ecosocialism

By Staff - Trade Unions for Energy Democracy, May 9, 2023

Last week, we looked at the Boric administration’s launch of the National Lithium Strategy, the creation of a National Lithium Company, and some initial responses by trade unions. In this bulletin, we’ll highlight clips of interviews from diverse trade union perspectives on the role of the labour movement in the lithium sector. 

By Maristella Svampa, Thea Riofrancos, and Ashley Dawson - Rosa Luxemburg Stiftung, April 25, 2023

By Amy Westervelt - The Intercept, May 8, 2023

In 2019, Thea Riofrancos was splitting her time between researching the social and environmental impacts of lithium mining in Chile and organizing for a rapid energy transition away from fossil fuels in the United States. A political science professor at Providence College and member of the Climate and Community Project, Riofrancos was struck by the contrast: Lithium is essential to the batteries that make electric vehicles and renewable energy work, but mining inflicts its own environmental damage. “Here I am in Chile, in the Atacama Desert, seeing these mining-related harms, and then there I go in the U.S. advocating for a rapid transition. How do I align these two goals?” Riofrancos said. “And is there a way to have a less extractive energy transition?”

When she went looking for research that would help answer that question, she found none, at least not for the transportation sector, which was her area of focus. “I saw forecast after forecast that assumed basically a binary of the future,” she said. “Either we stay with the fossil fuel status quo and the existential crisis that that is causing for the planet and all of its people. Or we transition to an electrified, renewably powered future, but that doesn’t really change anything about how these sectors or economic activities are organized.”

Riofrancos wanted to look at multiple ways to design an electrified future and understand what the costs and impacts of different scenarios might be. So she linked up with other Climate and Community Project researchers and put together a report mapping out four potential pathways to electrification for the transportation sector. Titled “Achieving Zero Emissions With More Mobility and Less Mining,” the report concluded that even relatively small, easy-to-achieve shifts like reducing the size of cars and their batteries could deliver big returns: a 42 percent reduction in the amount of lithium needed in the U.S., even if the number of cars on the road and the frequency with which people drive stayed the same.

It’s the sort of thing politicians and electrification advocates need to think through now, when decisions can be made to guide the energy transition in one direction or another. It’s also critical to an underdiscussed component of climate action: demand for products and services and the role energy plays in fulfilling those demands. Which connects right up to another topic that American politicians don’t want to touch with a 10-foot pole: consumption.

By David Griscom, Matt Lech, and Paul Prescod - Left Reckoning, April 14, 2023

By staff - Trade Unions for Energy Democracy, April 8, 2023

On Tuesday, the Mexican Government signed an agreement to purchase 13 power generation plants from the Spanish multinational Iberdrola. Purchase turns the State Company into a majority owner in electric energy generation in Mexico.

Three weeks after hundreds of thousands mobilised to mark 85 years since the expropriation of oil by former Mexican President Lazaro Cardenas, the federal government announced it is purchasing 13 electric energy generation plants owned by the Iberdrola for nearly USD $6 billion. The 13 plants represent 8,539 MW of installed capacity, with 8,436 MW corresponding to combined cycle gas and 103 MW to wind. Altogether, the purchase represents 77% of Iberdrola’s installed capacity in the country, although the Spain-based multinational would remain the main private generator of renewable energy in Mexico.

While many details are yet to be made public around the financing structure, according to the finance ministry, a new trust fund managed by Mexico Infrastructure Partners (MIP) will own the power plants, with a majority of its capital sourced primarily by Fonadin, the public infrastructure fund of Mexico. The federal power utility, Comisión Federal de Electricidad (CFE), will operate the plants.

"This means, without exaggerating (...), the rescue of the CFE and is a new nationalisation of the electricity industry. Most important of all, in this way, we guarantee that electricity prices will not increase for consumers, as has been the case in the last four years,” said President Andrés Manuel López Obrador (AMLO). “In other words, the CFE becomes the majority company. If we add to this that final plants are being built, hydroelectric plants are being rehabilitated with new turbines, all under the CFE, we can affirm that the Mexican state will maintain around 65 per cent of all energy generation at the end of the six-year term,” added AMLO in Tuesday’s televised announcement.

“The CFE is the only company with permission to commercialise electricity. The CFE had to buy electricity from these 13 Iberdrola plants in order to sell it. Today, we will no longer need this intermediation,” said Rocío Nahle, Secretary of the Energy Ministry (Sener). “The Mexican people are therefore favoured because we are able to sustain affordable electricity costs. In Mexico, we are the country with the lowest energy rates in the OECD because we have an energy policy that the President reviews daily, and with PEMEX, CFE, it allows us to have rates below inflation,” she said.