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Major reform needed to secure ‘just’ green transition for offshore workers

By staff - Morning Star, March 6, 2023

INVESTMENT and reform of the energy sector are needed to secure a just green transition for offshore workers, unions and environmental campaigners are warning today.

A new report by transport union RMT, Friends of the Earth and others demands investment in ports and manufacturing as well as an offshore training passport for oil and gas workers moving to the renewables sector.

Offshore migrant workers must also get equal pay and a higher minimum wage should be available to all, the groups added.

RMT regional organiser Jake Molloy stressed employees must be “fully engaged and empowered in the process if we are to achieve a real just transition.”

“The lack of a real plan from politicians and industry is fuelling workforce discontent and disillusionment,” he said.

Friends of the Earth Scotland’s Mary Church said: “Our current energy system is destroying our climate, is unaffordable to millions and is failing the people who work in it.

“Failure from politicians to properly plan and support the transition to renewables is leaving workers totally adrift on the whims of oil and gas companies, and the planet to burn.”

Our Power: Offshore Workers’ Demands for a Just Energy Transition

By Rosemary Harris, Gabrielle Jeliazkov, and Ryan Morrison - Our Power, March 6, 2023

Over the past two years, we’ve come together with offshore workers to build demands for a just energy transition. These workers developed 10 demands covering training and skills, pay, job creation, investment and public ownership.

We surveyed over 1000 additional offshore workers and over 90% agreed with these demands. This plan is comprehensive in scope, transformative in scale and deliverable now.

Below you will find a series of resources setting out the demands and the paths we can take to turn them into reality.

We need a rapid transition away from oil and gas that protects workers, communities and the climate. But the government has no plan to phase out oil and gas production in the North Sea.

Oil and gas workers are ready to lead a just transition away from oil and gas, but they are caught in a trap of exploitation and fear created by oil and gas companies. Working conditions are plummeting, just as profits, prices and temperatures are soaring.

The UK and Scottish Governments must listen to workers to make this transition work for all of us. These demands lay out a comprehensive plan, which includes:

  • Removing barriers that make it harder for oil and gas workers to move into the renewable industry.
  • Ensuring safety, job security and fair pay across the energy industry.
  • Sharing the benefits of our energy system fairly, with public investment in energy companies and communities.

Workers have told us what they need for a just transition, now we need to work with them to make it happen.

Read the report (PDF).

An Unrefined Ending: Lessons Learned from the Philadelphia Energy Solutions Refinery Creation and Closure

By Christina E. Simeone, PhD - Union of Concerned Scientists, March 2023

Following the explosion of a Philadelphia oil refinery, the refinery went bankrupt and closed.

The explosion and closure left community members grappling with toxic pollution, cleanup, worker dislocation, and an uncertain future for a site that occupied 1,300 acres just 2.5 miles from center city Philadelphia.

In a report commissioned by the Union of Concerned Scientists, Dr. Christina Simeone, author of the Penn Energy Center report, Beyond Bankruptcy: The Outlook for Philadelphia’s Neighborhood Refinery, highlights key findings and shares lessons learned from the events in Philadelphia.

These lessons can help policymakers and other refinery communities prepare for future refinery closures, especially as the transition to electric vehicles inevitably leads to dramatic reductions in demand for gasoline and diesel in the coming decades.

Download a copy of this publication here (link).

Rooftop Solar Justice

By Howard Crystal, Roger Lin, and Jean Su - Center for Biolgical Diversity, March 2023

A war over the nation’s energy future is raging across the United States. On one side are everyday people who can benefit from clean, renewable energy through distributed-solar projects like rooftop and community solar. On the other side are for-profit electric utilities threatened by distributed solar’s impact on their lucrative, guaranteed profits. These companies are using their influence with regulators and legislators in a coordinated effort to undermine the expansion of distributed solar. They recently succeeded in California. This report addresses the environmental and economic justice of net energy metering, or NEM, and the utility industry’s false and self-serving claims against distributed-solar growth.

To combat the climate emergency and pervasive energy inequity, we need to maximize distributed solar development. NEM already exists in many states and is a key policy driver to expand distributed solar. Customers pay only for the net electricity they use each month, considering both the power going to the grid when rooftop-solar systems generate excess electricity and the power coming in from the grid (particularly at night). Net metering substantially reduces electricity bills, allowing people to recoup their distributed-solar investments.

For-profit utilities are fighting NEM on multiple fronts and in many states. In California, for example, they recently convinced regulators to gut net metering for new customers. In Florida a utility-backed bill to gut net metering passed the legislature. Utility companies fight NEM because it undermines their business model, which assumes that centralized utilities are the only legitimate makers and sellers of electricity.

As this report shows, anti-net-metering talking points are based on an outdated version of the grid, where for-profit utilities control everything. Utilities want to gut net metering to maintain control and use the proceeds to pay for rising utility costs, including the growing costs of addressing climate-fueled catastrophes and stranded assets in fossil fuel infrastructure.

Read the entire statement (PDF).

Gendered labour and energy transitions in the Northern Cape, South Africa

By Julia Taylor - Just Transition Research Collaborative, March 1, 2023

Most approaches to a just energy transition focus on the impact on jobs and opportunities for new industries, with less attention paid to the informal and unpaid work although it is an integral part of the energy value chain. I have adopted a feminist political economy lens to explore the relationship between the development of renewable energy and gendered labour. This approach highlights the importance of the state, the economy and the household in the process of social reproduction (the reproduction of labour power). It is relevant to debates about a just energy transition because it highlights gender and racial inequalities and the undervalued and unpaid work (often conducted by women) required for social reproduction, which should be addressed in any effort to achieve justice.

A feminist political economy approach to the just energy transition means that I do not only consider whether a job was created, but also the job type (permanent/short-term, wage rate, etc.), working conditions and issues of sexism and racism. I also consider the impact of the shift in energy source for households which struggle with access to affordable energy and other services. Taking a feminist approach meant that I followed a methodology which highlighted a social problem and focused on the voices of those who are commonly marginalized — workers and local communities and particularly women in these groups.

To analyse whether South Africa’s renewable energy procurement programme could be considered part of a just energy transition, I conducted research in the Northern Cape, a rural province of South Africa where solar power plants have been developed around three towns (Kuruman, Kathu and Upington) over the past 10 years. South Africa’s renewable energy procurement programme required private renewable energy producers to take part in a bidding process to sell power to the electricity utility, Eskom. I conducted interviews with local community members, people who had worked on solar plants, solar plant managers/developers and state employees involved in the solar projects, with higher numbers of people interviewed from the groups whose voices are often underrepresented, those of workers and local communities. Despite aiming to interview equal amounts of women and men, or more women, if possible, I interviewed 10 women and 12 men, which may be indicative of the unequal gender representation in the industry. I was able to conduct the interviews with support from two research assistants, Boitumelo Tshetlho and Deon Bezuidenhout, who are local community organizers.

Unfortunately, I found that if the energy transition is carried out at scale in the way that it has occurred in these three towns in the Northern Cape, with privately-owned, utility-scale solar power plants that do not support local access, it will not deliver justice for the poor and working classes.

As Oil Companies Stay Lean, Workers Move to Renewable Energy

By Clifford Krauss - New York Times, February 27, 2023

Solar, wind, geothermal, battery and other alternative-energy businesses are adding workers from fossil fuel companies, where employment has fallen.

Emma McConville was thrilled when she landed a job as a geologist at Exxon Mobil in 2017. She was assigned to work on one of the company’s most exciting and lucrative projects, a giant oil field off Guyana.

But after oil prices collapsed during the pandemic, she was laid off on a video call at the end of 2020. “I probably blacked out halfway,” Ms. McConville recalled.

Her shock was short-lived. Just four months later, she landed a job with Fervo, a young Houston company that aims to tap geothermal energy under the Earth’s surface. Today she manages the design of two Fervo projects in Nevada and Utah, and earns more than she did at Exxon.

“Covid allowed me to pivot,” she said. “Covid was an impetus for renewables, not just for me but for many of my colleagues.”

Oil and gas companies laid off roughly 160,000 workers in 2020, and they maintained tight budgets and hired cautiously over the last two years. But many renewable businesses expanded rapidly after the early shock of the pandemic faded, snapping up geologists, engineers and other workers from the likes of Exxon and Chevron. Half of Fervo’s 38 employees come from fossil fuel companies, including BP, Hess and Chesapeake Energy.

Executives and workers in energy hubs in Houston, Dallas and other places say steady streams of people are moving from fossil fuel to renewable energy jobs. It’s hard to track such movements in employment statistics, but the overall numbers suggest such career moves are becoming more common. Oil, gas and coal employment has not recovered to its prepandemic levels. But the number of jobs in renewable energy, including solar, wind, geothermal and battery businesses, is rising.

Alberta’s Roadmap to the New Energy Economy

By Simon Dyer - Pembina Institute, February 21, 2023

Alberta has always been an international leader on energy. Our abundant natural resources, coupled with our proud history of technological innovation in the oil and gas sector— particularly the oilsands—means we are renowned for our ability to use a skilled labour force to reach new frontiers in energy production.

In 2023, Alberta has an opportunity to build on that history and move towards a new energy future. In doing so, it can begin to capitalize on the multiple opportunities associated with the globally emerging clean economy.

To achieve this, Alberta needs a robust, credible plan on climate and energy. The number of governments worldwide that are legislating emissions reduction targets and policy measures to deliver them is rapidly growing each year, and it is time that Alberta joined them. This province — home to some of the world’s foremost experts on carbon capture technology, methane reduction techniques, wind and solar power, and so many other clean energy solutions— has much to offer to the energy transition, and much to gain. The International Energy Agency, for example, estimates 14 million new energy jobs and 16 million new jobs in energy efficiency will be created, worldwide, between now and 2050.

To take advantage of these opportunities, Alberta must also be willing to confront the realities of the global shift towards low-carbon energy sources, and take steps to adapt and futureproof its economy and workforce. The global outlook for fossil fuels, for example, has fundamentally shifted in the last twelve months. In 2022, for the first time, a range of assessments — including from within the oil industry — projected that the current level of worldwide policy momentum on emissions reductions will result in a sustained decline in global demand for oil, beginning this decade. If the world successfully achieves its goal of reaching net-zero emissions by 2050 and avoiding the worst effects of climate change, that demand decline will begin sooner and be steeper — and will have a significant impact on Alberta’s industry. 

Acknowledging these realities, and choosing to show leadership on climate and energy policy, is integral to Alberta’s overall attractiveness as an investment destination. Now more than ever before, companies are looking for opportunities to invest in climate solutions, and for jurisdictions where they can operate while meeting their own climate goals. Choosing instead to remain out of step with the global trend towards low-emissions economies would leave Alberta at a significant disadvantage in the years ahead.

The Pembina Institute is, and has always been, proudly headquartered in Alberta; this is our home. We are committed to seeking out effective, evidence-based policy solutions that can support this province’s communities, economy, and environment. 

As the 2023 provincial election approaches, this document provides our recommendations to future leaders in Alberta to advance this province’s position in the transition towards low-carbon energy. Above all, we think Alberta can and should be a leader on climate and the energy transformation in Canada.

Read the report (link).

ITUC report shows big economic returns for modest investment in infrastructure, the care economy and the green economy

By Özlem Onaran and Cem Oyvat - International Trade Union Confederation, February 6, 2023

The study simulated the impact that public spending increases in the care economy, the green economy, and infrastructure could have across eight countries.

The report shows that a repeated annual increase in public spending by 1% of GDP within these three sectors would yield major economic returns that exceed the initial level of investments made. The findings reveal that:

  • Investing an extra 1% of GDP in the care economy over five years would yield an average GDP increase of more than 11%, as well as a 6.3% increase in total employment levels.
  • An extra 1% of GDP investment in the green economy over five years would yield an average GDP increase of 10%, as well as a 7.5% increase in total employment levels.
  • An extra 1% of GDP on infrastructure investment over five years would increase both employment and GDP levels by 12% on average.

Owen Tudor, ITUC Deputy General Secretary, stressed: “The lingering employment effects of Covid-19, as well as a rapidly changing world of work, have underscored the urgency of addressing employment deficits and inequalities. Governments must step up their investments to support the creation of quality jobs – especially in strategic sectors that are good for both people and the planet including care, infrastructure and the green economy.”

At the global level, trade unions are calling for the creation of 575 million jobs and the formalisation of at least one billion informal jobs by 2030, to enable delivery of the United Nations’ 2030 Agenda commitment for full employment and decent work under Sustainable Development Goal 8.

Read the report (Link).

'Only the Beginning': Democrats' IRA Set to Create 100,000+ US Green Jobs

By Brett Wilkins - Common Dreams, February 6, 2023

A leading climate action group on Monday published a report revealing that the 94 clean energy projects announced since U.S. President Joe Biden signed the Inflation Reduction Act into law last August are set to create more than 100,000 green jobs.

Climate Power—which published the report as part of a new six-figure national ad campaign touting the growing green economy—said that since the IRA became law without any Republican support last year, "companies are racing forward with massive investments to build our clean energy future."

"New manufacturing in wind, solar, batteries, and electric vehicles—along with storage projects across the country—mean new, good-paying jobs for hard-working Americans," the group continued. "In the six months since the landmark climate and clean energy investments became law, clean energy companies have announced more than 100,000 new clean energy jobs for electricians, mechanics, construction workers, technicians, support staff, and many others."

"As the largest U.S. investment in clean energy and climate in history, this national clean energy plan will continue to reshape and recharge our economy for many decades to come," Climate Power added.

While green groups have generally praised the IRA's historic $369 billion investment in renewable energy production and innovation, activists have condemned provisions including fossil fuel tax credits and mandatory lease sales on public lands and at sea.

The 94 new clean energy projects in the Climate Power report—which are spread across 31 states and have a combined investment value of $89.5 billion—include:

Forty new battery manufacturing sites in places like Van Buren Township, Michigan; Tucson, Arizona; and Florence County, South Carolina. So far, 22 companies have announced plans for new or expanded electric vehicle manufacturing in Pryor, Oklahoma; Montgomery, Alabama; Highland Park, Michigan—and more. A further 24 companies shared plans to expand wind and solar manufacturing in cities including Pueblo, Colorado; Perrysburg, Ohio; and Georgetown, Texas. The majority of the projects are in seven states—Arizona, Georgia, Michigan, Ohio, South Carolina, Tennessee, and Texas.

"Thanks to President Biden's affordable clean energy plan, businesses are investing in manufacturing like never before, and planning to create good-paying jobs in every corner of the country," Climate Power executive director Lori Lodes said in a statement.

"This is only the beginning—we're months after the passage of the Inflation Reduction Act and we're already at the precipice of a renewed manufacturing, made-in-America boom that will create opportunities for millions of Americans, all while reducing toxic emissions that harm the health and wellbeing of our communities," Lodes added.

Last month, the International Energy Agency said in a report that "the world is at the dawn of a new industrial age—the age of clean energy technology manufacturing," and that green manufacturing jobs will more than double by the end of the decade if countries worldwide live up to their climate and energy pledges—a huge "if" given that global emissions remain at record levels.

Read the report (Link).

Preliminary Assessment of Economic Benefits of Offshore Wind: Related to Seaport Investments and Workforce Development

By Paul Deaver and Jim Bartridge - California Energy Commission, February 2023

This report responds to the directive set forth by Assembly Bill 525 (AB 525, Chiu, Chapter 231, Statutes of 2021). The law directs that on or before December 31, 2022, the California Energy Commission (CEC) shall “complete and submit to the Natural Resources Agency and relevant fiscal and policy committees of the Legislature a preliminary assessment of the economic benefits of offshore wind as they relate to seaport investments and workforce development needs and standards.” This report addresses these requirements.

This report is the second of four products that AB 525 directs the CEC to prepare, informing a strategic plan for offshore wind energy turbines installed off the California coast in federal waters in coordination with federal, state, and local agencies and a wide variety of stakeholders. The strategic plan must be submitted to the California Natural Resources Agency and the Legislature no later than June 30, 2023. The strategic plan is to be informed by interim activities and products developed by the CEC that include this report and two additional reports. The first report, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, was adopted by the CEC at the August 10, 2022, public business meeting. That report established offshore wind energy planning goals of 2,000–5,000 megawatts by 2030 and 25,000 megawatts by 2045. The other interim report, also due on or before December 31, 2022, will provide a permitting roadmap that describes the time frames and milestones for a coordinated, comprehensive, and efficient permitting process for offshore wind energy facilities and associated electricity transmission infrastructure off the California coast.

For more details, see: AB 525 Reports: Offshore Renewable Energy

Download a copy of this publication here (PDF).

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