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Just Transition for Pennsylvania estimated to cost $115,000 per worker in latest report from PERI

By Elizabeth Perry - Work and Climate Change Report, February 8, 2021

In the latest of a series of reports titled Green Growth Programs for U.S. States, researchers provide analysis and proposals for economic recovery for Pennsylvania, considering both the impacts of Covid-19 and a necessary transition to a cleaner economy. In Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for Pennsylvania: Job Creation, Economic Recovery, and Long-Term Sustainability, Robert Pollin and co-authors estimate that clean energy investments scaled at about $23 billion per year from 2021 to 2030 will generate roughly 162,000 jobs per year in Pennsylvania. They detail those investment programs for sectors including public infrastructure, manufacturing, land restoration and agriculture, and including plugging orphaned oil and gas wells.

The report estimates that 64,000 people are currently employed in Pennsylvania in fossil fuel-based industries – including in fracking for natural gas from the Marcellus Shale regions, as well as other oil and gas projects, coal mining, and fossil fuel-based power generation. As the state transitions away from fossil-fuel industries, the authors estimate that about 1,800 workers will be displaced each year between 2021 – 2030, and another 1,000 will voluntarily retire each year. The authors estimate that the average costs of supporting these workers will amount to about $115,000 per worker, with an overall cost of about $210 million per year over the duration of the just transition program. The report emphasizes: “It is critical that all of these workers receive pension guarantees, health care coverage, re-employment guarantees, wage insurance, and retraining support, as needed”.

The full series of reports, Green Growth Programs for U.S. States, includes similar analysis and proposals for Ohio, Maine, Colorado, New York, and the state of Washington. They are co-written by experts including Robert Pollin, Shouvik Chakraborty, Heidi Garrett-Peltier, Tyler Hansen, Gregor Semieniuk, and Jeannette Wicks-Lim. The series is published by the Department of Economics and Political Economy Research Institute (PERI) University of Massachusetts-Amherst.

Just Transition and Extractive Industry Workers

By x344543 - IWW Environmental Union Caucus, January 26, 2021

In some ways it might be easier to establish dialog and find common ground with resource extraction workers (on issues such as climate change, just transition, and the Green New Deal) than we think. In other ways it may prove more difficult than we expect. That’s not as contradictory as it may sound, however:

First, let’s acknowledge that we’re primarily discussing decarbonization of the energy system and the economy, particularly fossil fuel capitalism, specifically coal, oil, and gas.

We’re discussing entire supply chains, from exploration and extraction to transportation and refining, to distribution, power generation to marketing and sales.

Extraction includes all forms of mining.

Transportation includes rail, road, ship, aircraft, and pipelines. It also includes storage, distribution hubs, and control centers.

Refining is a highly specialized and labor as well as capital intensive process.

How it might be easier than we think:

Most of the jobs involved in the aforementioned supply chains are not directly related to fossil fuels themselves:

For example:

  • Exploration (ie search for new “deposits” could instead be repurposed for siting renewable energy sites;
  • Offshore oil rig workers could be retrained as offshore wind power technicians (and many of the ancillary jobs, such as transportation of workers to and from sites, dispatching workers (or power), clerical work, etc. is directly transferable);
  • Transportation of goods and commodities can be utilized to transport alternative goods and commodities (eg grain rather than coal);

Where jobs may not be directly transferable, they can be retained for the repurposing or decommissioning of infrastructure or the restoration of damaged ecosystems. Such efforts often require years or decades, thus providing enough job-years for mature workers (often those with the highest seniority, wages, and benefits anyway) to last until retirement, or at least, allow sufficient time for just transition;

Failing that, many of these jobs can be made much “greener” without decommissioning, if a wholistic approach as opposed to an all-or-nothing approach is utilized, and transition efforts focus on the “low hanging fruit” (such as retiring older, more polluting facilities first, etc.);

Principles and best practices for a Just Transition for Canada’s fossil fuel workers

By Elizabeth Perry - Work and Climate Change Report, January 19, 2021

Economist Jim Stanford has written a timely new report which should be required reading for politicians setting their hair on fire about Joe Biden’s stated intention to cancel the Keystone XL pipeline project on Day one of his presidency. Employment Transitions and the Phase-Out of Fossil Fuels, released on January 18, argues that “the actual number of fossil fuel jobs and the number of communities reliant on the industry is small enough that a just and equitable transition plan for workers is very feasible” – and the key is timing.

Stanford’s report begins by setting out the statistics regarding fossil fuel employment in Canada: “under 1% of total payroll employment in Canada (or about 160,000 jobs) is located in seven industrial sectors which together comprise most of the composite fossil fuel industry. “ Using 2016 Census data, the report discusses the distribution of fossil fuel jobs by province and community, showing that Alberta accounts for 75% of fossil-related jobs in 2016, but even there, only it accounts for 7% of all provincial employment. 18 fossil fuel-dependent communities are named, where fossil fuel jobs account for 9.5% of employment – including two well-known examples, Wood Buffalo/Fort McMurray in Alberta and Estevan in Saskatchewan. The report continues to compare employment in the fossil fuel industry and in the health care sector, Canada’s largest employer. The aim is not to diminish the importance of fossil fuel employment, but to illustrate that employment possibilities exist in other sectors, even within fossil fuel-reliant communities.

Stanford looks ahead and states: “given weakening global demand for fossil fuels, depressed prices, continued infrastructure constraints, and aggressive cost-cutting by fossil fuel employers (shedding labour to protect profits despite lower energy prices), fossil fuel industries will see continued downsizing of their employment footprint.” He summarizes the employment transitions of other sectors in Canada’s history, notably fisheries, auto manufacturing, manufacturing – as well as other sectors currently transitioning, including retail, transportation, and newspapers and media, and documents the overall dynamics which are always churning labour markets. All these arguments build to the report’s final section, which is to outline the principles and best practices for planning effective employment and community transitions for the inevitable decline of fossil fuels. 

A Just and fair transition from fossil fuels in Australia

By Elizabeth Perry - Work and Climate Change Report, January 13, 2021

In a new report published in December by the Centre for Future Work at the Australia Institute, author Jim Stanford argues that Australia’s labour market could transition away from fossil fuel jobs without involuntary layoffs or severe disruption to communities—if governments plan a fair transition which includes: a clear, long-term timeline, measures to facilitate inter-industry mobility and voluntary severance as fossil fuels are phased-out, and generous retraining and diversification policies. Fossil fuel jobs, though only 1% of jobs in Australia, have higher than average compensation, so in order to be attractive, alternative jobs must have decent compensation, stable hours and tenure, and collective representation.  Employment aspects of the transition from fossil fuels in Australia echoes a recent New York Times article about the career disappointment of young oil and gas workers, with this: 

“Far from being ‘supportive’ of fossil fuel workers by attempting to disrupt and delay appropriate climate transitions, in fact is does them a great disservice to pretend that these industries have a long-term viable future. It seems a cruel hoax to encourage young workers to begin their careers in industries with an inevitably short time horizon. It would be more compassionate and honest to give fossil fuel workers (both current and prospective) fair notice of the changes coming, and support them in building careers in occupations and industries that are ultimately more promising.”

 Author Jim Stanford, formerly with Canada’s Unifor union, now splits his time between Canada and Sydney, where he is director of the Australia Institute’s Centre for Future Work. He and the Centre are profiled in “The People’s Economist” in the Australian magazine In the Black. This research was commissioned by Australian health care industry super fund HESTA.

Impacts of the Reimagine Appalachia and Clean Energy Transition Programs for Pennsylvania: Job Creation, Economic Recovery, and Long-Term Sustainability

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, and Gregor Semieniuk - Political Economy Research Institute, January 2021

The COVID-19 pandemic has generated severe public health and economic impacts in Pennsylvania, as with most everywhere else in the United States. The pandemic is likely moving into its latter phases, due to the development of multiple vaccines that have demon-strated their effectiveness. Nevertheless, as of this writing in mid-January 2021, infections and deaths from COVID are escalating, both within Pennsylvania and throughout the U.S. Correspondingly, the economic slump resulting from the pandemic continues.

This study proposes a recovery program for Pennsylvania that is capable of exerting an effective counterforce against the state’s ongoing recession in the short run while also build-ing a durable foundation for an economically viable and ecologically sustainable longer-term recovery. Even under current pandemic conditions, we cannot forget that we have truly limited time to take decisive action around climate change. As we show, a robust climate stabilization project for Pennsylvania will also serve as a major engine of economic recovery and expanding opportunities throughout the state.

Read the text (PDF).

Steady Path: How a Transition to a Fossil-Free Canada is in Reach for Workers and Their Communities

By staff - Environmental Defense, January 2021

This brief investigates the actual state of employment in Canada’s fossil fuel industry. It explains why the clean economy transition is manageable for workers in fossil fuel industries and should start now. And it provides ten principles that we should be following to make this transition fair and effective.

This brief summarizes the findings of Employment Transitions and the Phase-Out of Fossil Fuels, a report authored by economist Jim Stanford at the Centre for Future Work.

Read the text (PDF).

Closure of Australia’s Hazelwood coal-fired station: a case study 3 years after

By Elizabeth Perry - Work and Climate Change Report, December 9, 2020

After the Hazelwood coal fired power station closure: Latrobe Valley regional transition policies and outcomes 2017-2020  is a Working Paper published in November by the Centre for Climate and Energy Policy, Crawford School of Public Policy, in Australia . Although the paper is a detailed case study, the findings are summarized by the authors thus: “Prior to its sudden closure in March 2017, Hazelwood was the most carbon-intensive electricity generator in Australia. The debate over the future of Hazelwood became an icon in the nation’s ongoing political struggle over climate and energy policy. Employment and economic outcomes in the three years since closure indicate promising initial progress in creating the foundations required to facilitate an equitable transition to a more prosperous and sustainable regional economy. The Hazelwood case study provides support for a number of propositions about successful regional energy transition including that well managed, just transitions to a prosperous zero-carbon economy are likely to be strengthened by proactive, well integrated industry policy and regional renewal strategies; respectful and inclusive engagement with workers and communities; and adequately funded, well-coordinated public investment in economic and community strategies, tailored to regional strengths and informed by local experience.”

Corresponding author John Wiseman, along with co-author Frank Jotzo, previously wrote Coal transition in Australia: an overview of issues ( 2018). Jotzo was also a co-author on Closures of coal-fired power stations in Australia: local unemployment effects (2018). Their latest 2020 Working paper offers a thorough list of references to Australia’s Just Transition literature.

The Biden Climate Plan: Part 2: An Arena of Struggle

By Jeremey Brecher - Labor Network for Sustinability, December 8, 2020

The climate plan released by Joe Biden in August presents a wide-ranging program for reducing greenhouse gas (GHG) emissions. The previous commentary, “The Biden Climate Plan: What it Proposes–Part 1” summarizes that plan. This commentary identifies the points of conflict on climate policy and related social policies that are likely to emerge within a Biden administration. It concludes by assessing how advocates of a Green New Deal can take advantage of the Biden program to fight for a climate-safe, worker-friendly, socially-just outcome. To read this commentary, please visit: this page.

Labour and Environmental Sustainability

By Juan Escribano Gutiérrez, in collaboration with Paolo Tomassetti - Adapt, December 2020

There is consensus that the separation between labour and the environment, as well as that between the legal disciplines that regulate both domains, is meaningless and outdated. Since business activities affect the health and the environment of workers and human beings, synergies between the two spheres have to be created. Yet there is still a long way to go in order to bring together labour and environmental regulation.

In all the selected countries (France, the Great Britain, Hungary, Italy, the Netherlands and Spain) the legal systems regulating salaried work, on the one hand, and the environment, on the other hand, remain disconnected, although no formal obstacles exist to their integration. With regard to the scope for collective bargaining to become a means to integrate both spheres, no legal restrictions apply in any of the framework considered, although explicit references to workers and employers (or their representatives) to bargain over environmental aspects are far less evident.

It is up to the social partners to promote environmental sustainability as a goal for collective bargaining or to continue with the traditional inertia that divides labour and environmental regulation. Despite research shows how the social partners, especially trade unions, are more and more willing to negotiate environmental aspects, the narrative on the trade-off between labour and the environment is still evident, especially in the Hungarian context. Collective agreements could take a leading role in driving the just transition towards a low-carbon economy, but in practice they do not regard this mission as a priority. Environmental clauses in collective agreements are still exceptional and lack momentum.

One explanation is that the legal mechanisms in place to limit the impact of business activity on the environment (i.e. environmental law) legitimize firms to consider environmental aspects as their own prerogative. For this reason, in some legal systems, employers tend to discuss environmental commitments outside collective bargaining, including them into corporate social responsibility (CSR) mechanisms. By doing so, the company avoids enforceability, limiting the effectiveness of the tools to regulate environmental issues.

Read the text (Link).

The Biden Climate Plan: Part 1: What It Proposes

By Jeremey Brecher - Labor Network for Sustinability, December 1, 2020

This commentary by Jeremy Brecher analyzes Joe Biden’s “Plan for Climate Change and Environmental Justice” released in August. The following commentary, “The Biden Climate Plan: Part 2: An Arena of Struggle,” will consider the struggles that are likely to emerge over what parts of the plan can and should be implemented. To read this commentary, please visit: this page.

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