5. While direct job effects of greening manufacturing may be neutral or small, the indirect
effects are significantly higher. Manufacturing has become increasingly automated and efficient, which has been accompanied by job losses. This can be countered by life-cycle approaches and secondary production, for example, in the form of recycling, to secure jobs, for which safe and decent
working conditions are of paramount importance.
6. Green-investment-scenario modelling for manufacturing suggests considerable improvements in energy efficiency can be achieved. By 2050, projections indicate that industry can practically
“decouple” energy use from economic growth, particularly in the most energy-intensive industries. Green investment will also increase employment in the sector. Tracking progress will require governments to collect improved data on industrial resource efficiency.
7. Innovation needs to be accompanied by regulatory reform, new policies and economic
instruments in order to enable energy and broader resource-efficiency improvements. Environment-related levies, including carbon taxes, will be required to ensure producers include the cost of externalities in their pricing calculations. Mindful that manufacturing is not a uniform industry, governments need to consider approaches that meet the realities of specific industries and their value chains that often stretch across national economies. Governments are also challenged to find mixes of policies and regulatory mechanisms that best suit national circumstances. Developing countries have a strong potential to leapfrog inefficient technologies by adopting cleaner production programmes, particularly those that provide support to smaller companies, many of which serve global value chains. Of special importance to manufacturing is the introduction of recognised standards and labels, backed by reliable methodologies.