fossil fuel capitalism

By John Talberth, Ph.D. and Daphne Wysham - Center for Sustainable Economy, October 2017

Of the 50 United States, Alaska best exemplifies the types of problems the rest of the country may well face in a matter of decades, if not years, if we don’t wean ourselves from fossil fuels. The U.S. is in the middle of an oil and gas production boom, one that has caused oil and gas prices to plummet, with devastating consequences for Alaska, a state that has grown dependent on revenue from the oil and gas industry for its public funds.

However, if one only looked at the prominent outlines of the boom-and-bust, oil and gas economy in Alaska, one would miss a subtler shift happening on a much smaller scale: A more sustainable, self-reliant economy is beginning to take shape in remote villages and towns throughout the state.

While this sustainable economy is beginning to take root, it needs special care. In a report, commissioned by Greenpeace USA, entitled “Beyond Fossil Fuels: Planning a Just Transition for Alaska’s Economy,” CSE’s John Talberth and Daphne Wysham write that this nascent economy in Alaska shows great promise but will require investments in the following key sectors if it is to thrive:

• human capital—particularly in computer literacy in rural areas;
• sustainable energy, including wind, wave, tidal and solar energy;
• greater local self-reliance in food including produce, which currently is imported at great cost, and fisheries, which is often exported for processing, and manufacturing;
• the clean-up of fossil fuel infrastructure, including abandoned infrastructure sites;
• the protection of ecosystems;
• tourism led and controlled by Alaska Native communities;
• and sustainable fisheries.

But investment in these key building blocks is only the first step. Also needed are policy changes at the state and federal level that would remove subsidies for the fossil fuel industry, begin to internalize the price of pollution, and make federal funds available that are currently out of reach for many Alaska Natives.

Read the report (PDF).

By Janet Redman, et. al. - Oil Change International, October 2017

A new report by Oil Change International reveals that U.S. taxpayers continue to foot the bill for more than $20 billion in fossil fuel subsidies each year. The analysis outlines tax incentives, credits, low royalty rates, and other government measures benefiting the oil, gas, and coal sectors.

While the majority of Americans want stronger U.S. action on climate change, policies at the state and federal level continue to underwrite the ongoing exploration and production of fossil fuels. Every dollar spent subsidizing this industry takes us further away from achieving internationally agreed emissions goals, and maintaining a stable climate.

Key findings include:

• Fossil fuel subsidies have been defended by a Congress influenced by $350 million in campaign contributions and lobbying expenditures by the fossil fuel industry – which equates to a 8,200% return on investment.
• The cost of annual federal fossil fuel production subsidies is equivalent to the projected 2018 budget cuts from Trump’s proposals to slash 10 public programs and services that benefit some of the nation’s most vulnerable children and families.
• Government giveaways in the form of permanent tax breaks to the fossil fuel industry – one of which is over a century old – are seven times larger than those to the renewable energy sector.

The report recommends that climate champions in Congress, statehouses, and governors’ residences concerned about using taxpayer dollars wisely can push back on Trump’s fossil fuel agenda by taking the following actions:

• Immediately repeal existing tax breaks for fossil fuel exploration and production, and halt efforts to extend and expand tax credits for unconventional fossil fuel production technologies, like carbon capture and storage and enhanced oil recovery.
• Champion broader legislation that ends investment in fossil fuel expansion, and funds a just transition for industry-dependent workers and communities, while supporting a clean, renewable energy economy.
• Break the cycle of dirty energy money, particularly by elected officials at all levels of government pledging to refuse campaign donations and other forms of support from the oil, gas, and coal industries.

Download PDF Here.

By Catherine Hookes - Campaign against Climate Change Trade Union Group, August 15, 2017

Despite being faced with many immediate battles to fight, it is to the credit of many trade unions that they are also addressing the long term wellbeing of their members, and of future generations, by introducing policies to tackle climate change. A new report providing the first ever overview of the climate change policies of 17 major UK trade unions could help raise wider awareness of this important work.

The author, Catherine Hookes, is studying for a masters degree at Lund University, Sweden, and her research drew on a comprehensive web review of policies in these unions, going into more depth for many of the unions, interviewing key figures and activists. The research was facilitated by the Campaign against Climate Change.

For anyone within the trade union movement concerned about climate change (or for campaigners wishing to engage with trade unions on these issues) this report is of practical use in understanding the context, the diversity of different trade unions' approaches, and the progress that has been made in the campaign for a just transition to a low carbon economy.

While every attempt was made to ensure the report is comprehensive, and accurately reflects union positions, there are clearly controversies and different viewpoints over issues such as fracking and aviation. Trade unions with members in carbon intensive industries will always have a challenging task in addressing climate change, but their engagement in this issue is vital. And, of course, this is a rapidly changing field. It is very encouraging that since the report was written, Unison has voted to campaign for pension fund divestment. This is an important step in making local authority pension funds secure from the risk (both financial and moral) of fossil fuel investment.

Anyone attending TUC congress this September is welcome to join us at our fringe meeting, 'Another world is possible: jobs and a safe climate', to take part in the ongoing discussion on the role of trade unions in tackling climate change.

Read the text (PDF).

By Sarah Morken - The North Star, April 16, 2017

Tacoma has been one of the main dumping grounds for polluting industry in western Washington. We are home to nine EPA Superfund clean up sites.

This week we gathered on the Tacoma tide flats outside outside the site where Puget Sound Energy (PSE) is preparing to build the nations largest fracked gas storage plant (Liquid Natural Gas or LNG). There were members of the Puyallup Tribe, Standing Rock Tribe, the Palouse Tribe and their non-native allies from local political and environmental groups. We were about 50 people coming and going. The protest was hosted by Tacoma Direct Action and sponsored by Redline Tacoma, Save Tacoma Water and Green Party Tahoma. This was the first local protest actually at the site.

Takes More Than Prayer

James Rideout, member of the Puyallup Tribe and geoduck diver started the protest with a prayer and a song, with help from Jesse Nightwalker a member of the Palouse Tribe. James asked how far we were willing to go to fight this project, reminding us that it was going to take more than prayer, reminding us about what happened in Standing Rock.

ILWU

We stood on the four corners at the intersection located between the LNG site and Totem Ocean Trailer Express (TOTE). TOTE is supposedly one of the primary customers of the LNG. We handed out flyers to Longshore workers (ILWU 23) as they drove through the gate at TOTE and also to other port workers as they drove by. Some of the cars drove past without stopping, but many of them took our flyers. Most of them were not even aware of the project. They weren’t aware that their union leadership supports the project. The decision to support LNG was voted on at a general membership meeting without effort to truly inform the members on the issue. The union has been helping with the million dollar greenwashing campaign for PSE.

Interestingly, ILWU 23 sent a delegation with supplies and money to Standing Rock showing solidarity with the Water Protectors against the oil and gas industry there. Can the dockworkers be convinced to stand in solidarity with the Puyallup Tribe right here at home? Or will they instead support the the oil and gas industry? In my opinion, it would be helpful if Puyallup Tribe members ask their Tribal Council to set up a meeting with ILWU 23 and have a conversation about this. As union members, as the working class, our natural allies are fellow exploited/oppressed/discriminated people, like Native Americans, not Puget Sound Energy!

By Trevor Houser, Jason Bordoff, and Peter Marsters - Columbia Center on Global Energy Policy, School of International and Public Affairs, and the Rhodium Group, April 2017

From the introduction: Six years ago, the US coal industry was thriving, with demand recovering from the Great Recession, and global coal prices at record highs along with the stock prices of US coal companies. By the end of 2015, however, the industry had collapsed, with three of the four largest US miners filing for bankruptcy along with many other smaller companies. While coal mining employment has been on the decline for decades – from a peak of more than 800,000 in the 1920s to 130,000 in 2011 – the pace of job loss over the past six years has been particularly dramatic. After campaigning on a promise to end what he called his predecessor’s “War on Coal,” President Donald Trump signed an Executive Order in March 2017 ordering agencies to review or rescind a raft of Obama-era environmental regulations, telling coal miners they would be “going back to work.”

This paper offers an empirical diagnosis of what caused the coal collapse, and then examines the prospects for a recovery of US coal production and employment by modeling the impact of President Trump’s executive order and assessing the global coal market outlook. In short, the paper finds:

• US electricity demand contracted in the wake of the Great Recession, and has yet to recover due to energy efficiency improvements in buildings, lighting and appliances. A surge in US natural gas production due to the shale revolution has driven down prices and made coal increasingly uncompetitive in US electricity markets. Coal has also faced growing competition from renewable energy, with solar costs falling 85 percent between 2008 and 2016 and wind costs falling 36 percent.
• Increased competition from cheap natural gas is responsible for 49 percent of the decline in domestic US coal consumption. Lower-than-expected demand is responsible for 26 percent, and the growth in renewable energy is responsible for 18 percent. Environmental regulations have played a role in the switch from coal to natural gas and renewables in US electricity supply by accelerating coal plant retirements, but were a significantly smaller factor than recent natural gas and renewable energy cost reductions.
• Changes in the global coal market have played a far greater role in the collapse of the US coal industry than is generally understood. A slow-down in Chinese coal demand, especially for metallurgical coal, depressed coal prices around the world and reduced the market for US exports. More than half of the decline in US coal company revenue between 2011 and 2015 was due to international factors.
• Implementing all the actions in President Trump’s executive order to roll back Obama-era environmental regulations could stem the recent decline in US coal consumption, but only if natural gas prices increase going forward. If natural gas prices remain at or near current levels or renewable costs fall more quickly than expected, US coal consumption will continue its decline despite Trump’s aggressive rollback of Obama-era regulations.
• While global coal markets have recovered slightly over the past few months due to supply restrictions in China and flooding in Australia, we expect this rally to be short-lived. Slower economic growth and structural adjustment in China will continue to put downward pressure on global coal prices and limit the market opportunities for US exports. Indian coal demand will likely grow in the years ahead, but not enough to make up for the slow-down in China. The same is true for other emerging economies, many of whom are negatively impacted by decelerating Chinese commodities demand themselves.
• Under the best case scenario for US coal producers, our modeling projects a modest recovery to 2013 levels of just under 1 billion tons a year. Under the worst case scenario, output falls to 600 million tons a year. A plausible range of US coal mining employment in these scenarios ranges from 70,000 to 90,000 in 2020, and 64,000 to 94,000 in 2025 and 2030 -- lower than anything the US experienced before 2015.

These findings indicate that President Trump’s efforts to roll back environmental regulations will not materially improve economic conditions in America’s coal communities. As such, the paper concludes with recommendations for steps that the federal government can take to safeguard the pension and health security of current and retired miners and dependents and support economic diversification. Attracting new sources of economic activity and job creation will not be easy, and even at its most successful will not return coal country to peak levels of past prosperity.

But responsible policymakers should be honest about what’s going on in the US coal sector—including the causes of coal’s decline and unlikeliness of its resurgence—rather than offer false hope that the glory days can be revived. And then support those in America’s coal communities working hard to build a new economic future.

Read the text (PDF).

By staff - Adapting Canadian Work and Workplaces to Respond to Climate Change and United Steelworkers, April 2017

The United Steelworkers Union (USW) in Canada has produced a new workshop guide to educate workers about the impact of climate change on jobs, and to better prepare them to ensure that government policies promoting a just transition are put in place. The workshop and guide were piloted at the United Steelworkers National Health, Safety, Environment and Human Rights Conference that was held in Vancouver in 2017.

The workshop guide leads union members through discussion topics and activities, such as asking participants to answer the question, “What can your workplace do to combat climate change?”

Topics covered include:

• How Climate Change Connects Us
• How Climate Change Contributes to the World of Work
  • Employment
  • Forestry
  • Mining
  • Transportation
• Just Transition
• What Does a Green Job Mean in Relation to the Environment?
  • Collective Agreements
  • Political Lobbying
  • Green Procurement
  • Training
  • Employment Insurance
• National Concern for the Economic Growth of Canada

Read the text (PDF).

By Jonathan Rosenblum - Common Dreams, March 26, 2017

Among the hundreds of coal miners I have interviewed over the years, retired coal miner Chuck Nelson has always been among the most fearless truth-tellers in the coal country of West Virginia.

An indefatigable presence at hearings, meetings, media briefings, and in his beloved mountains, Nelson’s powerful voice and witness have never been needed more than now—during this unending “war” on Appalachia by the coal industry and its sycophants in state halls and Washington, DC.

“Chuck Nelson is an invaluable member of our community,” said Maria Gunnoe, the Goldman Prize Award recipient with Coal River Mountain Watch in West Virginia. “The coal industry may have broken his health down, but they sure didn’t break his Appalachian spirit to always fight for something better.”

A 4th generation union coal miner, who spent 30 years working in underground mines, Nelson has witnessed first-hand the demise of a once strong union movement for workplace safety and wage justice, the unraveling of deeply rooted communities, the clear-cut destruction of his mountain forests and poisoning of his neighbors, and the fierce struggle of local communities to defend their health, land and ways of life.

By Luke Sussams, et. al. - Carbon Tracker, February 2017

The time for energy transformations is now.

Achieving climate stability will require deep and widespread changes in the global energy sector. Fossil fuel industry projections, however, continue to show a future energy system with few changes to that of today. This is in spite of examples of disruption in the energy sector at the hands of the low-carbon transition. This scenario analysis was produced in partnership between Carbon Tracker and the Grantham Institute at Imperial College London and explores the extent to which ongoing cost reductions could see solar photovoltaics (PV) and electric vehicles (EVs) impact future demand for coal, oil and gas. The findings of this study should motivate energy companies and their investors to retire the use of business as usual (BAU) scenarios and further integrate the consideration of downside demand scenarios.

Read the report (PDF).

By Liza Tucker - Consumer Watchdog, February 2017

This review fact-checks the perception of Jerry Brown as an environmentalist against his actions since taking office as Governor in 2011 to answer the question: “How Green Is Brown?” On a continuum of “Green” to “Murky” to “Dirty,” the review concludes that Brown’s environmental record is not green. The following advocates and public interest groups concur with the report’s analysis, conclusions, and recommendations: Food & Water Watch, Physicians for Social Responsibility-Los Angeles, Rootskeeper, Powers Engineering, Basin & Range Watch, Aguirre & Severson LLP, Public Watchdogs, the Southern California Watershed Alliance, The Desal Response Group, Restore The Delta, and Committee to Bridge the Gap.

Brown has staked his environmental legacy on fighting climate change, calling it the “singular challenge of our time.” He claims that he is enacting “a 1 thorough, integrated plan to reduce fossil fuel consumption.” He plans to have 1.5 million electric cars on the road by 2025 and has granted major investor-owned utilities a windfall of billions of dollars to build the charging infrastructure to make it happen. Yet, he has thrown his support to the fossil fuels industry whose products emit the most carbon on the planet when burned for transportation, electricity, and heat.

Far from the environmentalist that Brown claims to be, Brown has expanded the burning of heat-trapping natural gas and nurtured oil drilling and hydraulic fracturing while stifling efforts to protect the public from harm. The Public Utilities Commission has approved a slew of unnecessary new fossil-fuel power plants when the state’s three major investorowned utilities have overbuilt their generating capacity by nearly triple the minimum extra capacity that the state requires. Under Brown, the number of active onshore state oil and gas wells jumped by 23 percent since the year before he was elected Governor in a bid to produce more oil.

Hydraulic fracturing is producing 20 percent of the state’s oil, while companies continue to use other common, dirty methods of oil extraction exempted from fracking legislation under Brown. Companies are extracting oil from a few hundred newly permitted offshore wells in existing state leases since Brown came to office, though Brown asked then- President Obama to ban any new drilling in California’s federal waters. Brown’s regulators have ignored a petition signed by 350,000 people to ban the use of toxic oil wastewater for crop irrigation until proven safe.

Read the report (PDF).