Trade Unions for Energy Democracy (TUED)

By Sean Sweeney - Trade Unions for Energy Democracy, August 31, 2023

Following the onset of the COVID-19 pandemic in early 2020, calls for a GGND and a commitment to GPGs intensified. In July 2020, UN Secretary-General Antonio Guterres declared, “The global political and economic system is not delivering on critical global public goods: public health, climate action, sustainable development, peace…we need a New Global Deal to ensure that power, wealth and opportunities are shared more broadly and fairly at the international level.” 

Authored by TUED Coordinator Sean Sweeney, the paper argues that a GGND of the left must distinguish itself from green “recovery economics.” Many North-based progressives are comfortable talking about the need for “more public investment,” and the need for “ambitious climate action” but many continue to be vague or agnostic on questions of public ownership and control. 

The paper argues that an undiscerning approach to public investment weakens the case for a GGND. It shows how the current emphasis on “de-risking” private investment means that public money is used to make profitable what would not otherwise be profitable. Obama’s stimulus package of 2008, to the more recent Green Deal for Europe, and the Biden Administration’s Inflation Recovery Act that commits $369 billion of public spending to secure long-term revenue streams and profits for mostly private investors and developers. The more recent “Just Energy Transition Partnerships” and the emphasis on “blended finance” are an extension of this approach. 

Taking a deep dive into the roots of neoliberal climate policy, Beyond Recovery shows how a “recovery” narrative has helped both conceal and perpetuate the failures of the current investor-focused approach to energy transition and climate protection. For more than three decades, this approach has shown itself to be ineffective in terms of reducing economy-wide emissions. Sweeney describes the policy as a resilient failure, the extent of which is not always fully grasped. 

Energy: The Means of Production

The paper argues that a left GGND must view public investment as a means to extend public ownership, with energy systems and critical supply chains being a priority target. 

Public ownership of energy gives governments the power to pivot away from the highly commodified “energy for profit” regime. More than any single policy option, control over energy will ensure that governments are better positioned to advance an economy-wide energy transition in ways that can control and then reduce emissions while also addressing joblessness, inequality, and other social problems. It can set the stage for the kind of sweeping interventions in the political economy that are needed to address climate change, confront the political power of fossil fuel interests, and intercept the dynamics of “endless growth” capitalism. 

Download a copy of this publication here (PDF).

By Staff - Trade Unions for Energy Democracy, May 9, 2023

Last week, we looked at the Boric administration’s launch of the National Lithium Strategy, the creation of a National Lithium Company, and some initial responses by trade unions. In this bulletin, we’ll highlight clips of interviews from diverse trade union perspectives on the role of the labour movement in the lithium sector. 

By staff - Trade Unions for Energy Democracy, April 8, 2023

On Tuesday, the Mexican Government signed an agreement to purchase 13 power generation plants from the Spanish multinational Iberdrola. Purchase turns the State Company into a majority owner in electric energy generation in Mexico.

Three weeks after hundreds of thousands mobilised to mark 85 years since the expropriation of oil by former Mexican President Lazaro Cardenas, the federal government announced it is purchasing 13 electric energy generation plants owned by the Iberdrola for nearly USD $6 billion. The 13 plants represent 8,539 MW of installed capacity, with 8,436 MW corresponding to combined cycle gas and 103 MW to wind. Altogether, the purchase represents 77% of Iberdrola’s installed capacity in the country, although the Spain-based multinational would remain the main private generator of renewable energy in Mexico.

While many details are yet to be made public around the financing structure, according to the finance ministry, a new trust fund managed by Mexico Infrastructure Partners (MIP) will own the power plants, with a majority of its capital sourced primarily by Fonadin, the public infrastructure fund of Mexico. The federal power utility, Comisión Federal de Electricidad (CFE), will operate the plants.

"This means, without exaggerating (...), the rescue of the CFE and is a new nationalisation of the electricity industry. Most important of all, in this way, we guarantee that electricity prices will not increase for consumers, as has been the case in the last four years,” said President Andrés Manuel López Obrador (AMLO). “In other words, the CFE becomes the majority company. If we add to this that final plants are being built, hydroelectric plants are being rehabilitated with new turbines, all under the CFE, we can affirm that the Mexican state will maintain around 65 per cent of all energy generation at the end of the six-year term,” added AMLO in Tuesday’s televised announcement.

“The CFE is the only company with permission to commercialise electricity. The CFE had to buy electricity from these 13 Iberdrola plants in order to sell it. Today, we will no longer need this intermediation,” said Rocío Nahle, Secretary of the Energy Ministry (Sener). “The Mexican people are therefore favoured because we are able to sustain affordable electricity costs. In Mexico, we are the country with the lowest energy rates in the OECD because we have an energy policy that the President reviews daily, and with PEMEX, CFE, it allows us to have rates below inflation,” she said.

By Roberto Lobos and Horacio Fuentes - Constramet, April 2023

President Gabriel Boric presented his National Lithium Strategy, the great absentee in his speech were the workers of Chile, and we can not fail to point out our concern about it. This is why we want to express our opinion on the national chain and express some of the ideas of the workers' world.

In the more than twenty minutes that the President's speech lasted, several questions remained for the world of labour. The decision to move forward with the creation of a National Lithium Company, a campaign promise cast into doubt less than a week ago by the same government team, was welcomed. Yesterday's position, much more in line with the sentiments of the workers, is weighted for its positive value. It is clearly a decision that will have to be defended against the more neoliberal positions, which will oppose the strengthening of the state, which for us still needs to be delimited and clarified in greater depth.

The decision to transform Chile into the "main Lithium producer in the world" is an important bet; accompanying the energy transition process together with Green Hydrogen is part of the strategic development plan that CONSTRAMET and Plebeya have been working on, together with the need to discuss the current situation of copper in Chile in terms of the new energy matrix of the contemporary world-system. We highlight the decision to participate through the State in the entire production process by means of a national company, which is the only possible way towards redistributive economic growth.

With regard to exploration, exploitation and value addition from a "virtuous public-private partnership", there are several questions that plague us. Starting with the content of the link itself. Any process of dialogue between the state and the private sector must include the participation of workers. The greater the participation of the social world in sovereign decision-making in our country, the greater the strength of the public world in the negotiation process, the same for Codelco, today weakened to carry out the plan presented.

By Cuevas Zambrano and Staff - Trade Unions for Energy Democracy, April 2023

Cristián Cuevas Zambrano is a trade union leader and activist of the Chilean left. He is currently director of the Federation of Mining Workers Fetramin and Spokesperson of the National Coordination Committee of Codelco's contractor workers. Previously he was one of the founders of the Confederation of Copper Workers CTC and was its first President for six years. In addition, he was a leader of the Executive Board of the Central Unitaria de Trabajadores CUT Chile.

TUED: Some analysts have taken issue with the characterisation of a "nationalisation" of lithium with historical parallels to the nationalisation of copper. They say it is NOT a classic expropriation but a public-private partnership in which the state-owned company collaborates with the capital. Could you clarify this characterisation for us?

Cristian Cuevas (CC): Nationalisation is a concept that is commonly used to define a process of rescue or expropriation of productive activities in the hands of national or international private capital. This occurred with Law 17.450, promoted by President Salvador Allende, which expressly stated that "the state has absolute, exclusive, inalienable and imprescriptible control of all mines, meadows, metalliferous sands, salt flats, coal and hydrocarbon deposits and other fossil substances, with the exception of surface clays.

The spirit of Allende’s law was aimed at advancing our sovereignty and economic independence, which was completely disregarded during Pinochet's Civil-Military Dictatorship with the enactment of a Constitutional Organic Law that allowed mining concessions to private companies.

However, the Pinochet government issued a supreme decree decreeing lithium as a non-concessionary product given its strategic character in defence (base material that allows the creation of nuclear fusion). Therefore, the Boric administration’s announcements regarding the creation of the national lithium company are intended to allow the State to reclaim the sector and enter into the process of production and development of products made from this raw material.

TUED: In his announcement, Boric stated that the National Lithium Company will articulate public-private partnerships. What are the expected consequences of such a public-private partnership arrangement? What role should trade unions play in developing an alternative?

CC: President Gabriel Boric's announcement reflects the Government's inability to confront the national and foreign business sectors that seek to profit from this important mineral resource, the consequence of which is that the State will not capture for itself 100% of the value generated by lithium, handing the private sector a very good deal. Moreover, this government's surrender is reflected in the declarations of the Minister of Finance Mario Marcel, who only a couple of days ago pointed out as feasible the possibility that some salt flats could be fully exploited by the private sector.

The role that some trade unions have played through public statements, they have come out to reject this public-private partnership because it harms the interests of the State of Chile. However, the weakness of the Chilean trade union movement and the obsession with the CUT is a major constraint for the mobilisation of workers and society in defence of lithium and our common goods.

Irene HongPing Shen, et. al. - Trade Unions for Energy Democracy, March 13, 2023

By Mary Church, Craig Dalzell, Roz Foyer, Sean Sweeney, Mika Minio-Paluello, et. al. - Just Transition Partnership, March 8, 2023

An online conference organised by the Just Transition Partnership to set out why public ownership of energy production and infrastructure is an essential part of any plans to hit climate change targets.

This event featured experts on how the privatised energy system is giving us fuel poverty, soaring energy prices and profits; and failing to deliver a Just Transition as well as reviewing the publicly-owned solutions in key sectors, from local to national levels.

Introduction: Mary Church - Reclaiming our Energy introduction

By staff - Central Única dos Trabalhadores, March 2021

The defense of a trade unionism that fights for a fairer model of society for workers has always been a principle that guided the debates and actions of CUT Brasil. Over the years, the unionism of CUT-Brasil has understood that the defense of the environment and of a model of sustainable development is in the interest of the working class and this topic has become an issue of growing importance. The 13th CONCUT (National Congress of the CUT-Brasil) approved in its resolutions the defense of a just transition, advancing even further in the debate and struggle for a model of society that avoids the climate and environmental crisis and guarantees jobs and rights for the working class.

The booklet “Just Transition: a trade union proposal to address the climate and social crisis” comes at a time when the working class is facing a challenge of containing the unbridled advance of the destruction of the environment and the climate crisis, while defending democracy and its rights against attacks by capital and the extreme right. As the result of a partnership with the International Trade Union Confederation (ITUC), the booklet aims to identify the main specificities of the just transition agenda for CUT-Brasil and the Brazilian working class, in addition to spreading the debate among trade unions, leaders, workers and to strengthen the fight against the production model that exploits the poorest and destroys the environment and our future.

The model imposed by capital causes unemployment, poverty and hunger, at the same time that it destroys entire biomes and threatens to cause permanent damage to the planet, increasing the risks for the working class. For the richest, it is possible to pay for housing, health care and other diverse protections against the problems caused by the climate crisis, such as desertification, floods and pollution. For the working class, avoiding the climate crisis is a necessity for survival.

Although the topic of climate change has many technical terms, in this booklet we seek to use a familiar and accessible language for the entire Brazilian working class.

Read the entire statement (PDF).