fossil fuel capitalism

By Timothy DenHerder-Thomas, Gopal Dayaneni, and Mateo Nube - Movement Generation, February 9, 2022

The visibility of ecological crisis is increasing every day. Last year’s cold snap in Texas, and the corollary collapse of its energy infrastructure, was but one example of this fact. Humanity is up against the limits of nature’s ability to tolerate globalized industrial production.

What actions would better position Texans to navigate the next superstorm in a favorable manner? Furthermore, how can we reimagine and reconstruct energy systems around the country, so that these dance in a regenerative rhythm with our planet’s life support systems?

The clock is ticking, and we need to make new meaning out of this pivotal moment in planetary history. We can no longer tinker around the edges of an ever-expanding crisis: Tackling this reality with clarity may be the biggest and boldest challenge our species has ever faced.

Here are some important strategic frameworks, formulated by Movement Generation, that we think will help us meet the challenge:

By Amal Ahmed and Emily Pontecorvo - Grist, January 31, 2022

A union is warning Texas officials not to give Exxon money for carbon capture until it fixes its labor problems.

In Beaumont, Texas, working at one of Exxon Mobil’s plants has long been a way to earn steady wages and support a family in this industrial corner of the Gulf Coast. “We take care of more than just our immediate family,” said Darrell Kyle, the president of the local United Steelworkers chapter, the union representing workers at the plants. “We’re the uncles and aunts,” he said, who help “the struggling nieces or nephews who need a couple hundred dollars to get by, to pay a bill.” 

But for the past nine months, about 600 union employees at Exxon’s refinery and other plants have been struggling to pay their own bills: They have been locked out of their jobs because Exxon has been unable to come to an agreement with the union over a new contract. Kyle said that the company is refusing to honor protections for senior workers that have been in place for decades, while the union is demanding that those protections remain in place. At the end of last April, without a contract finalized and with the threat of a union strike pending, the company began escorting employees out of the complex, the Beaumont Enterprise, a local newspaper, reported. The company stated that the provisions the union was asking for were “items that would significantly increase costs and limit the company’s ability to safely and efficiently operate.”

Some workers, willing to take the deal Exxon was offering, began a campaign to decertify the union, which would end union representation at the plants. The United Steelworkers union believes that Exxon illegally assisted the campaign and has filed complaints with the National Labor Review Board. 

But in addition to using this legal channel to try to protect their union, the Steelworkers tried a different tactic. They started their own campaign to pressure Exxon into a deal — by undermining the company’s push for public money to build a $100 billion carbon capture hub in nearby Houston.

By Dan Bacher - CounterPunch, January 28, 2022

The Western States Petroleum Association (WSPA), the most powerful corporate lobbying group in Sacramento, claims that there are 368,000 jobs in the oil and gas industry in California.

“The oil and gas industry is a vital part of California’s energy mix,” WSPA stated on their website. “As a leading economic force and major employer, we proudly contribute to communities across the state, providing more than 368,000 jobs in CA.” www.wspa.org/…

But a just-released Food & Water Watch analysis counts just 22,000 jobs in the industry in California, based on Department of Labor statistics — and says this total has dropped 40 percent over the past decade.

“Overall, oil and gas production account for barely one-tenth of 1 percent of all employment in California,” the analysis revealed.

WSPA spent a total of $4,267,181 on lobbying California legislators and officials in 2020 and $8.8 million in 2019 as thousands of oil and gas drilling permits were approved by CalGEM, the state’s oil and gas regulatory agency: www.citywatchla.com/…

The research from the environmental organization Food & Water Watch debunks fossil fuel industry claims about job creation throughout the U.S. showing that “overall employment has suffered even as production has increased.”

“When Gov. Gavin Newsom announced modest plans to phase out permitting for new oil production in California, industry advocates freaked out,” according to the analysis. “The Western States Petroleum Association claimed that the oil industry supports close to 368,000 jobs in the state. That is surprising since, according to the Bureau of Labor Statistics, only 22,000 Californians were involved in oil production in 2020, down 40 percent from the industry’s peak in 2012. In the Golden State, oil and gas production accounts for barely one-tenth of 1 percent of all employment.”

The analysis notes that one of the most misleading aspects of industry jobs analysis is the conflation of direct jobs with indirect and induced jobs.

“Direct jobs are positions directly within a given industry. Indirect jobs are those within the supply chain that supports that industry, while induced jobs are positions supported by wages from both direct and indirect jobs. Indirect and induced jobs account for nearly 75 percent of the top-line numbers that some oil and gas companies are referencing. Misattributing these jobs to the oil and gas industry itself distorts the size and scope of the industry’s payroll,” the analysis noted.

As the state continues to suffer from devastating fires and drought and salmon, Delta smelt and other fish species continue on the path to extinction, both the state and federal governments continue to approve oil and gas well permits in California.

By L. Michael Buchsbaum - Energy Transition, January 27, 2022

Following advice from the World Bank, most of Romania’s coal mines started shuttering in 1997. But this pivotal sector’s collapse left hundreds of thousands unemployed with few resources to help them transition to new careers. Only now, as the nation’s last underground mines prepare to close and Bucharest plots their lignite phase-out, are so-called “Just Transition” retraining programs and other projects finally being implemented. Next in the on-going Romanian Power Move series, lead blogger and podcaster, Michael Buchsbaum, reviews the nation’s rocky steps towards a “just” coal transition.

Romania’s black heart: Jiu Valley

After more than a century of mining, by the late 1970s some 180,000 miners were still busy wringing coal out of 14 mining complexes throughout Romania’s Jiu Valley. That changed dramatically beginning in 1997 when – following the restructuring programs imposed by the World Bank – many of the nation’s mines started closing. In a short time, some 90% of the region’s jobs were gone.

Though older and mid-career miners could retire early, as the sprawling mining operations closed, many young people fled. Since the region’s mono-industrial towns were built to house the coal miners who fueled the local economy: good work for most meant getting out. Some 40% of Jiu’s population did just that in the decade before Romania joined the EU in 2007.

“This lack of alternatives was the main issue that brought about negative consequences in the community,” related Roxana Bucata, a journalist and first year PhD candidate at the Central European University in Vienna focusing on energy transitions.

Throughout 2019 and 2020, as a Master’s student studying Just Transitions, Bucata traveled to the region to research how coal’s continuing demise was impacting the Jiu’s population.

Her interviews with local residents found “a general lack of trust towards any kind of authority or regional national union trade management. There’s been a lot of damage here,” she continued.

Now at the end of 2021, less than 4,000 miners are still pulling coal out of the valley’s four struggling deep mines. And with at least two more closures looming in 2022, most remaining workers are just hoping to stay on long enough to qualify for pensions or early buy-outs.

“We need something to replace mining jobs with,” Lucian Enculescu, the leader of the Livezeni ‘Libertatea 2008’ union said to the Guardian recently. “Anything.”

By Staff - Gender Equity Policy Institute, January 23, 2023

California’s ambitious climate goals, supported by state and federal investment, will create enormous economic opportunity over the coming decades. To meet the 2045 target of carbon neutrality, a 100% clean electric grid, and a 90% reduction in oil consumption and refinery production, the state will need to modernize its electrical grid and build storage capacity to meet increased demand for electricity. Carbon management techniques, plugging orphan wells, and the development of new energy sources such as geothermal will all come into play, providing economic opportunities to workers and businesses alike. Reducing use of polluting fossil fuels will likewise result in significant health benefits to Californians, especially to communities disproportionately burdened by polluting enterprises and proximity to freeways.

Supported by state investment and federal funding through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, the actions necessary to tackle the challenges of climate change are projected to create 4 million new jobs in the state. California is investing in developing the clean energy workforce, with an equity commitment to recruit and train historically disadvantaged and under- represented communities.

Decarbonizing the economy and accelerating the adoption of clean energy is necessary if we are to preserve a habitable planet. Progress to a carbon neutral future is already well underway in the state. Wind and solar power are less expensive than natural gas or coal powered electricity. A large majority of Californians are concerned about climate change and support action to address its impacts.

However, as with all sectoral economic change, some industries will grow and thrive, while others will shrink, leaving some of their workers behind. Labor unions and trades groups are rightly concerned that workers are not forced to abandon skills developed over their careers and thrown into an inhospitable labor market with no support.

Thus, a key challenge in meeting California’s climate action goals is to devise a fair, equitable, and empirically-based policy to provide support for workers at risk of unemployment and income loss as many factors combine to reduce demand in state for oil and gas products.

By Angele Alook, Emily Eaton, David Gray-Donald, Joël Laforest, Crystal Lameman, and Bronwen Tucker - The Breach, January 20, 2023

These days, anyone proposing ambitious new social programs—not to mention a generation-defining agenda like the Green New Deal—is bound to be met with a particular refrain of concern-trolling: “but how are you gonna pay for it?”

The most effective way to combat this is to point to tangible and truly giant expenditures that actively harm our communities—and which too often remain politically invisible. 

For decades, Canadian neoliberalism has ushered in an era of austerity, but the impacts haven’t landed equally. We’ve seen budget cuts for working people and the environment—borne most disproportionately by Black, Indigenous, and other racialized people and communities that are made vulnerable in our society. On the other hand, fossil fuel companies, the military, police, large corporations, and the wealthiest families have all actually received more support from the government. 

We have starved public goods, land, and life in order to feed Big Oil, corporate profits, and the security that capitalist growth requires.

But there are plenty of options to pay for a new direction: taxes on high earners and polluting firms, cutting military expenditure, long-term investment in green infrastructure, to name a few. The real issue is political will and political power. 

The money is there — we just need to seize it

Just think about the impressive government policies put in place in the span of weeks when the COVID-19 pandemic first hit. This crisis has shown us that, when it comes down to it, the money and policy tools are there. And it is worth pointing out to anyone who asks this question that what we do not spend on climate action, adaptation, and upholding Indigenous sovereignty today will make this work much more expensive later on.

Including the large flows of public money as part of what’s up for debate helps to open up an accessible and potentially transformative conversation about what we could build instead. By asking tangibly what it would look like for the police to have less power over our communities—and particularly Black and Indigenous communities—we can start a public conversation about imagining and building a truly safe world.

The “refund” part of this strategy would include supporting many solutions, from universal public transit, to direct Treaty-based funding for Indigenous Nations, to affordable energy-efficient public housing, to community-owned renewable energy, to Canada forgiving illegitimate debts and paying reparations abroad to make space for a globally just transition. 

The exact demands can and should be made more specific to communities as they organize. In most of these cases, as we phase out funding for programs that are not serving communities, there are also other programs that will need to be built up at the same time. For example, we need mental health support and public housing alongside the defunding of police and prisons, as many abolitionist groups like Movement for Black Lives and The Red Nation have sketched in more detail.

The following is a non-exhaustive list of $180 billion a year in public money in Canada that could be cut, shifted, and phased out to lessen harm and free up both money and the public imagination towards a decolonial and just transition. 

Winning even one-quarter of this amount in the next few years would free up more than five times what the federal government was planning to spend each year on climate- related infrastructure and programs as of 2021. 

These figures are taken from a 2017 to 2019 average where possible to avoid potential anomalies in government spending during the beginning of the COVID-19 pandemic. For context, in 2019 the federal, provincial, and municipal governments together spent a total of $750 billion a year.

By Simon Butler - Climate and Capitalism, January 6, 2022

David Schwartzman makes some very good points about the ecological benefits of ending militarism. I was also pleased to read his arguments about the strong potential for 100% renewable energy to meet global energy needs, although I cannot judge if his specific calculations about global per-capita energy are correct.

I’m not a degrowther per se. I think the fundamental problem is capital accumulation, of which capitalist growth is a product, but there are some questionable aspects to Schwartzman’s critique.

First, there is a claim about political strategy: that degrowth will appeal only to “the professional class” (I suppose this means middle class/petty bourgeois/intellectuals etc) in the North and would alienate the “global working class.”

That’s a strange formulation because it seems obvious that it’s not the “global” working class that Schwartzman and similar critics are worried about convincing, but the working class in the North who, they fear, will be repelled by a message that emphasises sharing resources with people elsewhere. The degrowth answer to this is that living standards for working people in the North can still improve even if economic growth is halted, as long as there is significant wealth redistribution.

I suspect that hostility to degrowth ideas among some ecosocialists in the North is linked to glossing over the sharp inequalities that divide “the global working class.” Any worthwhile ecosocialist strategy must address the North’s unequal access to the South’s mineral resources & soil nutrients. We in the North cannot hope to form international alliances with mass movements in the South if we neglect to do this. It’s imperialism that so destructively distorts the economies (and political cultures) of the South and the North, producing glaring inequalities and reproducing the ecological rift on a global level.

By David Schwartzman - Climate and Capitalism, January 5, 2022

Ecosocialist responses to “degrowth” analysis and proposals have ranged from full support to total rejection. The author of the following critical commentary is an emeritus professor of biology at Howard University, and co-author of The Earth is Not for Sale (World Scientific, 2019). We encourage respectful responses in the comments, and hope to publish other views in future.

The positive contributions of the degrowth proponents should be recognized, in particular, their rethinking of economic growth under capitalism, critiquing its measure, the GNP/GDP, as well as pointing to capitalism’s unsustainable use of natural resources, in particular fossil fuels in its production of commodities for profit generation regardless of their impact on the health of people and the environment. Further, they wisely critique eco-modernists who claim that simply substituting the right technology into the present political economy of capitalism will be sufficient to meet human and nature’s needs.

But the degrowth solutions offered are highly flawed and their brand is not likely to be welcomed by the global working class, even as it attracts sections of the professional class.^[1] Degrowth proponents commonly fail to unpack the qualitative aspects of economic growth, lumping all in one basket; i.e., sustainable/addressing essential needs of humans and nature versus unsustainable, leaving the majority of humanity in poverty or worse. Degrowthers point to the relatively privileged status of workers in the global North compared to those in the global South as a big part of the problem, instead of recognizing that the transnational working class will not only benefit from growth of sectors that meet its needs in both the global North and South but must be the leading force to defeat fossil capital.^{[1, 2, 3]}

A common claim in the degrowth discourse is that “perpetual growth on a finite planet leads inexorably to environmental calamity.”^[4] This assertion fails to deconstruct the qualitative aspects of growth, what is growing, what should degrow, under what energy regime? While of course there are obvious limits to the growth of the global physical infrastructure, why can’t knowledge and culture continue to grow for a long time into the future in a globally sustainable and just physical and political economy?

By Alejandria Lyons, José Bravo, Jonathan Alingu, and Ananda Lee Tan, et. al. - Just Transition Alliance, December 21, 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.

Read the text (PDF).