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A Debate Over Carbon Capture in the Infrastructure Bill Could Test the Labor-Climate Alliance

By Rachel M Cohen - In These Times, April 15, 2021

President Biden wants to include carbon capture technology in his push for infrastructure investment. While unions are on board, some climate groups are keeping quiet for now.

In late March, President Joe Biden unveiled a $2.3 trillion infrastructure package, the American Jobs Plan, that his administration hopes to move forward this year. The plan would make major investments in improving physical infrastructure such as roads, schools and bridges while also creating good-paying jobs, expanding collective bargaining rights and funding long-term care services under Medicaid. 

The president’s plan also endorsed another proposal that a group of bipartisan lawmakers hope makes it into a final bill: expanding carbon-capture utilization and storage (CCUS) in the United States. The SCALE Act, introduced in mid-March by eleven senators and six House representatives, represents the country’s first comprehensive CO2 infrastructure and jobs bill. In describing the president’s infrastructure plan, the White House said it ​“will support large-scale sequestration efforts” that are ​“in line with the bipartisan SCALE Act.” 

The legislation, which would authorize $4.9 billion in spending over five years, would create programs to transport and store carbon underground. Its provisions include establishing low-interest loan programs modeled off of federal highway development programs, increasing EPA funding for permitting carbon storage wells, and providing grants to states to create their own permitting programs. Advocates point to countries such as Canada, Norway and Australia where elected officials have made similar investments in carbon storage infrastructure. 

The SCALE Act is notable both for the support it has, and hasn’t, received. Its early endorsers include a half-dozen industrial labor unions, centrist climate groups like the National Wildlife Federation, and energy companies like GE Gas Power and Calpine. Fossil fuel industry support for carbon-capture has historically been a top reason why progressive climate groups, meanwhile, remain skeptical of the idea, wary of subsidizing anything that amounts to corporate giveaways to some of the world’s worst polluters. While carbon-capture has long been a flashpoint in Democratic climate politics, most critics of the policy have stayed quiet on the SCALE Act for now.

Modeling released in December by the Princeton Net-Zero America Project found that construction of nearly 12,000 miles of pipelines capable of storing 65 million tons of CO2 per year would be needed by 2030 for the United States to reach net-zero emissions by 2050 — a stated goal of the Biden administration. The Clean Air Task Force, a climate advocacy group, says the SCALE Act programs are ​“consistent” with the quantity and timeline of infrastructure deployment needed to meet those goals.

To date, nearly all U.S. carbon-capture projects are situated near existing CO2 pipelines and Lee Beck, the CCUS policy innovation director at the Clean Air Task Force, says the SCALE Act’s goal would be to capture emissions from multiple sources and then transport the CO2 for storage elsewhere, as is currently being carried out through Canada’s Alberta Carbon Trunk Line System and Norway’s Northern Lights Project.

Supporters point to a number of recent scientific analyses that make the case for greater investment in carbon-capture. In February, the National Academies of Sciences released a report on decarbonizing the U.S. energy system which recommends that, over next decade, officials should focus on increasing deployment of carbon-capture technologies by a factor of ten while investing in permanent CO2 storage infrastructure. In 2020, the International Energy Agency warned that it would be ​“virtually impossible” to reach net-zero emissions without carbon capture technology, and the Intergovernmental Panel on Climate Change has said carbon capture is likely necessary to meet global climate targets. Supporters note that renewable energy sources like wind and solar are not viable alternatives for reducing carbon emissions in the industrial sector, which account for 32 percent of the United States’ energy use and nearly a quarter of its direct greenhouse gas emissions. 

An Energy State No More: As coal vanishes from the grid, so might West Virginia’s status as an energy state

By Sean O'Leary - Ohio River Valley Institute, April 9, 2021

In 10 years, unless West Virginia leapfrogs from its coal-dominated energy system to one driven by clean renewable resources, it will cease to be an energy state:

West Virginia’s status as an energy state — one that produces more energy than it consumes – will almost certainly come to an abrupt end within the next ten years and possibly sooner. That’s because market forces, even more than political ones, are inexorably eradicating coal from the nation’s electricity system.

West Virginia, which generates nearly twice as much electricity as it consumes, relies on coal for 91% of its output. So, as coal goes, so does West Virginia’s status as an energy state, which for many West Virginians is as much an issue of identity as it is of economics. But the economics are the driving force and they are irresistible.

In February, the investment house, Morgan Stanley, concluded that coal will disappear from the nation’s energy grid by the year 2033. Market trends bear that out. As recently as 2008, nearly half of America’s electricity came from coal. But, by 2019, only 12 states continued to generate even 40% of their electricity from coal. And, in those states, average residential monthly bills rose at twice the rate of the nation as a whole.

Our Time To Thrive: A Town Hall

Reclaiming Abandoned Mines: Turning Coal Country’s Toxic Legacy Into Assets

By Tara Lohan - The Revelator, March 29, 2021

Mined lands reclaimed for biking trails, office parks — even a winery. Efforts like these are already underway in Appalachia to reclaim the region’s toxic history, restore blighted lands, and create economic opportunities in areas where decades-old mines haven’t been properly cleaned up.

The projects are sorely needed. And so are many more. But the money to fund and enable them remains elusive.

Mining production is falling, which is good news for tackling climate change and air pollution, but Appalachia and other coal states are also feeling the economic pain that comes with it. And that loss is more acute on top of pandemic-related revenue shortfalls and the mounting bills from the industry’s environmental degradation.

Local leaders and organizations working in coal communities see a way to flip the script, though. The Revelator spoke with Rebecca Shelton, the director of policy and organizing for Appalachian Citizens’ Law Center in Kentucky, about efforts focusing on one particular area that’s plagued coal communities for more than 50 years: cleaning up abandoned mine lands.

Shelton explains the history behind these lands, the big legislative opportunities developing in Washington, and what coal communities need to prepare for a low-carbon future.

Workers and Communities in Transition: Report of the Just Transition Listening Project

By J. Mijin Cha, Vivian Price, Dimitris Stevis, and Todd E. Vachon, et. al. - Labor Network for Sustainability, March 17, 2021

The idea of “just transition” has recently become more mainstream in climate discourse. More environmental and climate justice advocates are recognizing the need to protect fossil-fuel workers and communities as we transition away from fossil-fuel use. Yet, as detailed in our report, transition is hardly new or limited to the energy industry. Throughout the decades, workers and communities have experienced near constant economic transitions as industries have risen and declined. And, more often than not, transition has meant loss of jobs, identities, and communities with little to no support.

While transition has been constant, the scale of the transition away from fossil fuels will be on a level not yet experienced. Fossil fuels are deeply embedded in our economy and society. Transition will not only affect the energy sector, but transportation (including passenger and freight), agriculture and others. Adding to the challenges of the energy transition, we are also transitioning to a post-COVID-19-pandemic world. As such, we cannot afford, economically or societally, to repeat the mistakes of the past that left so many workers and communities behind.

To better understand how transition impacts people, what lessons can be learned, and what practices and policies must be in place for a just transition, in the Spring of 2020 we launched the Just Transition Listening Project (JTLP). The JTLP has captured the voices of workers and community members who have experienced, are currently experiencing, or anticipate experiencing some form of economic transition.

Those who have suffered from transitions are rarely the ones whose voices are heard. Yet, no one is more able to fully understand what workers and communities need than those who have lived that experience. The JTLP is the first major effort to center these voices. In turn, the recommendations provided can make communities and workers whole. In many ways, these recommendations are common sense and fundamental to creating a just society, regardless of transition. Yet, the failure of elected officials to deliver just transition policies points to the need for wide scale movement building and organizing.

This report summarizes lessons learned and policy recommendations in three overall concepts for decision-makers: Go Big, Go Wide, and Go Far.

Read the text (PDF).

CalPERS: Finish Mandated Thermal Coal Divestment

By Staff - Fossil Free California, March 11, 2021

California Public Employees Retirement System still holds $8.5 million in thermal coal producers in violation of SB 185, a 2015 state law on thermal coal divestment. This act requires CalPERS to divest from companies that earn the majority of their revenue from thermal coal production.

When the fund divested from several coal companies in 2017, it stayed invested in three thermal coal companies that met the criteria—Exxaro, Adaro, and Banpu—because “they had indicated plans to transition their business models to adapt to clean energy generation (such as through a decrease in reliance on thermal coal mining as a revenue source).”

However, four years later, all three of these companies continue to make well over 50% of their revenue from thermal coal (according to data from the Global Coal Exit List at coalexit.org) and show few signs of transitioning their business models. In fact, all of these companies have documented expansion plans for their coal operations. Although South Africa-based Exxaro Resources recently announced that it will not acquire more thermal coal assets, it already owns more than 31 billion tons of recoverable coal, which is more than enough to create a “tipping point” for Earth’s climate.

All three coal companies have demonstrated contempt for the lives of communities displaced or impacted by their mining operations. Exxaro, in South Africa, displaces communities from mining sites in violation of the South African Constitution and with insignificant compensation leaving many communities to struggle to even find necessities like food while their air and water is irreparably poisoned.

Similarly, Adaro, an Indonesian company, strip mines forested land and continues to displace native people, threatening their lives and cultures. Adaro was also responsible for the deaths of 24 children working in mines and continues polluting surrounding areas such that water becomes undrinkable, and farmers have to abandon their land. Finally, Banpu, a Thai company, builds mines across Asia. They use open ponds to collect pollutants which inevitably enter the ground water and destroy crops. Farmers in Thailand reported being forcibly bought out and eventually forced to move because the added cost of purchasing clean water combined with the destruction of their livelihood was too much.

Join Fossil Free California and allies to call on CalPERS to finish its mandated thermal coal divestment by immediately adding Exxaro, Adaro, and Banpu to the thermal coal exclusion list.

Send Letter to CalPERS

The Climate Crisis and the Global Green New Deal

As coal dies, the US has no plan to help the communities left behind

By Emily Pontecorvo - Grist, March 3, 2021

Here are two tales of the energy transition unfolding in coal country, USA.

In late 2019, Pacificorp, an electric utility that operates in six Western states, told Wyoming regulators it wanted to shut down several of its coal-fired power plants early and replace them with wind and solar power and battery storage. It said this plan would save customers hundreds of millions of dollars on their electric bills and promised to work with local leaders on transition plans for workers and communities affected by the closures.

Wyoming, a state whose economy relies significantly on coal mining and coal power, went on the defensive. State lawmakers had already passed a law requiring coal plant owners to search for a buyer before being allowed to close a plant. Now, with support from the governor, regulators ordered an unprecedented investigation to scrutinize Pacificorp’s analysis and conclusions. Ultimately they determined the plan was deficient — that the company had not adequately considered allowing the coal plants to stay open or installing technology to capture the plants’ carbon emissions.

Climate Emergency: A 26-Week Transition Program for Canada

By Guy Dauncy - Canada 26 Weeks, March 2020

This is a work of imagination. But the urgency of the crisis is real, the need for the suggested programs is real, and the data included in these proposals is real.

What could the government of Canada do if its Ministers, MPs and civil servants really understood the severity of the climate emergency, and the urgency of the need? This paper shows how we could target a 65% reduction in emissions by 2030 and 100% by 2040. It proposes 164 new policies and programs, financed by $59 billion a year in new investments, without raising taxes or increasing public sector borrowing. The new programs and policies are announced every Monday morning between January and the end of June. To learn what they are, read on.

Read the text (PDF).

Just Transition: Time for a Rethink?

By Rosa Martínez Rodríguez - Green European Journal, February 10, 2021

Since 2019, Spain has been ahead of the curve with the launch of a Just Transition Strategy to protect its historic coal mining regions from the impacts of decarbonisation. Rosa Martínez examines the uptake of just transition in public policy and where Spain’s affected regions find themselves today. Progress is encouraging, but accelerating processes of digitalisation and automation mean that it is time to bring the notion of just transition up to speed so it can offer future-proof solutions in a world where employment is increasingly precarious.

In 2015, before the Paris Agreement had been ratified, the International Labour Organization published its Guidelines for a Just Transition Towards Environmentally Sustainable Economies and Societies for All. The concept of just transition, however, was already well established among Green parties and environmental activists. It offered a response to critiques of the ecological transition based on its impact on employment, and also reinforced social justice as a core green value.

From political concept to public policy

In Spain, just transition worked its way into public policy months before the EU decision to end financial aid for the coal mining industry took effect, forcing the closure of mines unable to operate without support. The Spanish Socialist Workers’ Party (PSOE), which came to power in 2018 after a vote of no confidence ousted the conservative People’s Party (PP), found themselves in a politically delicate situation, given that the most affected areas were made up of socialist voters. The response from the Ministry of Ecological Transition was to create a Just Transition Urgent Action Plan (2019-2021) for the regions impacted by the closure of the mines and five thermal power plants.

Months later, in February 2019, the Just Transition Strategy featured as one of the pillars of the government’s Strategic Energy and Climate Framework. The introduction of a social angle in climate policy and the energy transition was a first for politics and would later be adopted by the European Commission in the European Green Deal with its Just Transition Mechanism launched in January 2020.

Where are we now? So far, processes have only been implemented in areas affected by the closure of coal mines and thermal power plants through agreements with local administrations – 13 signed to date – with the aim of protecting jobs. In November 2020, a brief progress report was published, detailing the actions carried out to date and giving a sense of the complexity of the challenge undertaken.

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