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Impacts of the Reimagine Appalachia and Clean Energy Transition Programs for Pennsylvania: Job Creation, Economic Recovery, and Long-Term Sustainability

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

The COVID-19 pandemic has generated severe public health and economic impacts in Pennsylvania, as with most everywhere else in the United States. The pandemic is likely moving into its latter phases, due to the development of multiple vaccines that have demon-strated their effectiveness. Nevertheless, as of this writing in mid-January 2021, infections and deaths from COVID are escalating, both within Pennsylvania and throughout the U.S. Correspondingly, the economic slump resulting from the pandemic continues.

This study proposes a recovery program for Pennsylvania that is capable of exerting an effective counterforce against the state’s ongoing recession in the short run while also build-ing a durable foundation for an economically viable and ecologically sustainable longer-term recovery. Even under current pandemic conditions, we cannot forget that we have truly limited time to take decisive action around climate change. As we show, a robust climate stabilization project for Pennsylvania will also serve as a major engine of economic recovery and expanding opportunities throughout the state.

Read the text (PDF).

Just Transitions, Power and Politics

Unions and Youth together: A Just Transition for climate ambition

The Biden Climate Plan: Part 2: An Arena of Struggle

By Jeremey Brecher - Labor Network for Sustinability, December 8, 2020

The climate plan released by Joe Biden in August presents a wide-ranging program for reducing greenhouse gas (GHG) emissions. The previous commentary, “The Biden Climate Plan: What it Proposes–Part 1” summarizes that plan. This commentary identifies the points of conflict on climate policy and related social policies that are likely to emerge within a Biden administration. It concludes by assessing how advocates of a Green New Deal can take advantage of the Biden program to fight for a climate-safe, worker-friendly, socially-just outcome. To read this commentary, please visit: this page.

Fall Economic Statement paves the way for a Green Recovery: energy efficiency, care economy, electric vehicle infrastructure, and nature-based solutions

By Elizabeth Perry - Work and Climate Change Report, December 7, 2020

On November 30, Canada’s Finance Minister Chrystia Freedland presented the government’s Fall Economic Statement to the House of Commons, Supporting Canadians and Fighting COVID-19. At over 200 pages, it is the fullest statement to date of how the government intends to finance a green recovery from the Covid-19 pandemic, but Canadians must still wait for a full climate change strategy, promised “soon”.

The government press release summarizes the spending for health and economic measures, including, for employers, extension of the Canada Emergency Wage Subsidy Canada, the Emergency Rent Subsidy and Lockdown Support , and new funding for the tourism and hospitality sectors through the new Highly Affected Sectors Credit Availability Program. In Chapter 3, Building Back Better,  the Economic Statement addresses the impacts of Covid-19 on the labour market and employment. It includes promises to create one million jobs, invest in skills training, reduce inequality, attack systemic racism, support families through early learning and child care, support youth, and build a competitive green economy. Most budget allocations will be channeled through existing programs, but new initiatives include “the creation of a task force of diverse experts to help develop “an Action Plan for Women in the Economy”; launch of “Canada’s first-ever Black Entrepreneurship Program”; and a task force on modernizing the Employment Equity Act to promote equity in federally-regulated workplaces. Under the heading, “Better working conditions for the care Economy” comes a pledge: “To support personal support workers, homecare workers and essential workers involved in senior care, the government will work with labour and healthcare unions, among others, to seek solutions to improve retention, recruitment and retirement savings options for low- and modest-income workers, particularly those without existing workplace pension coverage.”

Let's Own Chevron: Can the Just Transition of the Fossil Fuel Industry Start Here?

By Ted Franklin - System Change not Climate Change, December 2020

The Bay Area is home to one of the largest fossil fuel companies in the world. In October 2020 Chevron overtook ExxonMobil to become the largest U.S. oil company as measured by market cap. On October 7, the total value of shareholders’ stock in Chevron reached $142 billion, surpassing Exxon’s $141.6 billion.

Headquartered in Dublin and operating Northern California’s largest refinery in Richmond, Chevron has already found itself in the crosshairs of Bay Area activists for its routine pollution of working-class neighborhoods and its contributions to climate change. The Richmond Progressive Alliance’s radical struggle against Chevron’s domination of Richmond’s city government has been a central story in Bay Area left environmentalism in recent decades..

Much bigger contests over the power of Chevron and its ilk lie directly ahead. Increasingly, it has become clear that a direct government takeover of our fossil fuel industries is a necessary step for at least three reasons:

  • 1. Reductions in oil, coal, and gas production must begin immediately to avoid catastrophic degradation of the planet. Chevron and every other fossil fuel company must begin the process of downsizing at a rapid pace. As long as the fossil fuel companies are being run to maximize profits, any downsizing will be accidental and haphazard. Management which puts people and planet first must take over to ensure that the necessary reductions take place.
  • 2. Public ownership is the only way to break the back of the fossil fuel industries’ death grip over climate policy. The fossil fuel capitalists will not go quietly away. They have enormous sunk costs in their existing infrastructure. They intend to exert enormous political power to resist any reduction in their profits and any attempt to make them “keep it in the ground.”
  • 3. A just transition for workers and communities requires social control of the rapidly evolving energy commons. Even if the carbon tax championed by Joe Biden’s Treasury pick, Janet Yellen,1 could achieve sufficient reductions in carbon emissions to avert climate disaster, it would do nothing to ensure that reductions in carbon emissions are achieved without misery to workers and communities.

What is to be done?

Read the text (PDF).

The Biden Climate Plan: Part 1: What It Proposes

By Jeremey Brecher - Labor Network for Sustinability, December 1, 2020

This commentary by Jeremy Brecher analyzes Joe Biden’s “Plan for Climate Change and Environmental Justice” released in August. The following commentary, “The Biden Climate Plan: Part 2: An Arena of Struggle,” will consider the struggles that are likely to emerge over what parts of the plan can and should be implemented. To read this commentary, please visit: this page.

Greenpeace USA’s Just Recovery Agenda: A Pathway to a New Economy

By Ryan Schleeter, Amy Moas, Ph.D., and Tim Donaghy, Ph.D. - Greenpeace, November 17, 2020

The economy we have today works for the 1%, not the 99%. The devastation wrought by COVID-19 in the United States—the death, anxiety, isolation, and instability—is the direct result of a system designed to concentrate power in the hands of a few. People are suffering and dying not only because of the virus, but because of the longstanding inequality and racism it has laid bare. This is the same system that has landed us in a climate and extinction crisis in which our very life support system—our planet—is under attack.

As we chart the course toward recovery, we must also confront these social, environmental, and economic injustices at their roots. The centuries-long era of racial capitalism[1]—the system under which wealthy white elites and massive corporations have controlled and exploited land, communities, and cultures to acquire power—must end.

Going back to normal is not an option. The past was not only unjust and inequitable, it was unstable. What we knew as “normal” was a crisis. We must reimagine the systems our country is built on from the ground up. We envision a world where everyone has a good life, where our fundamental needs are met, and where people everywhere have what they need to thrive.

Read the text (PDF).

Debt Relief for a Green and Inclusive Recovery

By Ulrich Volz, Shamshad Akthar, Kevin Gallagher, Stephany Griffith-Jones and Jörg Haas - Heinrich Böll Foundation; the Center for Sustainable Finance at SOAS, University of London; and Boston University’s Global Development Policy Center , November 16, 2020

The report “Debt Relief for Green and Inclusive Recovery published by the Heinrich Böll Foundation; the Center for Sustainable Finance at SOAS, University of London; and Boston University’s Global Development Policy Center proposes that low and middle-income countries with unsustainable debt burden receive substantial debt relief by public and private creditors, in order to provide fiscal space for investment in Covid-19-related health and social spending, climate adaptation and green economic recovery strategies. Private creditors participating in the debt restructuring would swap their old debt holdings with a haircut for new “Green Recovery Bonds”. 

This proposal goes further than the new common framework endorsed by the G20 and Paris Club last Friday, as it would ask for mandatory participation from the private sector. Second, it would include middle-income countries with unsustainable debt burdens. Thirdly, the proposed Debt Relief for Green and Inclusive Recovery Initiative is geared to achieving the Paris Agreement on climate change and the 2030 Agenda for Sustainable Development, which the common framework is not.

Governments receiving debt relief would need to commit firmly to reforms that align their policies and budgets with the 2030 Agenda for Sustainable Development and the Paris Agreement. For these countries to have continued access to international capital markets, any new debt issued by them could receive Brady-type credit enhancement – suitably adapted to current circumstances – in exchange for committing to Sustainable Development Goals-aligned spending items.

Read the text (PDF).

Read Background Briefing #2 (PDF).

Costs and job impacts of Green Recovery and Just Transition programs for Ohio, Pennsylvania

By Elizabeth Perry - Work and Climate Change Report, November 2, 2020

Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for Ohio: Job Creation, Economic Recovery, and Long-Term Sustainability was published by the Political Economy Research Institute (PERI) in October, written by Robert Pollin and co-authors Jeannette Wicks-Lim, Shouvik Chakraborty, and Gregor Semieniuk. To achieve a 50 percent reduction relative to 2008 emissions by 2030, the authors propose public and private investment programs, and then estimate the job creation benefits to 2030. “Our annual average job estimates for 2021 – 2030 include: 165,000 jobs per year through $21 billion in spending on energy efficiency and clean renewable energy; 30,000 jobs per year through investing $3.5 billion in manufacturing and public infrastructure. 43,000 jobs per year through investing $3.5 billion in land restoration and agriculture. The total employment creation through clean energy, manufacturing/infrastructure and land restoration/agriculture will total to about 235,000 jobs. “ 

There are almost 50,000 workers currently working in the Ohio fossil fuel and bioenergy industries, with an estimated 1,000 per year who will be displaced through declining fossil fuel demand. As he has before, Pollin advocates for a Just Transition program which includes: Pension guarantees; Retraining; Re-employment for displaced workers through an employment guarantee, with 100 percent wage insurance; Relocation support; and full just transition support for older workers who choose to work past age 65. The report estimates the average costs of supporting approximately 1,000 workers per year in such transition programs will amount to approximately $145 million per year (or $145,000 per worker).

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