energy transition

By Yelter Bollen, Tycho Van Hauwaert, and Olivier Beys - European Trade Union Institute, August 2021

Europe’s industrial base needs to undergo a swift and persistent transformation towards carbon neutrality and circularity, but this transition must happen in a fair and socially just manner. In this working paper, we evaluate the support mechanisms for heavy industry which have been put in place over the past 20 years, comparing the state of play in the Netherlands, Germany and Belgium.

We also compare recent developments in the industrial policy frameworks of these countries, considering European as well as domestic policy levers. We conclude that policy frameworks have largely been ‘defensive’, have lacked foresight, and have had negative distributional effects. Recent shifts in policy have opened up avenues for progress, but the level of ambition remains insufficient and uneven. Major economic incentives and support measures should cohere with a just transition, at the (sub-)national as well as the EU level.

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By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Caitlin Kline and Gregor Semieniuk - Political Economy Research Institute, August 2021

California’s oil and gas jobs currently offer significant compensation and benefits, providing workers in these jobs with security for themselves and their families. As California moves to meet its existing climate commitments—to cut greenhouse gas emissions by 50% by 2030 and to reach net zero emissions by 2045—the oil and gas industries will contract, and it is critical to invest in a strong, ongoing relief program to take care of displaced workers, their families and their communities.

An excerpt and fact sheet from A Program For Economic Recovery And Clean Energy Transition In California, by Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Caitlin Kline and Gregor Semieniuk.

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By Sasan Saadat and Sara Gersen - Earth Justice, August 2021

To chart a course toward a safer climate and more habitable planet, we must rapidly reduce emissions of greenhouse gases across our society. The biggest contributor to greenhouse gas emissions is the burning of fossil fuels. Consequently, the clearest path to reducing emissions is to switch from fossil fuels to renewable, zero-emission energy in our transportation, buildings, and power generation (sectors that are collectively responsible for about 75% of United States’ greenhouse gas emissions). This transition would make significant strides in eliminating the devastating public health impacts of pollution throughout the life cycle of fossil fuels—pollution that is most severely concentrated in Black, Brown, Indigenous, and poor communities. A just transition will also require careful policy design and meaningful engagement from frontline communities. Renewable energy, energy efficiency, and electrification are zero-emission solutions that eliminate both greenhouse gases and health-harming air pollution. To meet the scale and urgency of the climate crisis will require deployment of renewable resources on an unprecedented scale— ultimately achieving 100% clean power generation—and a complete transition to efficient, electric models for things like household appliances and cars.

As we electrify everything that can feasibly plug into a clean power grid, “green hydrogen” is a promising tool for transitioning to renewable energy in sectors that lack a viable route to direct electrification. Green hydrogen is hydrogen produced by using 100% renewable electricity to split water molecules.

To understand the potential role of green hydrogen, consider the challenges of cutting climate pollution from one hard-to-electrify sector: maritime shipping. Maritime travel is difficult to decarbonize because battery-powered ocean-going vessels will not be able to handle long-haul voyages across the ocean, at least for the foreseeable future. The hope for green hydrogen is that it may store energy from clean electric resources like wind and solar in a fuel that could be used to propel large, long-haul ships. This vision is at least a decade away from reality, if it overcomes the challenges to cost-effective production and efficient on-vessel storage. Still, it offers a path to displacing the highly polluting bunker fuel currently relied on to move much of the world’s goods across oceans.

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By Luis Feliz Leon - American Prospect, July 28, 2021

Miners at Warrior Met Coal in Alabama have been on strike for almost five months, struggling to reverse concessions in pay, health care, and safety. Strikers brought their picket lines from the piney woods of the South to the tony Manhattan offices of three hedge fund shareholders on June 22, and more than 1,000 mine workers and union allies return today to demonstrate outside the offices of the company’s largest shareholder, asset manager BlackRock.

Miners have chanted, “No Contract, No Coal!” and “Warrior Met Has No Soul” on picket lines from the worksite in Brookwood, Alabama, to New York City. “We’re here to let the whole world know that we will take it from the bottom of the United States to the top. Where we have to take this fight, we’re going to take it,” Dedrick Gardner, a first-generation miner from a union household of teachers and postmasters, said on the New York picket line in June.

It’s a well-trodden path for United Mine Workers of America (UMWA) members. In 1974, coal miners from southeastern Kentucky’s Harlan County journeyed to Wall Street during the ninth month of their strike, leafleting outside a shareholder meeting of the company Duke Power.

Filmmaker Barbara Kopple’s Harlan County USA documented miners and their families as they rose up against gun-toting goons and the bosses who plundered their lungs and their labor to extract coal and soul. Kopple joined them on Wall Street too, capturing conversations between strikers and local cops discussing wages and benefits, a microcosm of shared class struggle from opposite sides of the fence. “They make some profit, but they keep it all to themselves, right?” the police officer asks the miner at one point. “Yeah, they don’t spread the wealth.”

That solidarity has been present at Warrior Met since miners walked off the job on April 1. When management put a contract offer on the table several days later, workers roundly rejected it by a vote of 1,006 to 45.

“The industry standard is 30 bucks an hour,” said Johnny Murphy, vice president of UMWA Local 2397. “We’re at $23. Corporate greed has taken over America.”

By Jaisal Noor - The Real News Network, July 28, 2021

Striking Alabama coal miner Mike Wright says workers at Warrior Met Coal are taking their calls for fair pay and benefits to the NYC headquarters of their company's biggest investor: BlackRock.

By Bo Delp - Texas AFL-CIO, July 27, 2021

A new and growing coalition of Texas labor unions Monday launched the Texas Climate Jobs Project (TCJP), a major joint effort to fight climate change and reverse income inequality in the energy capital of the country.

A new report by climate and labor experts at Cornell University, Northeastern University, and Occidental College, in consultation with 27 Texas labor unions, accompanied the launch and outlays out a comprehensive climate jobs action plan to put Texas on the path to building an equitable clean-energy economy. A provision of the plan includes the installation of 40 GW of solar energy and 100 GW of wind energy and the electrification of school bus and public vehicle fleets by 2040.

The launch of the Texas Climate Jobs Project comes a day before the Texas AFL-CIO convention, at which the state’s labor leaders are expected to pass a resolution backing the coalition’s mission and its foundational report.

“Texans are facing several converging crises: a changing climate that is hurting working people first and worst, skyrocketing income inequality, and deep racial injustice,” said Rick Levy, President of the Texas AFL-CIO. “Today, the Texas labor movement is coming together to endorse a historic proposal that would tackle these crises by creating good union jobs across our state and combating climate breakdown. As the unions that power the energy capital of America, we believe the Texas Climate Jobs Project can lead the way in transforming our economy in ways that lift up working families and communities while protecting the air we breathe and the water we drink. We must make sure that the workers who have powered this state for generations are not left behind.”

The Texas Climate Jobs Project will advocate for long-term solutions to these intertwined crises by pushing state and local lawmakers to tap the state’s massive renewable energy potential and create millions of new family-sustaining union jobs, as outlined in the report’s recommendations.

In addition to outlining targets for renewable energy development and vehicle electrification, the report calls for the retrofitting and installation of solar panels systems on all Texas public K-12 schools by 2035, the creation of a Just Transition Commission, and the construction of a high-speed rail network.

“Climate change is hurting every working person in Texas,” said Bo Delp, Executive Director of Texas Climate Jobs Project. “Today, unions from across our state are advancing their vision of a pro-worker, pro-climate agenda that gives everyone a fair shot to succeed in our clean energy transition.” 

By Delger Erdenesanaa - Inside Climate News, July 27, 2021

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

President Biden’s push for “good, union jobs” in clean energy has increased hope that organizing solar and wind workers can close the pay gap between them and fossil fuel workers.

Two years ago, Skip Bailey noticed a lot of trucks from a company called Solar Holler driving around Huntington, West Virginia. A union organizer with the International Brotherhood of Electrical Workers, Bailey saw an opportunity.

“We want to get in on the solar business,” he said, predicting the industry will grow in his home region, which includes historic coal communities in West Virginia, Kentucky and Ohio.

Bailey talked to Solar Holler about unionizing its employees who install photovoltaic panels on homes. IBEW showed the company its local training facility for electricians, and explained the health insurance and pension plans it offers. 

“It wasn’t a hard sell in either direction,” said the company’s founder and CEO, Dan Conant. He was already interested in securing union protections for his employees when Bailey contacted him, he said. The move fit with Solar Holler’s dedication to West Virginia’s legacy of energy production and strong union membership.

“It was not just good business, but it just really spoke to our history as a state,” he said.

Conant and Bailey’s efforts paid off in March 2020, when IBEW Local 317 and Solar Holler signed a contract. It’s just a start—Solar Holler only has about 20 unionized employees—but the agreement is an early example of the future Joe Biden is promising. The president frequently pledges to create millions of jobs while transitioning the U.S. to clean energy. Every time he does, he’s quick to add that these will be “good, union jobs that expand the middle class.”

“It’s a great talking point,” said Joe Uehlein, president of the Maryland-based Labor Network for Sustainability, an advocacy group pushing to unionize green jobs. But he added that Biden faces a difficult balancing act to achieve his pledge. 

By Lara R. Skinner, J. Mijin Cha, Hunter Moskowitz, and Matt Phillips - ILR Worker Institute, Cornell, July 26, 2021

Texas is currently confronted by three major, intersecting crises: the COVID-19 public health pandemic and ensuing economic crisis; a growing crisis of inequality of income, wealth, race and power; and the worsening climate crisis, which continues to take its toll on Texans through hurricanes, major flood events, wildfires, debilitating heat waves and the significant economic cost of these extreme weather events. These crises both expose and deepen existing inequalities, disproportionately impacting working families, women, Black, Indigenous and people of color (BIPOC) communities, immigrants, and the most vulnerable in our society.

A well-designed recovery from the COVID-19 global health pandemic, however, can simultaneously tackle these intersecting crises. We can put people to work in high-quality, family- and community-sustaining careers, and we can build the 21st century infrastructure we need to tackle the climate crisis and drastically reduce greenhouse gas emissions and pollution. Indeed, in order to avoid the worst impacts of the climate crisis, it is essential that our economic recovery focus on developing a climate-friendly economy. Moreover, there are significant jobs and economic development opportunities related to building a clean energy economy. One study shows that 25 million jobs will be created in the U.S. over the next three decades by electrifying our building and transportation sectors, manufacturing electric vehicles and other low-carbon products, installing solar, wind and other renewables, making our homes and buildings highly-efficient, massively expanding and improving public transit, and much more.

Conversely, a clean, low-carbon economy built with low-wage, low-quality jobs will only exacerbate our current crisis of inequality. The new clean energy economy can support good jobs with good benefits and a pipeline for historically disadvantaged communities to high-quality, paid on-the-job training programs that lead to career advancement. Currently, the vast majority of energy efficiency, solar and wind work is non-union, and the work can be low-wage and low-quality, even as the safety requirements of solar electrical systems, for example, necesitate well-trained, highly-skilled workers.

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By Brett Wilkins - Common Dreams, July 23, 2021

Critics of a shift to a post-carbon economy often claim that a fossil fuel phase-out would leave millions of people unemployed. And while millions of fossil fuel industry jobs would indeed be lost under a robust climate policy, a study published Friday shows that overall energy sector employment would actually increase by over 40% by 2050 due to gains in renewable energy jobs.

The study—conducted by the RFF-CMCC European Institute on Economics and the Environment in collaboration with researchers from the University of British Columbia and Chalmers University of Technology in Sweden and published in the journal One Earth—concludes that "jobs in the energy sector would grow from today's 18 million to 26 million" under a climate policy aimed at keeping global temperature rise this century well below 2°C above pre-industrial levels, and even the more ambitious target of 1.5°C.

"Over 12 million people work in the coal, oil, and natural gas industries today," the paper states. "However, to keep global warming well below 2°C, a target enshrined in the Paris Climate Agreement, all three fossil fuels need to dramatically decline and be replaced by low-carbon energy sources."

"Such a shift in energy systems would have wide-ranging implications beyond meeting the climate target," it continues. "While this is technically possible, whether it can be done fast enough is a political question. One major factor influencing political support for climate policies, particularly in fossil fuel producing countries, is the impact they have on fossil fuel jobs."

By Elizabeth Perry - Work and Climate Change Report, July 21, 2021

A Program for Economic Recovery and Clean Energy Transition in California, released in June, is the ninth in a series of reports titled Green Economy Transition Programs for U.S. States, published by the Political Economy Research Institute (PERI), and written by researchers led by Robert Pollin. In this latest report, the authors address the challenge of economic recovery from the Covid-19 pandemic, and contend that it is possible to achieve California’s official CO2 emissions reduction targets—a 50 percent emissions cut by 2030 and zero emissions by 2045— and at the same time create over 1 million jobs. The investment programs they propose are based on the proposed national THRIVE Agenda, (introduced into the U.S. Congress in February 2021), and rely on private and public investment to energy efficiency, clean renewable energy, public infrastructure, land restoration and agriculture. The report discusses these sectors, as well as the manufacturing sector, and also includes a detailed just transition program for workers and communities in the fossil fuel industry.

In Chapter 6, “Contraction of California’s Fossil Fuel Industries and Just Transition for Fossil Fuel Workers”, the authors note that only 0.6% of California’s workforce was employed in fossil fuel-based industries in 2019 – approx.112,000 workers. They model two patterns for the industry contraction between 2021-2030: steady contraction, in which employment losses proceed evenly, by about 5,800 jobs per year; and episodic contraction, in which 12,500 job losses occur in just three separate years, 2021, 2026, and 2030. After developing transition programs for both scenarios, they estimate that the average annual costs of episodic contraction would be 80% higher ($830 million per year) than the costs of steady contraction ($470 million per year). As with previous PERI reports, the authors emphasize the importance of the quality of jobs to which workers relocate: “It is critical that all of these workers receive pension guarantees, health care coverage, re-employment guarantees along with wage subsidies to insure they will not experience income losses, along with retraining and relocation support, as needed. Enacting a generous just transition program for the displaced fossil fuel-based industry workers is especially important. At present, average compensation for these workers is around $130,000. This pay level is well above the roughly $85,000 received by workers in California’s current clean energy sectors.” Relief Programs for Displaced Oil & Gas Workers Elements of an Equitable Transition for California’s Fossil Fuel Workers is a 2-page Fact Sheet summarizing the chapter.