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From Rigs to Riches: The promise of oil and gas decommissioning in a just transition

By Peder Ressem Østring - Just Transition Research Collaborative, February 24, 2023

The recycling of oil rigs can provide new jobs within the circular economy, particularly beneficial for oil-dependent regions. If we get it right, the process of cleaning up after the fossil economy can itself serve as a bridge from fossil dependency towards a just transition.

Globally, there are over 7000 offshore oil and gas platforms. Together with other structures and pipelines, these form an impressive built environment. If we are to have a fighting chance of keeping global warming well below 2°C however, virtually all of these installations would have to be shut down, dismantled and recycled. This process — known as offshore decommissioning — is already taking place, but will see a dramatic increase in the coming decade. It will be increasingly necessary to confront the ways in which decommissioned infrastructure is handled, both with regards to the environment and labour conditions.

A case study of the decommissioning of oil and gas infrastructure in the North Sea shows some of both the possibilities and challenges decommissioning presents in terms of a just transition.

While some oil companies would like to leave the oil platforms in the sea, eagerly promoting the idea of repurposing old rigs as artificial reefs, this is not allowed under current regulation. After the plans of Royal Dutch Shell of dumping the oil storage tanker Brent Spar in the North Sea in the 1990s was met with massive public scrutiny and campaigns from environmental organizations, regulations came in place that effectively banned the practice of abandoning manufactured structures in the North-East Atlantic.

Companies have since sought other ways of disposing of the problem with structures put out of commission. Another approach for cutting costs for the oil supermajors has been to send old floating rigs for breaking in the global South. This has taken place under horrendous conditions for both workers and the environment, as has been uncovered by the BBC.

Both these false solutions are in reality ways of externalizing costs of cleaning up after the fossil companies. Both approaches should be rejected, while insisting on the principle that the polluter should pay.

Alberta’s Roadmap to the New Energy Economy

By Simon Dyer - Pembina Institute, February 21, 2023

Alberta has always been an international leader on energy. Our abundant natural resources, coupled with our proud history of technological innovation in the oil and gas sector— particularly the oilsands—means we are renowned for our ability to use a skilled labour force to reach new frontiers in energy production.

In 2023, Alberta has an opportunity to build on that history and move towards a new energy future. In doing so, it can begin to capitalize on the multiple opportunities associated with the globally emerging clean economy.

To achieve this, Alberta needs a robust, credible plan on climate and energy. The number of governments worldwide that are legislating emissions reduction targets and policy measures to deliver them is rapidly growing each year, and it is time that Alberta joined them. This province — home to some of the world’s foremost experts on carbon capture technology, methane reduction techniques, wind and solar power, and so many other clean energy solutions— has much to offer to the energy transition, and much to gain. The International Energy Agency, for example, estimates 14 million new energy jobs and 16 million new jobs in energy efficiency will be created, worldwide, between now and 2050.

To take advantage of these opportunities, Alberta must also be willing to confront the realities of the global shift towards low-carbon energy sources, and take steps to adapt and futureproof its economy and workforce. The global outlook for fossil fuels, for example, has fundamentally shifted in the last twelve months. In 2022, for the first time, a range of assessments — including from within the oil industry — projected that the current level of worldwide policy momentum on emissions reductions will result in a sustained decline in global demand for oil, beginning this decade. If the world successfully achieves its goal of reaching net-zero emissions by 2050 and avoiding the worst effects of climate change, that demand decline will begin sooner and be steeper — and will have a significant impact on Alberta’s industry. 

Acknowledging these realities, and choosing to show leadership on climate and energy policy, is integral to Alberta’s overall attractiveness as an investment destination. Now more than ever before, companies are looking for opportunities to invest in climate solutions, and for jurisdictions where they can operate while meeting their own climate goals. Choosing instead to remain out of step with the global trend towards low-emissions economies would leave Alberta at a significant disadvantage in the years ahead.

The Pembina Institute is, and has always been, proudly headquartered in Alberta; this is our home. We are committed to seeking out effective, evidence-based policy solutions that can support this province’s communities, economy, and environment. 

As the 2023 provincial election approaches, this document provides our recommendations to future leaders in Alberta to advance this province’s position in the transition towards low-carbon energy. Above all, we think Alberta can and should be a leader on climate and the energy transformation in Canada.

Read the report (link).

‘Megathreat Mountain’: challenges for 2023

By Willy De Backer - European Trade Union Institute, February 20, 2023

The year 2023 promises to be at least as challenging as the previous one, with war still raging between Russia, Ukraine and the West. The climate emergency turning into a real climate collapse also for countries in the Global North which had been spared some of the deadly and devastating effects which some countries in the Global South had already experienced for years.

At the beginning of the year, many ‘expert’ commentators and think tanks published their forecasts for the next 12 months. All of them agree that the new year looks challenging, if not to say scary. In an excellent comment on Project Syndicate, Nouriel Roubini refers to Thomas Mann’s great novel ‘The Magic Mountain’ comparing the current ‘age of mega threats to the tragic period between 1914 and 1945 and stating that we are ‘sleepwalking on mega threat mountain’.

Let us have a quick look at some of the chief challenges for Europe in 2023 but mostly in the form of questions (with further reading links) instead of predictions.

ETUI Webinar on climate-induced migration

By Mehtap Akgüç and Franklin Kimbimbi - European Trade Union Institute, February 20, 2023

Climate change and rising temperatures are the leading causes of natural disasters such as flooding, storms, land sliding, wildfires, drought, and desertification, to name a few. With the rate of change of climate, the frequency and scale of these disasters have also gone up over the last decades. Related to these natural phenomena, although it may feel like it often happens far away and not in the immediate term, climate-induced migration is emerging in several regions across countries, including Europe, leaving almost no country immune to its consequences. Even though it is hard to disentangle the root causes of migration, and several push and pull factors are at play during the mobility process, environmental reasons are emerging as a significant push factor.

Some of the key characteristics of climate-induced migration, research suggests, are that it takes place mainly within the borders of a country (i.e. internal). That return migration is very common (95 per cent of the time). While it is a complex task to come up with exact figures, it is estimated that nearly 350 million people have been displaced because of weather conditions and natural disasters from 2008-2021. Most of these people returned (except around 6 million), and an even smaller proportion crossed international borders. The type of natural disaster, fast- versus slow-onset events, also determines the nature of displacement, e.g., involuntary versus voluntary or temporary versus permanent. 

All in all, the pace of climate change and existing inequalities in adaptation and resilience capacities suggest that climate-induced migration will rise as an important issue to be addressed in the coming years. And the key question remains: how will climate change adaptation and mitigation policies interact with migration (and eventually integration) policies? 

The Case for Nationalizing the Railroads: Workers say now is the time to do the impossible

By Kari Lydersen - In These Times, February 16, 2023

Railroad workers packed themselves into hotel conference rooms near Chicago’s O’Hare International Airport in June 2022 to talk fervently about a momentous event potentially on the horizon: the first industry-wide rail strike in three decades. 

“All 12 railroad unions have proclaimed themselves united,” said Ron Kaminkow, Railroad Workers United (RWU) general secretary, during a conference session about chokepoints in the supply chain. ​“There could actually be a national railroad strike for the first time in almost 30 years.” 

Contract negotiations between those 12 unions and the country’s major freight railroad companies had ground to a halt by the conference, which was organized by RWU and the pro-union group Labor Notes. 

In July, 99.5% of the membership of the union representing railroad engineers — the Brotherhood of Locomotive Engineers and Trainmen — voted to authorize a strike if legal hurdles were cleared.

The possibility presented a challenge for the Biden administration. President Joe Biden had become known as the most labor-friendly president in recent history, while a walkout threatened to paralyze the economy with a potential cost of $2 billion per day. The administration eventually negotiated a deal with union leaders and company leaders, announced Sept. 15, 2022, requiring a significant pay raise for workers without meaningfully addressing their primary concerns: short-staffing and a lack of paid sick days.

Many elected officials and pundits lauded the deal, but it still needed to be ratified by each union’s rank and file.

Three unions representing railroad workers voted down the proposed contract, while others voted for it. Then, in November, the country’s largest rail union — the SMART Transportation Division, which represents conductors and brakemen — rejected the deal, and a national rail strike was firmly on the table. Even unions that approved of the deal pledged to honor any picket lines.

On December 1, 2022, at Biden’s urging, Congress intervened, passing a law to force the unions to agree to the deal. Many railroad workers were furious — and felt betrayed.

“It was very frustrating, from the ​‘most pro-labor president America’s ever had,’” says Matt Weaver, legislative director for the Brotherhood of Maintenance of Way Employees, the nation’s third-largest railroad union. ​“When [railroads] have record profits and profit margins, and yet this deal is imposed, we’ve seen that our labor is expendable.”

The ordeal has also led many railroad workers and industry watchers to consider a vastly increased role for government in freight railroads: nationalization.

Launch of the Ecosocial Energy Manifesto from the Peoples of the South

‘Transition is inevitable, but justice is not.’ A challenge to social movements in the rich countries

By staff - People and Nature, February 13, 2023

“Clean energy transitions” by rich countries of the global north are producing “a new phase of environmental despoliation of the Global South”, states a manifesto published last week by an alliance of social and environmental organisations.

“This decarbonisation of the rich, which is market-based and export-oriented, depends on a new phase of environmental despoliation of the Global South, which affects the lives of millions of women, men and children, not to mention non-human life”, the Manifesto for an Ecosocial Energy Transition says.

Women, especially from agrarian societies, are among the most impacted. In this way, “the Global South has once again become a zone of sacrifice, a basket of purportedly inexhaustible resources for the countries of the North.”

As the rich countries secure supply chains for these “clean” transitions, the web of debt and trade agreements in which countries outside the rich world are caught is tightened.

I hope that social movements and the labour movement in the rich countries will not only sign the manifesto (which you can do here), but also – probably more to the point – think about and discuss what it means for us.

California is wary of taking this big step to fight climate change. One Democrat says it makes them ‘hypocrites’

By Joe Garofoli - San Francisco Chronicle, February 12, 2023

State Sen. Lena Gonzalez is calling out California as “hypocrites” when it comes to tackling climate change. 

Specifically, the Long Beach Democrat says the state’s massive public pension funds should put its money – $11 billion worth of investments in fossil fuel companies – where its mouth is, by divesting those funds from polluters and moving toward renewable energy sources.

Pension fund leaders say that divestment may sound good and feel good, but will “accomplish nothing” – and potentially put at risk the retirement benefits of teachers and other public-sector workers. 

Notably silent on this issue is California’s leading climate advocate: Gov. Gavin Newsom. And carefully watching this battle unfold from the sidelines – for now – is the politically powerful, 310,000-member California Teachers Association union. Just under 9% of its members are retirees.

Gonzalez would like to see Newsom take a more active position. She was a leader in writing the package of leading-edge climate bills that Newsom signed into law last year. 

But she’s dumbfounded as to why a state that has positioned itself as a leader by demanding electric vehicles, pledged to be carbon neutral by 2045, called a special session of the Legislature to penalize oil companies for “price-gouging” and is ready to ban gas-powered water heaters is balking at leveraging the massive economic power of its pension funds to force fossil fuel companies to be more green.

Why You Can't Ignore This Far-Right Trend

Where Do Railroad Workers Go from Here?

By Jay, Marilee Taylor, John Tormey, Matt Parker, and Maximillian Alvarez - In These Times, February 10, 2023

After a three-year saga of stalled contract negotiations between the country’s freight rail carriers and the 12 unions representing over 100,000 railroad workers, ​“pro-union” President Biden and Congress ​“averted” a national rail shutdown by overriding the democratic will of rail workers and forcing a contract down their throats. So, what happens now? 

In December, shortly after the Biden administration and Congress intervened, Working People convened a special all-railroader panel to break down the events of the last week and to discuss where railroad workers and the labor movement go from here.

Panelists include: Jay, a qualified conductor who was licensed to operate locomotives at 19 years old, and who became a qualified train dispatcher before he was 23; Marilee Taylor, who worked on the railroads for over 30 years and retired earlier this year from her post as an engineer for BNSF Railway, but is still an active member of Railroad Workers United; John Tormey, a writer and BMWED-IBT member who works as a track laborer for the commuter rail in Massachusetts; and Matt Parker, a full-time locomotive engineer who’s worked on the railroads for 19 years and also serves part-time as Chairman on the Nevada State Legislative Board of the Brotherhood of Locomotive Engineers and Trainmen.

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