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Utility Workers Union and UCS estimate costs to transition U.S. coal miners and power plant workers in joint report

By Elizabeth Perry - Work and Climate Change Report, May 12, 2021

Hard on the heels of the April statement by the United Mine Workers Union, Preserving Coal Country: Keeping America’s coal miners, families and communities whole in an era of global energy transition, the Utility Workers Union of America (UWUA) jointly released a report with the Union of Concerned Scientists on May 4: Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape. This report is described as “a call to action for thoughtful and intentional planning and comprehensive support for coal-dependent workers and communities across the nation.” The report estimates that in 2019, there were 52,804 workers in coal mining and 37,071 people employed at coal-fired power plants – and that eventually all will lose their jobs as coal gives way to cleaner energy sources. Like the United Mine Workers, the report acknowledges that the energy shift is already underway, and “rather than offer false hope for reinvigorated coal markets, we must acknowledge that thoughtful and intentional planning and comprehensive support are critical to honoring the workers and communities that have sacrificed so much to build this country.”

Specifically, the report calls for a minimum level of support for workers of five years of wage replacement, health coverage, continued employer contributions to retirement funds or pension plans, and tuition and job placement assistance. The cost estimates of such supports are pegged at $33 billion over 25 years and $83 billion over 15 years —and do not factor in additional costs such as health benefits for workers suffering black lung disease, or mine clean-up costs. The report states: “we must ensure that coal companies and utilities are held liable for the costs to the greatest extent possible before saddling taxpayers with the bill.” Neither do the cost estimates include the recognized needs for community supports such as programs to diversify the economies, or support to ensure that essential services such as fire, police and education are supported, despite the diminished tax base. 

The report points to the precedents set by Canada’s Task Force on Just Transition for Canadian Coal Power Workers and Communities ( 2018), the German Commission on Growth, Structural Change and Employment (2019), as well as the New Mexico Energy Transition Act 2019 and the Colorado Just Transition Action Plan in 2020. The 12-page report, Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape was accompanied by a Technical Report, and summarized in a UCS Blog which highlights the situation in Illinois, Michigan, and Minnesota. A 2018 report from UCS Soot to Solar also examined Illinois.

Nordic and German unions collaborate, aim to be Just Transition "frontrunners"

By Elizabeth Perry - Work and Climate Change Report, March 18, 2021

The Road to a Carbon-Free Europe. Each country report, about 25 pages, summarizes the national climate goals and policies, especially as related to Just Transition, for Denmark, Finland, Germany, Iceland , Norway, and Sweden. A Synthesis Report brings together the main findings, and presents the resulting policy recommendations, jointly adopted by the Council of Nordic Trade Unions (NFS) and the German Trade Union Confederation (DGB) in November and December 2020.

The Synthesis Report calls for holistic climate change policies to navigate the broad-based transformation of society that will result from climate change, incorporating Just Transition principles as outlined by the ILO Decent Work Agenda and its four pillars: social dialogue, social protection, rights at work and job creation. Because Germany and the Nordic countries are export-oriented economies dependent on trade, and facing similar challenges in the emissions-heavy sectors of their economies, the report sees many common opportunities for zero-emission innovations and technology.

Only 18% of global Recovery spending in 2020 was green

By Elizabeth Perry - Work and Climate Change Report, March 10, 2021

The United Nations Environment Programme (UNEP) released Are We Building Back Better? Evidence from 2020 and Pathways for Inclusive Green Recovery Spending, on March 10. It estimates that in 2020, the world’s fifty largest economies announced USD14.6tn in fiscal measures to address the pandemic economic crisis, and states: …. “Excluding currently uncertain packages from the European Commission, 18.0% of recovery spending, and only 2.5% of total spending, is expected to enhance sustainability. The vast majority of green spending has come from a small set of high-income nations” with France, Germany and South Korea highlighted for their relatively high percentage of green recovery spending. Canada’s spending is small, with only brief references which state that we have focused on “cleaning dirty energy assets”, and have made fossil fuel investment. (no details or examples given). It is notable that the report covers 2020, so that U.S. spending is also low, though hope is expressed for the Biden/Harris administration. Notably, the report looks to the future: “….. the largest window for green spending is only now opening, as nations shift attention from short-term rescue measures to recovery. Using examples from 2020 spending, we highlight five major green investment opportunities to be prioritised in 2021: green energy, green transport, green building upgrades & energy efficiency, natural capital, and green research and development.”

Each of those topics is analyzed, with some exemplary policies highlighted. Some overarching issues: “Of particular note, despite continuing high global unemployment and widespread damage to human capital, spending on worker retraining in 2020 was small and almost exclusively non-green. Nations transitioning to a low-carbon economy must invest in human capital to enable and match future growth priorities. Structural changes in major sectors, including energy, agriculture, transport, and construction, require shifts in the structure and capabilities of the domestic labour force.”

Also, regarding “green strings”: “Although some dirty rescue-type expenditure may have been necessary to ensure that lives and livelihoods were saved, many of the largest of these policies could have included positive green attributes. For instance, airline bailouts in nations all over the world, including South Africa, South Korea, the United Kingdom, and the United States could have included green conditions. Green conditions tied to liquidity support, like requirements to reach net-zero emissions by 2050 or mandates to increase sustainable fuel use, can ensure short term relief while also promoting investment in long-term technological development and acting as a strong guide in national efforts to meet climate targets.”

The report is supported by the United Nations UNEP, the International Monetary Fund and GIZ through the Green Fiscal Policy Network (GFPN). The data was collected by the Oxford University Economic Recovery Project and is now available through the Global Recovery Observatory, a new database which will be updated regularly (most recently at the end of February).

The report cites many other studies and reports, notably: “Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change?” by Cameron Hepburn, Brian O’Callaghan, Nicholas Stern, Joseph Stiglitz, and Dimitri Zenghelis, which appeared in the Oxford Review of Economic Policy in May 2020.

Global Just Transition case studies from a trade union viewpoint

By Elizabeth Perry - Work and Climate Change Report, January 14, 2021

Just Transition: Putting planet, people and jobs first” is the theme of a special issue of Equal Times, published in December 2020. The compilation of articles provides a trade union point of view to describe the just transition experiences in Bangladesh, Tunisia, Argentina, and Senegal, as well as the more frequently cited experiences in Spain and Scotland. The complete Special Issue is here , and was supported financially by the Friedrich-Ebert-Stiftung.

Although Spain’s 2018 agreement regarding coal transition is well known, this article is a welcome English-language text, translated from the original Spanish version written by Spanish journalist María José Carmona. Another useful English text on the topic is The Just Transition Strategy within the Strategic Energy and Climate Framework, translated and published by the Spanish government in 2019. And an earlier report from the Central Confederation of Finnish Trade Unions (SAK) provides brief summaries of Spanish and other Just Transition frameworks, in A Fair Climate Policy for Workers: Implementing a just transition in various European countries and Canada (2019). It covers Germany, Spain, France, The Netherlands, Norway, Scotland, and Canada in a brief 32 pages.

Employment Aspects of the Transition from Fossil Fuels in Australia

By Jim Stanford - Centre for Future Work, December 16, 2020

Climate change poses a fundamental threat to the well-being and security of people everywhere. And Australia is on the front lines of the challenge. We have already experienced some of the fastest and most intense consequences of climate change, in many forms: extreme heat, droughts, floods, extreme weather and catastrophic bushfires (as in 2019-20). Climate change is no longer an abstract or hypothetical worry. It is a clear and present danger, and we are already paying for it: with more frequent disasters, soaring insurance premiums, and measurable health costs.

The problem of climate change is global; emissions and pollution do not respect national borders. But to address the global threat, every country must play its part. And Australia has a special responsibility to act, and quickly, for several reasons:

  • We are suffering huge costs because of climate change.
    We are a rich country, that can afford to invest in stabilising the climate.
  • We are one of the worst greenhouse gas (GHG) polluters in the world.
  • In fact, as shown in Figure 1, Australia has the highest GHG emissions per capita of any of the 36 industrial countries in the

Organization for Economic Cooperation and Development (OECD). Our emissions – around 22 tonnes of CO2 equivalent for every Australian – are almost twice as high as the OECD average. We emit 4 times per person more than the average Swede.

Worse yet, Australia has been very slow in addressing climate change with effective and consistent policies. Climate policy has become a political wedge issue, subject to reversals and changes in direction depending on the fleeting political imperatives of the day. After a temporary decline (largely sparked by a short-lived national carbon tax, which was then abolished in 2014), Australia’s total emissions have increased again in recent years (see Figure 2). Under existing policies, emissions are projected to stay at or above current levels over the coming decade.

Read the text (PDF).

Unions and Youth together: A Just Transition for climate ambition

After the Hazelwood coal fired power station closure: Latrobe Valley regional transition policies and outcomes 2017-2020

By John Wiseman, Annabelle Workman, Sebastian Fastenrath, and Frank Jotzo - Crawford School of Public Policy, November 2020

This paper reviews and evaluates key policy initiatives and strategies designed to strengthen regional economic, social and environmental outcomes in the Latrobe Valley (Victoria, Australia) in the three years following the closure of the Hazelwood power station. Prior to its sudden closure in March 2017, Hazelwood was the most carbon-intensive electricity generator in Australia. The debate over the future of Hazelwood became an icon in the nation’s ongoing political struggle over climate and energy policy.

Employment and economic outcomes in the three years since closure indicate promising initial progress in creating the foundations required to facilitate an equitable transition to a more prosperous and sustainable regional economy. The Hazelwood case study provides support for a number of propositions about successful regional energy transition including that well managed, just transitions to a prosperous zero-carbon economy are likely to be strengthened by proactive, well integrated industry policy and regional renewal strategies; respectful and inclusive engagement with workers and communities; and adequately funded, well-coordinated public investment in economic and community strategies, tailored to regional strengths and informed by local experience.

Read the text (PDF).

A Fair Climate Policy for Workers: Implementing a just transition in various European countries and Canada

By Pia Björkbacka - The Central Organisation of Finnish Trade Unions SAK, June 26, 2020

Both the Paris Agreement on Climate Change and the target of carbon neutrality by the year 2035 set out in the government programme of Finnish Prime Minister Sanna Marin refer to a just transition for workers towards a low-carbon society. Such a just transition has long been sought by the trade union movement and is an important condition for achieving ambitious climate policy objectives.

The programme of the Marin government states that the government will work with labour market organisations to harmonise economic and labour market policies. Achieving climate objectives will also require co-operation with the social partners, and sectoral assessments in particular.

A just transition has been selected as one approach to reaching the target of a carbon neutral Finland by 2035. The government will pledge to implement emission reduction measures in a socially and regionally equitable way that involves all sectors of society. The government programme envisages establishing a round table on climate policy in Finland under the committee on sustainable development. Bringing together the various actors in society will ensure that climate measures serve the general interests of society and enjoy broad public support.

(Government Programme of Prime Minister Marin 2019)

The implementation of climate policy is causing restructuring in various sectors, meaning that climate policy decisions and actions also have social implications.

The European Commission has estimated that mitigating climate change will create more jobs in the European Union than it will cost (European Commission, 2019), but the changes will be sectoral. Even though labour market restructuring – which is also guided by climate policy - is creating new employment opportunities, it also brings fears of unemployment.

Realising employment opportunities requires substantial investment in employee skills and innovation. It is very important for the benefits and costs of low-carbon restructuring to be evenly shared across various sectors, occupations, population groups and regions. Successfully transitioning to a carbon-neutral society will not only require emission reduction measures and business and energy policies, but also employment, social welfare, education and regional policies.

The principle of a just transition will seek to meet these challenges. This means implementing emission reductions in a way that is fair to workers. It is about creating new, decent and sustainable jobs, in-service training for new employment, and security of earnings. The goal of a just transition is to increase the participation and commitment of workers in deciding policies for mitigating climate change nationally, regionally and within businesses, thereby promoting a smooth transition to a carbon-neutral society.

Read the text (PDF).

(Working Paper #13) Transition in Trouble?: The Rise and Fall of "Community Energy" in Europe

By Sean Sweeney, John Treat and Irene HongPing Shen - Trade Unions for Energy Democracy, March 2020

This TUED Working Paper explores the current crisis of local, community, and cooperative energy. Our focus is Europe where these types of initiatives have made the most progress but now find themselves facing an uncertain future. In this paper we will explain what happened, and why. The goals of this paper are twofold.

The first goal is to draw a clear line of demarcation between the bold claims being made in the name of local and community energy, “energy citizenship,” and similar concepts on the one hand, and the cur-rent reality on the other—a reality that largely confines local energy initiatives to the margins of energy systems. In the case of Europe, the distance between the claims and the reality is vast, and it is widening.

Local and community energy has attracted a lot of support and enthusiasm from activists, and it is not hard to understand why this is the case. Efforts to advance community energy are frequently carried out in the name of a commitment to social justice, advancing equality, and empowering ordinary people to take a more active role in the transition to a low carbon future. Additionally, the activists and organizations undertaking such initiatives nearly always identify with a “values-driven” mission and aim to rise above considerations of personal gain or private profit.

For a period, it seemed that such initiatives were emerging everywhere across Europe. The growth of renewable energy and the proliferation of citizen and community ownership seemed to be in-separable from each other. Spurred on by falling costs of wind and solar technologies, a radical transition in energy ownership—and a shift in control away from large energy companies to small producers and consumers—seemed not only possible, but perhaps even imminent.

But recent policy changes in Europe have placed community energy into a pattern of decline. The removal of subsidies, particularly the Feed-in Tariff, and other incentives has led to a dramatic slow-down in local energy initiatives and cooperatives. The number of households installing solar photovoltaic panels (solar PV) has slowed to a crawl as onshore wind projects have also declined. While offshore wind installations are increasing, the total level of investment and deployment of renew-able energy in Europe has fallen dramatically.

Read the report (PDF).

Taking the High Road: Strategies for a Fair EV Future

By staff - UAW Research Department, January 2020

The American automotive industry is constantly evolving and, throughout the union’s history, the United Auto Workers (UAW) has fought to ensure industry changes result in quality jobs that benefit workers and the economy.

The auto industry is facing a new shift in technology with the proliferation of electric vehicles (EVs). This shift is an opportunity to re-invest in U.S. manufacturing. But this opportunity will be lost if EVs or their components are imported or made by low-road suppliers who underpay workers. In order to preserve American jobs and work standards, what is needed is a proactive industrial policy that creates high-quality manufacturing jobs making EVs and their components.

Read the text (PDF).

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