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The Road Towards a Carbon Free Society: A Nordic-German Trade Union Cooperation on Just Transition

By Dr Philipp Fink - Friedrich Ebrt Stiftung, December 2020

This project, “The Road Towards a Carbon Free Society A Nordic-German Trade Union Cooperation on Just Transition”, is a collaboration between the Council of Nordic Trade Unions (NFS), the Friedrich-Ebert Stiftung (FES) and the German Trade Union Confederation (DGB).

Represented by the Council of Nordic Trade Unions (NFS) in the project are 13 national Trade Union Confederations within NFS, from five Nordic Countries: Denmark (FH, Akademikerne), Finland (SAK, STTK), Iceland (ASÍ, BSRB, BHM), Norway (LO-N, Unio, YS) and Sweden (LO-S, TCO, Saco).

About the reports

A total of six country reports on the Just Transition path of the participating countries (Denmark, Finland, Germany, Iceland, Norway, and Sweden) have been formulated.

Each contains an analysis of the climate policies, economic and societal consequences, an evaluation of the respective national instruments and offers European perspectives.

The main findings of the country reports are brought together in a synthesis. It features policy recommendations that aim to help guide the transition to a decarbonised society and an economy that is just and sustainable. The reports and their results are presented and discussed in a series of events nationally as well as in terms of Nordic and European cooperation and at the international level.

Synthesis

A Just Transition towards a carbon neutral future is the most urgent environmental, social and economic issue of our times. This project aims to develop strategies and requirements from a trade union perspective on how to manage the process to a carbon free society.

The participating labour organisations are united in their vision that this goal can only be reached if the social costs of this transition process are socially mitigated.

This means harmonising efforts to combat climate change with the aim of ensuring decent working and living conditions.

To this end, the participating labour organisations have not only analysed their respective countries’ transition path towards a fossil free future but have also formulated joint policy recommendations for the national and European arenas, jointly adopted by the NFS and the DGB in November and December 2020.

The ensuing discussions and debate have strengthened the cooperation and dialogue between the Nordic and the German trade union movements on common challenges and solutions.

Read the text (Link).

Let's Own Chevron: Can the Just Transition of the Fossil Fuel Industry Start Here?

By Ted Franklin - System Change not Climate Change, December 2020

The Bay Area is home to one of the largest fossil fuel companies in the world. In October 2020 Chevron overtook ExxonMobil to become the largest U.S. oil company as measured by market cap. On October 7, the total value of shareholders’ stock in Chevron reached $142 billion, surpassing Exxon’s $141.6 billion.

Headquartered in Dublin and operating Northern California’s largest refinery in Richmond, Chevron has already found itself in the crosshairs of Bay Area activists for its routine pollution of working-class neighborhoods and its contributions to climate change. The Richmond Progressive Alliance’s radical struggle against Chevron’s domination of Richmond’s city government has been a central story in Bay Area left environmentalism in recent decades..

Much bigger contests over the power of Chevron and its ilk lie directly ahead. Increasingly, it has become clear that a direct government takeover of our fossil fuel industries is a necessary step for at least three reasons:

  • 1. Reductions in oil, coal, and gas production must begin immediately to avoid catastrophic degradation of the planet. Chevron and every other fossil fuel company must begin the process of downsizing at a rapid pace. As long as the fossil fuel companies are being run to maximize profits, any downsizing will be accidental and haphazard. Management which puts people and planet first must take over to ensure that the necessary reductions take place.
  • 2. Public ownership is the only way to break the back of the fossil fuel industries’ death grip over climate policy. The fossil fuel capitalists will not go quietly away. They have enormous sunk costs in their existing infrastructure. They intend to exert enormous political power to resist any reduction in their profits and any attempt to make them “keep it in the ground.”
  • 3. A just transition for workers and communities requires social control of the rapidly evolving energy commons. Even if the carbon tax championed by Joe Biden’s Treasury pick, Janet Yellen,1 could achieve sufficient reductions in carbon emissions to avert climate disaster, it would do nothing to ensure that reductions in carbon emissions are achieved without misery to workers and communities.

What is to be done?

Read the text (PDF).

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).

The Biden Climate Plan: Part 1: What It Proposes

By Jeremey Brecher - Labor Network for Sustinability, December 1, 2020

This commentary by Jeremy Brecher analyzes Joe Biden’s “Plan for Climate Change and Environmental Justice” released in August. The following commentary, “The Biden Climate Plan: Part 2: An Arena of Struggle,” will consider the struggles that are likely to emerge over what parts of the plan can and should be implemented. To read this commentary, please visit: this page.

No-one Left Behind: Australia’s Transition to Zero Emissions

By staff - Australian Council of Trade Unions, November 25, 2020

The ACTU and Australian unions have been engaged in Australia’s climate and energy policy development for nearly three decades. Our consistent position has been that Australia needs ambitious and coherent climate and energy policy to limit the impacts of global warming, and that we also need industry planning, support and resources to ensure that no workers or communities are left behind as we make the shift to net zero emissions.

In March 2020, the ACTU Executive, meeting in bushfire-affected southern NSW, reiterated:

“The international community, through the Paris Agreement, has committed to limiting the rise in temperatures to below 2°C above preindustrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees.

The best scientific evidence is that the world needs to achieve net zero emissions by 2050 to meet the climate goals of the Paris Agreement, to which Australia is and should remain a signatory.
The ACTU supports a national target of net zero emissions by 2050, and shorter term targets consistent with that trajectory, to ensure Australia meets its obligations under the Paris Agreement.

Government and corporations must ensure secure jobs and industry policy are placed at the heart of successful planning and implementation. As a nation we must ensure we deliver justice & employment opportunities for impacted workers, their families and the communities in which they live.”

Australia has lacked coherent and over-arching national climate and energy policy since the Clean Energy Act 2011 and its associated programs was repealed by the Coalition government. Since then emissions reductions have flat-lined and it is unclear how Australia will meet even its unambitious Paris Agreement 2030 commitment. Meanwhile fossil fuel power stations have been closing over the past decade with very little notice for workers and communities and no coordinated national transition plan to address the impacts of closures. Workers across the nation are increasingly experiencing climate impacts and extreme weather events in their workplaces with Work Health and Safety legislation and programs failing to catch up.

Given this lack of coherent climate and energy policy, the ACTU welcomes the Climate Change (National Framework for Adaptation and Mitigation) Bill 2020, which shares the union movement’s goal of limiting global warming consistent with the Paris Agreement and achieving net zero emissions across the Australian economy by 2050.

Read the text (PDF).

Open Letter to the Contra Costa County Board of Supervisors on Just Transition

By Andreas Soto and Ann Alexander - Communities of a Better Environment and NRDC, November 20, 2020

Candace Anderson, Diane Burgis, John Gioia,
Karen Mitchoff, and Federal D. Glover
Contra Costa County Board of Supervisors
651 Pine Street, Room 107
Martinez, CA 94553

Dear Chair Anderson, Vice-Chair Burgis, and Supervisors Gioia, Mitchoff, and Glover, The undersigned organizations applaud your recent Declaration of a Climate Emergency in Contra Costa County, which underlines the need to "plan for a ' Just Transition' away from a fossil-fuel dependent economy." In furtherance of this goal, we seek your immediate action to ensure just transitions for workers and communities threatened with sudden abandonment by refineries located in the County. We believe climate protection must go hand in hand with environmental and economic justice. All of this is now at risk in the Contra Costa County oil belt.

As you know, Marathon abruptly announced in August the immediate permanent end to crude processing at its Martinez refinery. Phillips 66 followed suit with notice of the impending partial closure of its San Francisco Refinery Complex facilities in Rodeo, Franklin Canyon, and Arroyo Grande. Both companies proposed switching to significantly downsized production of non-petroleum fuels, which will involve fallowing of large portions of the refineries. Neither announcement identified any explicit commitment to full cleanups of the contaminated industrial sites. Of even more immediate concern, neither company committed to support the wages, health care, or pensions of all whose jobs these facility closures threaten.

These refinery downsizings—which may well be a harbinger of additional closures in the future—will jeopardize not just the livelihoods of the refinery employees, but those of thousands of families in the surrounding communities whose jobs are indirectly dependent upon the existence of the refineries. Refinery downsizing and shutdown also threaten a significant portion of the tax base upon which community government and essential services depend. Ultimately at risk are future prospects for environmentally healthy and economically sustainable development in communities hosting the decommissioned plant sites.

Letter to Contra Costa County, California on Just Transition from Fossil Fuels

By staff - Sunflower Alliance, November 20, 2020

Just weeks after Contra Costa County’s Board of Supervisors declared a climate emergency, a diverse group of environmental, labor, and public health advocates sent a letter to the Board calling for a planned and equitable transition away from fossil fuels to a clean energy economy, in what many are calling a “just transition” that supports refinery workers and frontline communities.

“We applaud your recent Declaration of a Climate Emergency in Contra Costa County, which underlines the need to ‘plan for a ‘just transition’ away from a fossil-fuel dependent economy.’  In furtherance of this goal, we seek your immediate action to ensure just transitions for workers and communities threatened with sudden abandonment by refineries located in the County.  We believe climate protection must go hand in hand with environmental and economic justice,”  reads the letter’s opening paragraph.  See the full letter here.

The letter highlights concerns over recent news regarding changes to traditional refinery operations in Contra Costa County—including Marathon’s announcement of a permanent end to crude oil processing at its Martinez refinery, and Phillips 66’s notice of an impending partial closure of its San Francisco Refinery facilities in Rodeo, Franklin Canyon, and Arroyo Grande.

Both companies have proposed changes that would significantly decrease the production of non-petroleum fuels, which will involve shuttering large portions of the refinery.  Neither company has identified plans for full cleanups of their industrial sites, nor have they made adequate commitments to support the wages, health care, or pensions of workers whose jobs are threatened by these changes.

“The large oil companies who have for so long made their profits in Contra Costa County’s local communities ought to be the ones to pay the steep cost associated with their departure,”  the letter states.

The letter also identifies how the communities facing shuttered refinery operations are ultimately at risk for future prospects for environmentally healthy and economically sustainable development.

Greenpeace USA’s Just Recovery Agenda: A Pathway to a New Economy

By Ryan Schleeter, Amy Moas, Ph.D., and Tim Donaghy, Ph.D. - Greenpeace, November 17, 2020

The economy we have today works for the 1%, not the 99%. The devastation wrought by COVID-19 in the United States—the death, anxiety, isolation, and instability—is the direct result of a system designed to concentrate power in the hands of a few. People are suffering and dying not only because of the virus, but because of the longstanding inequality and racism it has laid bare. This is the same system that has landed us in a climate and extinction crisis in which our very life support system—our planet—is under attack.

As we chart the course toward recovery, we must also confront these social, environmental, and economic injustices at their roots. The centuries-long era of racial capitalism[1]—the system under which wealthy white elites and massive corporations have controlled and exploited land, communities, and cultures to acquire power—must end.

Going back to normal is not an option. The past was not only unjust and inequitable, it was unstable. What we knew as “normal” was a crisis. We must reimagine the systems our country is built on from the ground up. We envision a world where everyone has a good life, where our fundamental needs are met, and where people everywhere have what they need to thrive.

Read the text (PDF).

The Rural Climate Dialogues: A Community-Driven Roadmap for Climate Action in Rural Minnesota

By Tara Ritter - Institute for Agriculture & Trade Policy, November 17, 2020

Rural America has a central role to play in meeting the climate crisis and rural residents have innovative ideas about how to do it. Rural America encompasses 97% of the land area in the United States and is home to nearly all the nation’s energy production, including wind and solar farms, oil drilling and power plants. The nation’s vast agricultural and forested land, which are essential natural resources in responding to climate change, are managed by the 19% of the population that lives in rural America. It seems obvious that rural Americans should be deeply involved in developing climate policy; yet, rural perspectives and ideas are too often not part of the discussion.

There are real challenges in engaging rural communities on climate policy, including longstanding political obstacles that run deeper than views on climate change. The divide between rural and urban is not just geographic, but also cultural and political, and here in Minnesota the gap is widening. Urban and rural Minnesotans have grown apart in many ways — age, income, educational attainment, race and culture. Ignoring these differences, or trying to ram through them, has thus far delayed action on climate change.

Climate change offers an opportunity to engage differently with rural communities in a way that focuses on solutions rather than assigning blame. Instead of trying to “sell” climate policy to rural communities, we must engage organizations and leaders rooted in rural areas in the development stage to identify solutions that work for them. As important, we need community-level engagement tools designed to overcome our current toxic political environment and map out rural-appropriate responses to climate change that feed up into policy and concrete action.

Since 2014, IATP, in partnership with the Jefferson Center, has hosted Rural Climate Dialogues (RCDs) in five Minnesota counties. This method of civic engagement emphasizes listening and empathy building; focuses on each community’s distinct hopes, challenges and sense of place; and ultimately creates locally driven climate action plans. This report will discuss the context in which we have done this work, provide an overview of each community’s recommendations and actions, and share what we have learned.

Read the text (PDF).

Debt Relief for a Green and Inclusive Recovery

By Ulrich Volz, Shamshad Akthar, Kevin Gallagher, Stephany Griffith-Jones and Jörg Haas - Heinrich Böll Foundation; the Center for Sustainable Finance at SOAS, University of London; and Boston University’s Global Development Policy Center , November 16, 2020

The report “Debt Relief for Green and Inclusive Recovery published by the Heinrich Böll Foundation; the Center for Sustainable Finance at SOAS, University of London; and Boston University’s Global Development Policy Center proposes that low and middle-income countries with unsustainable debt burden receive substantial debt relief by public and private creditors, in order to provide fiscal space for investment in Covid-19-related health and social spending, climate adaptation and green economic recovery strategies. Private creditors participating in the debt restructuring would swap their old debt holdings with a haircut for new “Green Recovery Bonds”. 

This proposal goes further than the new common framework endorsed by the G20 and Paris Club last Friday, as it would ask for mandatory participation from the private sector. Second, it would include middle-income countries with unsustainable debt burdens. Thirdly, the proposed Debt Relief for Green and Inclusive Recovery Initiative is geared to achieving the Paris Agreement on climate change and the 2030 Agenda for Sustainable Development, which the common framework is not.

Governments receiving debt relief would need to commit firmly to reforms that align their policies and budgets with the 2030 Agenda for Sustainable Development and the Paris Agreement. For these countries to have continued access to international capital markets, any new debt issued by them could receive Brady-type credit enhancement – suitably adapted to current circumstances – in exchange for committing to Sustainable Development Goals-aligned spending items.

Read the text (PDF).

Read Background Briefing #2 (PDF).

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