fossil fuel capitalism

By C.J. Polychroniou - Truthout, March 6, 2023

The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are two landmark bills with the potential to carry significant economic and environmental benefits. They also speak volumes of the role that progressive voices and organizations can play in helping to create sustainable and equitable economic growth and in powering a safer future. Of course, they are imperfect bills, points out National Director of the Green New Deal Network Kaniela Ing in this exclusive interview for Truthout, but they are important stepping stones toward a Green New Deal and advancing justice for frontline and BIPOC (Black, Indigenous, people of color) communities. For now, however, the most immediate concern, Ing says, is making sure that “the full benefits of the Inflation Reduction Act and Infrastructure Investment and Jobs Act reach communities across the country and have a positive impact on the planet and its people.”

Ing was a founding member of the Green New Deal Network (GNDN) as the climate justice director for People’s Action, where he led campaigns to combat climate change. While at People’s Action, Ing co-created and led mass mobilizations around the People’s Bailout and THRIVE Agenda, which largely shaped the suite of federal legislation.

C.J. Polychroniou: Last year, the United States Congress passed the largest federal investment to tackle climate change, the Inflation Reduction Act of 2022. This was preceded by Congress passing the Infrastructure Investment and Jobs Act of 2021, another bill breaking spending records to restore and modernize our infrastructure. What role did the Green New Deal Network and other movement organizations have in passing these bills?

Kaniela Ing: The historic levels of investments passed in the last two years is a direct result of communities across the country fighting for climate, care, jobs and justice. Coalitions like mine have built on the decades of work by leaders and activists, advocating that everyone have access to essential goods and services, be protected from crises, and have the opportunity to thrive.

Since 2020, organizations and activists within the Green New Deal Network (GNDN) have fought for Congress to pass a package that tackles the overlapping crises facing our nation: climate chaos, economic instability, racial injustice, outdated infrastructure and corporate influence over our government. The Green New Deal Network — and its 15 national organizations and 24 state coalitions — crafted the THRIVE Act, a $10 trillion climate, care, jobs and justice bill that would create enough jobs to end unemployment; build modern, reliable infrastructure; and invest in community resources while ensuring labor and justice protections.

By Alex Lawson - The Guardian, March 6, 2023

Coalition of workers, unions and climate campaigners aims to safeguard shift from fossil fuels to low-carbon energy sources.

Workers in the UK’s offshore oil, gas and renewables sector have called for public ownership of energy companies to ensure that the country’s transition to net zero protects jobs, communities and the environment.

The call comes amid a series of demands to government from a coalition of offshore workers, unions and climate campaigners that aim to shift the industry from fossil fuels to low-carbon energy sources.

A survey of 1,092 offshore workers for the wide-ranging report, Our Power: Offshore Workers, found that 90% of respondents backed its demands, which also include: government-backed jobs guarantees; an offshore training passport that supports workers to retrain in the renewables sector; a commitment to incentivise investment in ports and factories making products such as wind turbines; and equal pay for migrant workers.

Concerns are growing over the pace of Britain’s transition away from fossil fuels and its ability to create green jobs in manufacturing, production and operations. Data from the consultancy PwC shows the number of jobs being created in the renewable energy industry is growing four times faster than the overall UK employment market. But more than one-third of these roles are based in London and the south-east, particularly in professional and scientific roles.

The report argues that public ownership of energy firms would help to ensure a “just energy transition” offering greater job security and conditions. It paints a picture of long stints at sea and low pay in the face of the cost of living crisis, with British workers paid three times as much as migrant staff.

By staff - Morning Star, March 6, 2023

INVESTMENT and reform of the energy sector are needed to secure a just green transition for offshore workers, unions and environmental campaigners are warning today.

A new report by transport union RMT, Friends of the Earth and others demands investment in ports and manufacturing as well as an offshore training passport for oil and gas workers moving to the renewables sector.

Offshore migrant workers must also get equal pay and a higher minimum wage should be available to all, the groups added.

RMT regional organiser Jake Molloy stressed employees must be “fully engaged and empowered in the process if we are to achieve a real just transition.”

“The lack of a real plan from politicians and industry is fuelling workforce discontent and disillusionment,” he said.

Friends of the Earth Scotland’s Mary Church said: “Our current energy system is destroying our climate, is unaffordable to millions and is failing the people who work in it.

“Failure from politicians to properly plan and support the transition to renewables is leaving workers totally adrift on the whims of oil and gas companies, and the planet to burn.”

By Rosemary Harris, Gabrielle Jeliazkov, and Ryan Morrison - Our Power, March 6, 2023

Over the past two years, we’ve come together with offshore workers to build demands for a just energy transition. These workers developed 10 demands covering training and skills, pay, job creation, investment and public ownership.

We surveyed over 1000 additional offshore workers and over 90% agreed with these demands. This plan is comprehensive in scope, transformative in scale and deliverable now.

Below you will find a series of resources setting out the demands and the paths we can take to turn them into reality.

We need a rapid transition away from oil and gas that protects workers, communities and the climate. But the government has no plan to phase out oil and gas production in the North Sea.

Oil and gas workers are ready to lead a just transition away from oil and gas, but they are caught in a trap of exploitation and fear created by oil and gas companies. Working conditions are plummeting, just as profits, prices and temperatures are soaring.

The UK and Scottish Governments must listen to workers to make this transition work for all of us. These demands lay out a comprehensive plan, which includes:

• Removing barriers that make it harder for oil and gas workers to move into the renewable industry.
• Ensuring safety, job security and fair pay across the energy industry.
• Sharing the benefits of our energy system fairly, with public investment in energy companies and communities.

Workers have told us what they need for a just transition, now we need to work with them to make it happen.

Read the report (PDF).

By staff - Oil Change International, March 2023

This report, Promise Breakers: Assessing the impact of compliance with the Glasgow Statement commitment to end international public finance for fossil fuels, reveals that the Glasgow Statement, a joint commitment forged at the 2021 UN climate summit (COP26), is already shifting an estimated USD 5.7 billion per year out of fossil fuels and into clean energy, with the potential of a further 13.7 billion per year if all Glasgow Statement signatories fulfill their commitments.

The report’s key findings include that out of sixteen high-income signatories that provide significant levels of international public finance:

• Eight have adopted policies that broadly meet the promise they made in Glasgow (Canada, the European Investment Bank, the United Kingdom, France, Finland, Sweden, Denmark, and New Zealand), shifting an estimated USD 5.7 billion per year out of fossil fuels and showing that the Glasgow Statement is having a real-world impact;
• Four signatories (Belgium, Switzerland, the Netherlands, and Spain) have new policies that further restrict fossil fuel support but leave major loopholes and/or do not meet the end of 2022 deadline; 
• Four signatories (Germany, Italy, Portugal, and the United States) have yet to publish new or updated policies. The United States has reportedly adopted a policy, but is refusing to publish it. Ongoing policy debates in Germany and Italy suggest that these countries are likely to introduce loopholes in any forthcoming policies that allow continued fossil fuel financing;
• Just days after this report was finalized, it appears Canada’s export credit agency, Export Development Canada is already in breach of their policy by approving four international oil and gas transactions totaling at least USD 5.5 million already in 2023.

The report contains a detailed report card on each signatories’ policies, with recommendations for improvement. It highlights key opportunities for signatories to increase their clean energy finance levels, work together to reiterate and strengthen their commitment to end international finance for fossil fuels at the Japan-led G7 in May and negotiate oil and gas export finance restrictions at the OECD.

Read the entire statement (PDF).

By Clifford Krauss - New York Times, February 27, 2023

Solar, wind, geothermal, battery and other alternative-energy businesses are adding workers from fossil fuel companies, where employment has fallen.

Emma McConville was thrilled when she landed a job as a geologist at Exxon Mobil in 2017. She was assigned to work on one of the company’s most exciting and lucrative projects, a giant oil field off Guyana.

But after oil prices collapsed during the pandemic, she was laid off on a video call at the end of 2020. “I probably blacked out halfway,” Ms. McConville recalled.

Her shock was short-lived. Just four months later, she landed a job with Fervo, a young Houston company that aims to tap geothermal energy under the Earth’s surface. Today she manages the design of two Fervo projects in Nevada and Utah, and earns more than she did at Exxon.

“Covid allowed me to pivot,” she said. “Covid was an impetus for renewables, not just for me but for many of my colleagues.”

Oil and gas companies laid off roughly 160,000 workers in 2020, and they maintained tight budgets and hired cautiously over the last two years. But many renewable businesses expanded rapidly after the early shock of the pandemic faded, snapping up geologists, engineers and other workers from the likes of Exxon and Chevron. Half of Fervo’s 38 employees come from fossil fuel companies, including BP, Hess and Chesapeake Energy.

Executives and workers in energy hubs in Houston, Dallas and other places say steady streams of people are moving from fossil fuel to renewable energy jobs. It’s hard to track such movements in employment statistics, but the overall numbers suggest such career moves are becoming more common. Oil, gas and coal employment has not recovered to its prepandemic levels. But the number of jobs in renewable energy, including solar, wind, geothermal and battery businesses, is rising.

By Peder Ressem Østring - Just Transition Research Collaborative, February 24, 2023

The recycling of oil rigs can provide new jobs within the circular economy, particularly beneficial for oil-dependent regions. If we get it right, the process of cleaning up after the fossil economy can itself serve as a bridge from fossil dependency towards a just transition.

Globally, there are over 7000 offshore oil and gas platforms. Together with other structures and pipelines, these form an impressive built environment. If we are to have a fighting chance of keeping global warming well below 2°C however, virtually all of these installations would have to be shut down, dismantled and recycled. This process — known as offshore decommissioning — is already taking place, but will see a dramatic increase in the coming decade. It will be increasingly necessary to confront the ways in which decommissioned infrastructure is handled, both with regards to the environment and labour conditions.

A case study of the decommissioning of oil and gas infrastructure in the North Sea shows some of both the possibilities and challenges decommissioning presents in terms of a just transition.

While some oil companies would like to leave the oil platforms in the sea, eagerly promoting the idea of repurposing old rigs as artificial reefs, this is not allowed under current regulation. After the plans of Royal Dutch Shell of dumping the oil storage tanker Brent Spar in the North Sea in the 1990s was met with massive public scrutiny and campaigns from environmental organizations, regulations came in place that effectively banned the practice of abandoning manufactured structures in the North-East Atlantic.

Companies have since sought other ways of disposing of the problem with structures put out of commission. Another approach for cutting costs for the oil supermajors has been to send old floating rigs for breaking in the global South. This has taken place under horrendous conditions for both workers and the environment, as has been uncovered by the BBC.

Both these false solutions are in reality ways of externalizing costs of cleaning up after the fossil companies. Both approaches should be rejected, while insisting on the principle that the polluter should pay.

By Simon Dyer - Pembina Institute, February 21, 2023

Alberta has always been an international leader on energy. Our abundant natural resources, coupled with our proud history of technological innovation in the oil and gas sector— particularly the oilsands—means we are renowned for our ability to use a skilled labour force to reach new frontiers in energy production.

In 2023, Alberta has an opportunity to build on that history and move towards a new energy future. In doing so, it can begin to capitalize on the multiple opportunities associated with the globally emerging clean economy.

To achieve this, Alberta needs a robust, credible plan on climate and energy. The number of governments worldwide that are legislating emissions reduction targets and policy measures to deliver them is rapidly growing each year, and it is time that Alberta joined them. This province — home to some of the world’s foremost experts on carbon capture technology, methane reduction techniques, wind and solar power, and so many other clean energy solutions— has much to offer to the energy transition, and much to gain. The International Energy Agency, for example, estimates 14 million new energy jobs and 16 million new jobs in energy efficiency will be created, worldwide, between now and 2050.

To take advantage of these opportunities, Alberta must also be willing to confront the realities of the global shift towards low-carbon energy sources, and take steps to adapt and futureproof its economy and workforce. The global outlook for fossil fuels, for example, has fundamentally shifted in the last twelve months. In 2022, for the first time, a range of assessments — including from within the oil industry — projected that the current level of worldwide policy momentum on emissions reductions will result in a sustained decline in global demand for oil, beginning this decade. If the world successfully achieves its goal of reaching net-zero emissions by 2050 and avoiding the worst effects of climate change, that demand decline will begin sooner and be steeper — and will have a significant impact on Alberta’s industry. 

Acknowledging these realities, and choosing to show leadership on climate and energy policy, is integral to Alberta’s overall attractiveness as an investment destination. Now more than ever before, companies are looking for opportunities to invest in climate solutions, and for jurisdictions where they can operate while meeting their own climate goals. Choosing instead to remain out of step with the global trend towards low-emissions economies would leave Alberta at a significant disadvantage in the years ahead.

The Pembina Institute is, and has always been, proudly headquartered in Alberta; this is our home. We are committed to seeking out effective, evidence-based policy solutions that can support this province’s communities, economy, and environment. 

As the 2023 provincial election approaches, this document provides our recommendations to future leaders in Alberta to advance this province’s position in the transition towards low-carbon energy. Above all, we think Alberta can and should be a leader on climate and the energy transformation in Canada.

Read the report (link).

By Willy De Backer - European Trade Union Institute, February 20, 2023

The year 2023 promises to be at least as challenging as the previous one, with war still raging between Russia, Ukraine and the West. The climate emergency turning into a real climate collapse also for countries in the Global North which had been spared some of the deadly and devastating effects which some countries in the Global South had already experienced for years.

At the beginning of the year, many ‘expert’ commentators and think tanks published their forecasts for the next 12 months. All of them agree that the new year looks challenging, if not to say scary. In an excellent comment on Project Syndicate, Nouriel Roubini refers to Thomas Mann’s great novel ‘The Magic Mountain’ comparing the current ‘age of mega threats to the tragic period between 1914 and 1945 and stating that we are ‘sleepwalking on mega threat mountain’.

Let us have a quick look at some of the chief challenges for Europe in 2023 but mostly in the form of questions (with further reading links) instead of predictions.

By Joe Garofoli - San Francisco Chronicle, February 12, 2023

State Sen. Lena Gonzalez is calling out California as “hypocrites” when it comes to tackling climate change. 

Specifically, the Long Beach Democrat says the state’s massive public pension funds should put its money – $11 billion worth of investments in fossil fuel companies – where its mouth is, by divesting those funds from polluters and moving toward renewable energy sources.