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Losing altitude: The economics of air transport in Great Britain

By Alex Chapman - New Economics Foundation, July 17, 2023

The environmental downsides of growth in flight numbers are significant. The sector has no short-term technological solution to its greenhouse gas emissions; over the medium to long term, much uncertainty remains as to the pace of emissions reduction achievable. All scenarios published by stakeholders such as the Climate Change Committee, the Department for Transport (DfT), and air transport sector bodies, suggest that future air traffic growth would necessitate the use of costly, and unproven, carbon capture technologies.

Despite these risks, the government continues to provide conditional support to air capacity growth on the (often tacit) basis that the economic upsides outweigh the negative impacts and future risks. But, the economic assumptions that underpin this position favouring growth are dated and have not been reviewed for some years. Given the urgent and sizeable nature of the climate risk, it is imperative that the evidence, and relative balance, of the economic and environmental impacts of air transport growth are kept up to date and under constant review.

This report shows that since the government’s last comprehensive review of the economic impacts of air transport in 2012, trends in the British air transport sector have changed dramatically. Contrary to expectations, growth in business passenger numbers has effectively ceased and new passengers now derive exclusively from the leisure market. In particular, passenger growth has been driven by wealthy British residents rather than foreign tourists or those on lower incomes. Early evidence suggests the pandemic has accelerated this trend. This report reviews the current evidence on the impact of air transport growth across four core economic domains: welfare, jobs and wages, tourism, and wider facets of economic growth, business productivity, and trade.

Download a copy of this publication here (PDF).

The New (Renewable) Energy Tyranny

By Al Weinrub - Non Profit Quarterly, July 13, 2023

There are two very different (and antagonistic) renewable energy models: the utility-centered, centralized energy model—the existing dominant one—and the community-centered, decentralized energy model—what energy justice advocates have been pushing for. Although both models utilize the same technologies (solar generation, energy storage, and so on), they have very different physical characteristics (remote versus local energy resources, transmission lines or not). But the key difference is that they represent very different socioeconomic energy development models and very different impacts on our communities and living ecosystems.

Let me start by recounting some recent history in California—the state often regarded as a leader in the clean energy transition.

In recent years, California’s energy system has failed the state’s communities in almost too many ways to count: utility-caused wildfires, utility power shutoffs, and skyrocketing utility bills, for starters. Currently, state energy institutions are advancing an all-out effort to suppress local community ownership and control of energy resources—the decentralized energy model.

Instead, they are promoting and enforcing an outmoded, top-down, utility-centered, extractive, and unjust energy regime—the centralized energy model—which effectively eliminates local energy decision-making and local energy resource development. This model forces communities to pay the enormous costs of unneeded transmission line construction and bear the massive burden of transmission line failures.

Using the power of the state to enforce the centralized energy model is at the heart of California’s new renewable energy tyranny. And this tyranny has now spread to the federal level, as substantial public investment is now set to go toward large-scale renewable energy projects across the country. These projects will be controlled by and benefit an increasingly powerful renewable energy oligarchy. Being touted as a solution to what is popularly regarded as the “climate emergency,” this centralized energy model has actually failed to meet our communities’ energy needs, and at the same time has exacerbated systemic energy injustice.

Join the March to End Fossil Fuels

AB 525 Port Readiness Plan

By Brooklyn Fox and Sarah Lehman - California State Lands Commission, July 7, 2023

Assembly Bill (AB) 525 (Chiu, Chapter 231, Statutes of 2021) was signed by the Governor in 2021 and requires the Californica Energy Commission (CEC), in coordination with the California Coastal Commission, Ocean Protection Council, State Lands Commission (CSLC), Office of Planning and Research, Department of Fish and Wildlife, Governor’s Office of Business and Economic Development, Independent System Operator, and Public Utilities Commission (and other relevant federal, state, and local agencies as needed) to develop a strategic plan (AB 525 Strategic Plan) for offshore wind development in federal waters by June 30, 2023.

On August 1, 2022, the CEC established a planning goal of 2 to 5 GW of offshore wind energy by 2030 and 25 GW by 2045 (Flint 2022). To meet these goals, the AB 525 Strategic Plan shall include, at a minimum, the following five chapters:

  1. Identification of sea space, including the findings and recommendations resulting from activities undertaken pursuant to Section 25991.2 of AB 525.
  2. Waterfront facilities improvements plan, including facilities that could support construction and staging of foundations, manufacturing of components, final assembly, and long-term operations and maintenance, pursuant to Section 25991.3 of AB 525. Economic and workforce development and identification of port space and infrastructure, including the plan developed pursuant to Section 25991.3 of AB 525.
  3. Transmission planning, including the findings resulting from activities undertaken pursuant to Section 25991.4 of AB 525.
  4. Permitting, including the findings resulting from activities undertaken pursuant to Section 25991.5 of AB 525.
  5. Potential impacts on coastal resources, fisheries, Native American and Indigenous peoples, and national defense, and strategies for addressing those potential impacts.

Per Section 25991.3 of AB 525, based on the sea spaces identified pursuant to Section 25991.2 of AB 525, the CEC, in coordination with relevant state and local agencies, must develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, including construction and staging of foundations, manufacturing of components, final assembly, and long-term operations and maintenance facilities. The purpose of this AB 525 Port Readiness Plan is to perform a detailed assessment of the necessary investments in California ports to support offshore wind energy activities, including construction, assembly, and operations and maintenance. This report will inform the AB 525 Strategic Plan.

For more details, see: AB 525 Reports: Offshore Renewable Energy

Download a copy of this publication here (PDF).

Green Jobs or Dangerous Greenwash?

By Tahir Latif, Claire James, Ellen Robottom, Don Naylor, and Katy Brown - Working People, July 7, 2023

Greenwash is not always easy to challenge: the claims to offer climate solutions; the PR offensive in local communities; and promises of 'green jobs' that in reality are neither as numerous or as environmentally friendly as promised.

But whether it’s a ‘zero carbon’ coal mine, heating homes with hydrogen, importing wood to burn in power stations, ‘sustainable aviation growth’ or offsetting, there are common themes that can give a reality check on greenwash claims and misleading jobs promises.

Speakers:

  • Claire James, Campaign against Climate Change
  • Ellen Robottom, Campaign against Climate Change trade union group
  • Don Naylor, HyNot (campaigning against HyNet greenwash and the Whitby hydrogen village)
  • Katy Brown, Biofuelwatch (using slides from Stuart Boothman, Stop Burning Trees Coalition who was unable to make it).

Trial Run for California's Offshore Wind Workforce

By Robert Collier, et. al - IBEW Local 1245, et. al., July 5, 2023

California’s offshore wind industry can fill its workforce training needs largely through negotiating labor contracts with unions, thus providing access to the state’s well-honed apprenticeship system. But some workforce gaps exist in the offshore marine services, caused mainly by legal and regulatory hurdles. These are some of the key findings of a new, state-funded report issued by an alliance of industry, labor and academia. Unlike many other desktop research reports issued in recent years about California offshore wind, this report was based on empirical, hands-on planning for California’s first offshore wind project: CADEMO in northern Santa Barbara County.

The new report was produced by the Offshore Wind High Road Training Partnership (HRTP), funded by the California Workforce Development Board. The HRTP members include: Floventis, CADEMO’s owner and developer; the State Building and Construction Trades Council; electrical union IBEW 1245; San Luis Obispo County Office of Education; SLO Partners; and Cal Poly San Luis Obispo.

CADEMO is a demonstration project comprising four full-size, 15-MW floating turbines in state waters off the coast of Vandenberg Space Force Base. It is expected to be operational in late 2027, years before the first larger-scale projects planned in federal waters.

Aviation Democracy: The case for public ownership of the aviation sector to protect jobs and protect the planet

By Tahir Latif, et. al. - Public and Commercial Services Union, July 2023

PCS has always argued that protecting the long term job security of our members in aviation means recognising the impact of flying on the environment, and vice versa.

Technical fixes – new fuels, better engines, more efficient aircraft – will help but not solve the challenge of climate change. To meet the UK’s climate targets will involve managing down.

As a trade union we want to ensure a reduction in flying does not lead to an accompanying loss of jobs but to a planned transition of workers to the jobs required in a greener aviation industry that is part of a broader integrated transport system, owned by and run for the public, and that meets its climate commitments.

Download a copy of this publication here (PDF).

Power Outrage: Will Heavily Subsidized Battery Factories Generate Substandard Jobs?

By Jacob Whiton and Greg LeRoy - Good Jobs First, July 2023

Under a provision of the Inflation Reduction Act, some factories making batteries for electric vehicles will each receive more than a billion dollars per year from the U.S. government, with no requirement to pay good wages to production workers. Thanks to the Advanced Manufacturing Production Credit, also called 45X for its section in the Internal Revenue Code, battery companies will receive tax credits that they can use, sell, or cash out.

The 45X program alone will cost taxpayers over $200 billion in the next decade, far more than the $31 billion estimated by Congress’s Joint Committee on Taxation. On top of 45X and other federal incentives, factories manufacturing electric vehicles and batteries have also been promised well over $13 billion in state and local economic development incentives in just the past 18 months.

What do local communities get from companies in exchange for public money? The Biden administration says the IRA will create “good-paying union jobs,” but the federal tax credit has no job quality requirements for permanent jobs and doesn’t mandate companies pay market-based wages or benefits.

Good Jobs First did the math for five recently announced battery factories. Here’s what we learned:

  • Total subsidies will range from $2 million to $7 million per job.
  • Average annual wages, as announced, will be below the current national average for production workers in the automotive sector.
  • The 45X credit alone is large enough to cover each facility’s initial capital investment cost and wage bill for the first several years of production.

Download a copy of this publication here (PDF).

Canada Proposes “Sustainable Jobs Act”

By staff - Labor Network for Sustainability, June 30, 2023

The government of Canada has just introduced in Parliament the “Canadian Sustainable Jobs Act.” According to the government, the Act will “facilitate and promote the creation of sustainable jobs and support workers and communities in Canada in line as the world advances toward a net-zero future.” It will “put workers and communities at the center of federal policy and decision-making by establishing a framework for accountability, a governance structure and engagement mechanisms to guide effective federal action.”

To hit the ground running, a Sustainable Jobs Interim Action Plan includes:

  • Establish the Sustainable Jobs Secretariat
  • Create a Sustainable Jobs Partnership Council
  • Develop economic strategies through the Regional Energy and Resource Tables
  • Introduce a sustainable jobs stream under the Union Training and Innovation Program
  • Advance funding for skills development toward sustainable jobs
  • Promote Indigenous-led solutions and a National Benefits-Sharing Framework
  • Improve labor market data collection, tracking and analysis
  • Motivate investors and draw in industry leadership to support workers
  • Collaborate and lead on the global stage
  • Establish legislation that ensures ongoing engagement and accountability

For text of the bill: www.canada.ca/en/services/jobs/training/initiatives/sustainable-jobs/plan.html

For a government backgrounder on the bill: www.canada.ca/en/natural-resources-canada/news/2023/06/backgrounder-canadian-sustainable-jobs-act.html

For Sustainable Jobs Action Plan: www.canada.ca/en/services/jobs/training/initiatives/sustainable-jobs/plan.html

Our Green Transition May Leave Black People Behind

By Rhiana Gunn-Wright - Hammer & Hope, Summer 2023

I’m an architect of the Green New Deal, and I’m worried the racism in the biggest climate law endangers our ability to get off fossil fuels.

This summer, the earth raged. Fires in Maui and Canada, floods in Delhi and Beijing, heat everywhere — this is the beginning of the climate impacts scientists have long predicted, and the U.S. is unprepared in terms of everything from infrastructure to public health. And if I’m honest, I raged, too. Never in my life have I wished more to be a cyclone, blowing away everything in my path, or an earthquake, shaking everyone to their core until they take seriously the concerns of Black and Indigenous frontline communities.

August marked a year since the Inflation Reduction Act passed, arguably the most significant climate legislation in U.S. history. But the racist compromises and the marginalization of Black people and their demands that facilitated the bill’s passage have seeped into the climate movement, sowing division and narrowing discourse in ways that not only threaten to keep Black people at the bottom of a new green economy but also undermine efforts to address thornier issues, such as who owns energy resources or how to navigate conflicts about resource distribution and land use, questions that money alone cannot answer.

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