Keystone XL Pipeline (KXL)

By The Red Nation - ROAR Magazine, April 25, 2021

Colonialism has deprived Indigenous people, and all people who are affected by it, of the means to develop according to our needs, principles and values. It begins with the land. We have been made “Indians” only because we have the most precious commodity to the settler states: land. Vigilante, cop and soldier often stand between us, our connections to the land and justice. “Land back” strikes fear in the heart of the settler. But as we show here, it’s the soundest environmental policy for a planet teetering on the brink of total ecological collapse. The path forward is simple: it’s decolonization or extinction. And that starts with land back.

In 2019, the mainstream environmental movement — largely dominated by middle- and upper-class liberals of the Global North — adopted as its symbolic leader a teenage Swedish girl who crossed the Atlantic in a boat to the Americas. But we have our own heroes. Water protectors at Standing Rock ushered in a new era of militant land defense. They are the bellwethers of our generation. The Year of the Water Protector, 2016, was also the hottest year on record and sparked a different kind of climate justice movement.

Alexandria Ocasio-Cortez, herself a water protector, began her successful bid for Congress while in the prayer camps at Standing Rock. With Senator Ed Markey, she proposed a Green New Deal in 2019. Standing Rock, however, was part of a constellation of Indigenous-led uprisings across North America and the US-occupied Pacific: Dooda Desert Rock (2006), Unist’ot’en Camp (2010), Keystone XL (2011), Idle No More (2012), Trans Mountain (2013), Enbridge Line 3 (2014), Protect Mauna Kea (2014), Save Oak Flat (2015), Nihígaal Bee Iiná (2015), Bayou Bridge (2017), O’odham Anti-Border Collective (2019), Kumeyaay Defense Against the Wall (2020), and 1492 Land Back Lane (2020), among many more.

Each movement rises against colonial and corporate extractive projects. But what’s often downplayed is the revolutionary potency of what Indigenous resistance stands for: caretaking and creating just relations between human and other-than-human worlds on a planet thoroughly devastated by capitalism. The image of the water protector and the slogan “Water is Life!” are catalysts of this generation’s climate justice movement. Both are political positions grounded in decolonization—a project that isn’t exclusively about the Indigenous. Anyone who walked through the gates of prayer camps at Standing Rock, regardless of whether they were Indigenous or not, became a water protector. Each carried the embers of that revolutionary potential back to their home communities.

Water protectors were on the frontlines of distributing mutual aid to communities in need throughout the pandemic. Water protectors were in the streets of Seattle, Portland, Minneapolis, Albuquerque and many other cities in the summer of 2020 as police stations burned and monuments to genocide collapsed. The state responds to water protectors — those who care for and defend life — with an endless barrage of batons, felonies, shackles and chemical weapons. If they weren’t before, our eyes are now open: the police and the military, driven by settler and imperialist rage, are holding back the climate justice movement.

By Ella Nilsen - Vox, March 19, 2021

President Joe Biden wants to quickly move the United States toward clean energy jobs in wind and solar. But unions — some of Biden’s strongest allies — are skeptical about the transition to green energy.

Biden and congressional Democrats are poised to introduce a large infrastructure plan that is supposed to deliver on two promises: putting job creation into overdrive, and decarbonizing the economy, with an aggressive goal of powering 100 percent of America’s electricity sector with clean energy by 2035.

To achieve both goals, the administration is betting on a massive push toward wind and solar. Renewables already produced 20 percent of US electricity in 2020, and expanding them further to decarbonize the economy necessarily means phasing out fossil fuels. But even as wind and solar production has increased, wages and the rate of unionized jobs in renewables haven’t kept up with the industries they’d be replacing. In order to make more profits, many companies want to keep their costs low — which includes keeping wages low.

“The fossil fuel industries were unionized in long struggles that were classic labor stories,” said University of Rhode Island labor historian Erik Loomis. “Now, they’re in decline and you have these new industries. But a green capitalist is still a capitalist, and they don’t want a union.”

About 4 percent of solar industry workers and 6 percent of wind workers are unionized, according to the 2020 US Energy and Employment Report. The percentage of unionized workers in natural gas, nuclear, and coal power plants is about double that, around 10 to 12 percent unionized (although still not a huge amount). In transportation, distribution, and storage jobs — which exist largely in the fossil fuel sector — about 17 percent of the jobs are unionized. Still, the solar and wind unionization rates are in line with the low national rate of unionized workers in the private sector, which is about 6.3 percent.

This is one of the big reasons there’s a real hesitancy on the part of many unions and workers to transition from fossil fuel to renewable jobs: They are worried the jobs waiting for them in wind and solar won’t pay as well or have union protections. This has long been a tension point between environmental groups and labor, often exploited by the right wing. Even though alliances between the two are forming, those underlying tensions won’t vanish easily.

By Kate Aronoff - New Republic, March 10, 2021

Tuesday night, the Protecting the Right to Organize Act passed the House by 225–205 votes. If it passes the Senate and becomes law, it will peel back over half a century of anti-union policies, including core provisions of the Taft-Hartley Act of 1947. It would override state-level right-to-work protections—the darlings of the Koch brothers machine—and create harsher penalties for employers who interfere with employees’ organizing efforts. But in myriad ways, the act might also do something unexpected: set the stage for sweeping climate policy.

A coalition led by the International Union of Painters and Allied Trades, or IUPAT, and the Communication Workers of America is mobilizing to push the PRO Act over the finish line in the Senate. The youth climate group Sunrise Movement was an early recruit, and the Democratic Socialists of America—including its ecosocialist working group, which is also pushing for a Green New Deal—will be deploying its members in key districts around the country to ensure it’s passed. After a kick-off call over the weekend featuring Congressman Jamaal Bowman, Association of Flight Attendants-CWA head Sara Nelson, and Naomi Klein, DSA is holding trainings for its members throughout March as well as events around the country pushing key senators to back the bill in the lead-up to May Day. Sunrise last week launched a Good Jobs for All campaign, which is urging on a federal job guarantee introduced recently by Representative Ayanna Pressley. Over the next several weeks, Sunrise hubs will be working alongside progressive legislators and holding in-district protests to advance five priorities for upcoming infrastructure legislation, including the PRO Act. After its passage through the House last night, a press release from the groups praised the measure as a “core pillar of the Green New Deal.”

The alliances forming around the PRO Act buck long-held wisdom in Washington about what it would take to get labor unions and environmentalists to work together. James Williams Jr., IUPAT’s vice president at large, has been frustrated by years of seeing the two talk past one another. Construction unions, in particular, have come to loggerheads with climate hawks over infrastructure projects like the Keystone XL and Dakota Access pipelines. “I would blame labor a lot of the time for this,” he says, “but there have to be deeper conversations about the fact that labor is going to lose jobs that have been really good jobs for a really long time.” 

By Camila Huerta Alvarez, Julius McGee, and Richard York - Nature and Culture, March 1, 2019

In this article, we assess whether unionization of national workforces influences growth in national carbon dioxide (CO₂) emissions per capita. Political-economic theories in environmental sociology propose that labor unions have the potential to affect environmental conditions. Yet, few studies have quantitatively assessed the influence of unionization on environmental outcomes using cross-national data. We estimate multilevel regression models using data on OECD member nations from 1970 to 2014. Results from our analysis indicate that unionization, measured as the percentage of workers who are union members, is negatively associated with CO₂ emissions per capita, even when controlling for labor conditions. This finding suggests that unionization may promote environmental protection at the national level

Read the text (PDF).

By Staff - Labor Network for Sustainability, March 2021

The Labor Network for Sustainability calls for a halt to the Line 3 Pipeline, the Dakota Access Pipeline and other climate-destroying fossil-fuel infrastructure of the past. It calls instead to start creating the jobs of the future building the climate-safe infrastructure of the future.

The U.S. is already building extensive new fossil-free energy infrastructure and is creating more jobs than a similar investment in fossil fuel facilities. Rather than spend a penny more on new fossil fuel infrastructure, it is time to invest in a massive, jobs-rich conversion to a fossil-free energy infrastructure.

The U.S. government, the people of the world, and even major oil companies recognize that the climate emergency requires us to move rapidly to a fossil-free economy. President Joe Biden recently recognized this by cancelling the Keystone XL pipeline. It is time to halt other new fossil fuel infrastructure—urgently, the Line 3 and Dakota Access Pipelines—and use our precious resources for a just transition to climate safety.

A 2013 LNS study compares jobs created by the Keystone XL pipeline to the jobs that could be created by water, sewer and gas repair projects in the five states the pipeline crosses. It finds that meeting unmet water and gas line repair infrastructure needs in the five states along the KXL pipeline route would create:

• More than 300,000 total jobs across all sectors;
• Five times more jobs, and better jobs, than KXL;
• 156% of the number of direct jobs created by Keystone XL per unit of investment.

See the full report: “The Keystone Pipeline Debate: An Alternative Job Creation Strategy”

Workers should not have to pay the price of protecting the climate—they deserve a just transition to a climate-safe future. Cancelation of fossil fuel projects like the tar sands pipelines should be paired with a program to see that every worker whose job may be threatened by climate policies has access to a new job creating the economy of the future.

By Elizabeth Perry - Work and Climate Change Report, February 1, 2021

Incoming U.S. President Biden exceeded expectations with the climate change initiatives announced in week 1 of his term, and many have important repercussions for Canada. The most obvious came on Day 1, January 20, with an Executive Order cancelling the Keystone XL pipeline and taking the U.S. back into the Paris Agreement. Also of potential impact for the Canadian clean tech and auto industries – the Buy American policies outlined in Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers (Jan. 25). On January 27 ( “Climate Day ”), the Executive Order on Tackling the Climate Crisis at home and abroad (explained in this Fact Sheet ) announced a further series of initiatives, including a pause on oil and gas leases on federal lands, a goal to convert the federal government’s vehicle fleet to electric vehicles, and initiatives towards environmental justice and science-based policies. Essential to the “whole of government” approach, the Executive Order establishes the White House Office of Domestic Climate Policy to coordinate policies, and a National Climate Task Force composed of leaders from across 21 federal agencies and departments. It also establishes the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization, “to be co-chaired by the National Climate Advisor and the Director of the National Economic Council, and directs federal agencies to coordinate investments and other efforts to assist coal, oil and natural gas, and power plant communities.”

The New York Times summarized the Jan. 27 Orders as “a sweeping series of executive actions …. while casting the moves as much about job creation as the climate crisis.” A sampling of resulting summaries and reactions: ‘We Need to Be Bold,’ Biden Says, Taking the First Steps in a Major Shift in Climate Policy” in Inside Climate News (Jan. 28); “Fossils ‘stunned’, ‘aghast’ after Biden pauses new oil and gas leases” in The Energy Mix (Feb. 1); “Biden’s “all of government” plan for climate, explained” in Vox (updated Jan. 27) ; “Biden’s Pause of New Federal Oil and Gas Leases May Not Reduce Production, but It Signals a Reckoning With Fossil Fuels” (Jan. 27) ; “Biden is canceling fossil fuel subsidies. But he can’t end them all” (Grist, Jan. 28); “Activists See Biden’s Day One Focus on Environmental Justice as a Critical Campaign Promise Kept” and “Climate Groups Begin Vying for Power in the Biden Era as Pressure for Unity Fades” (Jan 21) in The Intercept , which outlines the key policy differences between the BlueGreen Alliance (which includes the Service Employees International Union, the American Federation of Teachers, and the United Steelworkers in the U.S.) and the Climate Justice Alliance, a national coalition of environmental justice groups.

By Nick Engelfried - Waging Nonviolence, January 29, 2021

When President Biden rescinded a crucial permit for the Keystone XL pipeline last week, it marked the culmination of one of the longest, highest-profile campaigns in the North American climate movement. The opposition to Keystone XL included large environmental organizations, grassroots climate activist networks, Nebraska farmers, Texas landowners, Indigenous rights groups and tribal governments. Few environmental campaigns have touched so many people over such large swaths of the continent.

The Keystone XL resistance was part of the ongoing opposition to the Canadian tar sands, one of the most carbon-intensive industrial projects on the planet. Yet, it came to symbolize something even bigger. Many activists saw stopping Keystone XL as a measure of success for the climate movement itself.

“Keystone XL isn’t just any project,” said longtime activist Matt Leonard, who coordinated several major protests against the pipeline. “Its defeat is a testament to what movement building and direct action can accomplish.”

A stroke of President Biden’s pen finally killed Keystone XL. But paving the way for this victory were countless battles at the grassroots level, where activists tested new tactics and organizing strategies that built a bolder, savvier climate movement. Some of the groups involved took radically different approaches to politics, leading to unexpected alliances and occasional bitter feuds. And there were losses — other major oil pipelines, including the southern leg of Keystone XL itself, were completed even as the fight over the more famous northern half dragged on.

Yet, resistance to the Keystone XL’s northern leg succeeded against overwhelming odds. While there is always a possibility it could be resurrected someday, chances of that happening anytime soon seem slim. Understanding how this victory happened — and what it means for the climate movement — requires examining how 10-plus years of tar sands resistance played out in far-flung parts of North America.

By various - Oil Change International, December 13, 2020

By Axel Dalman and Andrew Grant - Carbon Tracker - July 2020

Carbon Tracker’s modelling shows no new oil sands are needed in a low carbon world.

Prospective pipeline projects represent a significant expansion of capacity, with taxpayer support. However, new pipelines are surplus to requirements under Paris Agreement demand levels.

Canadian authorities face the challenge of trying to reconcile their natural resources development plans with their positioning on climate. Canada has previously having shown leadership on climate change issues, but its government support for pipelines – which are reliant on the failure of the Paris Agreement – risks damaging its credibility.

Key Findings:

Our research has previously shown that no new oil sands projects are needed in a low carbon world. All unsanctioned oil sands projects are uncompetitive under both the International Energy Agency’s 1.7-1.8°C Sustainable Development Scenario (SDS) and c.1.6°C Beyond 2 Degrees Scenario (B2DS).

All proposed new pipelines from Western Canada, in particular Keystone XL and Trans Mountain expansion, are surplus to requirements in a Paris-compliant world. Pipeline capacity may have proved a constraint in recent years, but under SDS, all future oil supplies from Western Canada can be accommodated by upgrades and replacements to existing pipelines, local refining and limited rail freight.

Even if discounts for Canadian crude narrow, new oil sands projects remain uneconomic. Western Canadian heavy oil trades at a steep discount to international benchmarks due to quality and transport challenges, averaging $25 below Brent over the last decade. Even if greater pipeline capacity reduces this to $10 in the future, in line with levels seen during previous periods of unconstrained supply, new projects still remain uneconomic under the SDS. Indeed, even if Canadian heavy oil were to trade at parity with Brent, which is extremely unlikely due to its lower quality, there would still be no new oil sands production under the B2DS and just 120,000 bbl/d would enter the market in the SDS – a level which would be covered by existing rail capacity.

Investors in oil sands face depressed cash flows in a low carbon world of falling oil demand and weak pricing, but will be forced to produce or pay the price due to inflexible “take-or-pay” transport fees for excess new pipeline capacity.

While take-or-pay contracts spread the impacts, pipeline investors still face financial risks as upstream production weakens. Uncontracted capacity will probably remain unused by producers, and contracts may cannibalise tariffs from other pipelines. Even take-or-pay commitments are subject to counterparty risk in a falling oil market.

The Canadian government’s stakes in Keystone XL and Trans Mountain could well prove to be a drain on the public purse. Under the SDS, government tax revenues and the value of the assets are unlikely to reach the levels anticipated at the time of sanction.

Canada’s leadership position on climate change may be undermined by its support for projects reliant on the failure of the Paris Agreement.

Read the report (Link).

By James K. Rowe, Steph Glanzmann, Jessica Dempsey and Zoë Yunker - Canadian Centre for Policy Alternatives, November 2019

THE WORLD’S LARGEST PENSION FUNDS comprise over half of global investment capital. The Canada Pension Plan Investment Board (CPPIB) manages one of the country’s largest pools of investments, at $400 billion. How pension funds choose to invest has significant bearing on how we collectively address the climate emergency and the needed energy transition away from fossil fuels. In this report we ask: Is the CPPIB investing with the 1.5-degree Celsius limit on global average temperature rise in mind?

In April 2016, Canada was among 195 countries that signed the Paris Agreement, committing to “holding the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees Celsius.”

Our major finding is that the CPPIB is not investing with the 1.5-degree limit in mind. Within its public equities portfolio, it has over $4 billion invested in the top 200 publicly traded fossil fuel reserve holders (oil, gas and coal). To stay within 1.5 degrees, these companies can extract only 71.4 billion tonnes of carbon dioxide, yet the companies the CPPIB is invested in have 281 billion tonnes in reserve, meaning they have almost four times the carbon reserves that can be sold and ultimately burned to stay within 1.5 degrees. Since reserves are factored into current company valuations, this means the CPPIB has invested billions of dollars in companies whose financial worth depends on overshooting their carbon budget.

This is a moral and ecological failure. It is also a financial risk. As energy generation shifts away from fossil fuels, investors who do not respond could be left with “stranded assets”—investments that are no longer profitable. In its 2019 Financial System Review, the Bank of Canada included climate risk in its analysis for the first time. Canadian fossil fuel companies and their investors are especially exposed to stranded asset risk since the majority of oil produced in Canada is high-cost, carbon-intensive bitumen from the oil sands. And yet, the CPPIB remains exposed to the biggest oil sands majors, with over $1.2 billion invested in Canadian Natural Resources Ltd., Suncor Energy Inc. and Cenovus. Canadian pension beneficiaries may therefore be particularly vulnerable to stranded assets and the financial risks they pose.

Read the report (PDF).