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decarbonization

Energy transition or energy expansion?

By Sean Sweeney, John Treat, and Daniel Chavez - Trade Unions for Energy Democracy and Trans National Institute, October 22, 2021

From politicians to corporate executives, media commentators to environmental campaigners, narratives evoking the “unstoppable” progress of a global transition from fossil fuels to renewable energy have grown increasingly commonplace.

However, in reality, the global shifts in energy production, energy usage and greenhouse gas emissions we urgently need are not happening:

  • In 2019, over 80% of global primary energy demand came from fossil fuels, with global greenhouse gas emissions at record levels.
  • In 2020, wind and solar accounted for just 10% of global electricity generated.
  • Despite stories of its decline, coal-fired power generation continues to rise globally. In 2020, global efforts to decommission coal power plants were offset by the new coal plants commissioned in China alone, resulting in an overall increase in the global coal fleet of 12.5 GW.

Recently, some have argued that the Covid-19 pandemic and subsequent contraction in economic activity signal a turning point. Indeed, global energy demand fell by nearly 4% in 2020, while global energy-related CO2 emissions fell by 5.8% — the sharpest annual decline since the second world war.

Despite these short-term shifts, the pandemic has failed to result in any significant long-term changes for the energy sector or associated emissions:

  • Global energy-related CO2 emissions are projected to grow by 4.8% in 2021, the second highest annual rise on record.
  • Demand for all fossil fuels is set to rise in 2021.6 A 4.6% increase in global energy demand is forecast for 2021, leaving demand 0.5% higher than 2019 levels.
  • By the end of 2020 electricity demand had already returned to a level higher than in December 2019, with global emissions from electricity higher than in 2015.
  • By the end of 2020, global coal demand was 3.5% higher than in the same period in 2019. A 4.5% rise in coal demand is forecast for 2021, with coal demand increasing 60% more than all renewables growth combined and undoing 80% of the 2020 decline.
  • Oil demand is forecast to rebound by 6% in 2021, the steepest rise since 1976. By 2026, global oil consumption is projected to reach 104.1 million barrels per day (mb/d), an increase of 4.4 mb/d from 2019 levels.

As such, an energy transition with the depth and speed necessary for meeting the 2015 Paris Agreement shows no sign of materializing. Indeed, most of the world’s major economies are not on track to reach their Nationally Determined Contributions (NDCs) on emissions reductions.

These facts point to a clear conclusion: the dominant, neoliberal climate policy paradigm, which deploys a “sticks and carrots” approach that attempts to disincentivize fossil fuels through carbon pricing, while promoting low-carbon investment through subsidies and preferential contractual arrangements has been completely ineffective. This policy paradigm positions governments as guardians and guarantors of the profitability of private actors, thus preventing them from addressing social or environmental challenges head-on.

Read the text (PDF).

Only Labor Can Force Canadian Pension Funds to Divest From Oil

By Tom Fraser - Jacobin, October 19, 2021

One of Canada’s largest institutional investors, responsible for managing billions of dollars in workers’ pensions, has committed to fossil fuel divestment. It’s a good step — but without pressure from the labor movement, these promises will mean nothing.

On September 28, the institutional investor and pension manager Caisse de Dépôt et Placement du Québec (CDPQ) announced that it would no longer invest in oil production. The Caisse made this decision as part of their strategy to reach net-zero by 2050. Canada’s second-largest pension fund manages the retirement contributions of over six million Quebecois. Their stability and security in old age is bound up with the Caisse’s ability to assure returns on its vast asset portfolio.

Although it comes with caveats, the Caisse’s announcement could potentially be the start of a wider movement on the part of investment companies to divest Canada’s public sector pension funds from fossil fuels. With such massive portfolios, pensions could be at the forefront of a just transition.

Canadians and Calgarians support Just Transition, end to fossil fuel subsidies in public opinion polls

By Elizabeth Perry - Work and Climate Change Report, October 19, 2021

Citizens of Calgary voted in municipal elections on October 18 and returned the city’s first female mayor, Jyoti Gondek . As summarized by CBC, she promised to address “inclusive economic recovery, …. social disparities within communities and take action to address climate change.” In the lead-up to Calgary’s elections, Alberta Ecotrust FoundationCalgary Climate Hub and Clean Energy Canada commissioned a poll, conducted in August 2021, with results announced on September 8th. The results show that 69% of Calgarians are concerned about climate change impacts. Some specific highlights:

73% agreed with the statement: “ It is important to recognize the future of fossil fuels and invest in transitioning oil and gas workers to other industries.”

 70% agreed that “The transition to renewable energy will ultimately improve the health and well-being of my family and me.”

67% agreed that “Calgary should focus its economic diversification efforts in becoming a leader in addressing climate change”.

And when asked to choose between a path to more oil and gas investment or a clean energy path, 49% agreed with the statement: “The signal from investors and financial markets is clear as they divest of oil & gas assets, and Calgary should invest in the transition toward clean energy.” (compared to 38% who favoured the old oil and gas economy). 

Environmental concerns were high, including: 79% who expressed concern about poor air quality from wildfire smoke, 75% concerned with protecting ecological sensitive areas, and 73% concerned with the increasing number of extreme weather events.

Labour and climate activists make recommendations for fossil fuel workers in new joint report

By Elizabeth Perry - Work and Climate Change Report, October 19, 2021

At a press conference on October 13, representatives of Climate Action Network Canada , Blue Green Canada, United Steelworkers, and Unifor launched a new report,  Facing Fossil Fuels’ Future: Challenges and Opportunities for Workers in Canada’s Energy and Labour Transitions. The report considers the challenges to the fossil fuel industry, including automation, and projects that 56,000 alternative jobs will need to be created for current Canadian oil and gas workers in the next decade. The report offers seven recommendations for a Just Transition, building on policy proposals from Canada’s Just Transition Task Force for Coal Workers and Communities, the Fédération des travailleurs et travailleuses du Québec, and Unifor (whose most recent statement is their submission to the Just Transition consultation process here. ) Key recommendations include: “Recognizing the expertise of workers, through consultation with workers and communities, Canada must create Just Transition policy / legislation that holds the government accountable to developing transition strategies. Similar policy / legislation should be adopted by all provinces with an emphasis on the oil and gas producing provinces of British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador.” Funding is seen to come from Covid recovery funds and the Infrastructure Bank, with another recommendation: “Tie public investments to employers meeting conditions on job quality, including pay, access to training, job security, union access and representation through mandatory joint committees.”

Summaries of Facing Fossil Fuels’ Future appear in the press release from Climate Action Network, and in “With Canadian fossil fuel jobs about to be cut in half, it’s time to talk about a just transition” (National Observer, Oct. 15). The latter article highlights the enhanced impact of the bringing labour unions and climate activists together, and also emphasizes that workers must be included in all transition plans, using the cautionary tale of Algoma Steel. As explained in “Why Mike Da Prat boycotted the prime minister’s Algoma Steel announcement” (Soo Today, July 6 2021) the union was not adequately consulted on transition planning when the government awarded $420 million in July 2021 to help Algoma Steel transition from coal to greener, electric-arc furnace production.

Climate Jobs and Just Transition Summit: Strong Unions, Sustainable Transport

A Vision for Scotland’s Railways

By staff - Unity Consulting, ASLEF, RMT, TSSA, and Unite the Union, October 29, 2021

Scotland cannot meet its environmental obligations without a world-class rail service that shifts people and goods from cars and lorries onto trains.

This requires a service that is fully staffed, with affordable fares, stations that are accessible and trains that are clean, green and attractive.

What is needed is an ambition for Scotland’s railways that is expansive, that encourages people to make rail their first travel choice and increases freight capacity.

Our long-term vision for Scotland's railways:

  • It should be a publicly operated and governed system run as public service and not for private profit
  • A system that helps Scotland meet its wider environmental and public policy ambitions
  • A railway that is supported by public subsidy
  • Is fully staffed
  • That reinvests in rail infrastructure, to help grow the economy.
  • Takes ScotRail (and the Serco operated Caledonian Sleeper) back under public ownership permanently
  • A railway that is part of a wider integrated public transport system with through ticketing
  • Is part of an industrial strategy that recognises rail services are a vital part of Scotland’s economy helping create jobs and growth
  • Has a democratic regulatory and governance structure
  • Has a cross representation of Scottish society and rail interests at the heart of decision making
  • Has representation from all four trade unions on the board of the new operator
  • Has local political representatives on the board
  • Has passenger representatives on the board

Read the text (PDF).

It’s time to act now! Just Transition must become a reality today! IndustriALL Global Union and industriAll European Trade Union on COP26

By staff - IndustriaALL, October 2021

On the occasion of the 26th Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) taking place on 1-12 November 2021 in Glasgow, IndustriALL Global Union and industriAll European Trade Union - which collectively represent over 50 million workers in industry, energy and mining sectors globally - call on governments to finally act and make Just Transition a reality for everyone and for all generations!

For many years, the International Trade Union Movement has been vocal about the need to ensure a Just Transition that is on par with increased climate ambition. We cannot ignore the urgent need to step up our global efforts to reach climate neutrality as soon as possible. Climate change is affecting everyone, brought to our attention by recent extreme weather events around the globe, but it cannot be that the workforce and the poor will be the first to pay the price. The measures to mitigate and adapt to climate change will not affect everyone equally. Workers around the globe are at the centre of the transition and will be the actors to implement climate ambition through their daily work.

We campaigned for the inclusion of the Just Transition concept in the Paris Climate Agreement in 2015 and for the development of ILO Guidelines on how to implement it on the ground. The ILO Guidelines stress the need for tripartite dialogue, including governments, employers and trade unions, in each of the nine policy areas defined in the just transition framework1. In 2018, during COP24, 56 parties adopted the Solidarity and Just Transition Silesia Declaration, stressing “that Just Transition of the workforce and the creation of decent work and quality jobs are crucial to ensure an effective and inclusive transition to low greenhouse gas emissions and climate resilient development.” The Silesia Declaration invited all relevant stakeholders to implement it. Despite significant progress, in many places Just Transition is too often only nice words on paper.

Declarations and statements of good intentions must now be followed by concrete action. Especially during the COVID-crisis and in the aftermath, jobs were lost, social dialogue was not respected, and workers were driven into precarious conditions. Therefore, IndustriALL Global Union and industriAll European Trade Union call on governments that it is high time to move on from the narrative on paper to implementing a Just Transition through measures and resources on the ground. To achieve this, Just Transition plans must be systematically included as part of the UNFCCC reporting process, in every country.

Read the text (PDF).

Are ‘Green’ Jobs Good Jobs? How lessons from the experience to-date can inform labour market transitions of the future

By Dr Anna Valero, et. al. - London School of Economics, October 2021

As governments worldwide are increasing their commitments to tackling climate change, efforts are growing to quantify and characterise the ‘green economy’, and to identify opportunities to be seized and challenges to be overcome in the transition to the net-zero economy of the future. The aim of this report and accompanying policy brief is to shed light on the quantity and quality of current green labour markets, to inform policy action and future research for the net-zero transition.

Main messages

  • Research on green jobs often uses a narrow definition of the green economy that does not cover all the jobs that will be important for driving forward the net-zero transition.
  • In contrast, the authors apply a broad approach to the UK and European economies.
  • They find that around 20% of jobs in the UK and 14 European economies can be considered directly and indirectly green, taking a broad, occupation-level definition of the ‘greenness’ of jobs.
  • They find some evidence that greener jobs tend to be ‘better’ jobs.
  • Workers in some types of green jobs, particularly those that are new occupations related to greening the economy, are likely to be educated to a higher level and be on permanent contracts, though there are differences in these relationships across countries, sectors and regions.
  • For the UK, the authors also find that greener jobs tend to pay higher wages, and are more resilient to automation.
  • Greener jobs tend to be occupied by older workers and men. Policymakers will need to ensure equitable access to green, future-fit jobs. Educational and training requirements of ‘green’ jobs will need to be met with new education and skills policies, including improved incentives for firms and individuals to train.

Read the text (link).

“Every job can be a climate job”: Employee guide to climate action by Project Drawdown

By Elizabeth Perry - Work and Climate Change Report, September 30, 2021

Climate Solutions at Work is a newly published guide by Drawdown Labs, focussed on the potential for all employees to take climate action through their workplace. The Guide acknowledges that “Inside most companies, only a handful of people with “sustainability” roles consider climate issues part of their workday. But in this most all-encompassing challenge in human history, every job must be a climate job.” 

According to the Drawdown website, “This employee-focused guide has two main objectives: 1. To democratize climate action, so that all employees can contribute – preferably through creating or joining collaborative group efforts; and 2. To use a “new drawdown-aligned business framework” to help companies look beyond their existing “net-zero” goals – (which Greta Thunberg famously told us on September 28, often are just “blah blah blah” ) . The Guide offers a detailed action plan for individuals in the workplace.

 Drawdown Labs is an initiative of Project Drawdown , founded in 2014 as a nonprofit organization that seeks to help the world reach “drawdown”—the point in the future when levels of greenhouse gases in the atmosphere stop climbing and start to steadily decline. Their flagship publication, the Drawdown Review was first published in 2017 and offers an holistic, long-term approach to climate actions. They also offer learning materials – for example, Climate Solutions 101 , a online video series produced with such partner organizations as the National Council for Science and the Environment in the U.S. (now the Global Council for Science and the Environment ).

Shuler: Good Union Jobs Are Key to a Clean Energy Future

By Liz Shuler - AFL-CIO, September 17, 2021

AFL-CIO President Liz Shuler delivered the following remarks virtually at the Long Island Offshore Wind Supply Chain Conference:

Thank you so much for that wonderful introduction, Congressman [Tom] Suozzi. Thank you for your strong voice for working families in your district but for all working families, and for chairing the House labor caucus.

Good morning to all of you! Even though I’m Zooming in, I’m so happy to be joining you today—sounds like you have a great crowd in person and online. Hello to my labor friends—John Durso, Roger Clayman. I heard Chris Erickson is there and everyone from all walks of life who care about our climate.

I got fired up hearing your intro Congressman. I’m inspired because I see the future: that win-win-win is right there for us to grab it, and a modern, resilient and inclusive labor movement is what will help us meet the challenges of the climate crisis.

New York, I don’t need to tell you that working people are seeing and feeling the impacts of climate change. Ida recently flooded the New York transit systems and parts of Long Island saw record rainfall. 

It’s happening all across the country. Wildfires. Heat waves. Climate change is already here, happening in every community and every ZIP code. From your local news reports to the recent IPCC report, you’re hearing the alarm: we have to transition to a clean energy future. The question is how? 

The answer: with good, union jobs. It’s why we are building a labor movement that will meet the moment.

Just look at how our movement, government, industry leaders and environmental groups have worked together to bring offshore wind to the Atlantic Coast. Our progress working together shows that the way to respond and adapt to the climate crisis is through a high-road strategy with good, union jobs. 

That’s the only way we can meet the urgency in front of us. 

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