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energy transition

The Effect of Natural Gas Supply on US Renewable Energy and CO2 Emissions

By Christine Shearer, et. al. - Environmental Research Letters, September 9, 2014

Increased use of natural gas has been promoted as a means of decarbonizing the US power sector, because of superior generator efficiency and lower CO2 emissions per unit of electricity than coal. We model the effect of different gas supplies on the US power sector and greenhouse gas (GHG) emissions. Across a range of climate policies, we find that abundant natural gas decreases use of both coal and renewable energy technologies in the future. Without a climate policy, overall electricity use also increases as the gas supply increases. With reduced deployment of lower-carbon renewable energies and increased electricity consumption, the effect of higher gas supplies on GHG emissions is small: cumulative emissions 2013–55 in our high gas supply scenario are 2% less than in our low gas supply scenario, when there are no new climate policies and a methane leakage rate of 1.5% is assumed. Assuming leakage rates of 0 or 3% does not substantially alter this finding. In our results, only climate policies bring about a significant reduction in future CO2 emissions within the US electricity sector. Our results suggest that without strong limits on GHG emissions or policies that explicitly encourage renewable electricity, abundant natural gas may actually slow the process of decarbonization, primarily by delaying deployment of renewable energy technologies.

Read the report (PDF).

The Sky’s Limit: Why the Paris Climate Goals Require a Managed Decline of Fossil Fuel Production

By Greg Muttitt, et. al. - Oil Change International, et. al., September 2016

In December 2015, world governments agreed to limit global average temperature rise to well below 2°C, and to strive to limit it to 1.5°C. This report examines, for the first time, the implications of these climate boundaries for energy production and use. Our key findings are:

  • The potential carbon emissions from the oil, gas, and coal in the world’s currently operating fields and mines would take us beyond 2°C of warming
  • The reserves in currently operating oil and gas fields alone, even with no coal, would take the world beyond 1.5°C
  • With the necessary decline in production over the coming decades to meet climate goals, clean energy can be scaled up at a corresponding pace, expanding the total number of energy jobs.

One of the most powerful climate policy levers is also the simplest: stop digging for more fossil fuels. We therefore recommend:

  • No new fossil fuel extraction or transportation infrastructure should be built, and governments should grant no new permits for them
  • Some fields and mines –primarily in rich countries –should be closed before fully exploiting their resources, and financial support should be provided for non-carbon development in poorer countries
  • This does not mean stopping using all fossil fuels overnight. Governments and companies should conduct a managed decline of the fossil fuel industry and ensure a just transition for the workers and communities that depend on it.

In August 2015, just months before the Paris climate talks, President Anote Tong of the Pacific island nation of Kiribati called for an end to construction of new coal mines and coal mine expansions. This report expands his call to all fossil fuels.

Read the report (PDF).

Retraining Investment for U.S. Transition from Coal to Solar Photovoltaic Employment

By Edward P. Louie and Joshua M. Pearce - Michigan Technological University, August 2016

Although coal remains the largest source of electricity in the U.S., a combination of factors is driving a decrease in profitability and employment in the coal-sector. Meanwhile, the solar photovoltaic (PV) industry is growing rapidly in the U.S. and generating many jobs that represent employment opportunities for laid off coal workers. In order to determine the viability of a smooth transition from coal to PV-related employment, this paper provides an analysis of the cost to retrain current coal workers for solar photovoltaic industry employment in the U.S. The current coal industry positions are determined, the skill set evaluated and the salaries tabulated. For each type of coal position, the closest equivalent PV position is determined and then the re-training time and investment are quantified. These values are applied on a state-by-state basis for coal producing states employing the bulk of coal workers as a function of time using a reverse seniority retirement program for the current American fleet of coal-powered plants. The results show that a relatively minor investment in retraining would allow the vast majority of coal workers to switch to PV-related positions even in the event of the elimination of the coal industry.

Read the report (Link).

Reclaiming Alberta’s Future Today

By Regan Boychuk and Brent O’Neil - Reclaiming Alberta’s Future Today, November 3, 2016

As the first step towards reducing Alberta’s dependence on fossil fuels as our primary source of income we must embrace our current environmental deficit. We must admit that climate change is real and that man-made contributions to global warming can be reduced.

After 100 years of exploration we must acknowledge that our provinces conventional oil and gas resources have been depleted. Technically speaking our low hanging fruit has been plucked and what is left is 444,000 oil and gas wells, 430,000 km of pipe lines (the distance to the moon is 384,000 km), 30,000 oil and gas facilities, 900 km of oil sands development, 220 km of tailing ponds, and a 11.2 million ton sulfur pile that dwarfs the great pyramids of Egypt.

Tackling this shameful legacy will be the biggest environmental cleanup project undertaken to date. It will take 1000 rigs 50 years and every willing Canadian to clean up our mess. This change in industry requires a paradigm shift in thinking. Our province no longer see the economic benefit from drilling new conventional oil wells as it once did. The real opportunity for Albertans will come from cleaning up our mess.

No longer can we tackle climate change with taxes and levy’s. We need to start making a real reduction in man-made emissions so our future generations have the same opportunities we once did.

Read the report (PDF).

Low carbon jobs: The evidence for net job creation from policy support for energy efficiency and renewable energy

By Will Blyth, Rob Gross, Jamie Speirs, Steve Sorrell, Jack Nicholls, Alex Dorgan, and Nick Hughes - UK Energy Research Center, November 2014

‘Green’ sectors account for as many as 3.4 million jobs in the EU, or 1.7% of all paid employment, more than car manufacturing or pharmaceuticals. Given the size of the green jobs market, and the expectation of rapid change and growth, there is a pressing need to independently analyse labour market dynamics and skills requirements in these sectors. What is more controversial is the question of whether policy driven expansion of specific green sectors actually creates jobs, particularly when the policies in question require subsidies that are paid for through bills or taxes. There are strong views on both sides of this debate. Politicians often cite employment benefits as part of the justification for investing in clean energy projects such as renewables and energy efficiency. Such claims are often backed up by project or sector-specific analyses. However, other literature is more sceptical, claiming that any intervention that raises costs in the energy sector will have an adverse impact on the economy as a whole.

The UKERC Technology and Policy Assessment (TPA) theme was set up to address such controversies through comprehensive assessment of the current evidence. This report aims to answer the following question:

“What is the evidence that policy support for investment in renewable energy and energy efficiency leads to net job creation in the implementing regions?”

The focus on net jobs here is important: whilst it is clear that jobs can be created at a local scale by spending money on new infrastructure projects, other jobs may be displaced if the new project provides activities or services that would otherwise have been provided elsewhere in the economy. Analysis of net jobs therefore needs to take account of both jobs created and jobs displaced.

Read the report (PDF).

Job Growth in Clean Energy: Employment in Alberta’s emerging renewables and energy efficiency sectors

By Binnu Jeyakumar - Pembina Institute, November 2016

Alberta has a meaningful plan to enable the growth of a clean energy industry, with commitment to 30% of electricity generated by renewable sources by 2030, and phasing out pollution from coal-fired generation. A portion of the anticipated revenues from the province’s economy-wide carbon levy will be used to enable these efforts. This provides a great opportunity for sustainable employment growth in the clean energy sector. This is in line with the global trends of declining investment and employment in the coal industry, while investment and employment in the renewable sector expands.

The Pembina Institute has conducted an analysis of the employment potential in the renewable energy and energy efficiency sectors in Alberta. Data was collected through literature reviews and from organizations involved in development of projects. The analysis used conservative estimates where there was uncertainty. The results are nevertheless encouraging and paint a positive picture for Albertans.

  • In Alberta, investing in renewable sources of electricity and energy efficiencyalone would generate more jobs than those lost through the retirement of coalpower ( Figure 1).
  • With a high and sustained pace of renewables growth, there are sustained levelsof employment for those engaged in related equipment installations.
  • Additional investment in community energy can increase the employmentpotential by 30-50%.
  • Long-term investments in modernizing infrastructure, the grid and ourelectricity system will result in further job creation with a wide diversity of skills,and in fields that are likely to see sustained growth.

Read the report (Link).

Replace Hazelwood Primer

By David Spratt - Climate Action Moreland, June 2015

Hazelwood Power Station (HPS) was built between 1964 and 1971, and comprises 1542 megawatt (MW) of capacity over eight generators. It was privatised by the Victorian Liberal Party Kennett government in 1996 for $2.35 billion.If HPS had stayed in public hands, it would likely have been decommissioned in 2005, but in 2004 the Bracks Labor government extended its operations till 2031, allowing Hazelwood to move a road and a river to access 43 million tonnes of brown coal deposits in a realignment of the mining licence boundaries. The owners have a 30-year mining licence due for renewal in 2026.HPS and the land on which it operates are owned by the Hazelwood Power Partnership. Since 7 June 2013, the four partners have been subsidiaries of International Power (Australia) Holdings Pty Ltd. This company is in turn jointly owned by subsidiaries of Engie (formerly GDF Suez SA) (72 per cent ownership) and Mitsui & Co Ltd (28 per cent ownership). Engie is a global energy company with corporate headquarters in France. Mitsui & Co Ltd is a global trading company with corporate headquarters in Japan.Currently HPS produces more than 10,000 gigawatt hours (GWh) of energy annually and is supplied with up to 18 million tonnes of coal each year from the adjacent Hazelwood mine, releasing around 16 million tonnes of greenhouse gases annually. Today HPS provides approximately 21 per cent of Victoria’s baseline electricity supply.

The Victorian Government has expressed a desire (though it does not yet have a policy) for a significant expansion of renewable energy in Victoria. This has widespread community support and must be done quickly and at a large scale because climate change is already dangerous. Scientists warn that two degrees Celsius of warming could occur in just two decades, so preserving a safe climate and a healthy future requires rapid de-carbonisation.

Expanding renewable energy requires coal-generating capacity to be removed from the market because oversupply is crowding out and preventing new investment. The Australian energy market operator says there are about eight gigawatts of surplus generating capacity across the national market, equivalent to five Hazelwood power stations. This includes up to 2.2 gigawatts of brown coal generation that is no longer required in Victoria in 2015, which is greater than Hazelwood’s capacity. Power companies have been lobbying government for capacity to be reduced, and senior Victorian energy department bureaucrats are aware of the need to close coal power stations in order to roll out renewables.

The Victorian Government has committed to being a leader on climate change. Closing down excess coal generation is a key test of the government’s climate credentials. Coal-fired power stations are the world’s largest source of planet-warming carbon dioxide emissions. Victoria cannot make the necessary emissions reductions without addressing the operations of Hazelwood and/or Yallourn power stations.

Hazelwood power station is old, unsafe and dirty. Based on emissions intensity, it is the third-dirtiest coal power station in the world and the dirtiest in Australia, releasing around 16 million tonnes of greenhouse gases annually, almost three per cent of total Australian greenhouse emissions. The Hazelwood majority owner, Engie (formerly GDF Suez), owns the third-most polluting coal-power station fleet in the world. The full – health and carbon pollution – social costs of Hazelwood totalling $900 million per year are borne by the community, rather than the plant’s owners.

A steady stream of local jobs can be created in the Latrobe Valley with the rehabilitation of mines and decommissioning of plant, which will require a significant workforce stretching well over a decade. The Latrobe Valley needs a strong jobs package and an economic transition plan and new industries because the move from coal to clean wind and solar renewable energy is now both urgent and inevitable.

Hazelwood power station and mine are a health hazard to local residents, exemplified by the autumn 2014 mine fire. The owners of Hazelwood have abused their social licence and forfeited the right to profit from a power station that is now a major health hazard – both to local people and to all peoples who face the uncertainties of living in a hotter and more extreme climate.

In July 2010, the Victorian Labor government promised to start shutting Hazelwood and passed climate legislation providing the reserve power to regulate emissions from existing brown coal-fired generators. Restoring the government’s capacity to regulate emissions would be complementary to actions being taken by other governments, including in the United States and Europe.

Read the report (PDF).

A Call for Federal Leadership: Stand with oil sands workers calling for renewable energy

By Lliam Hildebrand - Iron and Earth, March 4, 2020

The workers of Iron & Earth are urging the federal government to show bold leadership to put Canada on the fast track to a net-zero economy now. This week we wrote to Prime Minister Trudeau and Deputy Prime Minister Freeland and asked them to enact a plan that will put us to work building the new economy.

The Teck mine cancellation could represent a historic milestone, marking the moment that Canada shifted collectively towards a prosperous net-zero economy. But in order to move in this new direction, we need visionary federal climate policy that includes urgent investments across the country, with special attention to Alberta and Saskatchewan. Here is the text of our letter:

March 4, 2020

The Right Honourable Justin Trudeau
Office of the Prime Minister of Canada
80 Wellington Street
Ottawa, ON K1A 0A2

The Right Honourable Chrystia Freeland
Deputy Prime Minister of Canada
House of Commons
Ottawa, ON, K1A 0A6

Re: the cancellation of the Teck Frontier project and building the new net-zero economy

Dear Prime Minister Trudeau and Deputy Prime Minister Chrystia Freeland,

Iron & Earth is a not-for-profit organization led by fossil fuel industry and Indigenous workers, whose aim is to help build the policies and infrastructure required to meet climate targets. We are concerned about the increasingly polarized conversation and contexts around energy development in Canada and the significant economic shifts that the recent Teck project cancellation represents. We are writing to urge you to show bold leadership to put us decisively on track to a net-zero economy.

From Banks to Tanks: A Strategic Framework for a Just Transition

By MG Collective - Movement Generation Justice and Ecology Project, January 2017

Just Transition is a framework for a fair shift to an economy that is eco-logically sustainable, equitable and just for all its members. After centuries of global plunder, the profit-driven, growth-dependent, industrial economy is severely under-mining the life support systems of the planet. An economy based on extracting from a finite system faster than the capacity of the system to regenerate will eventually come to an end—either through collapse or through our intentional re-organization. Transition is inevitable. Justice is not.

Just Transition strategies were first forged by labor unions and environmental justice groups who saw the need to phase out the industries that were harming workers, community health and the planet, while also providing just pathways for workers into new livelihoods. This original concept of Just Transition was rooted in building alliances between workers in polluting industries and fence-line and frontline communities. Building on that history, Just Transition to us represents a set of aligned strategies to transition whole communities toward thriving economies that provide dignified, productive and ecologically sustainable livelihoods that are governed directly by workers and communities.

A Just Transition requires us to build a visionary economy for life in a way that is very different than the economy we are in now. Constructing a visionary economy for life calls for strategies that

democratize, decentralize and diversify economic activity while we damper down consumption, and (re)distribute resources and power. Just Transition initiatives shift the economy from dirty energy to energy democracy, from funding highways to expanding public transit, from incinerators and landfills to zero waste, from industrial food systems to food sovereignty, from gentrification to community land rights, and from rampant destructive development to ecosystem restoration. Core to a Just Transition is deep democracy in which workers and communities have control over the decisions that affect their daily lives.

Read the report (English PDF) | (Spanish PDF).

Beyond a Band-Aid: A Discussion Paper on Protecting Workers and Communities in the Great Energy Transition

By Arjun Makhijani, Ph.D - Institute for Energy and Environmental Research and Labor Network for Sustainability, June 10, 2016

This discussion paper presents a strategy for protecting workers and communities that may be threatened by the current and future transformation of the U.S. energy system. It is derived from the recognition that recent technological developments have made solar and wind energy, in combination with efficiency, cheaper than continued reliance on fossil fuels. An economical transition to an energy system that is nearly emissions-free is possible. The transition will provide enormous benefits, both in terms of climate protection and to workers and communities. The new energy system will be cleaner, and more resilient. Air pollution will decline. Solar and wind energy require essentially no water at a time when stress on water resources is becoming an ever larger economic and ecological issue.

Notwithstanding these benefits, significant issues of justice will be raised by the transition to a clean energy future. Even though large numbers of new jobs will be created, there is no guarantee that workers and communities which lose existing jobs will have them replaced by new ones. Indeed, unless proactive policies are in place, many current workers in fossil fuel industries will become unemployed. The communities they live in will be disrupted by loss of tax revenues.

Too often these downsides are disregarded because they seem insignificant compared to the benefits of energy transition and climate protection. But no job is insignificant if it is your job; and it will be of little comfort to low-income households if utility bills go down on average, but theirs do not.

Some proposals for transitioning to clean energy include assistance programs for workers who lose their jobs. But often these are little more than extended unemployment compensation and training for jobs that may or may not exist. Often they would be both too little and too late – more like putting a Band-Aid on an accident victim than a well-considered plan to keep people from getting run over. And they disregard some of the most devastating impacts of energy system change, like the loss of the local tax base that often funds critical community services like libraries and parks and provides supplemental money for schools and for fire and police departments.

“Beyond a Band-Aid: A Discussion Paper on Protecting Workers and Communities in the Great Energy Transition” proposes direct investments in local economies dependent on fossil fuel jobs before devastating economic disruption begins. And it proposes a strategy to protect low-income consumers from the effects of that tax increase. However, this discussion paper does not cover the more general longstanding problem of energy affordability for low-income households. Tens of millions of households face high home energy bills, often exceeding 10 or even 20 percent of income. IEER has examined this issue in detail in an energy justice study specific to Maryland and proposed a three-pronged solution that is broadly applicable: limiting bills of low-income households to 6 percent of gross income, increasing energy efficiency, and providing universal solar access to low-income households.

Read the report (PDF).

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