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Trump’s solar tariffs may impact solar jobs worldwide

By Elizabeth Perry - Work and Climate Change Report, February 4, 2018

Donald Trump’s decision to impose tariffs on solar panels and washing machines on January 23  was roundly criticized on many grounds – most frequently, the impact on jobs in the solar industry, as stated in the  New York Times Editorial on January 23 ,“Mr. Trump’s Tariffs will not bring back manufacturing jobs”.   The Times supported their opinion with several articles, including  “Trump’s Solar Tariffs are clouding the industry’s future” (Jan. 23) , which states: “Far more workers are employed in areas that underpin the use of solar technology, such as making steel racks that angle the panels toward the sun. And the bulk of workers in the solar industry install and maintain the projects, a process that is labor-intensive and hard to automate.” The Solar Energy Industries Association in the U.S. response is here, and their Fact Sheet (Feb. 2)  explains the terms and impact of the decision.  CleanTechnica summarized a  study by GTM Research, which forecasts that the utility-scale segment of the solar industry will be hardest hit, beginning in 2019.  For a thorough overview, see the Fact Checker article by the Washington Post,  “Trump says solar tariff will create ‘a lot of jobs.’ But it could wipe out many more” (Jan. 29).

For a deeper look at the possible implications for other countries, including Canada, consider the complexity of global trade:  From an excellent overview in  The Energy Mix: “Trump Solar Tariff may be opening salvo in trade war”: “Although China appeared to be Trump’s intended target, the tariff on solar cells and panels will mostly hit workers in other countries. Thanks to dispersed supply chains—and partly in response to previous U.S. tariffs—solar photovoltaic manufacturing is a global industry. Malaysia, South Korea, and Vietnam all hold a larger share of the U.S. market than China does directly. And all are entitled to seek remedies under various trade agreements.”   The Energy Mix item refers to “U.S. tariffs aimed at China and South Korea hit targets worldwide”    in the New York Times (Jan. 23), which adds:  “Suniva, one of the American solar companies that had sought the tariffs, filed for bankruptcy protection last year, citing the effects of Chinese imports. But the majority owner of Suniva is itself Chinese, and the company’s American bankruptcy trustee supported the trade litigation over the objections of the Chinese owners.” From Reuters,  “Why the US decision on solar panels could hit Europe and Asia hard”  states that Goldman Sachs estimated that the tariffs implied “a 3-7 percent cost increase for utility-scale and residential solar costs, respectively …. Two key exclusions with respect to technology and certain countries (Canada/Singapore, among others) were included as part of the (initial) recommendation.” Canadian Solar , founded in Canada but a multinational traded on NASDAQ,  is one the world’s biggest panel manufacturers.

For an overview of the current state of the U.S. renewable energy markets and labour force, including solar, see  In Demand: Clean Energy, Sustainability and the new American Workforce  (Jan. 2018) , co-authored by Environmental Defense Fund (EDF) and Meister Consultants Group.  Highlights:  there are  4 million clean energy jobs in the U.S., with wind and solar energy jobs outnumbering  coal and gas jobs in 30 states.  Quoting the IRENA Renewable Energy and Jobs Annual Review for 2017 ,  the In Demand report states that: “The solar industry grew 24.5 percent to employ 260,000 workers, adding jobs at nearly 17 times the rate of the overall economy in 2016.”  The coal industry employs 160,000 workers in the U.S.  In Demand  compiles statistics from the U.S. Department of Energy, International Energy Agency, International Renewable Energy Agency (IRENA) and many others, about current and projected clean energy markets and employment in the U.S.: renewable energy, energy efficiency, alternative vehicles, and energy storage and advanced grid sectors.

Appalachian solar jobs on the line in Trump’s Suniva decision

By Kyle Pennell - Appalachian Voices, January 19, 2018

Solar panel manufacturer Suniva was once one of the biggest players in the U.S. market. But back in April, the company declared bankruptcy. Foreign panel makers, Suniva argued, enjoyed government subsidies at a level that made it impossible for solar panel makers in the U.S. to compete. The company filed a petition with the U.S. International Trade Commission (ITC) calling for strong tariffs against foreign manufacturers. Another panel manufacturer, SolarWorld, joined the petition shortly thereafter.

In August, the companies presented their case to the ITC. They charged that foreign competition has cost the U.S. solar panel manufacturing industry 1,200 jobs and led to a 27 percent decline in wages since 2012.

But cheap, imported solar panels-along with reductions in installation costs and technological advances-have made possible the solar energy boom that has unfolded in recent decades. Back in 2006, only about 30,000 homes in the U.S. had solar panels; today, over 1.3 million American households have gone solar. Utility-scale solar electricity generation has increased by a factor of about 50 over the same period. Without access to cheap solar panels, efforts aimed at moving America toward energy sustainability would be undermined.

Moreover, many of the major players in the American solar industry have spoken out against tariffs. They argue that SolarWorld and Suniva’s petition figures are inflated, and that tariffs would significantly raise costs for solar installers, which employ far more people than panel manufacturers do. In a letter filed with the ITC, solar installer Sunnova suggested that “the imposition of tariffs on solar cells and panels will significantly harm the U.S. economy by destroying jobs.” The Solar Energy Industries Association agrees: in a recent analysis, it found that the industry would shed 88,000 jobs if tariffs are approved.

In early September, the ITC ruled in favor of Suniva and SolarWorld, agreeing that foreign solar panel imports have indeed hurt U.S. manufacturers. The ITC offered the Trump administration three recommendations: a 35 percent tariff on all imported solar panels, an 8.9-gigawatt import cap for 2018, and a tariff of about 30 percent on solar cells and panels. Under all three plans, the tariffs would mostly be phased out after four years.

But the plaintiffs criticized the ruling as insufficient, and have pushed for even harsher tariffs, including a minimum solar panel price of $0.74 per watt on all imported panels and an import cap of 5.7 gigawatts per year.

The decision as to which tariff scheme to adopt is now up to President Donald Trump. Adopting a high-tariff scheme could allow him to claim that he has encouraged domestic manufacturing and land a blow against China, both of which were major tenets of his campaign platform during last year’s presidential election.

California’s progressive policies yield better job growth and wage growth than Republican comparators

By Elizabeth Perry - Work and Climate Change Report, January 15, 2018

A November 2017 report from the Labor Center at University of California Berkeley  examined the “California Policy Model” –  defined as a collection of 51 pieces of legislation and policy implementations enacted in California between 2011 and 2016 – and found that with progressive policies such as minimum wage increases, increased access to health insurance, reduction of carbon emissions and higher taxes on the wealthy, the state showed  superior economic  performance  in comparison to Republican-controlled states and to a simulated version of California without such policies.  According to  “California is Working: The Effects of California’s Public Policy on Jobs and the Economy since 2011,  the suite of progressive policies resulted in superior total employment growth , superior private sector employment growth, and higher wage growth for low-wage workers from 2014 to 2016. All the while, keeping the state on track to meet its 2020 GHG emissions targets.  The  environmental policies included in the analysis were: starting in 2006, AB 32, which committed the state to lowering its greenhouse gas emissions to 1990 levels by 2020;  regulations under AB 32 in 2012 and 2013, which introduced the state cap and trade program;  SB 350 in 2015 and 2016,  committing the state to greater use of renewable energy and further improvements in energy efficiency ; and SB 32, which raised the emissions reduction goal to 40 percent below 1990 levels by 2030.  The report warns that  enforcement of labour standards and a lack of affordable housing remain as challenges facing the state, and also admits to possible weakness  regarding the second of its two methods of analysis, the synthetic control statistical method.

The GOP Tax Bill Assaults the Planet as Well as the Poor

By Basav Sen - Common Dreams, December 5, 2017

If you are an average American, your government has just declared war against you. Unless you happen to be an oligarch. I’m talking, of course, about the monstrosity of a tax bill that Congress looks set to pass.

With good reason, only about one-third of Americans support the bill, since its primary purpose is to cut taxes for corporations and fabulously wealthy people at all costs.

The costs are high indeed, since the bill systematically raises taxes on struggling lower to middle income people. It gets rid of taxpayers’ ability to deduct state and local taxes paid from their taxable income, which is a form of double taxation. While this increases everyone’s taxes, struggling working people will feel the pain of this double taxation more than oligarchs. Make the Poor (and the Middle Class) Pay Again. And Again.

It also ends the deductibility of large medical expenses, effectively a large tax increase for the seriously ill, especially the uninsured or underinsured among them. Make the Sick Bankrupt Again.

In an all-out assault on higher education, it turns tuition reductions or waivers for graduate student teaching and research assistants into taxable income, a move that would make graduate school unaffordable for most people. Make America Uneducated Again.

The bill also gets rid of tax-exempt bonds for affordable housing construction, which are used to finance more than half of affordable rental units built each year. Make Housing Unaffordable Again.

In fact, it raises taxes on most people in so many ways that it is disingenuous to even call it a tax cut. This bill is a massive tax increase on most of us.

Lost in the debate around the tax bill, however, are provisions that will make more wind-reliant Iowans and Texans jobless, leave more hurricane-struck Puerto Ricans without access to basic necessities, poison more African-Americans with toxic fumes, and submerge more Native Alaskan villages, just to enrich a particular subset of oligarchs.

The tax bill kills the modest tax credits for solar and wind power, effectively raising taxes retroactively on renewable energy developers. It also kills the tax credit for electric cars, but does not touch the much larger subsidies for fossil fuels. Make Fossil Fuel Barons Rich Again, by subsidizing them while raising their competitor’s taxes.

These changes in energy tax credits will hurt many more people than just the owners of solar and wind companies. Solar and wind energy create many, many more jobs — hundreds of thousands more — than coal, even though they account for much smaller share of our overall energy mix than fossil fuels. If the intent of the tax bill truly were to create jobs, it would reinstate the solar and wind tax credits and eliminate fossil fuel subsidies, not the other way round. Make Americans Jobless Again.

Do electric vehicles create good green jobs? An Amnesty International report on Supply Chains says No

By Elizabeth Perry - Work and Climate Change Report, November 27, 2017

November brought  exciting news about electric vehicles:  BYD,  one of China’s leading electric carmakers, announced that it will open an assembly plant in a yet-to-be-announced location in Ontario in 2018, (though according to the Globe and Mail article,   the new plant will only create about 40 jobs to start ).  Also in mid-November, Tesla revealed a concept design for  an  electric truck in an glitzy release by Elon Musk , and the Toronto Transit Commission announced its plan to buy its first electric buses, aiming for an  emissions-free fleet by 2040.    Unnoticed in the enthusiasm for these announcements was a report released by Amnesty International on November 15:    Time to Recharge: Corporate action and inaction to tackle abuses in the cobalt supply chain  which concludes : “ Major electronics and electric vehicle companies are still not doing enough to stop human rights abuses entering their cobalt supply chains, almost two years after an Amnesty International investigation exposed how batteries used in their products could be linked to child labour in the Democratic Republic of Congo (DRC).” (That earlier report was This is what we die for   released in January 2016) .

Under the heading “The Darker side of Green Technology”, Time to Recharge states: “Renault and Daimler performed particularly badly, failing to meet even minimal international standards for disclosure and due diligence, leaving major blind spots in their supply chains. BMW did the best among the electric vehicle manufacturers surveyed.”   Tesla was also surveyed and ranked for its human rights and supply chain management; Tesla’s policies are described in its response to Amnesty International here.  And further, Tesla has come in for suggestions of  anti-union attitudes  in “Critics Suggest Link to Union Drive After Tesla Fires 700+ Workers” , in  The Energy Mix (Oct. 23), and in an article in Cleantechnica  .

The Amnesty International report is a result of a survey of 29 companies, including consumer electronics giants Apple, Samsung Electronics, Dell, Lenovo, and Microsoft, as well as electric vehicle manufacturers BMW, Renault and Tesla.  Questions in the survey were based on the five-step due diligence framework set out by the Organization for Economic Co-operation and Development (OECD) in its Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.  Detailed responses from many of the surveyed companies are here. 

Labor Network for Sustainability Calls for “Climate Solidarity” on Anniversary of Superstorm Sandy

By staff - Labor Network for Sustainability, Octber 24, 2017

On this fifth anniversary of Superstorm Sandy, it is time to recognize that climate change is a dagger pointing at the jobs and well-being of American workers.

Since Sandy we have seen storm after storm, wildfire after wildfire, flood after flood, all demonstrating the greater intensity that climate scientists have warned us will result from climate change. In the aftermath of Hurricanes Harvey and Irma, the Labor Department said 1.5 million workers were not at their jobs because of weather. And the experience of Sandy, Katrina, and other climate-intensified storms shows that the devastation to workers and unions continues for years after the immediate impact.

There is no escape from climate devastation except a planned transition from a fossil fueled economy to a fossil free economy. That will require change in every industry from manufacturing to construction to agriculture. And that will require millions of jobs. Climate protection is our best jobs program.

The transition to a climate-safe economy must be a just transition. We need to use that transition to reverse the growing inequality and injustice of our society. And we need to make sure that poor and working people are protected against any unintended side effects of climate protection.

The labor movement’s most essential value is solidarity. Summed up in the hallowed adage “An injury to one is an injury to all,” it is the recognition that “looking out for number one” doesn’t work, that we will survive and prosper only if we look out for one another. Climate protection is the new solidarity: protecting our brothers and sisters as well as ourselves from destruction.

Could Trump be About to Kill U.S. Solar Industry Jobs?

By Linda Pentz Gunter - CounterPunch, October 13, 2017

I recently returned from Bavaria (Germany). When I give presentations in the U.S. extolling the virtues of the German Energiewende (energy revolution) I often brag about Bavaria. There, I say, in possibly the most conservative province of Germany, farmers have put solar panels on their barn roofs. There may be no cows in the barn, but they are certainly farming solar energy.

But after driving through Bavaria last month I realized that, all this time, I had been the master of understatement.

Traveling through the U.S. you may spot the occasional house sporting a handful of solar panels on the roof. But Bavarian barn roofs are completely covered in solar panels. So are the farmhouses, the sheds, the schools and other public buildings. There may be tiles on these roofs but you can’t see them. In cloudy Germany, where there is already snow on the mountains and we were wearing our woolly sweaters in mid-September, solar power is everywhere.

For sure there are some strong incentives in Germany — such as the feed-in tariff and grid priority for renewables. Nevertheless, the contrast with the U.S., where a shameful one percent of electricity is generated by solar energy, is striking.

Now, that contrast could be about to become even more stark.

Group calls for German offshore expansion

By Craig Richard - Wind Power Monthly, September 11, 2017

GERMANY: Trade unionists, regional energy and economic ministers and industry leaders have called for the country to increase its offshore capacity to at least 20GW by 2030.

In their ‘Cuxhaven Appeal 2.0’, the group further demands at least 30GW installed by 2035 — an increase on the government’s 2014 target of 15GW by 2030.

They also asked for more research and development funding, an improved grid system, better-maintained and expanded ports, and for a drive to boost competition in the sector.

These changes would help Germany boost economic development and help it meet its climate targets.

The group behind the Cuxhaven Appeal comprises ministers from Lower Saxony, Schleswig-Holstein, Mecklenburg-Vorpommern, Hamburg, and Bremen, the mayors of 12 cities and towns in northern Germany, the president of industry body Offshore-Windenergie, and IG Metallkuste's district manager Mainhard Geiken.

They had initially called for government action on offshore wind in 2013.

But the "considerable increase in the production capacity" of renewable energy sources — as evidenced by successful zero-subsidy bids for projects in Germany’s first competitive tender in April — necessitated "intensive efforts to expand the network", the coalition wrote.

As of 1 September 2017, Germany had 4.56GW offshore capacity installed with a further 16.61GW planned by 2030, according to Windpower Intelligence, the research and data division of Windpower Monthly.

If these projects in the pipeline are completed, Germany would have a total offshore capacity of 22.31GW, not including repowering or decommissioning.

This increased capacity would help boost economic development and help the country meet its targets of reducing its 1990 greenhouse gas emission levels by between 80% and 95% by mid-century — including a reduction of 55%-56% by 2030, the group wrote.

The industry currently supports around 20,000 jobs, according to the letter.

Just Transition for the coal industry is expensive – but cheaper than failure to address the needs

By Elizabeth Perry - Work and Climate Change Report, September 5, 2017

July 2017 saw the release of  Lessons from Previous Coal Transitions:  High-level Summary for Decision-makers , a synthesis report of case studies of past coal mining transitions in Spain, U.K., the Netherlands, Poland, U.S., and the Czech Republic – some as far back as the 1970’s.  Some key take-aways from the report:  “Because of the large scale and complexity of the challenges to be addressed, the earlier that actors (i.e. workers, companies and regions) anticipated, accepted and began to implement steps to prepare and cushion the shock of the transition, the better the results”; “the aggregate social costs to the state of a failure to invest in the transition of workers and regions are often much higher that the costs of not investing from an overall societal perspective.” While the level of cost details varies in the case studies, it is clear that costs are significant.  For example, the case study of Limburg, Netherlands states that the national government spent approximately 11.6 billion Euros (in today’s prices) on national subsidies to support coal prices and regional reconversion, in addition to  several 100 million per year in EU funds. “One estimate also suggested that in the Dutch case, all told, regional reinvestment in new economic activities also cost about 300 to 400 000€/per long-term job created.”  Limburg is also cited as “remarkable for the relatively consensual nature of the transition between unions, company and government.”  (see page 10).

The Synthesis report and individual case study reports of the six countries are available here . These are the work of the Research and Dialogue on Coal Transitions project, a large-scale research project led by Climate Strategies and the Institute for Sustainable Development and International Relations (IDDRI) , which also sponsors the Deep Decarbonization Pathways Project.  Future reports scheduled for 2018: a Global report, and a Round Table on the Future of Coal.

Diversity in California’s Clean Energy Workforce: Access to Jobs for Disadvantaged Workers in Renewable Energy Construction

By Nikki Luke, Carol Zabin, Dalia Velasco and Robert Collier - UC Labor Center, August 31, 2017

Executive Summary

Over the past decade California has emerged as a national and international leader in vigorously addressing climate change. Throughout this time one of the state’s key challenges has been to ensure that the “green jobs” being created in the clean energy boom not only have good pay and benefits but also are equitably distributed across the labor force. This report analyzes the degree to which California’s underrepresented and disadvantaged workers have been able to gain access to career-track jobs in the construction of renewable energy power plants. The growth of renewable energy has been and continues to be a key element of California’s climate efforts: policy-makers are now considering SB 100, which sets a goal of procuring 60 percent of the state’s electricity from renewables by 2030 and 100 percent from zero-carbon sources by 2045.

In California, the construction of renewable energy power plants has primarily been carried out under collective bargaining agreements, known as project labor agreements, which entail the utilization of the state-certified apprenticeship system. Apprenticeship allows entry-level, unskilled workers to obtain free training, a job, and a defined path toward a middle-class career. Until now, little information had been available to assess the extent to which disadvantaged communities are able to access this opportunity.

This paper uses two data sources on entry-level workers in renewable energy construction. First, we use data provided by the California Division of Apprenticeship Standards (DAS) on enrollment in the apprenticeship programs of three principal skilled trades unions (Electricians, Ironworkers, and Operating Engineers) that have built renewable power plants in California from 2002 through part of 2017. The second set of data comes from Local 428 of the International Brotherhood of Electrical Workers (IBEW) and concerns workers who built 27 solar farms in Kern County, totaling almost 2,000 megawatts (MW) of capacity between 2013 and 2017, which amounts to about 25 percent of the solar PV power plants installed in the state during this period.

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