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Oil well clean-up can create jobs; but not the way Alberta spent Green Recovery funding

By Elizabeth Perry - Work and Climate Change Report, July 15, 2021

The Big Cleanup: How enforcing the Polluter Pay principle can unlock Alberta’s next great jobs boom was released in June by the Alberta Liabilities Disclosure Project . It makes thirteen recommendations, including the creation of an independent, non-profit Reclamation Trust to wind down end-of-life companies and use their remaining revenue to fund the cleanup of their wells. The report states that implementing all its recommendations will create 10,400 jobs and generate $750 million in wages, and contribute nearly $2 billion Alberta’s Gross Domestic Product annually for the next 25 years. The report also includes new calculations and analysis on the growing crisis of Alberta’s oil and gas well liabilities, stating that the average projected cost of cleaning up Alberta’s over 300,000 unreclaimed oil and gas wells is $55 billion dollars, with the top 20 Alberta municipalities alone facing $34 billion in cleanup liabilities in their boundaries.

In April 2020, the government of Canada announced its Covid-19 Economic Response Plan, including $1.72 billion directed toward the cleanup of inactive and abandoned oil and gas infrastructure across the western provinces. $1 billion of this funding was directed to Alberta. Dianne Saxe, the former Environmental Commissioner of Ontario, had been one of the early critics of this program, for example in “Canada’s murky bail-out deal for oil and gas will cost us all” ( National Observer, April 21). In early July, a further evaluation was published by Oxfam Canada, the Parkland Institute, and the Corporate Mapping Project : Not Well Spent: A review of $1-billion federal funding to clean up Alberta’s inactive oil and gas wells . The report finds some alarming failures on many fronts – including that the program is not tracking methane emissions, so it is impossible to determine the emissions reduction impact. Author Megan Egler also cautiously argues that the public funds were used to accomplish what industry should have been responsible for, according to a polluter pays principle.

One of the stated goals of Alberta’s $1 Billion Site Rehabilitation Program (SRP) was to create 5,300 jobs. However, Not Well Spent states: “ If this is met, funding of $1billion will create 5,300 jobs at $188,680 per job. This is $41,800 more per job than money injected into the industry through the Orphaned Well Association to do similar work in 2018. There has been no clear explanation from the Government of Alberta why the public dollars to create one job are higher in the SRP program.” The report also notes that 23% of the total amount of funds disbursed went to only five companies out of the 363; only 10% was allocated to clean-ups on Indigenous lands. The author makes recommendations for improvement in future funding, to ensure better accountability and transparency, which would be more consistent with a “polluter pays” objective.

Just Minerals: Safeguarding protections for community rights, sacred places, and public lands from the unfounded push for mining expansion

By staff - Earthworks, June 17, 2021

Mining has harmful climate, equity, and resource impacts that, without reform, may ultimately undermine the benefits of transitioning to renewable energy. Building a sustainable economy based on clean energy gives us an historic opportunity to confront the legacy of injustice to Indigenous communities and damage to the public lands held in trust for future generations.

This report outlines how current federal minerals policy conflicts with the Biden-Harris administration’s clean energy and environmental justice agendas, and how those policies must change to ensure minerals are sourced in a way that better protects marginalized communities and the environment. The infrastructure to support the transition to low-carbon energy requires a variety of minerals—cobalt and lithium, among others. Just Minerals encourages government officials to prioritize recycling, reusing and substituting minerals needed for renewable energy technology over new extraction.

Among the report’s key findings:

  • Updating the rules that govern mining on public lands must be an integral part of this administrations’ environmental justice agenda, until Congress acts to reform the antiquated 1872 Mining Law. Even without Congressional action, the Biden administration has a variety of policy tools available to reduce the pressure to source minerals from irresponsible mines.
  • There is significant untapped mineral recycling and reuse potential available using current technology. With the right policies in place, we can create a more circular economy that may approximately halve global demand for certain minerals, like cobalt, lithium, and nickel, key to the clean energy transition.
  • Major consumers, including automakers and electronics companies, have also directed their suppliers to source more responsibly. Ford, Microsoft, BMW, and Daimler-Benz, among others, have committed to the Initiative for Responsible Mining Assurance (IRMA), which independently audits and certifies environmental and social performance at mines.

Read the text (Link).

Webinar: "Clean" Energy Proposals and Real Climate Solutions

By staff - Food and Water Watch, June 17, 2021

There’s been a lot of debate recently about President Biden’s climate agenda, especially something called a Clean Electricity Standard. Sounds great, right? It’s not quite as simple as it sounds, and it all depends on your definition of “clean”. Join experts and advocates for an educational webinar on the nuances of these climate policies and how we can fight for meaningful solutions to the climate crisis.

Keystone is Dead!

By Elizabeth Perry - Work and Climate Change Report, June 11, 2021

On June 9, TC Energy issued a press release announcing that the company, in consultation with the Alberta Government, has terminated the Keystone XL Pipeline project, although it will continue “to co-ordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project.” The Alberta government had invested over $1 billion in the project as recently as March 2020 , and continued to defend it even after U.S. President Biden rescinded the permit in January 2021. The WCR compiled sources and reactions in January in “President Biden’s Executive Orders and Keystone XL cancellation – what impact on Canada?” A new compilation of Alberta Government statements is here . CBC Calgary describes Keystone XL is dead, and Albertans are on the hook for $1.3B.

Climate activists in Canada and the U.S. rejoiced at the latest news: “‘Keystone XL Is Dead!’: After 10-Year Battle, Climate Movement Victory Is Complete” , and activist Bill McKibben (and others) are hammering home a message of “never give up, activism works!”. The article from Common Dreams quotes Clayton Thomas Muller, longtime KXL opponent and currently a senior campaigns specialist at 350.org in Canada: “This victory is thanks to Indigenous land defenders who fought the Keystone XL pipeline for over a decade. Indigenous-led resistance is critical in the fight against the climate crisis and we need to follow the lead of Indigenous peoples, particularly Indigenous women, who are leading this fight across the continent and around the world. With Keystone XL cancelled, it’s time to turn our attention to the Indigenous-led resistance to the Line 3 and the Trans Mountain tar sands pipelines.” The National Observer expands on this with “Keystone XL is dead, but the fight over Canadian oil rages on” (June 10). The Indigenous Environmental Network news chronicles the ongoing resistance to pipeline development, as well as the reaction to the Keystone announcement.

Fire and Forest Ecology in the American West

Victory for climate activists in the Dutch Courts and in Exxon and Chevron boardrooms

By Elizabeth Perry - Work and Climate Change Report, May 27, 2021

May 26 will go down in history as a very bad day for the fossil fuel industry for three reasons: in the Netherlands, the courts issued a landmark decision that requires Royal Dutch Shell to cut its carbon emissions – including Scope 3 emissions – by 45% by 2030. Also on May 26, activist shareholders won separate victories at the corporate annual meetings of ExxonMobil and Chevron. Bill McKibben reflects on all three events in “Big Oil’s Bad Bad Day” in The New Yorker , and Jamie Henn wrote “A Landmark Day in the fight against fossil fuels” in Fossil Free Media.

The case of Royal Dutch Shell is summarized by Friends of the Earth Canada in their press release , which also links to an English-language version of the Court’s decision.

“On May 26, as a result of legal action brought by Friends of the Earth Netherlands (Milieudefensie) together with 17,000 co-plaintiffs and six other organisations the court in The Hague ruled that Shell must reduce its CO2 emissions by 45% within 10 years.

…..“This is a turning point in history. This case is unique because it is the first time a judge has ordered a large polluting company to comply with the Paris Climate Agreement. This ruling may also have major consequences for other big polluters,” says Roger Cox, lawyer for Friends of the Earth Netherlands.

The verdict requires Royal Dutch Shell to reduce its emissions by 45% by the end of 2030. Shell is also responsible for emission from customers and suppliers. There is a threat of human rights violations to the “right to life” and “undisturbed family life”.

German news organization Deutsche Welle offers an excellent, more thorough discussion in “Shell ordered to reduce CO2 emissions in watershed ruling”, which points out that the case was argued on human rights grounds – much like the precedent-setting Urgenda case and the recent German constitutional case. In those cases however, governments were called upon to defend the human right to a future safe from the dangers of climate change. The Shell case is the first time such an argument has been tried against a corporation – and is seen as a harbinger of future legal action.

The National Black Climate Summit

Green Energy, Green Mining, Green New Deal?

Calls for sustainable and responsible mining for the clean energy transition

By Elizabeth Perry - Work and Climate Change Report, May 6, 2021

An important Special Report by the International Energy Association was released in May: The Role of Critical Minerals in Clean Energy Transitions. Reflecting a mainstream view of the importance of the raw materials for clean technologies such as electric vehicles and energy storage, the IEA provides “ a wealth of detail on mineral demand prospects under different technology and policy assumptions” , and discusses the various countries which offer supply – including Canada. The main discussion is of policies regarding supply chains, especially concerning responsible and sustainable mining, concluding with six key recommendations, including co-ordination of the many international frameworks and initiatives in the area. The report briefly recognizes the Mining Association of Canada’s Towards Sustainable Mining (TSM) protocols as internationally significant, and as one of the first to require on-site verification of its standards. The Towards Sustainable Mining (TSM) initiative was established in 2004, requiring member companies to “demonstrate leadership by reporting and independently verifying their performance in key environmental and social areas such as aboriginal and community engagement, biodiversity conservation, climate change, tailings management.”

On May 5, the Mining Association of Canada updated one of its TSM protocols with the release a new Climate Change Protocol, a major update to its 2013 Energy Use and GHG Emissions Management Protocol. It is designed “to minimize the mining sector’s carbon footprint, while enhancing climate change disclosure and strengthening the sector’s ability to adapt to climate change.” The Protocol is accompanied by a new Guide on Climate Change Adaptation for the Mining Sector, intended for mine owners in Canada, but with global application. The Guide includes case studies of such mines as the Glencore Nickel mine in Sudbury, the notorious Giant Mine in the Northwest Territories, and the Suncor Millennium tailings pond remediation at its oil sands mine in Alberta. The membership of MAC is a who’s who of Canadian mining and oil sands companies / – including well-known companies such as ArcelorMittal, Barrick Gold, Glencore, Kinross, Rio Tinto, Suncor, and Syncrude. Other documentation, including other Frameworks and progress reports, are compiled at a dedicated Climate Change Initiatives and Innovations in the Mining Industry website.

The demand for lithium, cobalt, nickel, and the other rare earth minerals needed for technological innovation has been embraced, not only by the mining industry, but in policy discussions – recently, by Clean Energy Canada in its March 2021 report, The Next Frontier. The federal ministry of Natural Resources Canada is also supportive, maintaining a Green Mining Innovation Initiative through CanmetMINING , and the government joined the U.S.-led Energy Resource Governance Initiative (ERGI) in 2019 to promote “secure and resilient supply chains for critical energy minerals.”

Alternative points of view have been pointing out the dangers inherent in the new “gold rush” mentality, since at least 2016 when Amnesty International released its 2016 expose of the use of child labour in the cobalt mines of the Democratic Republic of Congo. Most recently, in February 2021, Amnesty released Powering Change: Principles for Businesses and Governments in the Battery Value Chain, which sets out specific principles that governments and businesses should follow to avoid human rights abuses and environmental harm. Other examples: MiningWatch Canada has posted their April 2021 webinar Green Energy, Green Mining, Green New Deal?, which states: “The mining sector is working hard to take advantage of the climate crisis, painting mining as “green” because it supplies materials needed to support the “green” energy transition. But unless demand for both energy and materials are curtailed, environmental destruction and social conflicts will also continue to grow.” MiningWatch Canada published Turning Down the Heat: Can We Mine Our Way Out of the Climate Crisis? in 2020, reporting on a 2019 international conference which focused on the experience of frontline communities. Internationally, the Business & Human Rights Resource Centre maintains a Transition Minerals tracker, with ongoing data and reports concerning human and labour rights in the mining of “transition minerals”, and also compiles links to recent reports and articles. Two recent reports in 2021: Recharge Responsibly: The Environmental and Social Footprint of Mining Cobalt, Lithium, and Nickel for Electric Vehicle Batteries (March 2021, Earthworks) and A Material Transition: Exploring supply and demand solutions for renewable energy minerals from the U.K. organization War on Want.

Does Shale Gas Extraction Grow Jobs?

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