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Resilient Societies or Fossil Fuel Bailouts?

By staff - Oil Change International - April 22, 2020

The COVID-19 crisis poses a threat to people’s health, their jobs and their lives, and like all crises, exacerbates already existing inequalities. Trillions in public finance will be needed to get through the current pandemic. This briefing outlines why continuing to rely on fossil fuels, in particular oil and gas, is not compatible with long-term recovery. It does not make sense to use the COVID-19 stimulus packages to try to revive a sunsetting industry which will not deliver on economic recovery, only to shut it down a few years later to meet climate goals.

Governments now face a choice: fund a just transition away from fossil fuels that protects workers, communities, and the climate — or continue funding business-as-usual toward climate disaster. Governments should invest in a green recovery that protects and creates long lasting jobs, resilient economies and accelerates climate action. This briefing details why this is the most effective route for recovery and lays out the dos and don’ts for governments in their response to the current crisis.

Key Recommendations (DO’s):

  • Ensure national and international equity and a just transition is at the heart of any government response to the current crisis.
  • Protect workers and communities affected by the crisis, including those in the oil and gas sector, and create long-lasting green jobs by investing in resilient infrastructure and emerging low carbon industries that will continue to create jobs for decades.
  • Ensure Green New Deal frameworks provide the basis for stimulus packages to help rewrite the social contract in a people-centered response to the current crisis. 
  • End fossil fuel subsidies and finance and ensure any carbon price reflects climate and equity imperatives in order to ensure renewables remain competitive and incentivize efficient energy use in light of low oil prices while supporting a just transition.
  • Introduce oil and gas production caps as a first step to limiting emissions. The world is running out of storage capacity and production limits are needed to ensure a managed decline of the industry.
  • Make decision-making processes and response measures transparent in order to allow public scrutiny.
  • Bring the oil and gas industry into public ownership in the right circumstances, as it may be the most straightforward path to ensure a just transition for workers and communities and a managed phase-out.
  • Link any support provided to the industry to a requirement to align with climate goals and plan for a managed decline.
  • Ensure the polluter pays principle is upheld. Broadly speaking, over the past few decades, the financial rewards of the industry have been privatized, while the risks have been socialized.

Key Pitfalls to Avoid (DON’Ts):

  • DON’T bail out oil and gas companies or increase fossil fuel subsidies.
  • DON’T bail out other polluting industries, such as the aviation and shipping industries.
  • DON’T continue the construction or operation of fossil fuel infrastructure at the expense of the health of workers and communities.
  • DON’T roll back existing policies or regulations, or extend licensing agreements.
  • DON’T delay responses to the climate crisis amid the flurry of immediate priorities. If anything, the current pandemic has shown that a crisis demands a timely response to prevent it from escalating further.

While the fossil fuel sector may struggle to return to business as usual, without policies aimed at emerging from the crisis with a cleaner energy system, surviving companies may be in a position to capitalize on rising oil prices as the cycle turns. There are currently no safeguards against a future price spike and subsequent return to the volatile boom-bust cycle. This briefing advises governments to adopt recovery measures that will ensure a just transition off oil and gas, accelerate climate goals and build resilient societies, and center people instead of corporate executives and shareholders — all while tackling today’s parallel health, economic, and climate crises at once.

Read the report (PDF).

Bargaining Electric Power: Miners, Blackouts, and the Politics of Illumination in the United States, 1965-1979

By Trish Kahle - Journal of Energy History, December 12, 2019

This article examines how the perils conjured by blackouts in American cities after 1965 became interpreted as a key point of political and bargaining leverage for the nation’s coal miners. The anxieties provoked by these blackouts –sexual deviance, urban unrest, spoiled food, lost productivity, and Cold War incursions– pointed to a broader crisis of American political and social life driven by the massive social changes which had taken place since the end of the Second World War. As the United States entered the 1970s, a long-range energy crisis appeared not only to secure the future of the once-imperiled coal industry in the United States, but also allowed miners to recast their union as a bedrock of national security rather than as one of the main sources of the nation’s labor unrest.

Evoking the threat of coerced darkness in the modern American home which had been designed for bright illumination, they also pointed to the figurative darkness of the coal mining workscape, described by one miner as “beating the devil at a game of hell”: the constant threat of black lung, disablement, and death. A form of collective bargaining leverage thus opened up a broader debate: how, given the deadly work of coal extraction, could energy be produced in a democratic society that guaranteed the right to life, liberty, property, and, increasingly, light? Did “one man” have to “die every day” to keep the nation’s lights on? This paper argues that miners used the framework of lights and darknesses to contend that mines must be made safe and energy democratized in order to stabilize the energy regime in crisis. In so doing, they framed a new politics of illumination which allowed them to navigate a new terrain of collective action.

Read the text (PDF).

Remaking Our Energy Future: Towards a Just Energy Transition (JET) in South Africa

By Richard Halsey, Neil Overy, Tina Schubert, Ebenaezer Appies, Liziwe McDaid and Kim Kruyshaar - Project 90 by 2030, September 19, 2019

A just transition (JT) is a highly complex topic, where the overall goal is to shift to systems that are better for people and the planet, and to do so in a fair and managed way that “leaves no one behind”. A JT is about justice in the context of fundamental changes within the economy and the society.

Both of these areas are extremely contested, consensus is hard to achieve, and people are generally resistant to change. A JT confronts “business as usual” and threatens powerful vested interests in certain economic sectors. In recent years, a vast amount of literature on the subject has been published, and in South Africa the conversation has picked up pace. The urgency of acting now is indisputable.

While a JT can apply to many sectors and industries, this publication focuses on energy. In addition to being a major contributor to climate change, environmental damage and impacts on human health, the energy sector (particularly Eskom), is facing significant challenges in South Africa. We fully acknowledge that energy is linked to other sectors such as transport, agriculture, water and land use, and that a just energy transition (JET) is a part of a wider JT. While the focus of this report is on one sector, we do so recognising that it is linked to other parts of a larger system in many ways.

Our approach was to look at what we can learn from international experience, to combine that with what has already been done in South Africa, and to make recommendations about how to move forward. This publication focuses on the shift from coal to renewable energy (RE), mainly for electricity generation. We are well aware that a movement away from fossil fuels (coal, oil and gas) is far more than just moving from coal to RE, but as discussed in Chapter 3, this particular transition is the obvious starting point in South Africa. The lessons and recommendations presented here can also be adapted to other fossil fuel sectors. While the focus of this study is on coal, a big picture perspective of the energy system is crucial. South Africa must adopt an integrated planning approach, for energy and other sectors.

Read the text (PDF).

Who is Included in a Just Transition?: Considering social equity in Canada’s shift to a zero-carbon economy

By Hadrian Mertins-Kirkwood and Zaee Deshpande - Adapting Canadian Work and Workplaces to Respond to Climate Change, August 2019

As the international community moves to act on the climate crisis, governments are increasingly being forced to reckon with the social and economic costs of climate policies. The production and consumption of fossil fuels is the primary driver of global heating, so shifting to cleaner alternatives is necessary for long-term environmental and economic sustainability. However, the global economy is highly dependent on fossil fuels, so declines in the production and consumption of coal, oil and natural gas have the potential to negatively impact large numbers of workers and their communities in the short to medium term. In Canada alone, the fossil fuel industry accounts for hundreds of thousands of jobs and more than $100 billion dollars worth of economic output.

Efforts to reduce emissions from the fossil fuel sector have provoked calls for governments to ensure the transition to a cleaner economy is a just transition for affected workers and communities. The concept of a “just transition” for fossil fuel workers has long existed within the North American labour movement, but only in the past few years has it gained mainstream international attention. The 2015 Paris Agreement acknowledged the “imperatives of a just transition of the workforce.” And in 2018, more than 50 countries signed the Solidarity and Just Transition Silesia Declaration, which highlights the essential role of a just transition in the broader fight against climate change.

In Canada, the phrase “just transition” only began appearing in official policy documents around the time of the Paris Agreement, but it is now a formal priority for several governments across the country. Canada’s recent adoption of just transition principles has emerged almost exclusively in the context of the government-mandated phaseout of coal-fired electricity generation. Under a patchwork of provincial and federal policies, nearly all coal power plants and their associated coal mines will be shuttered by 2030.3 To mitigate the costs of the phaseout to coal workers and coal towns, the provincial government of Alberta — home to the largest share of the coal industry — together with the federal government have implemented or announced a variety of just transition policies since 2016. Targeted programs include income support and skills retraining for coal workers as well as infrastructure investments in affected communities. These governments continue to explore initiatives to provide support to coal communities as they undergo the transition to a cleaner economy.

Read the report (PDF).

Solidarity for Climate Action

By staff - Blue Green Alliance, July 2019

Americans face the dual crises of climate change and increasing economic inequality, and for far too long, we’ve allowed the forces driving both crises to create a wedge between the need for economic security and a living environment. We know this is a false choice—we know that we can and must have both, and we need a bold plan to address both simultaneously.

Many solutions are already being put into place across the country. For example, tradespeople built the Block Island offshore wind project off the coast of Rhode Island, autoworkers are on the factory floors building cleaner cars and trucks in Michigan, and previously unemployed workers in St. Louis and Los Angeles are gaining access to high-skilled jobs in energy efficiency retrofitting, pipefitting, and transit manufacturing, while mine workers are extracting palladium to be used in catalytic converters. These are all good, union jobs building a clean energy and climate-resilient economy today.

At the same time, not enough of the new jobs that have been created or promised in the clean energy economy are high-quality, family-sustaining jobs, nor are these jobs in the same communities that have seen the loss of good-paying, union jobs.

Wildfires, hurricanes, heat waves, droughts, and sea-level rise driven by climate change are hurting communities across the country and will only worsen if we don’t take decisive action. Lower income workers and communities of color are hit the hardest and are less able to deal with these impacts as wages have fallen and their economic mobility and power in the workplace has declined.

It is critical that working people are front and center as we create a new economy: one that values our work, our families, our communities, and our environment. It is with that imperative that we call for a new plan to create jobs and protect the environment for the next generation. This plan must respond to the climate crisis on the scale that science demands, while simultaneously addressing inequality in all its forms.

Read the report (PDF).

Energy commons: from energy transition to climate justice

By Cécile Blanchet - ROARMag, June 19, 2019

In 2019, only oil lobbyists and shabby orange politicians persist in denying the influence of human activities on the Earth’s climate. Scientific evidence is piling up and we know that we must change our ways. The concept of energy transition has become mainstream.

However, governments have remained remarkably motionless. They are so inactive that kids have started school strikes and demand climate justice in front of the United Nations’ Conference of Parties. They are so immobile that citizen groups actually sue their governments for their lack of climate action. And when governments attempt to do something, it is so unjust that people take to the streets even during the coldest months of the year, screaming, filled with rage and frustration.

Our leaders have forgotten that the poorer half of our societies should not have to clean up the mess produced by the richest half. That it should not be our kids cleaning up our mess.

Doing It Ourselves

Facing a lack of political will, an interesting and vivid grassroots movement has taken shape to reclaim our energy systems. From households to city politics, and even at the European level, there has been an unprecedented involvement from the public into energy and electricity matters. For example, in the shape of energy cooperatives.

According to the European Federation of renewable energy cooperatives, RESCOOP, there are at present some 1,250 energy communities in which a million people throughout Europe are involved. Through the RESCOOP federation, these groups actively lobby at a European level to bend the legislation towards promoting and supporting energy cooperatives.

This model of energy cooperativism originated in Germany in the late 1990s and was enabled by a set of disruptive laws supporting the production of renewable energy. This bill kick-started the German energy transition (dubbed “Energiewende”), which has become a landmark and is being widely copied.

The two main pillars were defined in the Feed-In Act of 2000: the priority of renewable sources to the grid and feed-in tariffs (fixed prices paid for renewable energy).

The particularity of this framework is that it has enabled small players to enter the game. Citizen cooperatives and households have especially benefited, because a fixed price for each kilowatt hour (KWH) could be sold back to the grid, which gave them more space to invest in new technologies.

From the late 1990s onwards, the number of cooperatives in Germany has grown exponentially, reaching 900 in 2019, representing the majority of energy cooperatives in Europe. It is a model that comes with many advantages. Let’s virtually visit one of these cooperatives together.

Sea Change: Climate Emergency, Jobs and Managing the Phase-Out of UK Oil and Gas Extraction

By Greg Muttitt, Anna Markova, and Matthew Crighton - Oil Change International, Platform, and Friends of the Earth Scotland, May 2019

This new report released by Oil Change International, Platform and Friends of the Earth Scotland shows that a well-managed energy transformation based on Just Transition principles can meet UK climate commitments while protecting livelihoods and economic well-being, provided that the right policies are adopted, and that the affected workers, trade unions and communities are able to effectively guide these policies.

This report examines the future of UK offshore oil and gas extraction in relation to climate change and employment. It finds that:

  • The UK’s 5.7 billion barrels of oil and gas in already-operating oil and gas fields will exceed the UK’s share in relation to Paris climate goals – whereas industry and government aim to extract 20 billion barrels;
  • Recent subsidies for oil and gas extraction will add twice as much carbon to the atmosphere as the phase-out of coal power saves;
  • Given the right policies, job creation in clean energy industries will exceed affected oil and gas jobs more than threefold.

In light of these findings, the UK and Scottish Governments face a choice between two pathways that stay within the Paris climate limits:

  1. Deferred collapse: continue to pursue maximum extraction by subsidising companies and encouraging them to shed workers, until worsening climate impacts force rapid action to cut emissions globally; the UK oil industry collapses, pushing many workers out of work in a short space of time. Or:
  2. Managed transition: stop approving and licensing new oil and gas projects, begin a phase-out of extraction and a Just Transition for workers and communities, negotiated with trade unions and local leaders, and in line with climate change goals, while building quality jobs in a clean energy economy.

The report recommends that the UK and Scottish Governments:

  • Stop issuing licenses and permits for new oil and gas exploration and development, and revoke undeveloped licenses;
  • Rapidly phase out all subsidies for oil and gas extraction, including tax breaks, and redirect them to fund a Just Transition;
  • Enable rapid building of the clean energy industry through fiscal and policy support to at least the extent they have provided to the oil industry, including inward investment in affected regions and communities;
  • Open formal consultations with trade unions to develop and implement a Just Transition strategy for oil-dependent regions and communities.

Read the text (PDF).

Trading Up Equipping Ontario Trades With the Skills of the Future

By staff - Canada Green Building Council, April 2019

Equipping Canada’s labour force with the skills required for designing, constructing and maintaining low-carbon building infrastructure is critical to achieving a greener economy and to reducing Canada’s emissions by 30% below 2005 levels by 2030. We are pleased to support Canada’s green building industry with a new report, Trading Up: Equipping Ontario Trades with the Skills of the Future, aimed at facilitating a low carbon workforce transition.

This report provides an action plan to close the low-carbon building skills gap in the Ontario construction industry. Green infrastructure investments are expected to create an estimated 147,000 job openings for skilled tradespeople over the next 15 years in the Toronto region alone. The inability to close the skills gap in Ontario is estimated to have an impact of $24.3 billion of Gross Domestic Product (GDP) in foregone company revenues, with an additional $3.7 billion lost in foregone taxation.

The report identifies where shortages in low-carbon skills training currently exist, and highlights the risks to the quality of low-carbon buildings being constructed. It defines specific actions that labour, governments, post-secondary institutions and industry organizations can take to optimize green building skills training.

The “Trading Up” report was compiled by CaGBC with Mohawk College, McCallumSather, The Cora Group, the City of Toronto and the Ontario Building Officials Association (OBOA). The project was funded, in part, by the Government of Ontario. While the report examines the Ontario construction industry, its recommendations can be applied throughout Canada.

Read the text (PDF).

An Ecosocialist Green New Deal: Guiding Principles

By the DSA Ecosocialist Working Group - Democratic Socialists of America - February 28, 2019

The IWW has not endorsed this document; however, individual members of the IWW EUC have helped shape it.

Humankind has reached a moment of existential crisis. Human activity is causing disastrous climate disruption and Earth’s sixth mass extinction event, triggering critical losses of biodiversity. We are already locked in for global warming that will have catastrophic effects, and we are on a slippery path to our own extinction. The 2018 Special Report from the Intergovernmental Panel on Climate Change (IPCC) warns unequivocally that “without societal transformation and rapid implementation of ambitious greenhouse gas reduction measures, pathways to limiting warming to 1.5°C and achieving sustainable development will be exceedingly difficult, if not impossible, to achieve.”

Yet, the crisis we face exceeds ecological breakdown. Deepening inequality, suppressed democracy, precarious jobs, racial and gendered violence, border hostility, and endless wars make up the terrain on which climate destabilization will be unleashed. The most vulnerable members of society will be hit hardest, first, and suffer most.

We must solve the climate crisis and the inequality crisis together. Climate remedies in the context of austerity will produce a popular backlash, as we see in the yellow vest protests against a fuel tax. Corporations profiting from fossil extraction have long worked to turn workers against environmentalists, claiming that clean energy would be a job killer. But working class and poor people’s quality of life, gravely threatened by climate disruption, would greatly improve in a just transition. Because corporate capitalism rewards extraction to concentrate wealth, it must be replaced by a sustainable economy. A Green New Deal can begin the transition from exploitative capitalism to democratic ecological socialism.

The urgency and scale of the crisis we face demand solutions that meet the magnitude of this moment. The ineffectual gradualism and corporate obedience demonstrated by the U.S. government’s climate response has proven to be a dead-end for humanity. We need rapid, systemic transformation that heals the stratification of wealth and power while putting decarbonization and justice at the forefront.

We need a Green New Deal. We demand a Green New Deal, and we demand that it serve people and planet—not profit.

Read the report (PDF).

Energy Democracy: Taking Back Power

By Johanna Bozuwa - Next System Project, February 27, 2019

Executive summary

Electric utility (re)municipalization is gaining popularity as a strategy to shift away from a reliance on fossil fuel extraction in the context of combating climate change. Across the world—from Berlin to Boulder—communities have initiated campaigns to take back their power from investor-owned (private) utilities and create publicly owned and operated utilities. Moreover, such efforts are increasingly taking on the perspective and language of energy democracy.

Energy democracy seeks not only to solve climate change, but to also address entrenched systemic inequalities. It is a vision to restructure the energy future based on inclusive engagement, where genuine participation in democratic processes provides community control and renewable energy generates local, equitably distributed wealth (Angel, 2016; Giancatarino, 2013a; Yenneti & Day, 2015). By transitioning from a privately- to a publicly owned utility, proponents of energy democracy hope to democratize the decision-making process, eliminate the overriding goal of profit maximization, and quickly transition away from fossil fuels.

Utilities are traditionally profit-oriented corporations whose structures are based on a paradigm of extraction. Following the path of least resistance, they often burden communities who do not have the political or financial capital to object to the impacts of their fossil fuel infrastructure. Residents living within three miles of a coal plant, for instance, are more likely to earn a below-average annual income and be a person of color (Patterson et al., 2011); similar statistics have been recorded for natural gas infrastructure (Bienkowski, 2015).

These utilities are in a moment of existential crisis with the rise of renewables. From gas pipelines to coal power plants, their investments are turning into stranded assets, as political leaders and investors realize that eliminating fossil fuels from the energy mix is paramount to creating healthy communities and stemming climate change.

Unfortunately, often publicly owned utilities in the United States have similar energy generation profiles to their privately owned counterparts (American Public Power Association, 2015). This paper explores the extent to which publicly owned utilities are reticent to take on the new energy paradigm and evaluates their ability to provide energy democracy compared to investor-owned utilities.

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