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Coastal Gaslink Pipeline (CGL)

Pipelines, Pandemics and Capital’s Death Cult: A Green Syndicalist View

By Jeff Shantz - LibCom, March 29, 2021

We can see this within any industry, within any capitalist enterprise. It is perhaps most clearly apparent, in an unadorned fashion, in extractives industries like mining, logging, or oil, where the consumption of nature (as resources) for profit leaves ecosystems ruined, where workers are forced to labor in dangerous, often deadly, conditions, and where it is all is carried out through direct dispossession, invasion, and occupation of Indigenous lands and through processes of mass killing, even genocide. And when it is all done, little remains except the traces of profit that have been extracted and taken elsewhere.

These intersections have come to the forefront with particular clarity under conditions of the Covid-19 pandemic. The death cult of capital on full display in all its variety of ways.

Fossil Futures: The Canada Pension Plan's Failure to Respect the 1.5-degree Celsius Limit

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).

The Pipeline Divide

By Gerard Di Trolio - Rank and File, May 23, 2019

Federal NDP leader Jagmeet Singh’s volte-face on liquified natural gas (LNG) projects in British Columbia is a welcome development. The policy reversal seems to stem from the recent victory of the Green Party in the Nanaimo-Ladysmith by-election on May 6 which saw the NDP lose a seat they previously held. Whatever the precise reason, the Federal NDP now has responded to the policy weakness they had with which that the Greens were able to outflank them from the left.

However, the protests at the Unist’ot’en Camp by members of the Wet’suwet’en Nation against the Coastal GasLink Pipeline should not be overlooked when it comes to bringing wider attention to the problems of LNG projects.

Singh’s new opposition to LNG is not without controversy from some of the NDP’s ostensible allies. B.C. unions whose members will work on the LNG pipeline are now going public with their displeasure with this policy change.

Leaders of Laborers’ International Union of North America (LIUNA) Local 1611 and International Union of Operating Engineers (IUOE) Canada, the unions that will be working on the project believe Singh is putting putting the jobs of their members at risk and that the Coastal GasLink Pipeline that will run from Dawson Creek to Kitimat has the “social licence” to go ahead.

But this is not the way for labour. The better approach is a  just transition, which seeks to build a green and sustainable economy where workers in carbon-intensive industries are not left behind, and which restructures the economy to also meet other social justice goals. If unions don’t step up and articulate a program for a green transition that is also a just transition then workers and everyone else who aren’t among the elite are going to be battered by climate change and by whatever responses that capital comes up with – like ignoring worker interests – once they realize they can’t ignore a warming planet any more.

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