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'Fossil Fuel Exit Strategy' Shows Transition to Renewable Future Totally Doable

By Andrea Germanos - Common Dreams, June 10, 2021

Ditching fossil fuels in favor of renewable energy in order to keep warming below the 1.5ºC threshold is both "necessary and technically feasible."

That's the conclusion of an analysis released Thursday entitled Fossil Fuel Exit Strategy. Produced by the University of Technology Sydney's Institute for Sustainable Futures in cooperation with the Fossil Fuel Non-Proliferation Treaty Initiative, the report states clearly that "there is no need for more fossil fuels" because the world is overflowing with renewable energy capacity.

Such a pathway, said Sanjay Vashist, director of Climate Action Network South Asia, would avert a "criminal waste of money" that would "have devastating climate and humanitarian consequences."

A key point in the analysis is that simply stopping the industry's planned expansion of fossil fuel projects is insufficient to meet the Paris climate agreement's temperature goal and would actually "push warming well above 1.5ºC."

With this angle, the new analysis goes beyond the International Energy Agency's report last month calling for no oil and gas expansion in order to meet a goal of net zero carbon emissions by 2050. That's because even if there were no expansion, the report's projections show, the world would produce 35% more oil and 69% more coal than is consistent with meeting the 1.5°C target.

As such, Fossil Fuel Exit Strategy lays out a dirty energy phaseout with an annual decline of 9.5% for coal, 8.5% for oil, 3.5% for gas from 2021-2030.

Puerto Rican workers: No peace if energy is privatized

By various - Workers World, June 7, 2021

On June 1, the Financial Oversight and Management Board overseeing Puerto Rico’s economy privatized the island’s public power utilities by signing a $1.3 billion contract with private consortium LUMA Energy. The contract, in effect for the next 15 years, could increase electric rates by 10 cents/kwh or more.

LUMA customers are already encountering new fees and significantly higher bills than formerly paid to the public Puerto Rican Electric Power Authority. Thousands of PREPA workers have lost their jobs. The privatization has fueled demonstrations including encampments and picket lines at plant gates. Further actions could lead to mass protests similar to those in summer 2019 that forced former Governor Pedro Rosselló to resign.

The following is a statement from unions representing thousands of Puerto Rican workers, ranging from teachers to truck drivers, in support of PREPA workers and demanding the LUMA contract be repealed.

Puerto Rico unions close ranks against LUMA Energy

By Wilmarilis Sánchez-Romeu and Edwin Ocasio Feliciano - Struggle La Lucha, June 4, 2021

Union organizations today warned Gov. Pedro Pierluisi and the Financial Oversight and Management Board that they will paralyze the country if the LUMA Energy contract that increases rates, allows the consortium to leave Puerto Rico if a hurricane strikes, and displaces thousands of workers, is not canceled.

“We are warning the attorney for the Financial Oversight and Management Board, Pedro Pierluisi, that there will be no peace in Puerto Rico if the contract is not repealed and they listen to the people who demand, not only a public and more efficient Puerto Rico Electric Power Authority (PREPA), but also one free of fossil fuels. 

“Right now there is a favorable atmosphere for paralyzing the country and if the governor continues to ignore the people, we will do so. We have already held several meetings to coordinate logistics and dates, and this week we will meet again to finalize details. Make no mistake, this summer will be one very similar to that of 2019,” said Carlos Rodríguez, coordinator of the Frente Amplio de Camioneros (Broad Front of Truckers).

“Today, we tell LUMA not to bother settling in our country since we will not leave them alone until they leave Puerto Rico. And the workers who they intend to bring in from abroad should know that if they cross the picket line, they will face a people willing to defend their energy sovereignty and their access to water. There is no life without water and electricity! 

“What’s the alternative?”: Answering the hardest question asked by workers and communities that feel threatened by energy transition

By Sean O'Leary - Ohio River Valley Institute, May 18, 2021

At ORVI, we’ve documented the inability of the fossil fuel and petrochemical industries to serve as engines for job growth and prosperity in Appalachia. Although these findings may be greeted with doubt, disbelief, and sometimes anger, we find that, once the numbers sink in and people in the mining and fracking regions of Pennsylvania and the Ohio Valley look around at their communities — the struggling downtowns, declining populations, and the departures of their sons and daughters to places far away in search of opportunity — reality usually takes hold.

It can be a profoundly sad moment. But, for local leaders who may have invested years promoting these industries as economic saviors, the realization can be bitter and give rise to a question that is equal parts a challenge and a plea — What’s the alternative?

When you’re on the receiving end of that question, you feel its weight. And, if you don’t have an answer, you can feel that you’re stealing someone’s — maybe an entire community’s — hope and you’re leaving them with nothing.

IEA calls for a future without fossil fuel investment

By Elizbeth Perry - Work and Climate Change Report, May 18, 2021

Net Zero in 2050: A roadmap for the global energy system was released by the International Energy Agency on May 18, and has been described as a “bombshell”, and a “landmark”. Why? The normally conservative IEA describes the global energy future bluntly and urgently, calling for “…. from today, no investment in new fossil fuel supply projects, and no further final investment decisions for new unabated coal plants. By 2035, there are no sales of new internal combustion engine passenger cars, and by 2040, the global electricity sector has already reached net-zero emissions.”

This special report claims to be “ the world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth.” It sets out 400 indicators for “an economically productive pathway to 2050”, where energy production will be dominated by renewables instead of fossil fuels. The report also flags and discusses bioenergy, carbon capture, and behavioural changes as “key uncertainties” for the future.

Highlights from the discussion of employment in Chapter 4:

  • In 2021, approx. roughly 40 million people work directly in the oil, gas, coal, renewables, bioenergy and energy network industries . 
  • By 2030 in the Net Zero scenario, 30 million more people will be working in clean energy, efficiency and low‐emissions technologies. 
  • By 2030, employment in oil, gas and coal fuel supply and power plants will decline by around 5 million jobs.
  • Nearly two‐thirds of workers in the emerging clean energy sectors will be highly skilled by 2030, and the majority will require substantial training. 
  • The new jobs created in the net zero economy will have more geographic flexibility. Around 40% are jobs located close to where the work is being done, e.g. building efficiency improvements or wind turbine installation, and the remaining are jobs tied to manufacturing sites. 

The National Black Climate Summit

Beyond Coal: Why South Africa Should Reform and Rebuild Its Public Utility

By Dominic Brown - New Labor Forum, May 2021

Despite 2020’s record fall in carbon dioxide emissions—largely due to extensive and repeated “lockdowns” of cities, plus dramatic decreases in air travel and the use of motor vehicles[1]—the world is far from making the changes necessary to avert climate catastrophe. The fact that the shutdowns over periods of last year had a marginal effect in the fight against climate catastrophe at best illustrates the enormity of the task that lies ahead. According to a 2019 report from the World Meteorological Organization, “time is fast running out,”[2] while Fatih Birol, head of the International Energy Agency (IEA), observes “The pandemic and its aftermath can suppress emissions, but low economic growth is not a low emissions strategy. Only an acceleration in structural changes to the way the world produces and consumes energy can break the emissions trend for good.”[3]

In addition to ravaging health systems, the Covid-19 pandemic has exacerbated food and housing insecurity, deepened unemployment, and put a spotlight on existing inequalities. In South Africa, growing awareness of these problems has brought renewed hope in the possibility of a response to the pandemic crisis that could aim for a “just transition” to a low-carbon economy. Like other countries, South Africa is in desperate need of an energy transition. The South African economy remains disproportionately energy intensive[4] (although it is becoming less so), per capita emissions remain high,[5] and the country is the fourteenth largest contributor to global carbon emissions.[6] This energy and emissions profile reflects the historical and continuing dominance of the country’s “minerals-energy complex” (“MEC”)[7] which is supported by cheap electricity generated mostly from low-quality coal, while higher quality coal is exported.

Beyond its detrimental ecological impacts, South Africa’s MEC is deeply intertwined with the legacy of cheap Black labor in the mines and the formation of racialized capitalism. This structure of South Africa’s economy underpins the country’s massive inequality, serious health impacts for many thousands of people in mining affected communities, and the country’s disproportionate contribution to global emissions. This is why the shift to renewable energy (RE) in South Africa must include measures to ensure a just transition that leaves no worker or community behind while working to reverse the legacy of mass unemployment and deep socioeconomic inequalities.

The Political Economy of South Africa’s Energy Crisis

Since coming to power in 1994, South Africa’s government has promised “electricity for all” as a critical component in undoing the gross disparities of apartheid. This commitment has produced a dramatic rise in grid connections, such that more than 80 percent of households were connected to the grid by 2015, up from only 30 percent in 1994. Harder to shift have been the persistent levels of poverty and inequality. South Africa’s “Gini coefficient”— a global measure of inequality—today places the country as the world’s second most unequal, after neighboring Lesotho. With current unemployment at over 40 percent, many households cannot afford electricity, even when they are connected to the grid. The introduction of a provision for free basic electricity in 2004 was a step in the right direction, but at just 50 kWh per month for poor households that is insufficient to meet even basic requirements.

Since coming to power in 1994, South Africa’s government has promised “electricity for all” as a critical component in undoing the gross disparities of Apartheid.

Making matters worse, South Africa’s stateowned power utility, Eskom—which generates over 90 percent of energy consumed in the country—is in deep crisis. Eskom’s crisis has multiple dimensions and various causes, both internal and external, including (1) the 1980s era commercialization of Eskom; (2) postapartheid commitments to provide electricity to the majority of the country previously excluded, under the full cost recovery (FCR) model where the excluded majority are unable to afford rising electricity prices; (3) underinvestment in the utility’s infrastructure, particularly in building new capacity to meet increased demand; (4) conversion of the utility in 2002 to a public corporation, forcing it to pay taxes as well as dividends for the first time since its establishment almost a century earlier; (5) Eskom’s rising debt, dominated by foreign currency borrowed against the weak rand (R); (6) expensive coal contracts with windfall profits, signed in the name of promoting Black ownership in the coal industry; and (7) dramatic increases in the price of low-quality coal, upon which Eskom depends to generate electricity.[8]

Ireland’s Energy System: The Historical Case for Hope in Climate Action

By Sinéad Mercier - New Labor Forum, May 17, 2021

For thirty years, governments have been promising climate action. They seem incapable of undertaking the necessary major shifts in their energy systems required by the 2015 Paris Agreement. They also seem incapable of delivering on climate targets in a manner that both “leaves no one behind” and “reaches the furthest behind first,” as required by the 2030 Agenda for Sustainable Development, also agreed in 2015. In Ireland, we fall continually to the bottom of the rankings in climate action, with the current Fine Gael, Fianna Fáil, and Green Party coalition government failing to achieve a mere 16 percent target of renewable energy by 2020.[1]

There are lessons to be learned from the past. One hundred years ago, the two civil war parties—Fine Gael (then Cumann na nGaedheal) and Fianna Fáil—were united in their commitment to a state-owned energy system with an objective of universal access, public good, and public value. Irish state electricity generation started out in 1929 as being from almost 100 percent renewable sources.[2] The historical development of Ireland’s own energy system can be a model for a successful, fast paced national delivery program for a just transition and energy democracy. Ireland has previously made sweeping changes to the energy system, in a time of far greater difficulty, fewer resources, and almost intractable political fragility. The example is the establishment of the country’s—and the world’s—first state-owned national energy company, the Electricity Supply Board (ESB), and its roll-out of universal access to affordable electricity through the Rural Electrification Scheme (RES).

Administering Dreams

The Ireland of the 1920s presented unlikely circumstances for ambitious national projects of any kind. After three years of guerrilla warfare against the British Crown forces, a form of independence had been achieved by 1922. The young Irish Free State government of freedom fighters and idealists was to set out on its own with little source of economic development beyond the sale of cattle to Britain and with much of its populace in extreme poverty. In 1921, the Anglo-Irish Treaty was signed, giving independence to twenty six counties and leaving the six counties in the north east of Ireland under British rule. The signing of the Treaty caused a split in the founding Sinn Féin party between those opposing and supporting the Treaty. This sparked a bitter civil war from June 1922 to May 1923 that has marked Irish politics for a century. The pro-Treaty element formed Cumann na nGaedheal, today the centerright (Christian Democrat) party Fine Gael. A group of republicans led by Éamon de Valera broke away from Sinn Féin in 1926 and formed Fianna Fáil,[3] in protest at the Oath of Allegiance to the British Crown, which all members of Dáil Éireann (the Irish Parliament) were obliged to take. The Cumann na nGaedheal party was in office from 1922 to 1932. Laissez-faire economic and commercial orthodoxies of the 1920s, inherited from the British administration, and a reinstated civil service were largely the global order of the day.

One hundred years ago, the two civil war parties . . . were united in their commitment to a state-owned energy system with an objective of universal access, public good, and public value.

However, the young state took on a number of major interventions in the economy. Most notable were the Land Commission and the creation of Ireland’s state energy company, the ESB, and its primary power source, the Ardnacrusha Hydroelectric Power Station on the Shannon River—also known as the “Shannon Scheme.”[4] To deliver Ardnacrusha’s energy to the public, in 1927 the government established its first Irish state company, the ESB, through the Electricity (Supply) Act, 1927. This was to be the first national electricity service in the world, with full responsibility for the generation, transmission, distribution, and marketing o electricity.[5] From its beginnings, the aim of the ESB was not-for-profit, universal, and affordable access to electricity; “strong on technical expertise, with set targets and with the muscle, dynamism and freedom to achieve these targets.”[6] Attempts had been made to attract foreign investors, particularly from the United States, but “most of the big corporations objected to the government’s stipulation that unprofitable rural lines might have to be built without any guaranteed government subsidy.”[7] The Irish electricity industry had been in existence for forty years, yet the vast majority of the population had been left in darkness and drudgery. As a result of these failings, the fledgling Department of Industry and Commerce concluded that confining the ESB to mere distribution of the energy from the Shannon Scheme was likely to place the whole enterprise in “immediate jeopardy.”[8] The government therefore nationalized what was a piecemeal mess of three hundred expensive, “badly run,” inefficient private and local authority undertakings.[9]

Public energy companies necessary for a fair transition

By Dries Goedertier - Trade Unions for Energy Democracy, April 19, 2021

The debacle with the reversing electricity meter [also called “net-metering” in many contexts — a billing mechanism that credits solar capacity owners for electricity they feed into the grid] shows the limits of Flemish energy policy, which places the responsibility for the much-needed energy transition in the hands of the individual as consumer, investor and entrepreneur. For a socially just and democratic energy transition, the necessary efforts of energy cooperatives will not be sufficient. Only the state can regain control of the energy sector on behalf of, and for the benefit of, society as a whole.

Flemish energy policy has recently suffered from a severe heat stroke. The Constitutional Court has put an end to the reversing electricity meter. The decision dealt a heavy blow to those families who, after the (apparently worthless) guarantees of a bunch of liberal energy ministers about the legality of this particular support scheme, decided to install solar panels on their roofs before the deadline of January 1, 2021. Many of them feel cheated and that is certainly understandable. However, a critical inquiry should not stop there. The whole debacle shows the limits of an energy policy that places the responsibility for the much-needed energy transition in the hands of the individual as a consumer, investor and entrepreneur. 

“The sun has become a neoliberal investment product,” stated Dirk Holemans (Oikos). Holemans, together with Dirk Vansintjan (Ecopower & REScoop.EU), is arguing for a shift to a collective model in which citizens pool their resources and capacities in energy cooperatives. There is indeed a lot to be said for that. After all, energy cooperatives have a lot to offer in terms of democratic, social and ecological benefits. 

If we really want to democratize the energy sector in function of social and environmental objectives, then public energy companies will have to play a major part

In my opinion, however, the admirable self-organization of thousands of citizens will not be enough to break the dominance of the current for-profit energy model. The market power of the established players is simply too great for that. Only the state has the capacities, resources and potentially democratic legitimacy to regain control of the energy sector on behalf of and for the benefit of society as a whole. 

If we really want to democratize the energy sector in the service of social and ecological objectives, then public energy companies will have to play a major part. This does not have to be at the expense of energy cooperatives, as is sometimes incorrectly claimed. I am convinced that energy cooperatives in a public-driven model of energy democracy will actually have more opportunities to unleash their potential. But in order for that to happen, we must dare to question the liberalization of the energy sector. 

A Debate Over Carbon Capture in the Infrastructure Bill Could Test the Labor-Climate Alliance

By Rachel M Cohen - In These Times, April 15, 2021

President Biden wants to include carbon capture technology in his push for infrastructure investment. While unions are on board, some climate groups are keeping quiet for now.

In late March, President Joe Biden unveiled a $2.3 trillion infrastructure package, the American Jobs Plan, that his administration hopes to move forward this year. The plan would make major investments in improving physical infrastructure such as roads, schools and bridges while also creating good-paying jobs, expanding collective bargaining rights and funding long-term care services under Medicaid. 

The president’s plan also endorsed another proposal that a group of bipartisan lawmakers hope makes it into a final bill: expanding carbon-capture utilization and storage (CCUS) in the United States. The SCALE Act, introduced in mid-March by eleven senators and six House representatives, represents the country’s first comprehensive CO2 infrastructure and jobs bill. In describing the president’s infrastructure plan, the White House said it ​“will support large-scale sequestration efforts” that are ​“in line with the bipartisan SCALE Act.” 

The legislation, which would authorize $4.9 billion in spending over five years, would create programs to transport and store carbon underground. Its provisions include establishing low-interest loan programs modeled off of federal highway development programs, increasing EPA funding for permitting carbon storage wells, and providing grants to states to create their own permitting programs. Advocates point to countries such as Canada, Norway and Australia where elected officials have made similar investments in carbon storage infrastructure. 

The SCALE Act is notable both for the support it has, and hasn’t, received. Its early endorsers include a half-dozen industrial labor unions, centrist climate groups like the National Wildlife Federation, and energy companies like GE Gas Power and Calpine. Fossil fuel industry support for carbon-capture has historically been a top reason why progressive climate groups, meanwhile, remain skeptical of the idea, wary of subsidizing anything that amounts to corporate giveaways to some of the world’s worst polluters. While carbon-capture has long been a flashpoint in Democratic climate politics, most critics of the policy have stayed quiet on the SCALE Act for now.

Modeling released in December by the Princeton Net-Zero America Project found that construction of nearly 12,000 miles of pipelines capable of storing 65 million tons of CO2 per year would be needed by 2030 for the United States to reach net-zero emissions by 2050 — a stated goal of the Biden administration. The Clean Air Task Force, a climate advocacy group, says the SCALE Act programs are ​“consistent” with the quantity and timeline of infrastructure deployment needed to meet those goals.

To date, nearly all U.S. carbon-capture projects are situated near existing CO2 pipelines and Lee Beck, the CCUS policy innovation director at the Clean Air Task Force, says the SCALE Act’s goal would be to capture emissions from multiple sources and then transport the CO2 for storage elsewhere, as is currently being carried out through Canada’s Alberta Carbon Trunk Line System and Norway’s Northern Lights Project.

Supporters point to a number of recent scientific analyses that make the case for greater investment in carbon-capture. In February, the National Academies of Sciences released a report on decarbonizing the U.S. energy system which recommends that, over next decade, officials should focus on increasing deployment of carbon-capture technologies by a factor of ten while investing in permanent CO2 storage infrastructure. In 2020, the International Energy Agency warned that it would be ​“virtually impossible” to reach net-zero emissions without carbon capture technology, and the Intergovernmental Panel on Climate Change has said carbon capture is likely necessary to meet global climate targets. Supporters note that renewable energy sources like wind and solar are not viable alternatives for reducing carbon emissions in the industrial sector, which account for 32 percent of the United States’ energy use and nearly a quarter of its direct greenhouse gas emissions. 

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