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Workers and the Green New Deal Today

LNS Calls for Climate-Safe Infrastructure Not Line 3 and Dakota Access Tar Sands Pipelines

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.

Political deregulation of Texan grid to blame for near total collapse & bills of $15,000+

By Andy Rowell - Oil Change International, February 25, 2021

If shivering with cold dark for days in sub-zero temperatures was not enough for many Texans, those lucky enough to still have electricity during the recent freezing weather have been hit with exorbitant electricity bills.

In some cases unlucky customers have been charged a whopping USD $15,000 for one month’s power, or put another way over 70 times the normal cost people pay for all their utilities.

One customer Susan Hosford of Denison told the AP that normally she pays around $2.50 for power per day, but got charged $1,346.17 for the first two weeks of February. “This whole thing has been a nightmare,” she said.

Another customer, Karen Knox, a teacher in Bedford, not only lost power but now owes $7,000 to Griddy, an electricity provider located in Houston. She told the Texas Tribune there was no way she could pay.

Such is the outcry that Governor Greg Abbott, a Republican who is heavily funded by Big Oil, had to hold an emergency meeting with legislators to discuss the outrageous bills.

Abbott and others are now promising relief for those hit by sky-high bills, although how people are compensated is yet to be worked out.

As the anger has grown, so too has the political fall-out and finger pointing and as to what has gone wrong and who is to blame.

The reason the grid failed is simple: political deregulation. Along with sixteen other states Texas had deregulated its power market. The market was deregulated in 2002, under the then Governor Rick Perry, who would later become President Donald Trump’s Secretary of Energy.

Perry established the Electric Reliability Council of Texas (known as ERCOT), with roughly 70 providers. And then the politicians cut Texas off from the rest of the country, the only state in the contiguous U.S. that was operating its own electric grid.

And because the Texas grid was then disconnected from the rest of the country, no reserves could be imported when the grid got into trouble.

“As someone who has spent the past two decades studying electricity deregulation, I know that extreme power bills in Texas result partly from the state’s market-driven approach to running the power grid,” wrote Seth Blumsack, Professor of Energy and Environmental Economics and International Affairs, at Penn State in the Conversation yesterday.

Blumsack continued: “the sky-high electric bills in Texas are partly due to a deregulated electricity system that allowed volatile wholesale costs to be passed directly to some consumers.”

How will electrification of vehicles impact auto workers?

By Elizabeth Perry - Work and Climate Change Report, February 23, 2021

Threats to traditional auto manufacturers are outlined in “The top trends killing the auto industry” in Corporate Knights (Feb. 3), including the climate crisis, the fall of fossil fuels, electrification and autonomous EV fleets, unfunded pension liabilities (US$14.4 billion for G.M., US$10.2 billion for Ford), as well as shifting government policies, and dampened demand in general. All the more reason to celebrate the good news about investment in EV production in Canada by GM, Ford and Fiat-Chrysler , as well as GM’s January 2021 announcement that it will sell only zero emissions vehicles by 2035. In February, Ford announced its target to sell EV’s only in Europe. But the good news is complicated, as described in “Auto industry peers into an electric future and sees bumps ahead” (Washington Post, Feb. 6) , and by “Canada and the U.S. auto sector’s abrupt pivot to electric vehicles” (National Observer, Feb. 15) . For Canada, the challenges include competition for the development of battery technology and the policy challenge of the new “Made in America” Executive Order by President Biden on January 25. Despite the brief and optimistic overview presented in “Jerry on the Job: How the president of Canada’s largest union, Jerry Dias, is driving the country’s electric vehicle push” (Corporate Knights, Feb. 4), our highly integrated North American auto industry has a complicated path forward. 

One of the most important issues ahead is how the conversion to electric vehicles will impact the jobs of current auto workers. In late 2020, Germany’s Fraunhofer Institute for Industrial Engineering conducted a detailed study of this issue on behalf of the Sustainability Council of the Volkswagen Group. Employment 2030 Effects Of Electric Mobility And Digitalisation on the Quality and Quantity of Employment at Volkswagen (Nov. 2020) is an English-language summary of the full, detailed study, which modelled the impacts of digitization and electrification in the industry. Although the study is specific to VW production in Germany, its findings are instructive, and include that job losses will be less than anticipated, ( a decrease of 12 percent in this decade, mainly due to planned output volumes and higher productivity). Digitization will result in a need for new skills, “will necessitate a profound change in corporate culture”, and will include higher employee expectations for job flexibility. A summary appearing in Clean Energy Wire states: “ …. there is no uniform employment trend in the ‘transformation corridor’ over the coming decade. Instead, there will be a complex, interconnected mixture of job creation, job upgrading and job cuts. It argues that it will be vital to ensure that small and medium-sized enterprises (SMEs) do not fall victim to this reorganisation, and warns that Germany’s automotive sector must establish new forms of cooperation so as not to “recklessly surrender the field of mobility to new market players.” The study is also summarized in a press release by VW (with links to the full study in German).

Phasing Out Fossil Fuels: A Just Transition in the Oil & Gas Drilling and Refining Sectors

Just Transition: Time for a Rethink?

By Rosa Martínez Rodríguez - Green European Journal, February 10, 2021

Since 2019, Spain has been ahead of the curve with the launch of a Just Transition Strategy to protect its historic coal mining regions from the impacts of decarbonisation. Rosa Martínez examines the uptake of just transition in public policy and where Spain’s affected regions find themselves today. Progress is encouraging, but accelerating processes of digitalisation and automation mean that it is time to bring the notion of just transition up to speed so it can offer future-proof solutions in a world where employment is increasingly precarious.

In 2015, before the Paris Agreement had been ratified, the International Labour Organization published its Guidelines for a Just Transition Towards Environmentally Sustainable Economies and Societies for All. The concept of just transition, however, was already well established among Green parties and environmental activists. It offered a response to critiques of the ecological transition based on its impact on employment, and also reinforced social justice as a core green value.

From political concept to public policy

In Spain, just transition worked its way into public policy months before the EU decision to end financial aid for the coal mining industry took effect, forcing the closure of mines unable to operate without support. The Spanish Socialist Workers’ Party (PSOE), which came to power in 2018 after a vote of no confidence ousted the conservative People’s Party (PP), found themselves in a politically delicate situation, given that the most affected areas were made up of socialist voters. The response from the Ministry of Ecological Transition was to create a Just Transition Urgent Action Plan (2019-2021) for the regions impacted by the closure of the mines and five thermal power plants.

Months later, in February 2019, the Just Transition Strategy featured as one of the pillars of the government’s Strategic Energy and Climate Framework. The introduction of a social angle in climate policy and the energy transition was a first for politics and would later be adopted by the European Commission in the European Green Deal with its Just Transition Mechanism launched in January 2020.

Where are we now? So far, processes have only been implemented in areas affected by the closure of coal mines and thermal power plants through agreements with local administrations – 13 signed to date – with the aim of protecting jobs. In November 2020, a brief progress report was published, detailing the actions carried out to date and giving a sense of the complexity of the challenge undertaken.

With 10-Point Declaration, Global Coalition of Top Energy Experts Says: '100% Renewables Is Possible'

By Jake Johnson - Common Dreams, February 9, 2021

Setting out to rebut defeatist and cynical claims that transitioning the entire global energy system to 100% renewables by 2035 is infeasible, a group of dozens of leading scientists from around the world unveiled a joint declaration Tuesday arguing that such a transformation of the fossil fuel-dependent status quo is not only necessary to avert climate disaster but eminently achievable.

What's required, argue the 46 signatories of the new 10-point declaration (pdf), is sufficient political will, international coordination, and concrete action on a massive scale to institute a total "re-design of the global energy system."

"We have lost too much time in our efforts to address global warming and the seven million air pollution deaths that occur each year, by not focusing enough on useful solutions," said Mark Jacobson, director of the Atmosphere/Energy Program and professor of civil and environmental engineering at Stanford University.

"Fortunately, low-cost 100% clean, renewable energy solutions do exist to solve these problems, as found by over a dozen independent research groups," added Jacobson, one of the seven original signers of the declaration. "The solutions will not only save consumers money, but also create jobs and provide energy and more international security, while substantially reducing air pollution and climate damage from energy. Policymakers around the world are strongly urged to ensure we implement these solutions over the next 10-15 years."

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.

Canadian steel, concrete, aluminum and wood: low carbon solutions for public infrastructure

By Elizabeth Perry - Work and Climate Change Report, February 2, 2021

In a February 1 press release, Ken Neumann, National Director for Canada of the United Steelworkers says, “We need our governments to support the creation and retention of good jobs by strengthening Canadian industrial and manufacturing capacities in ways that support the low-carbon transition of the economy”. To support that point, Blue Green Canada has released a new report, Buy Clean: How Public Construction Dollars can create jobs and cut pollution . Buy Clean calls for the use of Canadian-made building products in infrastructure in order to reap the dual benefit of reducing carbon emissions and supporting local industry and jobs. The USW press release continues: “Buy Clean makes sense for Canada because it leverages our carbon advantage. Whether its steel, aluminum, cement or wood, building materials sourced from within Canada are typically lower carbon than imported materials” – thanks largely to our low-emissions energy supply and reduced transportation costs. The report recommends that all levels of government continue and expand the use of Buy Clean policies for procurement. The report also calls for an Industrial Decarbonization Strategy to encourage technological innovation in the manufacture of steel, aluminum, concrete and wood , and for a “Clean Infrastructure Challenge Fund” , to act as a demonstration fund modelled on the Low Carbon Economy Challenge, but available only for public infrastructure projects, not to private industry.

Buy Clean: How Public Construction Dollars can create jobs and cut pollution is also available in a French-language version, Acheter Propre: Créer des emplois et réduire la pollution par une utilisation judicieuse des fonds publics en construction . The report includes appendices for each of the sectors, providing brief but specific summaries of how Canadian industry has already achieved lower carbon processes than their competitors – particularly in steel and aluminum, and what further decarbonization opportunities remain.

The Buy Clean message seems closely related to the Stand Up for Steel national campaign by the United Steelworkers, which also calls for the use of Canadian-made steel in infrastructure projects. After the disruptive tariffs levied by the previous U.S. administration, the Stand up for Steel Action Plan also calls for the right for unions to initiate trade cases; for expanding the definition of ‘material injury’ in trade cases; and for a carbon border adjustment on imported steel.

Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for West Virginia

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

The COVID-19 pandemic has generated severe public health and economic impacts in West Virginia, as with most everywhere else in the United States. This study develops a recovery program for West Virginia that is also capable of building a durable foundation for an economically viable and ecologically sustainable longer-term transition.

In our proposed clean energy investment project, West Virginia can achieve climate stabilization goals which are in alignment with those set out by the Intergovernmental Panel on Climate Change (IPCC) in 2018—that is, to reduce CO2 emissions by 45 percent as of 2030 and to achieve net zero emissions by 2050. We show how these two goals can be accomplished in West Virginia through large-scale investments to dramatically raise energy efficiency standards in the state and to equally dramatically expand the supply of clean renewable energy, including solar, geothermal, small-scale hydro, wind, and low-emissions bioenergy power. We also show how this climate stabilization program for West Virginia can serve as a major new engine of job creation and economic well-being throughout the state. Scaled at about $3.6 billion per year in both private and public investments, the program will generate about 25,000 jobs per year in West Virginia. We also present investment programs for West Virginia in the areas of public infrastructure, manufacturing, land restoration and agriculture. We scaled this overall set of investments at $1.6 billion per year over 2021 – 2030, equal to about 2 percent of West Virginia’s 2019 GDP. We estimate that the full program would generate about 16,000 jobs per year in the state. Overall, the combination of investments in clean energy, manufacturing/infrastructure, and land restoration/agriculture will therefore create about 41,000 jobs in West Virginia, equal to roughly 5 percent of West Virginia’s current workforce.

The study also develops a just transition program for workers and communities that are currently dependent on West Virginia’s fossil fuel-based industries. It estimates that about 1,400 workers per year will be displaced in these industries between 2021 – 2030 while another roughly 650 will voluntarily retire each year. It is critical that all of these workers receive pension guarantees, re-employment guarantees, wage insurance, and retraining support, as needed. We estimate that generous levels of transition support for all workers will cost an average of about $140 million per year.

The study shows how all of these proposed measures can be fully financed within the framework of the Build Back Better infrastructure and clean energy investment program proposed by President Biden during his presidential campaign.

Read the text (PDF).

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