just transition

By Emily Pontecorvo - Grist, March 3, 2021

Here are two tales of the energy transition unfolding in coal country, USA.

In late 2019, Pacificorp, an electric utility that operates in six Western states, told Wyoming regulators it wanted to shut down several of its coal-fired power plants early and replace them with wind and solar power and battery storage. It said this plan would save customers hundreds of millions of dollars on their electric bills and promised to work with local leaders on transition plans for workers and communities affected by the closures.

Wyoming, a state whose economy relies significantly on coal mining and coal power, went on the defensive. State lawmakers had already passed a law requiring coal plant owners to search for a buyer before being allowed to close a plant. Now, with support from the governor, regulators ordered an unprecedented investigation to scrutinize Pacificorp’s analysis and conclusions. Ultimately they determined the plan was deficient — that the company had not adequately considered allowing the coal plants to stay open or installing technology to capture the plants’ carbon emissions.

By Guy Dauncy - Canada 26 Weeks, March 2020

This is a work of imagination. But the urgency of the crisis is real, the need for the suggested programs is real, and the data included in these proposals is real.

What could the government of Canada do if its Ministers, MPs and civil servants really understood the severity of the climate emergency, and the urgency of the need? This paper shows how we could target a 65% reduction in emissions by 2030 and 100% by 2040. It proposes 164 new policies and programs, financed by $59 billion a year in new investments, without raising taxes or increasing public sector borrowing. The new programs and policies are announced every Monday morning between January and the end of June. To learn what they are, read on.

Read the text (PDF).

By Naomi Klein, Keon Liberato, Josua Mata and Kate Aronoff - Democratic Socialists of America, March 1, 2021

By staff - Labor Network for Sustainability, March 2021

Anyone interested in how to address the concerns of both labor and environmentalists in upcoming legislation should take a look at the new Sierra Club report “How to Build Back Better: A 10-year Plan for Economic Renewal.” Although the Sierra Club is an environmental organization – in fact, the country’s largest–this “blueprint for economic renewal” has been designed with the needs of workers and discriminated-against groups front and center.

The plan is based on the THRIVE Agenda, which has been endorsed by the Association of Flight Attendants-CWA, American Federation of Teachers, American Postal Workers Union, Amalgamated Transit Union, Communications Workers of America, United Electrical, Radio and Machine Workers of America and Service Employees International Union.

• By investing $1 trillion per year, an economic renewal plan based on the THRIVE Agenda would create over 15 million good jobs–enough to end the unemployment crisis–while countering systemic racism, supporting public health, and cutting climate pollution nearly in half by 2030.

• These investments must come with ironclad labor and equity standards to curb racial, economic, and gender inequity instead of reinforcing the unjust status quo.

By Staff - Labor Network for Sustainability, March 2021

The Labor Network for Sustainability calls for a halt to the Line 3 Pipeline, the Dakota Access Pipeline and other climate-destroying fossil-fuel infrastructure of the past. It calls instead to start creating the jobs of the future building the climate-safe infrastructure of the future.

The U.S. is already building extensive new fossil-free energy infrastructure and is creating more jobs than a similar investment in fossil fuel facilities. Rather than spend a penny more on new fossil fuel infrastructure, it is time to invest in a massive, jobs-rich conversion to a fossil-free energy infrastructure.

The U.S. government, the people of the world, and even major oil companies recognize that the climate emergency requires us to move rapidly to a fossil-free economy. President Joe Biden recently recognized this by cancelling the Keystone XL pipeline. It is time to halt other new fossil fuel infrastructure—urgently, the Line 3 and Dakota Access Pipelines—and use our precious resources for a just transition to climate safety.

A 2013 LNS study compares jobs created by the Keystone XL pipeline to the jobs that could be created by water, sewer and gas repair projects in the five states the pipeline crosses. It finds that meeting unmet water and gas line repair infrastructure needs in the five states along the KXL pipeline route would create:

• More than 300,000 total jobs across all sectors;
• Five times more jobs, and better jobs, than KXL;
• 156% of the number of direct jobs created by Keystone XL per unit of investment.

See the full report: “The Keystone Pipeline Debate: An Alternative Job Creation Strategy”

Workers should not have to pay the price of protecting the climate—they deserve a just transition to a climate-safe future. Cancelation of fossil fuel projects like the tar sands pipelines should be paired with a program to see that every worker whose job may be threatened by climate policies has access to a new job creating the economy of the future.

By Andy Rowell - Oil Change International, February 25, 2021

If shivering with cold dark for days in sub-zero temperatures was not enough for many Texans, those lucky enough to still have electricity during the recent freezing weather have been hit with exorbitant electricity bills.

In some cases unlucky customers have been charged a whopping USD $15,000 for one month’s power, or put another way over 70 times the normal cost people pay for all their utilities.

One customer Susan Hosford of Denison told the AP that normally she pays around $2.50 for power per day, but got charged $1,346.17 for the first two weeks of February. “This whole thing has been a nightmare,” she said.

Another customer, Karen Knox, a teacher in Bedford, not only lost power but now owes $7,000 to Griddy, an electricity provider located in Houston. She told the Texas Tribune there was no way she could pay.

Such is the outcry that Governor Greg Abbott, a Republican who is heavily funded by Big Oil, had to hold an emergency meeting with legislators to discuss the outrageous bills.

Abbott and others are now promising relief for those hit by sky-high bills, although how people are compensated is yet to be worked out.

As the anger has grown, so too has the political fall-out and finger pointing and as to what has gone wrong and who is to blame.

The reason the grid failed is simple: political deregulation. Along with sixteen other states Texas had deregulated its power market. The market was deregulated in 2002, under the then Governor Rick Perry, who would later become President Donald Trump’s Secretary of Energy.

Perry established the Electric Reliability Council of Texas (known as ERCOT), with roughly 70 providers. And then the politicians cut Texas off from the rest of the country, the only state in the contiguous U.S. that was operating its own electric grid.

And because the Texas grid was then disconnected from the rest of the country, no reserves could be imported when the grid got into trouble.

“As someone who has spent the past two decades studying electricity deregulation, I know that extreme power bills in Texas result partly from the state’s market-driven approach to running the power grid,” wrote Seth Blumsack, Professor of Energy and Environmental Economics and International Affairs, at Penn State in the Conversation yesterday.

Blumsack continued: “the sky-high electric bills in Texas are partly due to a deregulated electricity system that allowed volatile wholesale costs to be passed directly to some consumers.”

By Elizabeth Perry - Work and Climate Change Report, February 23, 2021

Threats to traditional auto manufacturers are outlined in “The top trends killing the auto industry” in Corporate Knights (Feb. 3), including the climate crisis, the fall of fossil fuels, electrification and autonomous EV fleets, unfunded pension liabilities (US$14.4 billion for G.M., US$10.2 billion for Ford), as well as shifting government policies, and dampened demand in general. All the more reason to celebrate the good news about investment in EV production in Canada by GM, Ford and Fiat-Chrysler , as well as GM’s January 2021 announcement that it will sell only zero emissions vehicles by 2035. In February, Ford announced its target to sell EV’s only in Europe. But the good news is complicated, as described in “Auto industry peers into an electric future and sees bumps ahead” (Washington Post, Feb. 6) , and by “Canada and the U.S. auto sector’s abrupt pivot to electric vehicles” (National Observer, Feb. 15) . For Canada, the challenges include competition for the development of battery technology and the policy challenge of the new “Made in America” Executive Order by President Biden on January 25. Despite the brief and optimistic overview presented in “Jerry on the Job: How the president of Canada’s largest union, Jerry Dias, is driving the country’s electric vehicle push” (Corporate Knights, Feb. 4), our highly integrated North American auto industry has a complicated path forward. 

One of the most important issues ahead is how the conversion to electric vehicles will impact the jobs of current auto workers. In late 2020, Germany’s Fraunhofer Institute for Industrial Engineering conducted a detailed study of this issue on behalf of the Sustainability Council of the Volkswagen Group. Employment 2030 Effects Of Electric Mobility And Digitalisation on the Quality and Quantity of Employment at Volkswagen (Nov. 2020) is an English-language summary of the full, detailed study, which modelled the impacts of digitization and electrification in the industry. Although the study is specific to VW production in Germany, its findings are instructive, and include that job losses will be less than anticipated, ( a decrease of 12 percent in this decade, mainly due to planned output volumes and higher productivity). Digitization will result in a need for new skills, “will necessitate a profound change in corporate culture”, and will include higher employee expectations for job flexibility. A summary appearing in Clean Energy Wire states: “ …. there is no uniform employment trend in the ‘transformation corridor’ over the coming decade. Instead, there will be a complex, interconnected mixture of job creation, job upgrading and job cuts. It argues that it will be vital to ensure that small and medium-sized enterprises (SMEs) do not fall victim to this reorganisation, and warns that Germany’s automotive sector must establish new forms of cooperation so as not to “recklessly surrender the field of mobility to new market players.” The study is also summarized in a press release by VW (with links to the full study in German).

By Staff - The Climate Center, January 23, 2021

By Diana Lopez and Juan Parras - Climate Justice Alliance, February 18, 2021

As our neighbors burn furniture to stay warm amidst widespread power outages in below freezing temperatures, this arctic weather event, fueled by the climate crisis, has exposed the vulnerability of the Texas power grid and its failure to effectively serve its people. It is clear how much we need a just recovery: an all-encompassing, community-based, solutions oriented approach putting community needs and equity above profit in these times of climate chaos. We must prioritize a Just Transition to a modern, regenerative and renewable energy system, one that is clean and safe for us all.

The current reliance on the fossil fuel industry and the historic stranglehold its industry holds in Texas politics underlies the lack of comprehensive extreme weather planning, mitigation and preparedness. This has left the region, state and especially frontline communities, in a state of continuous crises. While the oil and gas industries have tried to blame what is happening on alternative energy models, the reality is they did not build resilient infrastructure that can adapt to increasingly extreme weather.

An outdated, overly fossil fuel reliant, heavily privatized electricity grid has failed, leaving 3 to 4 million households without power for days not only in Texas, but throughout the region that is the cradle of this industry. Far too many people have died and hundreds more have been hospitalized, as Indigenous, Black, Latinx, Asian and other frontline communities once again remain the hardest hit. Thousands more are also facing contaminated water and massive damages from broken pipes. The privatization of the Texas energy grid is the seed of this crisis, where the profits of fossil fuel industries have been prioritized over the needs of the people.

The climate crisis is risking lives and it is impacting all communities, those at the margins are the hardest hit. Individuals with disabilities that rely on medical respirators, families having to break quarantine to keep eachother safe, and all the while the cost of energy increases during a time where the economy is a long way from stabilizing.The true cost of ignoring climate change is sadly yet to come, as those affected by this most recent extreme weather in the region are seeing the aftermath of burst water pipes, non weatherized homes and outdated infrastructure ill-equipped to handle the reality of climate change.

While our communities work to recover from Covid-19, massive job loss and the current climate crises, now is the time for investments to move toward a Just Transition to rebuild clean water and energy infrastructure for our future. We can put millions of people to work by creating locally controlled clean energy jobs, building new stable systems of power without pollution, and energy without exploitation. This is the time to Build Back Fossil Free.

Water and energy are not commodities — they are basic human rights. We need emergency response right now to distribute solar power, clean water and basic emergency needs for vulnerable communities as well as long term changes toward a healthy and sustainable future. We recognize that other communities in neighboring states are also impacted by the devastating winter vortex, power outages and water shortages. We support their efforts to self organize and will act in coordination and solidarity with all of those on the frontlines of climate catastrophes.

As our communities continue to care for each other through local mutual aid networks long established to deal with crises like these, we call on local and state officials to immediately begin a just recovery by:

Organizers & Organizations, Foundations & Philanthropists

By Cynthia Kaufman - Common Courage, February 18, 2021

The main goal of Norwegian economist Per Espen Stoknes’ new book, Tomorrow's Economy: A Guide to Creating Healthy Green Growth, is to offer the concept of healthy green growth as an alternative to simple GDP growth. Stoknes teaches in a business school, and the economic tools he creates around this concept will probably be very helpful for businesses wanting to measure if, as they create profit, they are also creating environmental and social wellbeing. But for those of us working to shift how we think about the economics of wellbeing, this book is a step backwards in an already rich conversation.

Mainstream economists insist that the way to measure the health of an economy is in growth in Gross Domestic Product (GDP), or how much is bought and sold within an economy. Stoknes by proposing a better form of growth is engaging with the mainstream of Economics, hoping to move it in a direction that takes human and ecological wellbeing into account, while still maintaining the core of its approach.

There are many economists doing work to shift the discipline more significantly away from a focus on growth. They have produced an impressive body of literature that this book would have done well to take more seriously. These economists are developing tools and conceptual frameworks for increasing human wellbeing while maximizing ecological health. Much of that work takes seriously the devastating impacts current trajectory has on the poor in the Global South and on poor and racially marginalized communities in the Global North. In her book Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist, Kate Raworth uses the image of a doughnut to talk about the twin problems of alleviating poverty and staying within the world’s ecological limits to outline the “sweet spot” of what an economy needs to aim at achieving. Raworth is joined by many people doing important work in this area such as Amartya Sen, Juliet Schor, Robert Bullard, Michael Pollan, and Clair Brown.