energy transition

By Cara Bottorff, Noah Ver Beek, and Leah Stokes - Sierra Club, October 2022

Rapidly cleaning up the electric sector is key to achieving our climate goals. We need electric utilities to retire coal plants, cancel plans to build new gas plants, and accelerate clean energy deployment to achieve 80 percent clean electricity by 2030 and 100 percent clean electricity by 2035. This is in line with the United States’ climate commitments and scientific consensus of what is needed for a livable planet.

Many utilities have pledged to clean up their electricity production, but our research shows these promises often amount to little more than greenwashing. In our 2021 report, released a year and a half ago, we analyzed the plans of 77 utilities owned by the 50 parent companies most invested in fossil fuel generation. We found that despite pledges to reduce emissions from many of these companies, most utilities did not have plans that would actually achieve the necessary emissions reductions by 2030.1, 2 This updated report investigates what progress, if any, these utilities made over the last year and a half to turn their pledges into real action. We want to know: have utilities stepped up to meet the challenge and make the changes needed to save lives, reduce costs, and address climate change by transforming our power system?

Download a copy of this publication here (PDF).

By Léo Roussel - Equal Times, September 30, 2022

The coal industry is to Australia what the Second Amendment of the US Constitution (granting citizens the right to bear arms) is to the United States: it would be hard to imagine the country without it. With fossil fuels still accounting for 92 per cent of Australia’s energy mix, including 29 per cent for coal in 2021, the industry is still vigorously defended by lobbies, even in parliamentary circles and the corridors of ministries.

Australia’s conservative former prime minister Scott Morrison famously held up a piece of coal in Parliament in 2017, when he was finance minister, admonishing his colleagues not to be afraid of it. When he became prime minister, he also directly surrounded himself with lobbyists like John Kunkel, former vice-chairman of the Minerals Council of Australia, who he appointed chief of staff in 2018.

In the Hunter Valley, a region north of Sydney in the state of New South Wales, the local economy is still dominated by coal. From the mines to the cargo ships departing from the port of Newcastle, the industry directly and indirectly employs more than 17,000 people. “Newcastle is the world’s largest coal port,” says Dr Liam Phelan, a researcher at the University of Newcastle (Australia) specialising in the uncertainties and risks of climate change. “Coal mining has been a part of life here since white people arrived in Australia.”

For many years, mining projects were still supported and approved, not least by the Morrison government, which was widely condemned in Australia and around the world for its inaction on climate change. But the tides have begun to turn. In May 2022, voters ousted ‘ScoMo’ and returned Labor to power. The new prime minister Anthony Albanese has promised to make Australia a “renewable energy superpower” and to reduce the country’s CO₂ emissions by 43 per cent from 2005 levels by 2030 – a target that the scientists of the Climate Change Authority nonetheless still consider to be insufficient.

Leaving energy transition aside, the Australian coal industry has already seen its exports slow in recent years, partly as a result of the trade war with China since 2020, while domestic demand has shifted to cleaner energy sources which are gaining ground. According to Clean Energy Council’s 2022 energy report: “The Australian renewable energy industry accounted for 32.5 per cent of Australia’s total electricity generation in 2021, which represented an increase of almost 5 percentage points compared to 2020.”

By staff - Trades Union Congress, September 27, 2022

Commenting on the announcement today (Tuesday) by Labour leader Keir Starmer of proposals for a new publicly owned energy champion called Great British Energy, TUC General Secretary Frances O’Grady said:

“This is a big, bold move that will cut bills and secure our energy future.

“This new national energy champion can provide high-quality jobs to every corner of the UK.

“And it’s about time the public shared in the profits of British energy.”

Editors note

- TUC report ‘Public ownership of clean power: lower bills, climate action, decent jobs’: A recently published TUC report set out an approach for the creation of a publicly owned national energy champion. The report is here: https://www.tuc.org.uk/research-analysis/reports/public-ownership-clean-power-lower-bills-climate-action-decent-jobs

By Leanna First-Arai - Truthout, September 27, 2022

Since the historic and controversial Inflation Reduction Act (IRA) was signed into law in August, the economy has begun showing early signs of shifting and recalibrating beneath our feet. Honda Motor Company and LG Energy Solution have announced plans for a lithium ion battery plant, with their sights on Ohio; hiring has ticked up at a small business in Texas that builds wind and solar power plants; and the state of Connecticut is soliciting applications for millions in funding for community-led climate adaptation plans in anticipation of IRA funds to come, plus funding from the bipartisan infrastructure law signed last year. The IRA set aside $369 billion in climate and energy spending, which researchers estimate will translate to 9 million jobs over the next decade.

But as cities, states, nonprofits, industry groups and corporations all scramble to sweep up a slice of that funding, the degree to which these jobs will live up to being the Biden administration’s promise of “good-paying union jobs” remains to be seen. So too does whether and how those positions will be made available to the frontline and fenceline communities of color that have suffered the most from decades of disinvestment, pollution and manipulation at the hands of the fossil fuel industry, as well as to those working in the industry itself.

“Having that stuff in the federal bill is great, but unless we are organizing to bring these things into reality, it’s not going to happen,” said Rick Levy, president of the Texas AFL-CIO at a Climate Jobs Summit earlier this month. Levy warned that Republican-led state officials and contractors could be wary over accepting clean energy grants and tax breaks from the federal government, given the labor protections and training stipulations the money is contingent upon.

By Jessica Corbett - Common Dreams, September 19, 2022

"Their false claims do not add up and cannot be allowed to stall a rapid transition to 100% clean, renewable energy," says the Food & Water Watch report.

A Food & Water Watch report released Monday undermines the fossil fuel industry's claims about its positive impact on employment, showing that as oil and gas giants ramped up production and raked in record profits at the planet's expense, jobs have declined.

The advocacy group's fact sheet—titled Oil Profits and Production Grow at the Expense of Jobs, Consumers, and the Environment—comes as scientists continue to call for a swift transition to clean energy and critics around the world accuse the fossil fuel industry of war profiteering.

"The oil and gas industry would rather pay shareholders than workers," said Food & Water Watch (FWW) senior researcher Oakley Shelton-Thomas. "It should be clear by now that more production means more pollution, but it hasn't meant lower prices or more jobs."

By Jonathan Neale - Global Climate Jobs, September 16, 2022

By staff - European Trade Union Institute, September 15, 2022

On 8 September, the International Energy Agency published its first comprehensive report on jobs in the global energy sectors. The World Energy Employment Report provides data on energy jobs ‘by sector, region, and value chain segment’ and will be published annually.

The global energy sector (including energy end uses) employed over 65 million people in 2019, equivalent to around 2% of global employment.

The main messages of the report are:

• Employment is growing in the global energy sector, especially in clean energy;
• Around a third of workers are in energy fuel supply (coal, oil, gas and bioenergy), a third in the power sector (generation, transmission, distribution and storage), and a third in key energy end uses (vehicle manufacturing and energy efficiency);
• More than half of energy jobs are in the Asia-Pacific region;
• Women are strongly under-represented in the energy sector. Despite making up 39% of global employment, women account for only 16% in traditional energy sectors. They are even more under-represented in management functions.

By staff - European Trade Union Institute, September 15, 2022

The recent Inflation Reduction Act (IRA) is properly recognised as the largest climate policy in US history. In this short essay I will first summarise and comment on its provisions, then outline the reactions to it, with a focus on labour unions, and will close by providing my own thoughts.

The IRA allocates around $370 billion over a period of ten years. About 75% of that is in the form of incentives (rather than direct investments or regulatory mandates) to advance the transition to ‘clean energy’ that includes renewables but also nuclear power, biofuels, hydrogen, and carbon capture and sequestration. These incentives focus primarily on advancing the production of clean energy but also on stimulating its consumption. Smaller energy investments focus on tackling pollution in poorer communities and on conservation and rural development.

The IRA also authorises as much as $350 billion of loans to be disbursed by the Department of Energy. While such loans have been around since the Bush Administration, the amounts and the likelihood that they will be used during the Biden Administration are much higher. Finally, its main regulatory provision is the designation of carbon, methane and other heat-trapping emissions from power plants, automobiles, and oil and gas wells as air pollutants under the Clean Air Act, one of the bedrocks of US environmental legislation, which the Environmental Protection Agency implements. Overall, it is estimated that by 2030 the IRA will help reduce emissions by around 40% of 2005 levels, compared to the about 25% reduction projected without it. 

However, the policy mandates that renewable energy siting permits cannot be approved during any year unless accompanied by the opening up of 2 million acres of land or 60 million acres of ocean to oil and gas leasing bids, respectively, during the prior year (for more details see 50265 of Act). In either case, the amount of actual leasing and drilling is subject to market dynamics rather than regulatory limits, while the Act also streamlines the permitting process for pipelines. The growing transition to electric vehicles will lessen the market for oil but the strategic repositioning of natural gas in energy production (as well as plastics) suggests that it (along with nuclear power) will be a long-term source of energy, including in the production of hydrogen. Nevertheless, overall, it is the prevailing view that the IRA will decisively transition the US into renewable energy as part of a broader energy mix.

By Sam Mardell and Jeremy Richardson - Rocky Mountain Institute, September 15, 2022

Across the United States, the transition from fossil fuels to a clean energy economy is accelerating and will be supercharged by the recent passage of the Inflation Reduction Act (IRA). The clean energy transition is creating widespread social benefits ranging from lower and more stable energy costs to improved air quality. However, without thoughtful planning, the shift to clean energy will harm workers who depend on fossil fuels for their livelihoods, as well as the communities where they live and work.

Policymakers have an opportunity to shape a clean energy transition that supports workers and communities instead of leaving them behind. The fossil fuel industry is central to the economic life of communities across the country, and the real risks these communities face in the clean energy transition — job loss, depressed property values, and reduced local tax revenue for social services and institutions — can be devastating. Well-designed, targeted, proactive, and long-term interventions can help diversify local economies and drive new economic activity that aligns the global need for rapid decarbonization with local visions and priorities.

And governments are beginning to take notice of this risk and opportunity. Over the past few years, seven states passed bills designed to support coal workers and communities facing economic transition. The IRA and the Bipartisan Infrastructure Law of 2021 represent the largest set of investments and resources available to support energy communities in history. These laws could even eclipse 50 years of investments in economic development by the Appalachian Regional Commission.

Building on previous work by key stakeholders, we introduce a policy framework that outlines the risks facing fossil fuel workers and communities in the shift to clean energy and provides guiding principles for supporting them in the transition. RMI’s fossil fuel community recovery and revitalization framework can be used to assess the strengths and gaps in existing legislation and help policymakers and advocates develop and implement comprehensive, strategic policies to support a fair transition from fossil fuels.

RMI’s recovery and revitalization framework consists of three steps:

1. Relief for fossil fuel workers and communities to alleviate losses of local revenue and jobs that occur immediately following fossil fuel facility closure
2. Reclamation of remaining fossil fuel sites to prevent prolonged pollution risks and promote short- and medium-term job creation and local economic activity
3. Reinvestment in fossil fuel communities to promote long-term economic resilience and diversification

By Chris Briggs and Rusty Langdon - The Conversation, August 17, 2022

In just eight years time, the Labor government wants Australia to be 82% powered by renewable energy. That means a rapid, historic shift, given only 24% of our power was supplied by renewables as of last year.

To make this happen, we must rapidly scale up our renewable energy construction workforce. Last week’s energy ministers’ meeting calls for assessment of the “workforce, supply chain and community needs” for the energy transition. The government’s jobs and skills summit in early September will tackle the issue too. While it’s positive the government is focused on these challenges, the reality is we’re playing catch-up.

Why? Because Australia is already stretched for workers, and it takes time to give new ones the skills they will need. Our research estimates the renewable energy transition will need up to 30,000 workers in coming years to build enough solar farms, wind farms, batteries, transmission lines and pumped hydro storage to transform our energy system. Most of these jobs will be in regional areas.

In coming decades, Australia will invest around A$66 billion in large-scale renewables and $27 billion in rooftop solar and battery storage. This creates openings for industry development like the $7.4 billion market opportunity for an integrated battery supply chain and manufacturing which builds on our strengths, such as wind towers.

If we get this right, we can create new manufacturing and supply chain jobs and reverse the long drift of these jobs overseas. But if we get it wrong, skill shortages could derail the vision of a new energy system by 2030.