disaster capitalism

By Olamide Olaniyan and Naomi Klein - The Tyee, October 22, 2021

The way we currently talk about the climate emergency and how to get out of it has been very much determined by Naomi Klein.

The author of This Changes Everything and other bestsellers, Klein is a major critic of global capitalism, has helped articulate its effects on the environment and climate change and supports transforming society in ways that improve the lives of people and protect them from its worst and unequal effects.

The Canadian journalist, author and activist was involved in drafting the 2015 Leap Manifesto — a plan for transitioning to a clean energy economy — which was the centre of much debate within the federal New Democratic Party and amongst its supporters, including in these pages.

In recent years she’s been involved with climate justice movements in the U.S. and Canada pushing for a Green New Deal and was even a surrogate for U.S. Sen. Bernie Sanders’ 2020 election campaign for the U.S. presidency.

Now Penguin has decided to package excerpts from her previous writing for a volume in its Green Ideas series.

Surely that counts as success, right? Well, as she pointed out to The Tyee in an interview last week, after a near decade of advocating for a range of climate goals, “We haven’t gotten any of those things.”

A 2016 NDP resolution based on the Leap Manifesto passed, but party leadership has since distanced itself from it. Klein’s spouse, filmmaker and climate activist Avi Lewis, ran in the 2021 federal election but ultimately lost his bid to become the NDP MP for West Vancouver-Sunshine Coast-Sea to Sky Country.

Below the 49th parallel, Bernie Sanders didn’t win the Democratic nomination to run as president. None of the various Green New Deal bills in the U.S. have passed.

And when we talked to Klein last week, citizens of the country where she’d spent the last couple of years living and organizing had been agonizing over whether significant legislation to address climate change would make it through the Senate, thanks to two centrist democrats.

And on a grander scale, not much has changed. Many countries, including Canada and the U.S. — two of the largest per capita emitters — continue to drag their feet and have yet to hit their commitments to cut emissions.

All this Klein would readily admit. But she’s far from ready to declare defeat. As in chess, even among the losses, there is the fight for a fighting chance. And in the long run, every move matters.

The author, who’s studied and long been involved in climate justice movements, says she won’t “indulge” in climate doom-ism. She still believes this moment has quite a bit of potential.

“We have locked in a very, very rocky future, but it is not too late for us to avert truly, unlivably catastrophic warming,” she said.

In September, Klein joined UBC’s geography department as a professor for climate justice, along with her spouse Lewis.

She’s also involved in building the university’s new Centre for Climate Justice. The goal, she says, “is to be useful on the timeline of the climate emergency, and very much to take leadership from the most impacted constituencies.”

Klein talked to us about her new role, the recent Canadian election, and the “infrastructure of care.” This interview has been edited for length and clarity.

By various - Climate Jobs NY, October 4, 2020

By Eric Fretz - Marx 21, September 3, 2021

Again and Again under capitalism, we have seen poorer people disproportionately hit by the deadly effects of events like cyclones and earthquakes, as natural disasters highlight existing unnatural inequalities. It is now obvious that not just the effects, but the causes of extreme weather are stemming from capitalism.

The recent IPCC report proved that higher air and sea temperatures caused by global warming have already led to more hurricanes, and will continue to do so. “In the past seventy years,” Bill McKibben noted, “the United States has averaged three land-falling storms a year; Ida is the seventeenth in the past two years.” 

But warming also leads to a “rapid intensification” of storms. Ida turned into a hurricane in just six hours.

When Ida hit the Louisiana coast Sunday as a Category 4 hurricane with winds up to 150 mph, it was the second most powerful storm to hit the state in its recorded history.

Devastation 

Over 1 million homes and businesses in Louisiana and Mississippi are without power, including the entire city of New Orleans, parts of which may remain without electricity for weeks. 

Sewage pumping stations in New Orleans, which have no backup power, stopped working, leaving 441,000 people in 17 parishes with no clean drinking water, and no water to flush toilets. Another 329,000 people were under boil water advisories. However, it may be hard for many to boil water without electricity.

Added to this misery was a heat advisory which combined with humidity to reach real feel temperatures of over a hundred degrees

Tens of thousands of residents were left to themselves in figuring out how to evacuate, and even those with cars were at a standstill on choked highways. 

In a chilling reminder of the horrors of Katrina, the New Orleans Police Department announced that “anti-looting patrols” would be set up. The mayor then used the resulting arrests to justify a curfew and calling in the National Guard—not to rescue people or rebuild, but to patrol the streets. 

As in Katrina, it is poor and black people who are most at risk of losing their homes—and their lives.

Ida came one year after Hurricane Laura, which brought widespread destruction to the mostly Black industrial area around Mossville, causing chemical fires and turning Lake Charles into a toxic soup. The displacement and continued housing shortage caused by Laura worsened the spread of Covid in the area. 

The displacement caused by Ida in New Orleans could be even worse. Hospitals in Louisiana are already filled with over 2,400 patients with coronavirus. There were not enough empty beds in the state to evacuate patients from New Orleans hospitals. Staff in one hospital reported having to manually pump air into the lungs of intubated Covid patients as they moved them to a floor with a working generator.

By Jeremy Brecher - Common Dreams, June 1, 2021

At the end of March 2021, President Joe Biden laid out his $2 trillion American Jobs Plan–part of his "Build Back Better" infrastructure program–to "reimagine and rebuild a new economy." Congress is expected to spend months debating and revising the plan. The public and many special interests will play a significant role in that process. President Biden has promised to follow up with additional proposals to further address climate policy and social needs.

Many particular interests will seek to benefit from the overall Build Back Better program–and that's good. But as Congress and the public work to shape the ultimate form of that program, we also need to keep our eyes on the ultimate prize: combining climate, jobs, and justice. What policies can integrate the needs of working people, the most oppressed, and our threatened climate and environment?

The Green New Deal reconfigured American politics with its core proposition: fix joblessness and inequality by putting people to work at good jobs fixing the climate. The Biden administration's Build Back Better (BBB) plan has put that idea front and center in American politics. Now we need to specify strategies that will actually achieve all three objectives at once.

There are many valuable plans that have been proposed in addition to Biden's Build Back Better plan. They include the original Green New Deal resolution sponsored by Sen. Ed Markey and Rep. Alexandria Ocasio-Cortez; the THRIVE (Transform, Heal, and Renew by Investing in a Vibrant Economy) Agenda; the Evergreen Action Plan; the Sierra Club's "How to Build Back Better" economic renewal plan; the AFL-CIO's "Energy Transitions" proposals; the BlueGreen Alliance's "Solidarity for Climate Action," and a variety of others. All offer contributions for overall vision and for policy details.

There are six essential elements that must be integrated in order to realize the Build Back Better we need for climate, jobs, and justice:

• Managed decline of fossil fuel burning
• Full-spectrum job creation
• Fair access to good jobs
• Labor rights and standards
• Urgent and effective climate protection
• No worker or community left behind

These strategies can serve as criteria for developing, evaluating, and selecting policies to make Build Back Better all that it could be.

By Nicholas Kusnetz - Inside Climate News, May 23, 2021

The bailout, environmentalists say, raises bigger questions about who will pay, in an energy transition, to close off the nation’s millions of aging wells.

When North Dakota directed more than $66 million in federal pandemic relief funds to clean up old oil and gas wells last year, it seemed like the type of program everyone could get behind. The money would plug hundreds of abandoned wells and restore the often-polluted land surrounding them, and in the process would employ oilfield workers who had been furloughed after prices crashed.

The program largely accomplished those goals. But some environmental advocates say it achieved another they didn’t expect: It bailed out dozens of small to mid-sized oil companies, relieving them of their responsibility to pay for cleaning up their own wells by using taxpayer money instead.

Oil drillers are generally required to plug their wells after they’re done producing crude. But in practice, companies are often able to defer that responsibility for years or decades. Larger companies often sell older wells to smaller ones, which sometimes go bankrupt, leaving the wells with no owner.

These “orphaned wells” become the responsibility of the federal or state governments, depending on where they were drilled. While oil companies are required to post bonds or other financial assurance to pay for plugging them, in reality those bonds cover only a tiny fraction of the costs, leaving taxpayers on the hook. One estimate, by the Carbon Tracker Initiative, a financial think tank, found that those bonds cover only a tiny fraction of the expected costs of cleaning up the nation’s oil and gas wells.

But in North Dakota, it turned out that most of the wells the state plugged were not truly orphaned, but had solvent owners. After the industry warned last year that the pandemic-driven oil-crash was threatening its finances, state regulators stepped in, assumed ownership of more than 300 wells, and used CARES Act funds to plug them, meaning the companies avoided paying anything themselves.

“What happened was a bunch of people got a free ride,” said Scott Skokos, executive director of the Dakota Resource Council, a grassroots environmental group in the state.

By D'Arcy Briggs - Spring, April 22, 2021

Regarding the battle against climate change, there is a common liberal argument that says we simply need an improvement in technology, or to push market investments to companies already producing this kind of tech. We’re seeing a boom in renewable energy investment, with many groups clamoring to add these companies to their portfolios. But this push towards new technologies doesn’t exist in an economic vacuum. They are directly informed by the labour processes which create them. No matter how many wind farms or electric cars we create, capitalism will necessarily find a way to destroy us.

Because capitalism is in a constant state of over-production, there is a drive to replace old goods with new ones. If we were happy with the amount and quality of products we fill our lives with, and if we could replace them among our own means, consumer capitalism wouldn’t be able to exist. I think this is pretty self evident and we can easily relate. We are constantly bombarded with ads for new products: phones with better cameras, computers with faster processors, cars with stronger engines, etc. Capitalism can’t function in a world with clean, ‘green,’ energy. It can’t function in a world where the working class are given the tools to function and thrive. Simply put, you can’t fix what’s meant to be broken.

By Nicholas Kusnetz - Inside Climate News, April 2, 2021

When Congress looked to prop up a tanking economy and stanch its hemorrhaging of employment as the pandemic spread last year, the oil industry was among those that sought relief. Now, a new analysis shows that dozens of fossil fuel companies received billions of dollars in tax benefits in the coronavirus relief package, but slashed tens of thousands of jobs anyway.

While Congress ended up sending billions in direct loans to small and large businesses, a significant portion of CARES Act benefits came in the form of changes to the tax code. At least 77 fossil fuel companies took advantage of those to claim a total of $8.2 billion in benefits last year, even as they cut nearly 60,000 jobs, according to an analysis published Friday by BailoutWatch, a nonprofit supported by Rockefeller Philanthropy Advisors.

Chris Kuveke, a BailoutWatch analyst, said the data shows that the aid to the industry failed to deliver the benefits that Congress had intended.

“These companies did not use that money they received through the CARES Act to maintain payroll,” he said.

As oil prices collapsed last year, some energy companies began lobbying Congress and the federal government for various forms of relief. Occidental Petroleum, for example, enlisted its employees to send letters to members of Congress to ask that they “provide liquidity” to the energy industry, according to Bloomberg News.

Among the various forms of stimulus included in the final relief package were changes to the tax code that proved beneficial to the oil industry.

For example, companies for years were allowed to “carry back” their losses in one year to offset profits from previous years to get a retroactive tax refund. That allowance helped companies with volatile earnings, but it was eliminated by the 2017 tax cuts signed into law by President Donald Trump. The change was one of the few provisions of the tax overhaul that modestly increased the tax burden for corporations, even as the bill overall drastically reduced corporate taxes, said Thornton Matheson, a senior fellow at Urban-Brookings Tax Policy Center.

The CARES Act eliminated that change, and even expanded on the original provision, allowing companies to carry any losses incurred from 2018-2020 back five years, instead of the two years allowed before the 2017 tax bill. Matheson said the oil and gas industry was among a few likely to benefit most from that part of the CARES Act, because its earnings can swing wildly with commodity prices.

Thus the change allowed companies to stretch losses from 2018 back to 2013, when oil prices were above $100 a barrel and profits for some of them were sky high (prices fell sharply in late 2014, and have not fully recovered).

Marathon Petroleum, a major refiner, benefited the most, the analysis found, claiming $2.1 billion in tax benefits, according to the BailoutWatch analysis. The company cut nearly 2,000 jobs last year, not counting those in its retail business.

Marathon disputed the figure, saying that less than 30 percent of its $2.1 billion tax benefit was due to the CARES Act provisions. However, its annual securities filing said that based on the carryback “as provided by the CARES Act, we recorded an income tax receivable of $2.1 billion” to reflect the company’s estimate of the refund it expected to receive in its 2020 tax return.

Marathon spokesman Jamal T. Kheiry said some of the layoffs were associated with the idling of refineries, and added that the company was generous with employees who lost their jobs. “To help affected employees transition, we provided severance, bonus payments, extended healthcare benefits at employee rates, job placement assistance, counseling and other provisions,” he said.

NOV, a drilling company, cut nearly 8,000 workers, more than 20 percent of its employees, despite receiving a $591 million tax benefit. The company did not respond to a request for comment.

Occidental collected $195 million and cut 2,600 jobs.

Eric P. Moses, a spokesman for Occidental, said the job cuts were associated with its 2019 acquisition of Anadarko Petroleum “and completed prior to the COVID pandemic and Congress’ passage of the CARES Act.”

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.

By Staff - Trade Unions for Energy Democracy, March 8, 2021

In a March 8 Press Release, FNME-CGT — the energy and mining division of French trade union confederation CGT — has republished a TUED briefing paper on the recent power sector crisis in Texas. TUED’s briefing paper argued that the recent catastrophic power sector failures in Texas “serve as a stark warning that unregulated, privatized and marketized electricity systems pose a serious threat to human life.”

As we have previously reported in TUED Bulletins 104 and 105, FNME is currently involved in a major struggle by striking French electricity and gas workers in defense of the country’s publicly owned energy company, EDF. The target of the strikes is a set of proposals being advanced by the French government, at the heart of which is a plan to “restructure” the country’s major national power utility, EDF. According to the unions, the proposed changes would undermine EDF’s ability to continue to operate as an integrated public utility, would jeopardize energy security and jobs, and would be against the general public interest.

Over the recent December holiday period, 33 union bodies from 20 countries and regions signed a statement of solidarity with the striking unions and workers.

In support of the striking workers’ defense of EDF, FNME-CGT republished the TUED briefing document with the following additional remarks:

Texas, an extreme example demonstrating that we must say “STOP” to market logics in dealing with the vital common good that energy represents. These same logics, combined with a desire for regional autonomy, have created an anti-citizen cocktail that is becoming a deadly poison!

Confronted with extreme temperatures, many Texas residents have received bills for staggering amounts, up to $17,000. A peak at $9,000 per MWh was reached when the usual seasonal average is $50: capitalists rub their hands… Texans “put on their sweaters” and rub them too, but to keep warm.

…

The conclusion is therefore clear and indisputable: energy is a vital asset that can no longer be indexed to the financial markets, to the detriment of both commercial and domestic users.

However, while this example rages on, in France, discussions are well underway (for example, EDF’s Hercule project, which only reaffirms the notion of a market) and we are even seeing a new “miracle” tariff offer with a new operator that would index the bill to the price on wholesale energy markets!

Moreover, it is highly likely that generators incompatible with the energy transition will have a bright future ahead of them … a question of survival!

The FNME-CGT condemns this new tariff system where only consumers will sooner or later lose out and where change will mean an increase in fuel poverty.

With support from global union federation Public Services International (PSI), FNME-CGT and TUED are currently working to convene a Trade Union Task Force on Decarbonisation. The Task Force will produce an interim analytical report to guide the development of a “Trade Union Charter for Public Energy in Europe,” which will be debated at a June meeting being convened by the French trade union confederation, CGT.

The June meeting will also bring together social forces from across and beyond Europe to explore and debate a broad range of issues related to the socio-ecological transformation. Unions interested in participating should email Irene Shen at ireneTUED@gmail.com.

By Andy Rowell - Oil Change International, February 25, 2021

If shivering with cold dark for days in sub-zero temperatures was not enough for many Texans, those lucky enough to still have electricity during the recent freezing weather have been hit with exorbitant electricity bills.

In some cases unlucky customers have been charged a whopping USD $15,000 for one month’s power, or put another way over 70 times the normal cost people pay for all their utilities.

One customer Susan Hosford of Denison told the AP that normally she pays around $2.50 for power per day, but got charged $1,346.17 for the first two weeks of February. “This whole thing has been a nightmare,” she said.

Another customer, Karen Knox, a teacher in Bedford, not only lost power but now owes $7,000 to Griddy, an electricity provider located in Houston. She told the Texas Tribune there was no way she could pay.

Such is the outcry that Governor Greg Abbott, a Republican who is heavily funded by Big Oil, had to hold an emergency meeting with legislators to discuss the outrageous bills.

Abbott and others are now promising relief for those hit by sky-high bills, although how people are compensated is yet to be worked out.

As the anger has grown, so too has the political fall-out and finger pointing and as to what has gone wrong and who is to blame.

The reason the grid failed is simple: political deregulation. Along with sixteen other states Texas had deregulated its power market. The market was deregulated in 2002, under the then Governor Rick Perry, who would later become President Donald Trump’s Secretary of Energy.

Perry established the Electric Reliability Council of Texas (known as ERCOT), with roughly 70 providers. And then the politicians cut Texas off from the rest of the country, the only state in the contiguous U.S. that was operating its own electric grid.

And because the Texas grid was then disconnected from the rest of the country, no reserves could be imported when the grid got into trouble.

“As someone who has spent the past two decades studying electricity deregulation, I know that extreme power bills in Texas result partly from the state’s market-driven approach to running the power grid,” wrote Seth Blumsack, Professor of Energy and Environmental Economics and International Affairs, at Penn State in the Conversation yesterday.

Blumsack continued: “the sky-high electric bills in Texas are partly due to a deregulated electricity system that allowed volatile wholesale costs to be passed directly to some consumers.”