By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, and Gregor Semieniuk - Political Economic Research Institute, August 27, 2020

The COVID-19 pandemic has generated severe public health and economic impacts in Maine, as with most everywhere else in the United States. This study proposes a recovery program for Maine that is capable of exerting an effective counterforce against the state’s economic collapse in the short run while also building a durable foundation for an economically viable and ecologically sustainable longer-term recovery. Even under current pandemic conditions, we cannot forget that we have truly limited time to take decisive action around climate change. As we show, a robust climate stabilization project for Maine will also serve as a major engine of economic recovery and expanding opportunities throughout the state.

The study includes three sections:

• 1. Economic Stimulus through Restoring Public Health;
• 2. Clean Energy Investments, Public Infrastructure Investments, and Jobs; and
• 3. Financing a Fair and Sustainable Recovery Program.

By Sanya Carley and David Konisky - Nature Energy, August 2020

The transition to lower-carbon sources of energy will inevitably produce and, in many cases, perpetuate pre-existing sets of winners and losers. The winners are those that will benefit from cleaner sources of energy, reduced emissions from the removal of fossil fuels, and the employment and innovation opportunities that accompany this transition. The losers are those that will bear the burdens, or lack access to the opportunities. Here we review the current state of understanding—based on a rapidly growing body of academic and policy literature—about the potential adverse consequences of the energy transition for specific communities and socio-economic groups on the frontlines of the transition. We review evidence about just transition policies and programmes, primarily from cases in the Global North, and draw conclusions about what insights are still needed to understand the justice and equity dimensions of the transition, and to ensure that no one is left behind.

Read the text (PDF).

By staff - Canadian Labour Congress, August 2020

The Canadian Labour Congress (CLC) believes that saving lives, protecting public health, and containing the coronavirus outbreak must remain the federal government’s overriding priority. In the near term, this includes continued income support for individuals unable to work due to COVID-19, as well as proper personal protective equipment, workplace health and safety precautions, and training for workers.

As public health measures permit, fiscal policy measures responding to the recession and unemployment crisis will need to prioritize helping Canadians return to decent jobs. The economic crisis has disproportionately affected low-paid, vulnerable workers in precarious employment, especially women, young workers, newcomers, workers of colour, and workers with disabilities. Accordingly, the plan for economic recovery must be gendered, inclusive, inequality-reducing, and sustainable.

Read the report (PDF).

By Ezra Silk - The Climate Mobilization, July 2020

“Civilization is on the verge of collapse due to climate change, income inequality and ecological overshoot. Our political system is in the hands of a tiny elite class profiting off this triple crisis, and too oblivious to slam the brakes on the system before it all comes crashing down.

“Ordinary people must form a nonviolent movement to spark the just emergency transition we need to save our children and avert total collapse. Armed with the truth, people won’t stay scared and passive. They will rise up to reclaim honor and dignity, going all in to fight for all life.

“This is our social movement strategy in a nutshell. To find out how it all works, read our Blueprint for a Climate Emergency Movement: a plan for how we can escalate and win the fight for the emergency transition we need.

“This is a general plan for how this movement could operate, grow and succeed in any political context. The exact timing or mechanism of change is impossible to predict given current levels of political and climatic volatility. Movements grow nonlinearly and can scale up rapidly when they catch the popular imagination, and we will constantly be on the lookout for ways to move even faster….”

Read the text (PDF).

By Robert Pollin - Political Economy Research Institute (PERI), June 2020

The COVID-19 pandemic has generated severe public health and economic impacts in California, as with most everywhere else in the United States. This report proposes a recovery program for California that is capable of exerting an effective counterforce against the state’s economic collapse in the short run while also building a durable foundation for an economically viable and ecologically sustainable longer-term recovery. This is an anti-austerity recovery agenda, including the following main elements:

Establishing Effective Public Health Interventions. This will generate millions of jobs through allowing the state to recover safely. Some of the industries in which workers have been hardest hit include restaurants and hotels, in-person retail trade, and health care. Workers in these industries all need to be provided with adequate Personal Protection Equipment so they can perform their jobs safely. They also need their rights at work to be fully protected, including the right to paid sick leave.

Upgrading California’s Public Infrastructure. California’s economy would receive a major boost, both in terms of short-run stimulus and longer-term productivity, by undertaking a large-scale public infrastructure investment program now. The study estimates that $25 billion in annual infrastructure investments in California will generate about 315,000 jobs within the state. Roughly half of these jobs will be in the construction industry, including new opportunities for carpenters, electricians, glaziers, plumbers, pipefitters, and construction laborers. Most of the rest of the jobs will be in manufacturing and a range of services.

Clean Energy Investments and High Road Job Creation. This study estimates that public and private investments in California to achieve the state’s mandated emissions and climate stabilization goals are capable of generating about 725,000 jobs in 2020 – 2021 through $80 billion in public and private investments in 2020 – 2021, and larger numbers thereafter to 2030. These investments will entail both: 1) greatly enhancing the state’s level of energy efficiency, including through deep energy retrofits to public buildings; and 2) massively expanding the state’s supply of clean renewable energy sources, starting with solar and wind power. New job opportunities will open for, among other occupations, carpenters, machinists, environmental scientists, secretaries, accountants, truck drivers, roofers and agricultural laborers.

Just Transition for All Displaced Workers. Some workers in California’s oil and gas industry will experience displacement over time through the state’s clean energy transition. This study estimates that about 1,400 oil and gas workers will be displaced per year between 2021 – 2030 and another 1,400 will voluntarily retire each year. All of these workers require Just Transition support, including pension guarantees, health care coverage, wage insurance, and retraining support, as needed. In addition to the oil and gas industry, a substantial share of jobs in hard-hit service industries such as restaurants, hotels and retail are likely to not return in the aftermath of the recession. Workers in these industries also need just transition support, including the extension of 100 percent unemployment insurance, Medicare health insurance coverage while unemployed, wage insurance, and high-road job training and placement support.

Download (PDF).

By Bronwen Tucker and Kate DeAngelis - Oil Change International and Friends of the Earth - May 2020

In 2015, governments around the world committed to hold global warming to well below 2 degrees Celsius (°C) and to strive to limit warming to 1.5°C by adopting the Paris Agreement. This analysis shows that since the Paris Agreement was made, G20 countries have acted directly counter to it by providing at least USD 77 billion a year in finance for oil, gas, and coal projects through their international public finance institutions. These countries provided more than three times as much support for fossil fuels as for clean energy.

With the health and livelihoods of billions at immediate risk from COVID-19, governments around the world are preparing public spending packages of a magnitude they previously deemed unthinkable. In normal times, development finance institutions (DFIs), export credit agencies (ECAs), and multilateral development banks (MDBs) already had an outsized impact on the overall energy landscape and more capacity than their private sector peers to act on the climate crisis. In the current moment, their potential influence has multiplied, and it is imperative that they change course. The fossil fuel sector was showing long-term signs of systemic decline before COVID-19 and has been quick to seize on this crisis with requests for massive subsidies and bailouts.1 We cannot afford for the wave of public finance that is being prepared for relief and recovery efforts to prop up the fossil fuel industry as it has in the past. Business as usual would exacerbate the next crisis— the climate crisis—that is already on our doorstep.

Read the report (PDF).

By Sean Sweeney - New Labor Forum, February 2020

Among progressives concerned about climate change, few issues provoke as much anger as the knowledge that governments continue to subsidize fossil fuels. According to the International Monetary Fund (IMF), in 2017 these subsidies totaled $5.2 trillion annually.

Don’t governments realize that fossil fuels are cooking the planet? The scientific community says we are in a desperate race against time, but the coal, oil, and gas companies apparently still have their noses deeply in the public trough.

Most policy elites think fossil fuel subsidies should go. A decade ago, Group of Twenty (G20) leaders committed to “rationalize and phase out” government support for coal, oil, and gas, a decision supported by major institutions like the IMF and the World Trade Organization (WTO). At a summit in May 2019, U.N. Secretary-General António Guterres said “taxpayers’ money” was being used “to boost hurricanes, to spread droughts, to melt glaciers, to bleach corals. In one word—to destroy the world.”

…[T]here is good reason to be wary of the global elite’s call for subsidy reform

These are fighting words, but there is good reason to be wary of the global elite’s call for subsidy reform. This call is framed in ways that seek to legitimize and universalize neoliberal approaches to energy transition. Activists may think, “So what? If it gets rid of subsidies, what’s the problem?” But there is a real risk that the consolidation of neoliberal policy will produce outcomes that are considerably worse than the outcomes produced by fossil fuel subsidies.

The LEAP - YouTube Video, October 21, 2019

By Cécile Blanchet - ROARMag, June 19, 2019

In 2019, only oil lobbyists and shabby orange politicians persist in denying the influence of human activities on the Earth’s climate. Scientific evidence is piling up and we know that we must change our ways. The concept of energy transition has become mainstream.

However, governments have remained remarkably motionless. They are so inactive that kids have started school strikes and demand climate justice in front of the United Nations’ Conference of Parties. They are so immobile that citizen groups actually sue their governments for their lack of climate action. And when governments attempt to do something, it is so unjust that people take to the streets even during the coldest months of the year, screaming, filled with rage and frustration.

Our leaders have forgotten that the poorer half of our societies should not have to clean up the mess produced by the richest half. That it should not be our kids cleaning up our mess.

Doing It Ourselves

Facing a lack of political will, an interesting and vivid grassroots movement has taken shape to reclaim our energy systems. From households to city politics, and even at the European level, there has been an unprecedented involvement from the public into energy and electricity matters. For example, in the shape of energy cooperatives.

According to the European Federation of renewable energy cooperatives, RESCOOP, there are at present some 1,250 energy communities in which a million people throughout Europe are involved. Through the RESCOOP federation, these groups actively lobby at a European level to bend the legislation towards promoting and supporting energy cooperatives.

This model of energy cooperativism originated in Germany in the late 1990s and was enabled by a set of disruptive laws supporting the production of renewable energy. This bill kick-started the German energy transition (dubbed “Energiewende”), which has become a landmark and is being widely copied.

The two main pillars were defined in the Feed-In Act of 2000: the priority of renewable sources to the grid and feed-in tariffs (fixed prices paid for renewable energy).

The particularity of this framework is that it has enabled small players to enter the game. Citizen cooperatives and households have especially benefited, because a fixed price for each kilowatt hour (KWH) could be sold back to the grid, which gave them more space to invest in new technologies.

From the late 1990s onwards, the number of cooperatives in Germany has grown exponentially, reaching 900 in 2019, representing the majority of energy cooperatives in Europe. It is a model that comes with many advantages. Let’s virtually visit one of these cooperatives together.

By Lavinia Steinfort and Satoko Kishimoto (editors) - Transnational Institute, June 2019

Do you wish to see regenerative, equitable and democratic economies, built with collective power? We believe it is not only necessary but also very possible.Today’s economic system, fueled by an extractivist logic and prone to crises, has reignited and enflamed old monsters of racism, misogyny and other forms of fear and hate. Economic alternatives are needed now more than ever.

This book is about financial alternatives, drawn from real-world examples. It highlights the kinds of models that could become the new normal, building the basis for a democratically organized and life-sustaining future.Before the 2008 global financial crisis, the mantra was ‘there is no alter-native’ to the extractive economic model that has fostered excessive inequality and ecological destruction. Post-crisis, big banks were rescued and the blame misdirected to public spending.

This justified evermore harsh austerity measures, reinforcing the story that the public sector must rely on private finance to solve these ‘collaterals’.More than 10 years later, we know that private finance has not only failed to address these problems, it has intensified them. Civil society needs to unite behind systemic solutions before another financial bubble bursts.

Read the report (PDF).