REPORT: Minnesota clean energy jobs reach new peak, passing 60,000

MINNEAPOLIS — Clean energy businesses in Minnesota added more than 2,415 workers in 2023, now employing 62,102 Minnesotans. That’s according to a new analysis of employment data released today by the national, nonpartisan business group E2 (Environmental Entrepreneurs), Evergreen Climate Innovations and Clean Energy Economy MN (CEEM). Minnesota’s clean energy and clean vehicle jobs set a record in 2023 after increasing by four percent over the previous year. Following the passing of the Inflation Reduction Act (IRA), in 2022, and a statewide 100% carbon-free electricity standard passed in 2023, the industry is poised for continued growth.

Click here for the full Minnesota report.

Highlights in 2023 include:

• Minnesota has 62,102 clean energy jobs — a new state record, besting the previous record set before the pandemic.
• Propelled by the IRA and recent state policies, clean energy companies in Minnesota added jobs almost five times faster than the overall economy.
• Clean vehicle jobs grew by 13.2%, the highest of any clean energy jobs subsector.
• Minnesota created 436 new clean energy manufacturing jobs.
• 38.2% of Minnesota’s clean energy jobs reside in Greater Minnesota.
• Small businesses drive Minnesota’s clean energy sector, accounting for 71.2% of the state’s clean energy jobs.
• 11.2% of Minnesota’s clean energy workers are veterans.
• Job growth is expected to surge by 6% in 2024.

“Investing in the clean energy industry is a clear win for our communities, our economy, and the environment. We’re opening doors for Minnesotans to enter careers in rapidly growing industries,” said Governor Tim Walz. “With a record number of clean energy jobs, the latest Clean Jobs report proves that our infrastructure and workforce training investments are delivering results. Minnesota continues to lead the way in advancing the clean energy economy.”

Energy efficiency continues to lead Minnesota, comprising over two-thirds of the state’s clean energy jobs. Despite slower-than-expected electric vehicle adoption nationally, Minnesotans working in the clean vehicle sector, including electric vehicles (EVs), hybrid EVs, plug-in hybrids, and hydrogen and fuel cell vehicles, registered a 13-percent year-over-year spike, the highest growth clean energy subsector. Within the clean vehicle subsector, EV jobs had the steepest growth rate at +14.4 percent.

Renewable energy job growth in solar (+4.1 percent) and wind (+3.7 percent) continued with smaller growth in grid and storage sector jobs, driven by emerging categories like battery storage (+2.7 percent) and smart grid modernization (+7.7 percent).

CEEM Executive Director Gregg Mast points to the power of impactful policies in creating high-quality clean energy jobs in Minnesota.

“Minnesota’s clean energy industry shows how thoughtful policy can drive consistent job creation across the state,” said Gregg Mast. “But if federal incentives for clean energy and clean vehicles are reduced, we could see a slowdown in both job growth and the revitalization of clean energy manufacturing.”

State agencies see the promise of the growing clean energy economy, helping to facilitate its growth.

“Minnesota is the second state in the country with a strategic, coordinated program to support our state’s energy transition communities to maintain economic vitality as their legacy power plants close,” said Minnesota Department of Employment and Economic Development (DEED) Commissioner Matt Varilek. “Minnesota’s transition to 100% carbon-free energy by 2040 relies heavily on building a strong clean energy workforce, and demand for these careers will only continue to grow. We are proud to be a leader in this energy transition planning.”

Ever-Green Energy is one of the many clean energy businesses creating jobs in Minnesota.

“At Ever-Green Energy, our work not only drives innovation in sustainable energy systems but also generates meaningful and stable job opportunities,” said Luke Gaalswyk, President and CEO of Ever-Green Energy. “By expanding clean energy infrastructure to heat and cool buildings, we’re supporting a thriving workforce that’s building the resilient communities of tomorrow. Through this work, we can create jobs that advance both local economies and sustainability.”

The Laborers’ International Union of North America (LIUNA) Minnesota & North Dakota, based in St. Paul, is an infrastructure union of over 13,000 skilled construction and blue collar Laborers who contribute to building clean energy projects throughout the region.

“With nearly 3,000 apprentices currently in our program and growing interest in clean energy opportunities, LIUNA Minnesota is at the forefront of workforce development for the booming clean energy sector,” said Joel Smith, President and Business Manager of LIUNA Minnesota and North Dakota. “As Minnesota’s clean energy employment surpasses the 62,000 mark, LIUNA Laborers are eager to be part of this transformative industry — powering Minnesota’s sustainable future.”

As Minnesota works to achieve its 100% carbon-free electricity standard while growing a skilled and equitable clean energy workforce, policymakers should:

• Defend federal clean energy and clean vehicle investments
• Develop and fund federal and state workforce development programs
• Invest in transmission and permitting reform
• Advance state-level clean energy policies

For a full breakdown of clean energy jobs for every state in the Midwest, see www.cleanjobsmidwest.com. A full methodology on the sectors and types of jobs this analysis includes and does not include is available here: cleanjobsmidwest.com/survey-methodology.

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Clean Energy Economy MN (CEEM) is an industry-led 501(c)(3) nonprofit representing the business case for clean energy in Minnesota. CEEM provides a unified voice for clean energy business across the state. Our mission is to provide educational leadership, collaboration, and policy analysis that accelerates clean energy market growth and smart energy policies.

Environmental Entrepreneurs (E2) is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and manage more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on Twitter at @e2org.

Evergreen Climate Innovations provides catalytic capital and support to entrepreneurs and startups that bring impactful climate technologies to market. The nonprofit pioneered its 501vc® Investment Fund to align philanthropic and corporate contributions to deliver environmental, economic, and social impact. Evergreen advances and expands access to innovation across the Greater Midwest and cultivates an ecosystem of investors, donors, and collaborators. For over a decade, Evergreen Climate Innovations has invested in startups that have raised $41 for every $1 invested. For more information, see https://evergreeninno.org/.