industries can create new jobs and income, and might be pioneers in new market with significant competitive advantage. Ethanol production from sugar waste has created a new industry and generated employment opportunities and tax revenue for the Government of Brazil. However, the older, outpaced industry may lose jobs. Besides the uncertainty on the overall net effect, this may lead to regional loss of employment. For example, the increased production of biofuels for transportation, or energy production in rural areas, is expected to protect existing employment and to create new jobs in rural areas (Sims, 2003). Renewable energy systems are more labour intensive than fossil fuel systems and a higher proportion of jobs are relatively highly skilled. Thus, an increase in employment of the rural people can only be achieved, if corresponding learning opportunities are created. If, however, labour intensity decreases over time, the long-term effect on jobs might be less pronounced than originally anticipated.