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A Fair Climate Policy for Workers: Implementing a just transition in various European countries and Canada

By Pia Björkbacka - The Central Organisation of Finnish Trade Unions SAK, June 26, 2020

Both the Paris Agreement on Climate Change and the target of carbon neutrality by the year 2035 set out in the government programme of Finnish Prime Minister Sanna Marin refer to a just transition for workers towards a low-carbon society. Such a just transition has long been sought by the trade union movement and is an important condition for achieving ambitious climate policy objectives.

The programme of the Marin government states that the government will work with labour market organisations to harmonise economic and labour market policies. Achieving climate objectives will also require co-operation with the social partners, and sectoral assessments in particular.

A just transition has been selected as one approach to reaching the target of a carbon neutral Finland by 2035. The government will pledge to implement emission reduction measures in a socially and regionally equitable way that involves all sectors of society. The government programme envisages establishing a round table on climate policy in Finland under the committee on sustainable development. Bringing together the various actors in society will ensure that climate measures serve the general interests of society and enjoy broad public support.

(Government Programme of Prime Minister Marin 2019)

The implementation of climate policy is causing restructuring in various sectors, meaning that climate policy decisions and actions also have social implications.

The European Commission has estimated that mitigating climate change will create more jobs in the European Union than it will cost (European Commission, 2019), but the changes will be sectoral. Even though labour market restructuring – which is also guided by climate policy - is creating new employment opportunities, it also brings fears of unemployment.

Realising employment opportunities requires substantial investment in employee skills and innovation. It is very important for the benefits and costs of low-carbon restructuring to be evenly shared across various sectors, occupations, population groups and regions. Successfully transitioning to a carbon-neutral society will not only require emission reduction measures and business and energy policies, but also employment, social welfare, education and regional policies.

The principle of a just transition will seek to meet these challenges. This means implementing emission reductions in a way that is fair to workers. It is about creating new, decent and sustainable jobs, in-service training for new employment, and security of earnings. The goal of a just transition is to increase the participation and commitment of workers in deciding policies for mitigating climate change nationally, regionally and within businesses, thereby promoting a smooth transition to a carbon-neutral society.

Read the text (PDF).

(Working Paper #13) Transition in Trouble?: The Rise and Fall of "Community Energy" in Europe

By Sean Sweeney, John Treat and Irene HongPing Shen - Trade Unions for Energy Democracy, March 2020

This TUED Working Paper explores the current crisis of local, community, and cooperative energy. Our focus is Europe where these types of initiatives have made the most progress but now find themselves facing an uncertain future. In this paper we will explain what happened, and why. The goals of this paper are twofold.

The first goal is to draw a clear line of demarcation between the bold claims being made in the name of local and community energy, “energy citizenship,” and similar concepts on the one hand, and the cur-rent reality on the other—a reality that largely confines local energy initiatives to the margins of energy systems. In the case of Europe, the distance between the claims and the reality is vast, and it is widening.

Local and community energy has attracted a lot of support and enthusiasm from activists, and it is not hard to understand why this is the case. Efforts to advance community energy are frequently carried out in the name of a commitment to social justice, advancing equality, and empowering ordinary people to take a more active role in the transition to a low carbon future. Additionally, the activists and organizations undertaking such initiatives nearly always identify with a “values-driven” mission and aim to rise above considerations of personal gain or private profit.

For a period, it seemed that such initiatives were emerging everywhere across Europe. The growth of renewable energy and the proliferation of citizen and community ownership seemed to be in-separable from each other. Spurred on by falling costs of wind and solar technologies, a radical transition in energy ownership—and a shift in control away from large energy companies to small producers and consumers—seemed not only possible, but perhaps even imminent.

But recent policy changes in Europe have placed community energy into a pattern of decline. The removal of subsidies, particularly the Feed-in Tariff, and other incentives has led to a dramatic slow-down in local energy initiatives and cooperatives. The number of households installing solar photovoltaic panels (solar PV) has slowed to a crawl as onshore wind projects have also declined. While offshore wind installations are increasing, the total level of investment and deployment of renew-able energy in Europe has fallen dramatically.

Read the report (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).

Towards a just transition: coal, cars and the world of work

By Béla Galgóczi - European Trade Union Institute, 2019

The role of trade unions and social dialogue is key in demonstrating the major differences between coal-based energy generation and the automobile industry. This book presents two faces of a just transition towards a net-zero carbon economy by drawing lessons from these two carbon-intensive sectors. The authors regard just transition not as an abstract concept, but as a real practice in real workplaces. While decarbonisation itself is a common objective, particular transitions take place in work environments that are themselves determined by the state of the capital-labour relationship, with inherent conflicts of interest, during the transition process.

The case studies presented in this book highlight the major differences between these two sectors in the nature and magnitude of the challenge, how transition practices are applied and what role the actors play.

Read the report (Link).

Realizing a Just and Equitable Transition Away From Fossil Fuels

By Georgia Piggot, Michael Boyland, Adrian Down, and Andreea Raluca Torre - Stockholm Environment Institute, January 2019

Meeting agreed climate goals requires a rapid decarbonization of the global energy system, which in turn necessitates a reduction in fossil fuel production. While limiting fossil fuel use will likely bring a multitude of societal benefits — related to reduced climate risks, sustainable economic growth, air quality and human health — it is important to recognize that not everyone will benefit equally from a transition to a low-carbon economy. In particular, those who rely on fossil fuel production for their livelihood, or who were anticipating using fossil-fuelled energy to meet development needs, may carry a disproportionate share of the burdens of an energy transition.

The need for a “just transition” to a low-carbon economy — namely, a transition that minimizes disruption for workers and communities reliant on unsustainable industries and energy sources — is gaining traction in climate policy and political discourse. A call for “a just transition of the workforce” was included in the preamble to the Paris Agreement, and the United Nations Framework Convention on Climate Change (UNFCCC) secretariat has prepared a technical paper on transition planning.10 In addition, several national and regional governments have recently announced new transition planning processes, including Canada, Germany, Spain, Scotland, New Zealand, and the European Union.

A central concern of just transition efforts is to ensure that low-carbon transitions address social and economic inequality. The UNFCCC calls for a transition that “contribute(s) to the goals of decent work for all, social inclusion and the eradication of poverty.” Likewise, the European Commission aims to “boost the clean energy transition by bringing more focus on social fairness.” And the Scottish Government is seeking a transition that “promotes inclusive growth, cohesion and equality.”

Key messages:

  • Governments are introducing new “just transitions” policies to help workers and communities move away from fossil fuels.
  • Most policies assume that justice goals will be achieved by helping those dependent on coal, oil and gas move into new roles; however, there is little critical reflection on what justice means in the context of an energy transition away from fossil fuels.
  • There are a number of gaps in current just transition policies when viewed through a justice lens. For example, no policies contain measures to improve the lives of people currently marginalized in the energy system.
  • Creating just and equitable transition policies requires collecting data on the current distribution of the harms and benefits of the energy system, and mapping out how this will change as fossil fuels become a less-prominent part of the energy mix.
  • By taking justice considerations into account, transition policies are more likely to limit social and political resistance, win a broad consensus, and achieve effective implementation.

Read the text (PDF).

Working Together for a Just Transition

By David Powell, Alfie Stirling and Sara Mahmoud - New Economics Foundation, November 2018

This short pamphlet has been produced to launch the New Economics Foundation’s new programme of work on the 'just transition'. Our interest is in the practicality of change: the policies, processes, narrative and investment needed to accelerate the UK’s progress on 'just transition', here and now. Over the coming months and years we will be working at local and national levels to explore what is needed to build common cause and provide the right mixture of incentives and critical challenge to all parties to help unlock a new momentum for a 'just transition' for the UK.

It has been produced in association with the Friedrich-Ebert-Stiftung’s London Office, part of the international network of FES. The London office was established in 1988 to promote better understanding of British- German relations. FES's work in the United Kingdom focuses in particular on the exchange of ideas and discussion on the following topics: common challenges facing Germany, the United Kingdom and the European Union; economic and social policy; experiences gained from differing regional and local policies and practices; and a continuing dialogue between politicians as well as between the trade unions in both countries.

Read the report (PDF).

A just transition from coal demands a cross-regional sharing of benefits and costs

By Natalie Bennett - The Ecologist, January 4, 2018

The world has to stop burning coal to produce electricity. We cannot afford the dirtiest fuel, killing with its air pollution, heating the planet with its carbon. That’s a reality that’s dawned in increasing numbers of countries, with the UK among them, who have signed up to the Powering Past Coal alliance, launched at the Bonn climate talks.

In Britain, the reality is this signature is more symbolic than practical. The government had already promised a phase out by 2025 (which could be a lot earlier). In August only 2 percent of electricity was produced through coal and its financial cost is increasingly ruling it out.

But the politics of coal are very different in Poland, where 80 percent of electricity is still produced with highly-polluting fuel, and the government is one of the last in the developed world still building new coal-fired stations.

Reclaiming Public Services: How cities and citizens are turning back privatisation

Edited by Satoko Kishimoto and Olivier Petitjean - Transnational Institute, June 2017

You would be forgiven, especially if you live in Europe, to think that public services are by nature expensive, inefficient, maybe even somewhat outdated, and that reforming them to adapt to new challenges is difficult. It would seem natural to assume – because this is what most politicians, media and so-called experts tell us continuously – that we, as citizens and users, should resign ourselves to paying ever higher tariffs for services of an ever lower standard, and that service workers have no choice but to accept ever more degraded conditions. It would seem that private companies will inevitably play an ever larger role in the provision of public services, because everything has a price, because politicians have lost sight of the common good and citizens are only interested in their own individual pursuits.

This book, however, tells a completely different story. Sometimes it may feel as though we are living in a time when profit and austerity are our only horizons. In reality, below the radar, thousands of politicians, public officials, workers and unions, and social movements are working to reclaim or create effective public services that address the basic needs of people and respond to our social, environmental and climate challenges. They do this most often at the local level. Our research shows there have been at least 835 examples of (re)municipalisation of public services worldwide in recent years, some of them involving several cities. In total there have been more than 1600 cities in 45 countries involved in (re)municipalisation. And these (re)municipalisations generally succeed-ed in bringing down costs and tariffs, improving conditions for workers and boosting service quality, while ensuring greater transparency and accountability.

Read the text (PDF).

Worker Management of the Barcelona Public Transit System, 1936-1939

By Tom Wetzel - Workers' Control, November 24, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

In the years leading up to the revolution in Spain in 1936 there had been bitter struggles of the workers...such as the long but defeated streetcar strike in 1935. A number of leading activists in that strike were sent to prison. With the victory of the liberals and social-democrats in Spain's national elections in February 1936, imprisoned unionists were freed, and the workers on the Barcelona transit system began rebuilding their union, which was to play an important role in the city during the revolutionary events of 1936.

In Barcelona in 1936 the main part of the transit system was a large streetcar system, operated by Barcelona Tramways (Tranvias de Barcelona), a company owned mainly by Belgian investors. The streetcar company operated 60 routes that criss-crossed the city and ran into the nearby suburbs. Of the 7,000 workers for this company in 1936, 6,500 belonged to the Transport Union of the National Confederation of Labor, known by its Spanish initials as the CNT. The CNT was a libertarian syndicalist labor organization. The Transport Union was a highly democratic organization, run through worker assemblies (general meetings) and councils of elected shop stewards (delegados). Being syndicalist means that the union was part of a revolutionary social movement that aimed to have the workers take over direct, collective management of the industries, replacing the bosses and the capitalist investors, and creating an economy based on ownership of industry by the whole society.

In response to the mass mobilization and strikes of the Spanish workers, the heads of Spain's army, with direct support of the country's capitalist elite, attempted to overthrow the liberal government, beginning July 19 1936, so as to crush the country's radical labor movement. Union defense groups fought back with the support of much of the rank and file of the police, defeating the army in two thirds of the country initially. The worker unions then formed their own "People's Army" to fight the fascist Spanish army. In the days following the defeat of the army in Barcelona, the unions moved to expropriate most of the country's industry and new organizations of direct worker management were created.

Europe's energy transformation in the austerity trap

By Béla Galgóczi - European Trade Union Institute, 2015

Our planetary limits demand a radical transition from the energy-intensive economic model based on the extraction of finite resources, which has been dominant since the first industrial revolution, to a model that is both sustainable and equitable.

Unfortunately however, energy transformation in Europe has, after a promising start, fallen hostage to austerity and to the main philosophy underpinning the crisis management policies in which overall competitiveness is reduced to the much narrower concept of cost-competitiveness. Regulatory uncertainty, design failures built into incentive systems, and unjust distribution of the costs, have also contributed to the reversal of progress in energy transformation currently observable across Europe.

In this book three country case studies highlight the different facets of these conflicts, while additional light is thrown on the situation by an account of the lack of progress in achieving energy efficiency.

By way of conclusion, a mapping of the main conflicts and obstacles to progress will be of help in formulating policy recommendations. Ambitious climate and energy policy targets should be regarded not as a burden on the economy but rather as investment targets able to pave the way to higher employment and sustainable growth. It is high time for this perception to be recognised and implemented in the context of Europe’s new Investment Plan, thereby enabling clean energy investment to come to form its central pillar. A shift in this direction will require an overhaul of the regulatory and incentive systems to ensure that the need for just burden-sharing is adequately taken into account.

Read the report (Link).

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