energy transition

By Sarah Jones - Intelligencer, January 20, 2022

Over the last ten months, Brian Kelly has traveled, twice, from his home in Alabama to New York City. Kelly, along with roughly 900 of his co-workers, has been on strike since April 2021, a lengthy ordeal they pin on their employer Warrior Met Coal’s lackluster proposals for a new contract. In an unusual move for a labor strike, he and hundreds of workers came to protest the three hedge funds that own Warrior Met and pressure them to pressure the company’s management. It hasn’t been easy: Last November, the NYPD arrested Kelly and several others in front of the headquarters of BlackRock, the largest shareholder in Warrior Met.

A third-generation coal miner, Kelly worked for Warrior Met’s predecessor, Walter Energy, for two decades until it filed for bankruptcy protection in 2015. That’s when a judge allowed the private equity firms that took it over, including Apollo Global Management, Blackstone, and KKR, to reject prior labor contracts with Kelly’s union, the United Mine Workers of America, as the Financial Times previously reported. Miners accepted a pay cut of $6 an hour to keep their jobs. Health-insurance costs increased. “Then they forced us to work seven days a week, up to 16 hours a day,” Kelly recalled. “Overall, we made a sacrifice during that time.” The firms say they saved jobs; instead, miners say private equity prospered from their suffering. Though private equity no longer owns the company, the strike is arguably their legacy.

“All told, we estimate that this conglomerate of private equity firms realized about $1.1 billion in savings coming out of the bankruptcy court just over the past five years, that were essentially taken out of the pockets of workers,” said Phil Smith, a spokesperson for the United Mine Workers. A bigger payday was still to come. “Before its initial public offering in 2017, Warrior paid them a $190m dividend from cash on hand,” the Financial Times reported. “A few months later it paid a $600m dividend funded with cash as well as a $350m debt offering.” Austerity for some can be a windfall for others.

In statements, Apollo, Blackstone, and KKR all emphasized that they are no longer intertwined with Warrior Met. “Our former investment in Warrior Met saved the company’s mining operations from the brink of collapse, allowed the company to deleverage and invest in its business and preserved more than a thousand high-paying jobs in Alabama,” a spokesperson for Apollo said. “During the time of Apollo’s investment until our ultimate exit in 2019, the company thrived — its stock price increased, they had positive relations with its workforce and the representative union, and employees, who rank among the top earners in Alabama, received significant pay increases and bonuses.”

That likely won’t persuade Smith or the miners who make up his union. Smith calls the firms “vulture capitalists,” which he explained in detail. “What the vultures do is they see something lying down on the ground and they come and they eat it, right?” he said. Warrior Met’s predecessor, Walter Energy, “was lying dead in bankruptcy court,” he explained, when private equity swooped in. “They’re preying on distressed and dead companies and figuring out ways to extract more money for themselves and for their investors from the bones and the remains of those companies,” he added.

By Sean Sweeney, Richard Kozul-Wright, Rosa Pavanelli, Josua Mata, and David Gobé - Socialist Project, January 16, 2022

By J. Mijin Cha, Dimitris Stevis, Todd E. Vachon, Vivian Price, and Maria Brescia-Weiler - Labor Network for Sustainability, January 2022

This paper argues that labour and community-led advocacy efforts towards a just transition are fundamental to delivering the promises of a Green New Deal (GND) and a just post-carbon world. To this end, an ambitious, far-reaching project was launched by the Labor Network for Sustainability, a non-governmental organization dedicated to bridging the labor and climate movements, in Spring 2020 called the “Just Transition Listening Project’’ (JTLP).

Over the course of several months, the JTLP interviewed over 100 individuals, including rank-and-file union members, union officials, environmental and climate justice advocates, and Indigenous and community advocates to understand what makes transition “just,” what opportunities exist for a broad coalition to advance a GND-style proposal, and to document the struggles facing working people and communities across the U.S. In doing so, we utilize the tools of political geography to examine the politics of spatiality, networks, and scale as well as the geographical and spatial dimensions of policy and political-economic institutions. We are particularly mindful of two spatial dynamics.

First, that transition policies, particularly in a hegemonic country like the USA, have global implications. The industrial transition that took place from the 1970s to the 1990s, for example, bred nativism because it cast other countries as the cause of the problem.

Second, critical geographers have pointed out that environmental justice (EJ) has been neoliberalized in the U.S. as a result of its operationalization, spatialization, and administration, starting with the Clinton Administration. Because JT is rising on the national and global agendas, we pay close attention to whether these dynamics that affected EJ are also operating with respect to JT, as well as how they can be contained.

This research is particularly timely given the ongoing federal governmental efforts to contain the spread of COVID-19 and provide basic economic and social supports. The process of the JTLP parallels the goals of the GND–intersectional efforts rooted in community knowledge for the development of a people-led GND. This paper details the process of the JTLP and the prospects for intersectional, broad-based movements that are the only way a GND can be realized.

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By Sean Sweeney - New Labor Forum, January 2022

Covid-19 has provided a stark reminder that today’s world is both scarred by grotesque levels of inequality and populated by billions of vulnerable people. However, it has also stimulated renewed interest in “global public goods” (GPGs) and how this foundational idea might be utilized to address a range of social crises, including climate change.

Global public goods is a nice phrase, but what does it mean? The basic idea is simple: no person can be excluded from using the “good” in question. At the mundane or everyday level, streets and parks fall into the public goods category. At the global level, a stable climate would qualify, as would the means to achieve and sustain it.

A guiding principle for a GPG approach to climate protection can perhaps be expressed in one sentence: increasing emissions anywhere endangers people everywhere; reducing emissions anywhere benefits people everywhere. If this principle holds true, then the means of implementation will also either be themselves public goods or they will, almost by definition, be designed to serve the public good.

By Lara Skinner, J. Mijin Cha, Avalon Hoek Spaans, Hunter Moskowitz, and Anita Raman - The Worker Institute and The ILR School, January 2022

A new report released today by climate and labor experts at Cornell University in collaboration with the Climate Jobs Rhode Island Coalition outlines a comprehensive climate jobs action plan to put Rhode Island on the path to building an equitable and resilient clean-energy economy.

The report lays out a series of wide-ranging policy recommendations to transition the Ocean State’s building, school, energy, transportation, and adaptation sectors to renewable energy with the strongest labor and equity standards. Core provisions of the plan include decarbonizing the state’s K-12 public school buildings, installing 900 MW of solar energy statewide, 1,300 MW of offshore wind energy, and modernizing the state’s electrical grid by 2030. 

“Rhode Island is in a unique position as a state, in 2019 it had the lowest energy consumption per capita across all the United States. Rhode Island can use climate change as an opportunity to eliminate carbon emissions, increase equity, and create high-quality jobs that support working families and frontline communities,” says Avalon Hoek Spaans, Research and Policy Development Extension Associate for the Labor Leading on Climate Initiative at the Worker Institute, Cornell ILR School and one of the authors of the report.

The Worker Institute’s Labor Leading on Climate Initiative in partnership with the Climate Jobs National Resource Center, and Climate Jobs Rhode Island, began a comprehensive research, educational, and policy process in early 2021 to develop an implementation framework to drastically reduce emissions in the state while creating high-quality union family sustaining jobs.

Over the past year, the Labor Leading on Climate team has conducted outreach to numerous leaders of the labor and environmental movements as well as policymakers and experts in the climate, energy, and labor fields to better understand the challenges and opportunities that climate change and climate mitigation and adaptation presents to Rhode Island workers and unions.

“With Rhode Island on the frontlines of the climate crisis, it will take bold, ambitious action to combat climate change and reduce greenhouse gas emissions and pollution to the levels that science demands. Fortunately, tackling climate change is also an opportunity to address the other crises Rhode Island is facing: inequality and pandemic recovery,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

“As a small state with one of the lowest emissions in the country, Rhode Island can be innovative and efficient, employing cutting-edge approaches to reverse climate change and inequality. Rhode Island has the potential to be the first state in the country to fully decarbonize and build out a net zero economy with high-quality union jobs. This would make Rhode Island's economy stronger, fairer, and more inclusive,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

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By Elizabeth Perry - Work and Climate Change Report, December 9, 2021

International recruitment firm Brunel International and Oilandgasjobsearch.com released the latest version of their annual survey on November 30, showing key employment trends such as recruitment challenges, compensation, energy transition, job engagement, and retention in the global energy sector. Energy Outlook Report 2021-2022 is summarized with key highlights here , including that more than half of the oil and gas workers surveyed want to work in the renewable energy sector – a sentiment stronger amongst workers ages 25 – 29 years old. The survey also highlights a high degree of “job volatility” in the wider energy and extraction sector, with 44% of workers in oil and gas, 42% each in mining, power, and renewables, and 39% in nuclear saying they were looking for a career change in the next five years. The full survey is available for download here.

Although not as widely reported, a Canadian survey in the summer of 2021 showed a similar appetite for career change. Iron and Earth, the Canadian organization of fossil fuel workers whose mission is “to empower fossil fuel industry and Indigenous workers to build and implement climate solutions” , commissioned Abacus Data to conduct a survey of 300 Canadians working in the oil, gas or coal industry. The survey report probed general attitudes to a net zero economy, but more particularly asked about attitudes and motivations to skills training and retraining, with breakdowns by age, gender, Indigenous/minority status, and region. The top level finding: 69% of all the workers surveyed were very interested or somewhat interested in “making a career switch to, or expanding your work involvement in, a job in the net-zero economy”. These findings are consistent with an anecdotal report “Workers Pick Job Stability Over Higher Wages as Oil Rig Operator Scrambles for Crews” (The Energy Mix, Sept. 14), which reports on the recruitment difficulties of the oil and gas industry. The article quotes the head of the Canadian Association of Energy Contractors, who speaks of shift in the industry, “citing the premium many younger workers place on work-life balance, along with the federal government’s talk about just transition legislation.”

That same Canadian Association of Energy Contractors released their industry forecast for 2022 in November. It reports that drilling activity for oil and gas wells has “bounced back” from an all-time low in June 2020, and “total jobs in 2021 were up 54 per cent year-over-year from 2020, with an increase of 9,734 jobs. In 2022, CAOEC expects another increase of approximately 7,280 total jobs to 34,925, a 26 per cent increase year-over-year.” However, clearly oil and gas workers are right to be concerned about job stability, as the CAOEC continues: “In comparison to 2014, we anticipate total jobs will still be a loss of 56 per cent from the peak of 78,793 total jobs in 2014.”

By Bruce Wilson and Shea Sinnott - Centre for Social Innovation, December 4, 2020

By various - COP26 Coalition, December 2, 2021

By staff - Climate Safe Pensions, December 2021

A first-of-its-kind report ... from Climate Safe Pensions Network and Stand.earth reveals that just 14 pension and permanent funds finance fossil fuels to the tune of $81.6 billion.The report shows a comprehensive accounting of the fossil fuel exposure of 14 pension funds in one report from Climate Safe Pensions Network and Stand.earth reveals that just 14 U.S. public pension funds are the quiet culprits of climate chaos: with $81.6 billion invested in coal, oil, and gas.

With over $46 trillion in assets worldwide, pension funds are among the largest institutional investors in fossil fuels. These investments have dangerously underperformed the rest of the market, making public pensions’ fossil fuels investments inherently risky.

Pension funds’ financial influence make them a force to reckon with in the battle to confront, slow and mitigate climate change. Pension fund decision-makers must take climate protection seriously — not only for their financial well-being, but also for the well-being of their millions members.

With 10 years of data, there’s hard evidence that divestment is a winning financial strategy. The fastest way for pensions to address climate change is to divest fossil fuel holdings and invest in just and equitable climate solutions.

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