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2023-24 Federal Budget could shape Australia’s future in the global energy transition

By Amy Watson - Australian Council of Trade Unions, March 14, 2023

The Business Council of Australia, Australian Council of Trade Unions, World Wide Fund for Nature-Australia and the Australian Conservation Foundation are re-joining forces to represent Australian businesses, workers, and our environment in a joint submission to the 2023-24 Federal Budget.

Prepared by Accenture, Sunshot in 2023: Accelerating towards Australia’s renewable exports opportunity, outlines three key areas of focus to secure a leading role for Australia in the net zero economy, and to ensure all Australians benefit from the global energy transition:

  1. World-leading renewable exports industries
  2. Sufficient domestic renewable buildout
  3. A coordinated, long-term just transition for workers and communities

Australia has made positive steps in each of these key areas, but with major shifts in global policy and significant investments being made by key trading partners, more must be done to maximise Australia’s economic opportunities.

In August 2022, President Biden signed a massive A$532 billion clean energy stimulus package to make America a heavy lifter on clean energy transition. In February 2023, The European Commission followed with its A$410B ‘Green Deal Industrial Plan,’ and a Joint EU-US Taskforce on the Inflation Reduction Act (IRA) was established. South Korea allocated A$90 billion to its ‘Green New Deal,’ and Japan intends to issue A$220B billion in green transition bonds. Even Saudi Arabia plans to invest A$400 billion to become a world leader in renewable hydrogen exports.

The report outlines three specific Budget priorities to accelerate Australia’s transition and grow our renewable export capabilities to ensure we don’t fall further behind:

  1. Commit A$10 million in the 2023-24 Budget for the Net Zero Economy Taskforce to develop a National Renewable Exports Strategy
  2. Develop a National Renewable Infrastructure Plan to urgently accelerate the development of new renewable energy in Australia
  3. Establish and fund an independent national-level Energy Transition Authority

Sunshot 2023 is the second report from the alliance of partners, after its 2021 report Sunshot: Australia’s opportunity to create 395,000 clean export jobs, which set a vision for a low-emissions future with six renewable export opportunities. This updated report concludes the six opportunities could now support over 400,000 jobs and contribute over A$100 billion to the Australian economy by 2040.

Significant developments in global climate policy and energy markets have transformed the terrain for Australian policymakers, major economies have accelerated their shift to renewable energy, and extreme climate-induced weather events have displaced communities and impacted our economy.

Now, huge pools of capital are coalescing around clean technologies, and global competition for investment is intensifying.

Despite being home to some of the best sun, wind and critical mineral resources in the world and having a geographical advantage positioned close to the major economies of Asia, if we don’t match the ambition and pace of our trade partners, we risk losing our window of opportunity and access to the capital required to realise our ambition as a global leader.

Learning from Global South Unions: Student Voices on Climate Action and a Just Energy Transition

Reclaiming Our Energy

By Mary Church, Craig Dalzell, Roz Foyer, Sean Sweeney, Mika Minio-Paluello, et. al. - Just Transition Partnership, March 8, 2023

An online conference organised by the Just Transition Partnership to set out why public ownership of energy production and infrastructure is an essential part of any plans to hit climate change targets.

This event featured experts on how the privatised energy system is giving us fuel poverty, soaring energy prices and profits; and failing to deliver a Just Transition as well as reviewing the publicly-owned solutions in key sectors, from local to national levels.

Introduction: Mary Church - Reclaiming our Energy introduction

Episode 3: From oil & gas worker to renewable energy instructor

The Path to a Green New Deal Must Involve a Series of Separate Bills

By C.J. Polychroniou - Truthout, March 6, 2023

The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are two landmark bills with the potential to carry significant economic and environmental benefits. They also speak volumes of the role that progressive voices and organizations can play in helping to create sustainable and equitable economic growth and in powering a safer future. Of course, they are imperfect bills, points out National Director of the Green New Deal Network Kaniela Ing in this exclusive interview for Truthout, but they are important stepping stones toward a Green New Deal and advancing justice for frontline and BIPOC (Black, Indigenous, people of color) communities. For now, however, the most immediate concern, Ing says, is making sure that “the full benefits of the Inflation Reduction Act and Infrastructure Investment and Jobs Act reach communities across the country and have a positive impact on the planet and its people.”

Ing was a founding member of the Green New Deal Network (GNDN) as the climate justice director for People’s Action, where he led campaigns to combat climate change. While at People’s Action, Ing co-created and led mass mobilizations around the People’s Bailout and THRIVE Agenda, which largely shaped the suite of federal legislation.

C.J. Polychroniou: Last year, the United States Congress passed the largest federal investment to tackle climate change, the Inflation Reduction Act of 2022. This was preceded by Congress passing the Infrastructure Investment and Jobs Act of 2021, another bill breaking spending records to restore and modernize our infrastructure. What role did the Green New Deal Network and other movement organizations have in passing these bills?

Kaniela Ing: The historic levels of investments passed in the last two years is a direct result of communities across the country fighting for climate, care, jobs and justice. Coalitions like mine have built on the decades of work by leaders and activists, advocating that everyone have access to essential goods and services, be protected from crises, and have the opportunity to thrive.

Since 2020, organizations and activists within the Green New Deal Network (GNDN) have fought for Congress to pass a package that tackles the overlapping crises facing our nation: climate chaos, economic instability, racial injustice, outdated infrastructure and corporate influence over our government. The Green New Deal Network — and its 15 national organizations and 24 state coalitions — crafted the THRIVE Act, a $10 trillion climate, care, jobs and justice bill that would create enough jobs to end unemployment; build modern, reliable infrastructure; and invest in community resources while ensuring labor and justice protections.

White Energy Workers of the North, Unite? A Review of Huber's Climate Change as Class War

By Michael Levien - Historical Materialism, March 2023

Review of Matthew Huber, (2022) Climate Change as Class War: Building Socialism on a Warming Planet, London: Verso.

The year-long American saga that culminated in the Inflation Reduction Act (IRA) underscored the difference between two ways of mitigating climate change at the national level. The first is elite climate policy in which wonks and technocrats come up with the smartest policies to incentivise private capital to invest in the right technologies. This is, ultimately, what we got with the IRA, which has been accurately characterised as the triumph of ‘green industrial policy’.1 The second is popular climate politics which seeks to build a broad political coalition for decarbonisation by tying it to social programmes that directly improve people’s lives. This is the idea behind the Green New Deal, which to a surprising extent made its way into the initial Build Back Better bill before Joe Manchin got his hands on it. Matthew Huber’s book Climate Change as Class War provides a powerful critique of the first while advancing a labour-centred version of the second.

Huber lands many good punches against what he calls professional-class climate politics. Building on the Ehrenreichs’ concept of the professional managerial class (PMC),2 Huber argues that PMC climate politics characteristically over-emphasises that class’ stock-in-trade: education and credentials. In their hands, climate politics thus becomes a matter of knowledge (communicating the science) more than one of power (tackling the class power of the fossil-fuel industry). PMC policy technocrats further internalise neoliberal logic with their obsession with pricing carbon – a policy that ultimately balances the carbon budget on the backs of working-class consumers. In its more radical manifestations, PMC environmentalism – degrowth being the main target here – espouses an ascetic ‘politics of less’ that has no resonance with working-class people who already do not have enough. This type of environmental politics, Huber argues, explains why the right has been able to mobilise the working class against the environment.

By way of alternative, Huber advances a theory of working-class climate politics which he dubs ‘proletarian ecology’. The starting point, developed over Chapters 1 and 2, is to recognise that industrial fossil capital is responsible for the vast majority of emissions. As Huber sketches with discussions of the cement and fertiliser industries – for the latter, Huber draws on some interviews with managers of a fertiliser plant in Louisiana – their carbon intensity is not a matter of greed but of the structural imperative to produce surplus value, and therefore will not be halted (as opposed to greenwashed) by any amount of shaming. Thus, ‘Climate change requires an antagonistic approach towards owners of capital in the “hidden abode” of production’ (p. 106). The problem is that ‘the climate movement today – made up of professional class activists and the most marginalized victims of climate change – is too narrowly constructed to constitute a real threat to the power of industrial capital’ (p. 69).

This brings us to the bold and controversial claim of Climate Change as Class War: it is the working class (and organised labour in particular) that must be the main agent of radical climate politics, not the diverse coalitions of ‘marginalised groups’ – which includes Indigenous movements against pipelines and Black-led environmental justice organisations – who are currently the vanguard of the climate justice movement. What Huber calls ‘livelihood environmentalism’ only sees the working class as having environmental interests when their communities’ land, water or health are directly threatened (p. 195). Huber’s theory of proletarian ecology, by contrast, proceeds from the broader recognition that ‘a defining feature of working-class life under capitalism is profound alienation from the ecological conditions of life itself’ (p. 188). Thus ‘a working-class interest in ecology will emerge not from the experience of environmental threats, but from a profound separation from nature and the means of subsistence’ (pp. 181–2). Rather than defending bodies or landscapes, it will focus on the working class’s material interest in decommodifying the means of subsistence (p. 196).

New Report: Building Public Renewable Energy

By Johanna Bozuwa, Sarah Knuth, Grayson Flood, Patrick Robbins, and Olúfẹ́mi O. Táíwò - Climate & Community Project, March 2023

The Inflation Reduction Act provides tax incentives for corporate investment in renewable energy — but what if “we the people” created our own publicly owned and community controlled renewable energy system?

Building Public Renewables in the United States, a new report from the Climate and Community Project, proposes a “Federal Public Power Program [that] would inject straightforward, public investment into the electricity system.”

The report proposes to “counter the monopolized, fossil-fueled, and profit-driven status quo of today” with a federal program that would invest in:

  • Existing publicly owned and cooperative utility energy providers

  • Tribal Nations

  • Newly authorized Regional Power Authorities

  • Grants for democratic development and transparency

The report says, “The transition to renewable energy requires far more than just a technological swap driven by private companies. It requires reordering the electricity system so that it values good-paying jobs, justice, and democracy.”

A federal program could require projects to provide good jobs, prioritize funds to disadvantaged communities, and demand real accountability to the community.

Download this document (PDF).

Just Transition: A trade union proposal to address the climate and social crisis

By staff - Central Única dos Trabalhadores, March 2021

The defense of a trade unionism that fights for a fairer model of society for workers has always been a principle that guided the debates and actions of CUT Brasil. Over the years, the unionism of CUT-Brasil has understood that the defense of the environment and of a model of sustainable development is in the interest of the working class and this topic has become an issue of growing importance. The 13th CONCUT (National Congress of the CUT-Brasil) approved in its resolutions the defense of a just transition, advancing even further in the debate and struggle for a model of society that avoids the climate and environmental crisis and guarantees jobs and rights for the working class.

The booklet “Just Transition: a trade union proposal to address the climate and social crisis” comes at a time when the working class is facing a challenge of containing the unbridled advance of the destruction of the environment and the climate crisis, while defending democracy and its rights against attacks by capital and the extreme right. As the result of a partnership with the International Trade Union Confederation (ITUC), the booklet aims to identify the main specificities of the just transition agenda for CUT-Brasil and the Brazilian working class, in addition to spreading the debate among trade unions, leaders, workers and to strengthen the fight against the production model that exploits the poorest and destroys the environment and our future.

The model imposed by capital causes unemployment, poverty and hunger, at the same time that it destroys entire biomes and threatens to cause permanent damage to the planet, increasing the risks for the working class. For the richest, it is possible to pay for housing, health care and other diverse protections against the problems caused by the climate crisis, such as desertification, floods and pollution. For the working class, avoiding the climate crisis is a necessity for survival.

Although the topic of climate change has many technical terms, in this booklet we seek to use a familiar and accessible language for the entire Brazilian working class.

Read the entire statement (PDF).

Gendered labour and energy transitions in the Northern Cape, South Africa

By Julia Taylor - Just Transition Research Collaborative, March 1, 2023

Most approaches to a just energy transition focus on the impact on jobs and opportunities for new industries, with less attention paid to the informal and unpaid work although it is an integral part of the energy value chain. I have adopted a feminist political economy lens to explore the relationship between the development of renewable energy and gendered labour. This approach highlights the importance of the state, the economy and the household in the process of social reproduction (the reproduction of labour power). It is relevant to debates about a just energy transition because it highlights gender and racial inequalities and the undervalued and unpaid work (often conducted by women) required for social reproduction, which should be addressed in any effort to achieve justice.

A feminist political economy approach to the just energy transition means that I do not only consider whether a job was created, but also the job type (permanent/short-term, wage rate, etc.), working conditions and issues of sexism and racism. I also consider the impact of the shift in energy source for households which struggle with access to affordable energy and other services. Taking a feminist approach meant that I followed a methodology which highlighted a social problem and focused on the voices of those who are commonly marginalized — workers and local communities and particularly women in these groups.

To analyse whether South Africa’s renewable energy procurement programme could be considered part of a just energy transition, I conducted research in the Northern Cape, a rural province of South Africa where solar power plants have been developed around three towns (Kuruman, Kathu and Upington) over the past 10 years. South Africa’s renewable energy procurement programme required private renewable energy producers to take part in a bidding process to sell power to the electricity utility, Eskom. I conducted interviews with local community members, people who had worked on solar plants, solar plant managers/developers and state employees involved in the solar projects, with higher numbers of people interviewed from the groups whose voices are often underrepresented, those of workers and local communities. Despite aiming to interview equal amounts of women and men, or more women, if possible, I interviewed 10 women and 12 men, which may be indicative of the unequal gender representation in the industry. I was able to conduct the interviews with support from two research assistants, Boitumelo Tshetlho and Deon Bezuidenhout, who are local community organizers.

Unfortunately, I found that if the energy transition is carried out at scale in the way that it has occurred in these three towns in the Northern Cape, with privately-owned, utility-scale solar power plants that do not support local access, it will not deliver justice for the poor and working classes.

Episode 2: Finding your niche in the renewable energy sector

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