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Only 18% of global Recovery spending in 2020 was green

By Elizabeth Perry - Work and Climate Change Report, March 10, 2021

The United Nations Environment Programme (UNEP) released Are We Building Back Better? Evidence from 2020 and Pathways for Inclusive Green Recovery Spending, on March 10. It estimates that in 2020, the world’s fifty largest economies announced USD14.6tn in fiscal measures to address the pandemic economic crisis, and states: …. “Excluding currently uncertain packages from the European Commission, 18.0% of recovery spending, and only 2.5% of total spending, is expected to enhance sustainability. The vast majority of green spending has come from a small set of high-income nations” with France, Germany and South Korea highlighted for their relatively high percentage of green recovery spending. Canada’s spending is small, with only brief references which state that we have focused on “cleaning dirty energy assets”, and have made fossil fuel investment. (no details or examples given). It is notable that the report covers 2020, so that U.S. spending is also low, though hope is expressed for the Biden/Harris administration. Notably, the report looks to the future: “….. the largest window for green spending is only now opening, as nations shift attention from short-term rescue measures to recovery. Using examples from 2020 spending, we highlight five major green investment opportunities to be prioritised in 2021: green energy, green transport, green building upgrades & energy efficiency, natural capital, and green research and development.”

Each of those topics is analyzed, with some exemplary policies highlighted. Some overarching issues: “Of particular note, despite continuing high global unemployment and widespread damage to human capital, spending on worker retraining in 2020 was small and almost exclusively non-green. Nations transitioning to a low-carbon economy must invest in human capital to enable and match future growth priorities. Structural changes in major sectors, including energy, agriculture, transport, and construction, require shifts in the structure and capabilities of the domestic labour force.”

Also, regarding “green strings”: “Although some dirty rescue-type expenditure may have been necessary to ensure that lives and livelihoods were saved, many of the largest of these policies could have included positive green attributes. For instance, airline bailouts in nations all over the world, including South Africa, South Korea, the United Kingdom, and the United States could have included green conditions. Green conditions tied to liquidity support, like requirements to reach net-zero emissions by 2050 or mandates to increase sustainable fuel use, can ensure short term relief while also promoting investment in long-term technological development and acting as a strong guide in national efforts to meet climate targets.”

The report is supported by the United Nations UNEP, the International Monetary Fund and GIZ through the Green Fiscal Policy Network (GFPN). The data was collected by the Oxford University Economic Recovery Project and is now available through the Global Recovery Observatory, a new database which will be updated regularly (most recently at the end of February).

The report cites many other studies and reports, notably: “Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change?” by Cameron Hepburn, Brian O’Callaghan, Nicholas Stern, Joseph Stiglitz, and Dimitri Zenghelis, which appeared in the Oxford Review of Economic Policy in May 2020.

French Energy Union FNME-CGT Endorses TUED Call for Public Energy in Texas

By Staff - Trade Unions for Energy Democracy, March 8, 2021

In a March 8 Press Release, FNME-CGT — the energy and mining division of French trade union confederation CGT — has republished a TUED briefing paper on the recent power sector crisis in Texas. TUED’s briefing paper argued that the recent catastrophic power sector failures in Texas “serve as a stark warning that unregulated, privatized and marketized electricity systems pose a serious threat to human life.”

As we have previously reported in TUED Bulletins 104 and 105, FNME is currently involved in a major struggle by striking French electricity and gas workers in defense of the country’s publicly owned energy company, EDF. The target of the strikes is a set of proposals being advanced by the French government, at the heart of which is a plan to “restructure” the country’s major national power utility, EDF. According to the unions, the proposed changes would undermine EDF’s ability to continue to operate as an integrated public utility, would jeopardize energy security and jobs, and would be against the general public interest.

Over the recent December holiday period, 33 union bodies from 20 countries and regions signed a statement of solidarity with the striking unions and workers.

In support of the striking workers’ defense of EDF, FNME-CGT republished the TUED briefing document with the following additional remarks:

Texas, an extreme example demonstrating that we must say “STOP” to market logics in dealing with the vital common good that energy represents. These same logics, combined with a desire for regional autonomy, have created an anti-citizen cocktail that is becoming a deadly poison!

Confronted with extreme temperatures, many Texas residents have received bills for staggering amounts, up to $17,000. A peak at $9,000 per MWh was reached when the usual seasonal average is $50: capitalists rub their hands… Texans “put on their sweaters” and rub them too, but to keep warm.

The conclusion is therefore clear and indisputable: energy is a vital asset that can no longer be indexed to the financial markets, to the detriment of both commercial and domestic users.

However, while this example rages on, in France, discussions are well underway (for example, EDF’s Hercule project, which only reaffirms the notion of a market) and we are even seeing a new “miracle” tariff offer with a new operator that would index the bill to the price on wholesale energy markets!

Moreover, it is highly likely that generators incompatible with the energy transition will have a bright future ahead of them … a question of survival!

The FNME-CGT condemns this new tariff system where only consumers will sooner or later lose out and where change will mean an increase in fuel poverty.

With support from global union federation Public Services International (PSI), FNME-CGT and TUED are currently working to convene a Trade Union Task Force on Decarbonisation. The Task Force will produce an interim analytical report to guide the development of a “Trade Union Charter for Public Energy in Europe,” which will be debated at a June meeting being convened by the French trade union confederation, CGT.

The June meeting will also bring together social forces from across and beyond Europe to explore and debate a broad range of issues related to the socio-ecological transformation. Unions interested in participating should email Irene Shen at ireneTUED@gmail.com.

Lithium, Batteries and Climate Change: The transition to green energy does not have to be powered by destructive and poisonous mineral extraction

By Jonathan Neale - Climate and Capitalism, February 11, 2021

I have spent the last year working on a book called Fight the Fire: Green New Deals and Global Climate Jobs. Most of it is about both the politics and the engineering of any possible transition that can avert catastrophic climate breakdown. One thing I had to think about long and hard was lithium and car batteries.

I often hear people say that we can’t cover the world with electric vehicles, because there simply is not enough lithium for batteries. In any case, they add, lithium production is toxic, and the only supplies are in the Global South. Moreover, so the story goes, there are not enough rare earth metals for wind turbines and all the other hardware we will need for renewable energy.

People often smile after they say those things, which is hard for me to understand, because it means eight billion people will go to hell.

So I went and found out about lithium batteries and the uses of rare earth. What I found out is that the transition will be possible, but neither the politics nor the engineering is simple. This article explains why. I start by describing the situation simply, and then add in some of the complexity.

Lithium is a metal used in almost all electric vehicle batteries today. About half of global production of lithium currently goes to electric vehicles. And in future we will need to increase the production of electric vehicles from hundreds or thousands to hundreds of millions. That will require vast amounts of lithium.

There are three ways to mine lithium. It can be extracted from rock. It can be extracted from the brine that is left over when sea water passes through a desalination plant. Or it can be extracted from those brine deposits which are particularly rich in lithium. These brine deposits are the common way of mining lithium currently, because it is by far the cheapest. Most of the known deposits of lithium rich brine are in the arid highlands where Bolivia, Chile and Argentina come together.

Lithium mining is well established in Chile and Argentina. In both countries the local indigenous people have organized against the mining, but so far been unable to stop it. The mining is toxic, because large amounts of acid are used in the processing. But the mining also uses large amounts of water in places that already has little enough moisture. The result is that ancestral homelands become unlivable.

Bolivia may have even richer deposits of lithium than Argentina and Chile, but mining has not begun there. The Bolivian government had been led by the indigenous socialist Evo Morales from 2006 to 2019. Morales had been propelled to power by a mass movement committed to taking back control of Bolivia’s water, gas and oil resources from multinational corporations. Morales was unable to nationalize the corporations, but he did insist on the government getting a much larger share of the oil and gas revenue.[1]

His government planned to go even further with lithium. Morales wanted to mine the lithium in Bolivia, but he wanted to build factories alongside the mines to make batteries. In a world increasingly hungry for batteries, that could have turned Bolivia into an industrial nation, not just a place to exploit resources.

The Morales government, however, was unable to raise the necessary investment funds. Global capital, Tesla, the big banks and the World Bank had no intention of supporting such a project. And if they had, they would not have done so in conjunction with a socialist like Morales. Then, in 2019, a coup led by Bolivian capitalists, and supported by the United States, removed Morales. Widespread popular unrest forced a new election in October. Morales’ party, the Movement for Socialism won, though Morales himself was out of the running. It is unclear what will happen to the lithium.

That’s one level of complexity. The local indigenous people did not want the lithium mined. The socialist government did not want extractavism, but they did want industrial development.

Those are not the only choices.

For one thing, there are other, more expensive ways of mining lithium. It can be mined from hard rock in China or the United States. More important, batteries do not have to be made out of lithium. Cars had used batteries for almost a century before Sony developed a commercial lithium-ion battery in 1991. Engineers in many universities are experimenting with a range of other materials for building batteries. But even without looking to the future, it would be possible to build batteries in the ways they used to be built. Indeed, in January 2020, the US Geological Service listed the metals that could be substituted for lithium in battery anodes as calcium, magnesium, mercury and zinc.[2]

The reason all manufacturers currently use lithium is that it provides a lighter battery that lasts longer. That gives the car greater range without recharging, and it make possible a much lighter car. In other words, lithium batteries are cheaper.

Defending Public Energy, French Energy Unions Build International Support

By Staff - Trade Unions for Energy Democracy, January 17, 2021

As we reported in TUED Bulletin 104, in recent weeks French electricity and gas workers have been striking in defense of the country’s publicly owned energy. These actions have been led by French energy union federations FNME-CGT, CFE-CGC Énergies, FO Energie et Mines and FCE-CFDT.

Over the holiday period, 33 union bodies from 20 countries and regions signed a statement of solidarity with the striking unions and workers.

The target of the strikes is a set of proposals being advanced by the French government, at the heart of which is a plan to “restructure” the country’s major national power utility, EDF. According to the unions, the proposed changes would undermine EDF’s ability to continue to operate as an integrated public utility, would jeopardize energy security and jobs, and would be against the general public interest.

During the week of January 11, 2021, TUED received a letter from the leadership of FNME-CGT, which welcomed the international support that has been expressed, and reaffirmed the union’s commitment to the struggle underway. Jointly signed by Sébastien Menesplier, General Secretary for International Affairs, and Muriel Marcilloux, Federal Secretary for European Affairs, the letter reads, in part:

We are taking action in France for energy: a basic common good and not a commodity that must remain at the service of the general interest. At a time when the challenge of climate change is global, in order to gain the 2°C of the COP 21 in Paris, we will need to switch to electric power, with low- carbon electricity. This will require a commitment from each country. This challenge for the future cannot be met in a market logic where the priority is financial return.

This issue of energy under public control is essential for the future of future generations.

For France, the fight is being waged now. We must lead the fight until the withdrawal of these harmful projects and show that another way other than finance is possible.

Your international support clearly shows that we are not alone in fighting for a quality public energy service accessible to all. Trade unions and their allies know that a just transition cannot be achieved by relying solely on the privatisation, liberalisation and commodification of energy, which is vital for just and sustainable human and economic development.

The letter also stated FNME-CGT’s intention to develop the international dimension of the struggle for public energy, noting in particular the upcoming UN COP26 climate talks scheduled for November of this year. The full letter is available in English here, and in French here.For additional background information, you can read the recent Letter from CGT EDF Directors (in French; English translation available here).

As a next step, the unions will hold a “Day of Action” on Tuesday, January 19th, in a continuing display of opposition to the government’s proposals. On Twitter, you can follow developments directly (in French) via @FNMECGT.

IndustriALL Global Union has also expressed solidarity with the striking workers as part of its ongoing reporting on this crucial struggle over many months.

We encourage unions to share news of this important ongoing struggle in the fight for climate protection and a sustainable future with their members and networks.

Global Just Transition case studies from a trade union viewpoint

By Elizabeth Perry - Work and Climate Change Report, January 14, 2021

Just Transition: Putting planet, people and jobs first” is the theme of a special issue of Equal Times, published in December 2020. The compilation of articles provides a trade union point of view to describe the just transition experiences in Bangladesh, Tunisia, Argentina, and Senegal, as well as the more frequently cited experiences in Spain and Scotland. The complete Special Issue is here , and was supported financially by the Friedrich-Ebert-Stiftung.

Although Spain’s 2018 agreement regarding coal transition is well known, this article is a welcome English-language text, translated from the original Spanish version written by Spanish journalist María José Carmona. Another useful English text on the topic is The Just Transition Strategy within the Strategic Energy and Climate Framework, translated and published by the Spanish government in 2019. And an earlier report from the Central Confederation of Finnish Trade Unions (SAK) provides brief summaries of Spanish and other Just Transition frameworks, in A Fair Climate Policy for Workers: Implementing a just transition in various European countries and Canada (2019). It covers Germany, Spain, France, The Netherlands, Norway, Scotland, and Canada in a brief 32 pages.

Labour and Environmental Sustainability

By Juan Escribano Gutiérrez, in collaboration with Paolo Tomassetti - Adapt, December 2020

There is consensus that the separation between labour and the environment, as well as that between the legal disciplines that regulate both domains, is meaningless and outdated. Since business activities affect the health and the environment of workers and human beings, synergies between the two spheres have to be created. Yet there is still a long way to go in order to bring together labour and environmental regulation.

In all the selected countries (France, the Great Britain, Hungary, Italy, the Netherlands and Spain) the legal systems regulating salaried work, on the one hand, and the environment, on the other hand, remain disconnected, although no formal obstacles exist to their integration. With regard to the scope for collective bargaining to become a means to integrate both spheres, no legal restrictions apply in any of the framework considered, although explicit references to workers and employers (or their representatives) to bargain over environmental aspects are far less evident.

It is up to the social partners to promote environmental sustainability as a goal for collective bargaining or to continue with the traditional inertia that divides labour and environmental regulation. Despite research shows how the social partners, especially trade unions, are more and more willing to negotiate environmental aspects, the narrative on the trade-off between labour and the environment is still evident, especially in the Hungarian context. Collective agreements could take a leading role in driving the just transition towards a low-carbon economy, but in practice they do not regard this mission as a priority. Environmental clauses in collective agreements are still exceptional and lack momentum.

One explanation is that the legal mechanisms in place to limit the impact of business activity on the environment (i.e. environmental law) legitimize firms to consider environmental aspects as their own prerogative. For this reason, in some legal systems, employers tend to discuss environmental commitments outside collective bargaining, including them into corporate social responsibility (CSR) mechanisms. By doing so, the company avoids enforceability, limiting the effectiveness of the tools to regulate environmental issues.

Read the text (Link).

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).

Taking the High Road: Strategies for a Fair EV Future

By staff - UAW Research Department, January 2020

The American automotive industry is constantly evolving and, throughout the union’s history, the United Auto Workers (UAW) has fought to ensure industry changes result in quality jobs that benefit workers and the economy.

The auto industry is facing a new shift in technology with the proliferation of electric vehicles (EVs). This shift is an opportunity to re-invest in U.S. manufacturing. But this opportunity will be lost if EVs or their components are imported or made by low-road suppliers who underpay workers. In order to preserve American jobs and work standards, what is needed is a proactive industrial policy that creates high-quality manufacturing jobs making EVs and their components.

Read the text (PDF).

Yellow Vest Movement Struggles To Reinvent Democracy

By Richard Greeman - Popular Resistance, April 13, 2019

Act 21 While Assembly of Assemblies Meets, Macron Cranks Up Propaganda and Repression

After five months of constant presence at traffic circles, toll-booths and hazardous Saturday marches,  the massive, self-organized social movement known as the Yellow Vests has just held its second nationwide “Assembly of Assemblies.” Hundreds of autonomous Yellow Vest activist groups from all over France each chose two delegates (one woman, one man) to gather in the port city of St. Nazaire for a weekend of deliberation (April 5-7).

After weeks of skirmishing with the municipal authorities, the local Yellow Vests were able to host 700 delegates at the St. Nazaire “House of the People,” and the three-day series of general meetings and working groups went off without a hitch in an atmosphere of good-fellowship. A sign on the wall proclaimed: “No one has the solution, but everybody has a piece of it.”

Their project: mobilize their “collective intelligence” to reorganize, strategize, and prolong their struggle. Their aim: achieve the immediate goals of livable wages and retirements, restoration of social benefits and public services like schools, transportation, post offices, hospitals, taxing the rich and ending fiscal fraud to pay for preserving the environment, and, most ambitious of all, reinventing democracy in the process. Their Declaration ends with the phrase “government of the people, by the people, and for the people.” I often wonder if they know who coined it.

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).

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