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Paris Climate Agreement

A Rapid and Just Transition of Aviation: Shifting towards climate-just mobility

By staff - Stay Grounded, February 2021

Covid-19 has grounded air traffic. The aviation industry itself expects to be operating at a lower capacity over the next few years. This Paper discusses how long-term security for workers and affected communities can be guaranteed, without returning to business as before. 

With the looming climate breakdown, automation, digitalisation and likely climate induced pandemics, we need to be realistic: aviation and tourism will change – and they will do so either by design or by disaster. They will transition either with or without taking into account workers’ interests.

This Discussion Paper, published by the Stay Grounded Network and the UK Trade Union PCS in February 2021, is a result of a collective writing process by people active in the climate justice movement, workers in the aviation sector, trade unionists, indigenous communities and academics from around the world. It aims to spark debates and encourage concrete transition plans by states, workers and companies.

Read the text (PDFs: EN | DA | DE | ES | FR | PT ).

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and the environment, as well as that between the legal disciplines that regulate both domains, is meaningless and outdated.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).

No-one Left Behind: Australia’s Transition to Zero Emissions

By staff - Australian Council of Trade Unions, November 25, 2020

The ACTU and Australian unions have been engaged in Australia’s climate and energy policy development for nearly three decades. Our consistent position has been that Australia needs ambitious and coherent climate and energy policy to limit the impacts of global warming, and that we also need industry planning, support and resources to ensure that no workers or communities are left behind as we make the shift to net zero emissions.

In March 2020, the ACTU Executive, meeting in bushfire-affected southern NSW, reiterated:

“The international community, through the Paris Agreement, has committed to limiting the rise in temperatures to below 2°C above preindustrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees.

The best scientific evidence is that the world needs to achieve net zero emissions by 2050 to meet the climate goals of the Paris Agreement, to which Australia is and should remain a signatory.
The ACTU supports a national target of net zero emissions by 2050, and shorter term targets consistent with that trajectory, to ensure Australia meets its obligations under the Paris Agreement.

Government and corporations must ensure secure jobs and industry policy are placed at the heart of successful planning and implementation. As a nation we must ensure we deliver justice & employment opportunities for impacted workers, their families and the communities in which they live.”

Australia has lacked coherent and over-arching national climate and energy policy since the Clean Energy Act 2011 and its associated programs was repealed by the Coalition government. Since then emissions reductions have flat-lined and it is unclear how Australia will meet even its unambitious Paris Agreement 2030 commitment. Meanwhile fossil fuel power stations have been closing over the past decade with very little notice for workers and communities and no coordinated national transition plan to address the impacts of closures. Workers across the nation are increasingly experiencing climate impacts and extreme weather events in their workplaces with Work Health and Safety legislation and programs failing to catch up.

Given this lack of coherent climate and energy policy, the ACTU welcomes the Climate Change (National Framework for Adaptation and Mitigation) Bill 2020, which shares the union movement’s goal of limiting global warming consistent with the Paris Agreement and achieving net zero emissions across the Australian economy by 2050.

Read the text (PDF).

Sharing the Benefits With Workers: A Decent Jobs Agenda for the Renewable Energy Industry

By staff - Australian Council of Trade Unions, November 2020

Driven by the imperative of climate change, rapid technological development and ageing fossil fuel generation, global energy markets are changing rapidly.

Australia is not immune to these changes. Our electricity and gas markets and networks are undergoing a dramatic and at times chaotic transformation with no enduring overarching national planning, policy or coordination. Despite this the renewable energy industry has experienced rapid growth over the past decade, to the point where the ABS estimates it employed nearly 27,000 Australians in 2018/19. This growth in renewable energy jobs is being replicated globally and is predicted to accelerate over coming years due to declining renewable energy technology costs, converging global efforts to slow global warming and the retirement of ageing fossil fuel plant. The future competitiveness of energy-intensive industries such as mining, metals smelting, recycling and manufacturing is also increasingly dependent upon having access to low emissions, low cost electricity.

Section 2 of this ACTU report briefly summarises the extent and types of employment in Australia’s renewable energy sector, and the characteristics of those jobs. It explores the industry’s growth prospects and the current status of deployment of large- and small-scale renewable energy technologies. The changing drivers for new investment in renewable energy projects are discussed including the growing influence of voluntary purchasers of, and investors in, renewable energy who will be looking to ensure renewable energy projects deliver maximum community benefits and good quality jobs.

Section 3 outlines why unions have had concerns about the quality of renewable energy jobs and why the industry needs to pay more attention to this aspect of its social licence. In large part the union movement’s experience has been that many new renewable energy jobs have been short-term, insecure and poorly paid, compared with the permanent, secure, well-paid and unionised jobs in coal, oil and gas that often underpin regional economies. It explores some of the structural and operational challenges that need to be overcome to make the renewable energy industry an industry of choice for workers. Particular attention is paid to the current practice of outsourcing construction of renewable energy projects to labour hire contractors, which is where many of the poor employment practices occur, and to ensuring project developers are maximising local job creation through procurement, hiring and local content planning.

Section 4 provides some examples of both best and worst cases of labour standards in the industry and highlights some issues particular to the small scale solar industry.

The report concludes in section 5 with an agenda developed by Australian unions to improve the quality and security of jobs in the renewable energy sector so that a low carbon future delivers secure and sought-after jobs for the current and future generations of Australian workers. This best practice agenda, if adopted, will establish Australia’s renewable energy industry on solid foundations to support the growth and competitiveness of the industry and will ensure the benefits of renewable energy projects are more fully shared with workers, their families and communities through guaranteed local jobs and stronger employment conditions.

Australian unions are ready and willing to work in partnership with Australia’s renewable energy industry, governments and the energy sector to ensure a successful energy transition that creates good quality jobs across the country and a bright future for the industry. We look forward to working with the renewables industry, renewable energy purchasers and investors and governments to achieve this vision.

Read the text (PDF).

A Great Victory Has Been Won over Fossil Capital

By Ulf Jarnefjord - Trade Unions for Energy Democracy, October 28, 2020

On Monday, September 28, 2020, Sweden’s largest oil refinery, Preem, decided to withdraw its application for an expansion of its refinery in Lysekil on the Swedish west coast.

After massive protests from the climate and environmental movement for several years, Preem announced that they had withdrawn their application to expand the oil refinery in Lysekil. This is a great benefit for the climate, for democracy, for the environmental movement, and for everyone’s future. The message is that activism pays off.

It would have been completely irresponsible to further expand fossil fuels when we are in a climate emergency, and time is running out quickly for the small carbon budget that remains. We have just 7 years to limit emissions in line with the 1.5-degree target.

In the days before the announcement, Greenpeace had blocked the port of Lysekil with its ship Rainbow Warrior, to prevent an oil tanker from entering the port and unloading its cargo. Climate activists from Greenpeace also climbed and chained themselves to the cranes at the crude oil terminal.

Climate activist Greta Thunberg has Tweeted that Preem’s decision to suspend the expansion of the oil refinery in Lysekil is a “huge victory for the climate and the environmental movement,” since otherwise it would have been impossible to achieve the goals of the Paris Agreement.

The youth organization Fridays For Future emphasizes that it is not time to pay tribute to the oil giant: “This decision is not because Preem has suddenly acquired a moral compass. Preem is still an oil company and we should not allow them to use this decision as a way to paint themselves green and appear responsible. We will ensure that this becomes a turning point for the fossil fuel industry in Sweden and serves as an example when Preem starts planning new environmental crimes.”

If we are to succeed in reducing emissions and meet our commitments in accordance with the Paris Agreement as quickly as necessary, there is also no choice between “better” and “worse” fossil fuels. We must invest all our resources in completely dismantling the entire fossil fuel economy, quickly. It is not possible to consider heavy oil as a useful residual product when we know that the oil must remain in the ground.

‘Troubling Incrementalism’: Is the Canadian Pension Plan Fund Doing Enough to Advance the Transition to a Low-carbon Economy?

Pipe Dreams: Why Canada’s proposed pipelines don’t fit in a low carbon world

By Axel Dalman and Andrew Grant - Carbon Tracker - July 2020

Carbon Tracker’s modelling shows no new oil sands are needed in a low carbon world.

Prospective pipeline projects represent a significant expansion of capacity, with taxpayer support. However, new pipelines are surplus to requirements under Paris Agreement demand levels.

Canadian authorities face the challenge of trying to reconcile their natural resources development plans with their positioning on climate. Canada has previously having shown leadership on climate change issues, but its government support for pipelines – which are reliant on the failure of the Paris Agreement – risks damaging its credibility.

Key Findings:

Our research has previously shown that no new oil sands projects are needed in a low carbon world. All unsanctioned oil sands projects are uncompetitive under both the International Energy Agency’s 1.7-1.8°C Sustainable Development Scenario (SDS) and c.1.6°C Beyond 2 Degrees Scenario (B2DS).

All proposed new pipelines from Western Canada, in particular Keystone XL and Trans Mountain expansion, are surplus to requirements in a Paris-compliant world. Pipeline capacity may have proved a constraint in recent years, but under SDS, all future oil supplies from Western Canada can be accommodated by upgrades and replacements to existing pipelines, local refining and limited rail freight.

Even if discounts for Canadian crude narrow, new oil sands projects remain uneconomic. Western Canadian heavy oil trades at a steep discount to international benchmarks due to quality and transport challenges, averaging $25 below Brent over the last decade. Even if greater pipeline capacity reduces this to $10 in the future, in line with levels seen during previous periods of unconstrained supply, new projects still remain uneconomic under the SDS. Indeed, even if Canadian heavy oil were to trade at parity with Brent, which is extremely unlikely due to its lower quality, there would still be no new oil sands production under the B2DS and just 120,000 bbl/d would enter the market in the SDS – a level which would be covered by existing rail capacity.

Investors in oil sands face depressed cash flows in a low carbon world of falling oil demand and weak pricing, but will be forced to produce or pay the price due to inflexible “take-or-pay” transport fees for excess new pipeline capacity.

While take-or-pay contracts spread the impacts, pipeline investors still face financial risks as upstream production weakens. Uncontracted capacity will probably remain unused by producers, and contracts may cannibalise tariffs from other pipelines. Even take-or-pay commitments are subject to counterparty risk in a falling oil market.

The Canadian government’s stakes in Keystone XL and Trans Mountain could well prove to be a drain on the public purse. Under the SDS, government tax revenues and the value of the assets are unlikely to reach the levels anticipated at the time of sanction.

Canada’s leadership position on climate change may be undermined by its support for projects reliant on the failure of the Paris Agreement.

Read the report (Link).

A Fair Climate Policy for Workers: Implementing a just transition in various European countries and Canada

By Pia Björkbacka - The Central Organisation of Finnish Trade Unions SAK, June 26, 2020

Both the Paris Agreement on Climate Change and the target of carbon neutrality by the year 2035 set out in the government programme of Finnish Prime Minister Sanna Marin refer to a just transition for workers towards a low-carbon society. Such a just transition has long been sought by the trade union movement and is an important condition for achieving ambitious climate policy objectives.

The programme of the Marin government states that the government will work with labour market organisations to harmonise economic and labour market policies. Achieving climate objectives will also require co-operation with the social partners, and sectoral assessments in particular.

A just transition has been selected as one approach to reaching the target of a carbon neutral Finland by 2035. The government will pledge to implement emission reduction measures in a socially and regionally equitable way that involves all sectors of society. The government programme envisages establishing a round table on climate policy in Finland under the committee on sustainable development. Bringing together the various actors in society will ensure that climate measures serve the general interests of society and enjoy broad public support.

(Government Programme of Prime Minister Marin 2019)

The implementation of climate policy is causing restructuring in various sectors, meaning that climate policy decisions and actions also have social implications.

The European Commission has estimated that mitigating climate change will create more jobs in the European Union than it will cost (European Commission, 2019), but the changes will be sectoral. Even though labour market restructuring – which is also guided by climate policy - is creating new employment opportunities, it also brings fears of unemployment.

Realising employment opportunities requires substantial investment in employee skills and innovation. It is very important for the benefits and costs of low-carbon restructuring to be evenly shared across various sectors, occupations, population groups and regions. Successfully transitioning to a carbon-neutral society will not only require emission reduction measures and business and energy policies, but also employment, social welfare, education and regional policies.

The principle of a just transition will seek to meet these challenges. This means implementing emission reductions in a way that is fair to workers. It is about creating new, decent and sustainable jobs, in-service training for new employment, and security of earnings. The goal of a just transition is to increase the participation and commitment of workers in deciding policies for mitigating climate change nationally, regionally and within businesses, thereby promoting a smooth transition to a carbon-neutral society.

Read the text (PDF).

Decline and Fall: The Size & Vulnerability of the Fossil Fuel System

By Kingsmill Bond, Ed Vaughan, and Harry Benham - Carbon Tracker, June 4, 2020

Renewable costs are below those of fossil fuels. Five years ago, fossil fuels were the cheapest baseload. The collapse in renewable costs means that for 85% of the world, renewable electricity is the cheapest source of new baseload. By the early 2020s it will be every major country. Because of the rise of cheap renewables, the fossil fuel system is ripe for disruption. This disruption will be have profound financial implications for investors as a quarter of equity markets and half of corporate bond markets are ‘carbon entangled’.

Those responsible for our pension schemes should sit up and take notice; but even greater concern should be felt by financial regulators, as they grapple with finding the right tools to manage the risks of a deflating ‘carbon bubble’.

The world faces two contrasting pathways. Either it can secure the ‘trillion dollar green gigafall’, the trillions that can be generated at low cost from the sun and the wind – particularly benefiting the poorest inhabitants of the world currently dependent upon high cost fossil fuel imports. Or it can stay locked into business as usual, tied into a declining industry that both threatens the global economy with the worst effects of a warming planet, and damages investors with losses, low returns and destabilised equity and credit markets.

In Carbon Tracker’s first report, some ten years ago, entitled ‘Unburnable Carbon – are the World’s Financial Markets Carrying a Carbon Bubble’ we highlighted that listed fossil fuel companies have the potential to develop enough reserves to take the world way beyond 3˚C. Our second report, ‘Unburnable Carbon – Wasted Capital and Stranded Assets’, noted that if we can’t burn what we have already found, why continue to invest in the fossil fuel industry’s expansion? Yet today, we know that some $1 trillion is spent annually on expanding supply and this report goes more into these numbers. Before we wind down the fossil fuel system, we need to stop expanding it.

Some argue that ‘fossil fuels will go away of their own accord’ as the result of the rapid progress made by cleaner technologies and the collapse in demand for fossil fuels driven by the terrible COVID-19 epidemic. Unfortunately, as this report makes clear, financial markets are still heavily tied in to the fossil fuel system.

Read the report (PDF).

Equity, Climate Justice, and Fossil Fuel Extraction: Principles for a Managed Phase Out

By Gregg Muttitt and Sivan Kartha - Oil Change International, April 28, 2020

The Paris Agreement goals require most fossil fuel use to be ended within a generation. This paper looks at where and how to equitably phase out oil, gas and coal, and proposes five principles to help democratic actors work through the equity issues that arise from winding down fossil fuel extraction.

Equity issues have long been debated within international climate politics, focused on fairly distributing reductions in territorial emissions and fossil fuel consumption. There is a growing recognition among scholars and policymakers that curbing fossil fuel supply (as well as demand) can be a valuable part of the climate policy toolbox; this raises the question of where and how the tool should be applied.

This paper explores how to equitably manage the social dimensions of a rapid transition away from fossil fuel extraction. Fossil fuel extraction leads to benefits for some people (such as extraction workers) and harms for others (such as pollution-affected communities). A transition must respect and uphold the rights of both groups, while also staying within climate limits, as climate impacts will fall most heavily on the world’s poor.

This paper begins by reviewing how extraction affects economies and communities and the different transitional challenges they face. Based on that review, it then examines three common equity approaches — economic efficiency, meeting development needs, and effort-sharing. Drawing lessons from the strengths and weaknesses of these approaches, the paper proposes five principles as a basis for equitably curbing fossil fuel extraction within climate limits:

  1. Phase down global extraction at a pace consistent with limiting warming to 1.5°C;
  2. Enable a just transition for workers and communities;
  3. Curb extraction consistent with environmental justice;
  4. Reduce extraction fastest where doing so will have the least social costs;
  5. Share transition costs fairly, according to ability to bear those costs.

Key policy insights:

  • Fossil fuel extraction is unlikely to be a viable path to development because the Paris Agreement goals require most fossil fuel use to be ended within a generation;
  • Extraction should be phased out fastest in diversified, wealthier economies that can better absorb the transitional impacts;
  • Governments of extracting countries should enact ambitious industrial policy to diversify their economies, alongside economic and employment policies to enable a just transition;
  • The costs of a just transition should be borne by those most able to bear it: poorer countries can reasonably demand financial support.

Download (PDF).

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