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Facing Fossil Fuels’ Future: Challenges and Opportunities for Workers in Canada’s Energy and Labour Transitions

By Teika Newton and Jamie Kirkpatrick - Climate Action Network and BlueGreen Canada, September 2021

Canada has a climate plan but it does not lay out a plan for the future of oil and gas extraction that aligns with the goal to limit global warming to 1.5°C, leaving workers and communities with an uncertain future. The Canada Energy Regulator warns that the future of oil sands extraction, which makes up 62 percent of Canada’s oil output, is uncertain due to the projected drop in the future oil demand as the global pace of decarbonization increases.

Meanwhile, a study backed by the UN Environment Programme further states that global oil and gas output would have to decline by over one third by 2030 and over one half by 2040 to achieve the goal of limiting warming to 1.5°C. In early 2021, the International Energy Agency, one of the world’s foremost authorities on global energy forecasting, published a landmark report, Net Zero by 2050, in which the agency declared that oil and gas output should be constrained to existing operations in order to meet the 1.5°C temperature goals articulated in the Paris Agreement. Constraining Canadian oil and gas output to existing fields approximates a similar rate of phaseout to that proposed by the UNEP-backed report.

he Canadian oil and gas industry, including upstream activities, pipelines, and services, provides approximately 405,000 jobs - 167,000 direct jobs and 238,000 jobs across supply chains. In response to oil price crises, industry’s solution to protect profits has historically been to slash jobs while maintaining output. As a result the number of jobs per barrel of output has already fallen by 20% since 2000.

While oil and gas jobs have significantly better compensation and training provisions than most sectors in the economy, these jobs are also somewhat more precarious and have higher health and safety risks. Union density is higher but is also falling at a more rapid rate than in oth-er industries.8 Finally, automation is projected to threaten between 33%-53% of Canadian oil and gas jobs by 2040.

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Reclaiming Hydrogen for a Renewable Future: Distinguishing Fossil Fuel Industry Spin from Zero-Emission Solutions

By Sasan Saadat and Sara Gersen - Earth Justice, August 2021

To chart a course toward a safer climate and more habitable planet, we must rapidly reduce emissions of greenhouse gases across our society. The biggest contributor to greenhouse gas emissions is the burning of fossil fuels. Consequently, the clearest path to reducing emissions is to switch from fossil fuels to renewable, zero-emission energy in our transportation, buildings, and power generation (sectors that are collectively responsible for about 75% of United States’ greenhouse gas emissions). This transition would make significant strides in eliminating the devastating public health impacts of pollution throughout the life cycle of fossil fuels—pollution that is most severely concentrated in Black, Brown, Indigenous, and poor communities. A just transition will also require careful policy design and meaningful engagement from frontline communities. Renewable energy, energy efficiency, and electrification are zero-emission solutions that eliminate both greenhouse gases and health-harming air pollution. To meet the scale and urgency of the climate crisis will require deployment of renewable resources on an unprecedented scale— ultimately achieving 100% clean power generation—and a complete transition to efficient, electric models for things like household appliances and cars.

As we electrify everything that can feasibly plug into a clean power grid, “green hydrogen” is a promising tool for transitioning to renewable energy in sectors that lack a viable route to direct electrification. Green hydrogen is hydrogen produced by using 100% renewable electricity to split water molecules.

To understand the potential role of green hydrogen, consider the challenges of cutting climate pollution from one hard-to-electrify sector: maritime shipping. Maritime travel is difficult to decarbonize because battery-powered ocean-going vessels will not be able to handle long-haul voyages across the ocean, at least for the foreseeable future. The hope for green hydrogen is that it may store energy from clean electric resources like wind and solar in a fuel that could be used to propel large, long-haul ships. This vision is at least a decade away from reality, if it overcomes the challenges to cost-effective production and efficient on-vessel storage. Still, it offers a path to displacing the highly polluting bunker fuel currently relied on to move much of the world’s goods across oceans.

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US Energy Transition Presents Organized Labor With New Opportunities, But Also Some Old Challenges

By Delger Erdenesanaa - Inside Climate News, July 27, 2021

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

Two years ago, Skip Bailey noticed a lot of trucks from a company called Solar Holler driving around Huntington, West Virginia. A union organizer with the International Brotherhood of Electrical Workers, Bailey saw an opportunity.

“We want to get in on the solar business,” he said, predicting the industry will grow in his home region, which includes historic coal communities in West Virginia, Kentucky and Ohio.

Bailey talked to Solar Holler about unionizing its employees who install photovoltaic panels on homes. IBEW showed the company its local training facility for electricians, and explained the health insurance and pension plans it offers. 

“It wasn’t a hard sell in either direction,” said the company’s founder and CEO, Dan Conant. He was already interested in securing union protections for his employees when Bailey contacted him, he said. The move fit with Solar Holler’s dedication to West Virginia’s legacy of energy production and strong union membership.

“It was not just good business, but it just really spoke to our history as a state,” he said.

Conant and Bailey’s efforts paid off in March 2020, when IBEW Local 317 and Solar Holler signed a contract. It’s just a start—Solar Holler only has about 20 unionized employees—but the agreement is an early example of the future Joe Biden is promising. The president frequently pledges to create millions of jobs while transitioning the U.S. to clean energy. Every time he does, he’s quick to add that these will be “good, union jobs that expand the middle class.”

“It’s a great talking point,” said Joe Uehlein, president of the Maryland-based Labor Network for Sustainability, an advocacy group pushing to unionize green jobs. But he added that Biden faces a difficult balancing act to achieve his pledge. 

Combatting Climate Change, Reversing Inequality: A Climate Jobs Program for Texas

By Lara R. Skinner, J. Mijin Cha, Hunter Moskowitz, and Matt Phillips - ILR Worker Institute, Cornell, July 26, 2021

Texas is currently confronted by three major, intersecting crises: the COVID-19 public health pandemic and ensuing economic crisis; a growing crisis of inequality of income, wealth, race and power; and the worsening climate crisis, which continues to take its toll on Texans through hurricanes, major flood events, wildfires, debilitating heat waves and the significant economic cost of these extreme weather events. These crises both expose and deepen existing inequalities, disproportionately impacting working families, women, Black, Indigenous and people of color (BIPOC) communities, immigrants, and the most vulnerable in our society.

A well-designed recovery from the COVID-19 global health pandemic, however, can simultaneously tackle these intersecting crises. We can put people to work in high-quality, family- and community-sustaining careers, and we can build the 21st century infrastructure we need to tackle the climate crisis and drastically reduce greenhouse gas emissions and pollution. Indeed, in order to avoid the worst impacts of the climate crisis, it is essential that our economic recovery focus on developing a climate-friendly economy. Moreover, there are significant jobs and economic development opportunities related to building a clean energy economy. One study shows that 25 million jobs will be created in the U.S. over the next three decades by electrifying our building and transportation sectors, manufacturing electric vehicles and other low-carbon products, installing solar, wind and other renewables, making our homes and buildings highly-efficient, massively expanding and improving public transit, and much more.

Conversely, a clean, low-carbon economy built with low-wage, low-quality jobs will only exacerbate our current crisis of inequality. The new clean energy economy can support good jobs with good benefits and a pipeline for historically disadvantaged communities to high-quality, paid on-the-job training programs that lead to career advancement. Currently, the vast majority of energy efficiency, solar and wind work is non-union, and the work can be low-wage and low-quality, even as the safety requirements of solar electrical systems, for example, necesitate well-trained, highly-skilled workers.

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Industrial Consumption: A largely invisible yet decisive underlying cause of the crisis

By Justiça Ambiental! and WoMIN - World Rainforest Movement, July 9, 2021

Industrial consumption is an intrinsic aspect of capitalist’s logic of increasing accumulation. It is also an underlying cause of the current crisis, which is being reinforced by initiatives promoting a ‘green’ label for the same production chains. This article highlights the voices of Justiça Ambiental! in Mozambique and the African ecofeminist alliance WoMIN.

This article highlights the voices of two organizations: Justiça Ambiental! (JA!) in Mozambique, which is accompanying the struggles in Cabo Delgado against the extraction of offshore and inland gas deposits; and WoMIN, an African ecofeminist alliance that works with movements of women and communities impacted by mining activities.

The world is in the midst of a serious and manifold crisis, one that brings together concerns over environmental devastation, climate chaos, loss of biological diversity, large-scale deforestation, social inequality, food insecurity, increasing poverty levels, and the concentration of power and land into fewer hands. And the list could go on and on. Industrial consumption is a vital aspect of what is driving this crisis, that is, an underlying cause. These are causes that operate on a global scale and consist of economic, political and social components that influence each other.

It is important to remark that the term industrial consumption should be understood not as the individual act of consuming, but rather as a consequence of the systemic logic of the capitalist economy of ever increasing accumulation. That means that each company, in order to make more profits, needs to grow and, in many cases, produce more and promote bigger and new markets for expansion; but to produce more, a company also needs to consume more resources (particularly energy, land and water).

Massive amounts of energy, from different sources, are distributed to industries to feed their production chains. Thousands of hectares of fertile land are turned into cash crops for industrial purposes. Mines and industrial plantations around the world siphon off and pollute enormous amounts of already scarce water sources. (1) Land is increasingly under the control of fewer individuals. Each day, enormous quantities of herbicides, insecticides, fungicides and fertilizers are produced and used by tree plantation companies and other agribusiness sectors. Minerals and fossil fuels continue to be extracted and transported across the globe via long and frequently militarized corridors of pipelines, waterways and roads. Ports, airports, highways and storage units are constantly being built and expanded to facilitate faster and cheaper connections between industries and markets. And so on. This systemic logic of ever-increasing production and consumption reinforces, at the same time, models of structural oppression, racism and patriarchy.

Industrial consumption, by and large, is now being reinforced by official and corporate initiatives trying to promote a new ‘green’ label for the same economic model. The targets set by companies and governments to reduce pollution, deforestation and biodiversity loss are mostly presented next to economic packages endorsing economic growth, free trade and globalized capitalism. And what does this mean? Basically, more industrial consumption and production. Likewise, the so-called ‘green’ or ‘low carbon’ economy is being promoted alongside market-based policies that pretend to offset the pollution and destruction that is intrinsic to such an economic model. In a nutshell, the so-called ‘transition’ aims to maintain and allow the same economic model that is actually driving the crisis to continue uninterrupted.

As the US Pursues Clean Energy and the Climate Goals of the Paris Agreement, Communities Dependent on the Fossil Fuel Economy Look for a Just Transition

By Judy Fahys - Inside Climate News, June 28, 2021

Perhaps the proudest achievement of Michael Kourianos’ first term as mayor of Price, Utah was helping to make the local university hub the state’s first to run entirely on clean energy. It’s a curious position for the son, brother and grandchild of coal miners who’s worked in local coal-fired power plants for 42 years.

Kourianos sees big changes on the horizon brought by shifts in world energy markets and customer demands, as well as in politics. The mines and plants that powered a bustling economy here in Carbon County and neighboring Emery County for generations are gone or winding down, and Kourianos is hoping to win reelection so he can keep stoking the entrepreneurial energy and partnerships that are moving his community forward.

“That freight train is coming at us,” he said. “You look at all the other communities that were around during the early times of coal, they’re not around.

“That’s my fear,” he said. “That’s my driving force.”

New research from Resources for the Future points out that hundreds of areas like central Utah are facing painful hardships because of the clean-energy transformation that will be necessary if the United States hopes to reach the Paris agreement’s goals to slow climate change. Lost jobs and wages, a shrinking population and an erosion of the tax base that supports roads, schools and community services—they’re all costs of the economic shift that will be paid by those whose hard work fueled American prosperity for so long. 

“If we can address those challenges by helping communities diversify, helping people find new economic growth drivers and new economic opportunities, that might lessen some of the opposition to moving forward with the ambitious climate policy that we need,” said the report’s author, Daniel Raimi, who is also a lecturer at the Gerald R. Ford School of Public Policy at the University of Michigan.

Meeting the Paris agreement’s target of keeping global temperature rise “well below 2 degrees C” by the end of the century means Americans must burn 90 percent less coal over the next two decades and half as much oil and natural gas, Raimi said.

And less fossil fuel use will also affect employment, public finances and economic development region-by-region, according to Raimi. In 50 of the nation’s 3,006 counties, 25 percent or more of all wages are tied to fossil fuel energy, he notes. In 16 counties, 25 percent or more of their total jobs are related to fossil energy.

All Hands on Deck: An assessment of provincial, territorial and federal readiness to deliver a safe climate

By Nichole Dusyk, Isabelle Turcotte, Thomas Gunton, Josha MacNab, Sarah McBain, Noe Penney, Julianne Pickrell-Barr, and Myfannwy Pope - Pembina Institute, July 22, 2021

Unlocking a prosperous future for all will require bold, ambitious action on climate from governments across Canada.

To measure readiness to act on climate, Pembina Institute in collaboration with Simon Fraser University’s School of Resource and Environmental Management assessed the performance of provinces, territories, and the federal government on 24 policy indicators across 11 categories. The indicators represent foundational climate policies and measures to reduce emissions in key sectors of the economy. Governments were invited to review the accuracy and completeness of the data and summary for their region prior to publication.

The assessment shows that there have been important examples of climate leadership and success across the country. Yet, progress made — for example with economy-wide carbon pricing and the phase-out of coal-fired electricity — has been offset by emissions increases elsewhere. In particular, emissions from transportation and oil and gas production have been on a steady upward trajectory since 2005. As a result, Canada’s overall greenhouse gas (GHG) emissions have dropped by only 1% between 2005 and 2019. Modelling that includes the federal climate policy published in December 2020 shows a national emissions reduction of 36% below 2005 levels by 2030 — still short of the federal government’s commitment to reduce emissions by 40-45% by 2030.

Read the Report (PDF).

Biden Says He Backs a Just Transition for the Climate Crisis. Advocates Say, “Prove It.”

By Rachel M. Cohen - In These Times, June 2, 2021

While the administration has taken some early steps to provide support for energy workers and frontline communities in the transition away from fossil fuels, experts and activists say the crisis demands a more transformative approach.

One of the most difficult problems that political leaders have faced in addressing climate change has not involved the science or technology, but the politics, including bringing key constituencies like energy workers and their labor unions on board. This skepticism and resistance to change is why a so-called ​“just transition” — referring to an ethical and economically secure shift away from a fossil-fuel powered economy — has become so integral to crafting a successful climate plan. 

Figuring out how to provide economic security for both energy workers that have depended on the nation’s fossil fuels and frontline communities has become a leading priority for activists and elected officials alike. The Biden administration, for its part, has thrown its weight behind developing a just transition, though some advocates tell In These Times that federal leaders haven’t gone far enough, or worry the executive branch’s rhetoric won’t deliver real results. Other researchers have called for more careful study of past economic transitions, as well as more firm commitments around social programs such as universal healthcare. 

On January 27, one week after taking office, Biden signed an executive order establishing an interagency working group focused on addressing the economic needs of ​“coal, oil, gas, and power plant communities.” The group, co-chaired by National Economic Council director Brian Deese and National Climate Adviser Gina McCarthy, is a collaboration between 12 federal agencies including the labor, interior, treasury and energy departments. 

In late April the working group published an initial report identifying 25 of the most impacted regions for coal-related declines, and highlighted existing federal programs that could provide nearly $38 billion in funding for relief. The report noted that ​“creating good-paying union jobs in Energy Communities is necessary but not sufficient” and stressed that ​“foundational infrastructure investments” including broadband, water systems, roads, hospitals and other institutions would be necessary to economically revitalize these areas. The group also noted that a just transition would require prioritizing pollution mitigation and environmental remediation, like plugging leaking oil and gas wells and reclaiming abandoned mine land. These objectives hold the potential not only for job creation but also achieving environmental justice priorities.

Offshore Oil and Gas Goal for Inclusion in the Regulations of The Sustainable Development Goals Act

By Noreen Mabiza - Ecology Action Center, June 2021

RECOMMENDED GOAL:

Offshore oil and gas development is phased out by 2030 in away that ensures a just transition for workers. Drilling in allprotected areas is banned.

RATIONALE:

There is currently no oil and gas production in NovaScotia’s offshore however actions by the provincialgovernment indicate a desire to keep growing theindustry. In March 2021 the provincial budget indicated anincreased investment in Nova Scotia’s offshore ($10 millioncompared to $1.8 million for renewables). In May 2021, theC-NSOPB announced a call for bids on parcels of landoffshore and if successful would grant a license to explore.

If the province expands offshore oil and gas, allassociated emissions with extraction and production willbe counted towards our emissions inventory while use ofthe fossil fuels will be attributed to the end user. In otherwords, Nova Scotia will not only continue to add to itsemissions through production but is also contributing tocontinued fossil fuel use elsewhere. What the provinceneeds to focus on as we work towards achieving net-zeroby 2050 is a shift away from fossil fuels and the justtransition of fossil fuel workers to green jobs.

Just transition is a social justice framework for facilitatingthe shift to a zero-carbon economy. A just transition of theoil and gas sector would mean that the costs of phasingout the fossil fuels are not unfairly borne by the workersand that the benefits of a clean economy are fairlydistributed. Key components of this transition includecentering the voices of workers, reskilling and upskillingthe workforce and shifting investments from fossil fuelstoward green jobs.

Read the text (PDF).

Jobs and equitable transition: Bridging the chasm between rhetoric and action

By Sean O'Leary - Ohio River Valley Institute, May 26, 2021

There was a time when the sight of rows of office workers hammering away at their Friden adding machines would have sent me into paroxysms of delight because I, the Victor Comptometer salesman, had a new and better “programmable calculator” that could kick the Friden’s ass.

I was a young 1970s college graduate entering the workforce at the tail end of the era of mechanical business automation. Typewriters, adding machines, and mechanical cash registers were still the workhorses of stores and offices.

Behind all that machinery were companies – Burroughs, Monroe, Friden, Victor – whose names were as familiar then as Cisco, Oracle, and SAP are today. And those companies supported factories, sales offices, and repair facilities that provided living wage jobs to hundreds of thousands of workers and their families.

Then, within a little more than a decade, it was all gone. A year after I fizzled as a Victor salesman, I was playing at home with my new Radio Shack TRS-80 home computer and five years later, instead of an adding machine and typewriter on my desk at work, there sat an Apple II desktop computer, precursor to the Mac.

Gone too were those hundreds of thousands of jobs plunging not only workers and families, but entire communities, into financial crisis. One could argue that Dayton, Ohio, once home to National Cash Register and the business forms giant, Standard Register, never recovered.

The knock-out blow suffered by the office automation industry was as ferocious and sudden as the one that hit the American steel industry a few years earlier, the textile industry a few decades before that, and also as the one that possibly faces workers in the fossil fuel economy today.

So how did we as a society help displaced workers and communities manage the economic consequences of the transition from the mechanical workplace to a digital one? We didn’t. Thanks to the New Deal, we had unemployment insurance and Medicare and Medicaid were brand spanking new. But that was about it – a little help for individuals and families and none whatsoever for communities.

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