Just transition for the Coal and Car Industries – a period of “revolutionary” change in Europe

coal-cars-and-the-world-of-work coverTowards a just transition: Coal, cars and the world of work  is a new and unique report edited by Béla Galgóczi, senior researcher at the European Trade Union Institute, a member of the Adapting Canadian Work and Workplaces to Climate Change (ACW) research project , and the author of several previous reports on Just Transition, including  Phasing out Coal – A Just Transition approach (2019) and  Greening Industries and Creating Jobs (2012).

In his introduction, he states:

” ‘Just transition’ has become the main concept and strategy tool for managing the transformation towards a net zero-carbon economy in a way that is both balanced and fair, but it is also clear that this concept is developing in a too broad and general, and often even over-stretched, manner. In order to discuss it meaningfully, we need to turn to specific case studies. Coal-based energy generation on the one hand and the automobile industry on the other do not only represent two sectors that are responsible for a large part of total GHG emissions, they also illustrate what is really meant by the different contexts of just transition.”

The report chapters, available individually for download here, are written by European experts, and will provide English-speaking readers with access to some of the research written in the European languages.

Part 1 updates the well-researched decarbonization of the coal industry, in Poland, Germany, France and Italy.

Part 2 breaks newer ground, as it “delivers an account of the revolutionary change taking place in the automobile industry, proceeding from a European overview (chapter 6) to insights both from France (chapter 7) and from Germany, the latter with its central eastern European supply chains (chapter 8). Chapter 9 then gives the view of IG Metall, a trade union which has a key role in managing change in the automobile industry in an active and forward-looking way.”   Regarding the automobile industry, the introduction states: “With digitalisation and decarbonisation, the industry faces unprecedented challenges in the near future that will re-write its entire business model, redefine work and redraw its value chains. Managing this change requires innovative approaches from the main actors and new forms of relationships between the actors.”  Germany’s social partnership bargaining structure is the framework for the innovative initiatives described at the EU, federal, regional and plant level.

The report is summarized by Mr. Galgóczi  in “Why should just transition be an integral part of the European Green Deal?”,  which appeared in Social Europe on December 4.

Psychologists pledge to expand their role in combating climate change

Summit on Psychology and Global Health Karen signing proclamationJoining professionals from many other disciplines who are directing their skills and knowledge to the climate crisis, the leader of  the Canadian  Psychological Association, along with those from more than 40 other countries, signed a proclamation which pledges to use their expertise to take urgent action to combat climate change and its impacts – not only at the individual level to help people cope with the mental health aspects such as eco-anxiety, but also at the societal level, as a proactive force to encourage communication, research, and to spark behaviour change and action.

Excerpts from the Proclamation on Collaboration, reproduced at the website of the Canadian Psychological Association , and signed at the International Summit on Psychology and Global Health in Lisbon on November 14 – 16, 2019.

WHEREAS climate crisis has a disproportionate impact on already vulnerable groups with fewer resources, including low-income individuals or those who live in rural areas, people of color, women, children, older adults, and individuals with disabilities;

​WHEREAS research shows that climate change-related events can result in major acute and chronic adverse mental health outcomes, including stress, trauma, and shock; post-traumatic stress disorder and other forms of anxiety; depression; and substance use disorder, which have been a secondary consideration in climate change communication and action;
THEREFORE, BE IT RESOLVED that our psychology organizations will advocate for and support international and cross-disciplinary collaboration to mitigate and facilitate adaptation to climate crisis.

We will inform our respective members and the public about climate crisis, emphasizing scientific research and consensus on its causes and short- and long-term harms, and the need for immediate personal and societal action;

​We will encourage our members and other mental health leaders to be vocal advocates concerning the necessary preparatory and responsive adaptations to climate crisis and to invest more in research and practice is this area;

​We will advocate for Universities and other entities could include formation on societal challenges and, particularly, climate crisis for psychologists and other mental health professionals;

​We will increase the availability of services and supportive interventions to help minimize harm to mental health and well-being, especially among vulnerable populations, and increase community resilience;

​We will advocate for the rights of those most susceptible to the negative health, and mainly, mental health impacts of climate crisis, for example, by encouraging policymakers to fully fund programs to aid those who suffer harm from severe climate crisis-related events;

​We will support the development of a public awareness campaign to encourage individuals and communities to adopt behaviors to help prepare for and recover from gradual climate change and acute climate crisis events;

We will encourage governmental, educational, health, and corporate leaders to use more psychological science in police designs as well as to adopt norms, values, and policy to promote sustainable preventive and corrective behaviors in individuals, groups and communities”.

Moral failure and financial risk at the Canada Pension Plan Investment Board

Mark Carney will leave his role as Governor of the Bank of England in January 2020 and return to live in Canada as he takes up his new job as the United Nations’ special envoy on climate action and climate finance.  According to the BBC,  “Mr Carney will be tasked with mobilising private finance to take climate action and help transition to a net-zero carbon economy for the 26th Conference of the Parties (COP) meeting in Glasgow in November 2020. This will include building new frameworks for financial reporting and risk management, as well as making climate change a key priority in private financial decision making.”

fossil futures ccpaRequired reading on the topic:  Fossil Futures: The Canada Pension Plan’s failure to respect the 1.5-degree Celsius limit, released on November 19 by the Canadian Centre for Policy Analysis-B.C. (CCPA-BC).   The report reveals new evidence in the long-standing criticism of the management of the Canada Pension Plan Investment Board (CPPIB), which manages the fund on which all Canadians rely when they retire.  Fossil Futures’ major finding is that the CPPIB is failing to consider the Paris agreement target of 1.5 degrees C., stating:  “Within its public equities portfolio, it has over $4 billion invested in the top 200 publicly traded fossil fuel reserve holders (oil, gas and coal). To stay within 1.5 degrees, these companies can extract only 71.4 billion tonnes of carbon dioxide, yet the companies the CPPIB is invested in have 281 billion tonnes in reserve, meaning they have almost four times the carbon reserves that can be sold and ultimately burned to stay within 1.5 degrees. Since reserves are factored into current company valuations, this means the CPPIB has invested billions of dollars in companies whose financial worth depends on overshooting their carbon budget.”  This aspect of the report was highlighted in an article in The Narwhal .

Fossil Futures also considers why the CPPIB has lagged the rest of the world in climate responsibility, stating that “the board of directors and staff are entangled with the oil and gas industry. For example, one of the CPPIB’s managing directors of energy and resources sits on the board of nine oil and gas companies.”  And as for its traditional position that it has not divested from fossil fuel companies so that it can influence their direction on environmental issues, Fossil Futures concludes: “The CPPIB’s attempts to draw on proxy voting as a central tool to address climate in its portfolio appears ineffective at best, but at worst may misinform beneficiaries expecting a more stringent and meaningful climate strategy.”

Fossil Futures makes recommendations for both the CPPIB and the Canadian government:

  • The CPPIB should: 1. Carry out a portfolio-wide risk analysis in the context of the climate emergency and disclose all findings to pension members. 2. Divest and reinvest. The surest way to address the financial and ethical risks associated with investment in the fossil fuel industry is to start the process of divestment. This means freezing any new fossil fuel investment, developing a plan to first remove highrisk companies from portfolios such as coal, oil sands and fracked gas producers, and finally, moving toward sector-wide divestment and reinvestment of capital into renewable energy sources. 3. Advocate for strong climate policy. Scientific and economic experts predict that climate change beyond 1.5 degrees will result in widespread political, social and economic decline, with the attendant impacts on pension returns. While pension plans are incapable of preventing such changes on their own, managers of these plans can become strong advocates for climate policy that is in alignment with their intergenerational fiduciary duty.

 

  • The Canadian government should: 1. Require full public disclosure of climate risk—including disclosure of all fossil fuel holdings—for all pension funds. California recently passed a law requiring that its major public pensions disclose climate risk. The Canadian government should do the same with the CPPIB. 2. Provide regulatory clarity to ensure that executing fiduciary duty means avoiding shortterm economic gains that imperil long-term climatic security for Canadians and the global community. 3. Revise the CPPIB’s “investment-only” mandate so that social and ecological values are better represented in investment decisions. It is unclear that securing retirement income by investing in tobacco companies, weapons manufacturers, private prisons and the fossil fuel companies responsible for the climate emergency is aligned with the interests of current or future beneficiaries.

 

Is+your+pension+part+of+the+solution+-+Shift+graphicAction item:   Tides Canada campaign has launched a new campaign, called Shift your Pension, for individuals who are concerned about their pensions – both the financial health and the impact on the climate crisis.  It allows you to send your own message to the CPPIB as well as provincially-managed public sector pension funds.

Ontario updates: Advisory Panel on Climate Change appointed; Auditor General pans climate policies; Ontario youth launch new lawsuit

Post updated November 6:

In a November 28 press release,  Ontario’s  Minister of the Environment, Conservation and Parks announced the appointment of an Ontario Advisory Panel on Climate Change . The press release quotes the new Chair, Paul Kovacs who states: “The knowledge exists to prevent losses from flooding, wildfire and other climate extremes…. “Members of the advisory panel on climate change look forward to working with the Government of Ontario to champion climate resilience. Working together, we can break the alarming trend of rising severe weather damage to homes, businesses and public infrastructure. Action on climate resilience is a critical element of a comprehensive strategy on climate change.”

Members of the Advisory Panel come from a variety of sectors including non-profits, agriculture, insurance, and reflect the Panel’s focus on adaptation and conservation concerns. Neither green advocacy groups nor workers are represented. The brief bios of panelists are here :  Chair Paul Kovacs is founder and Executive Director of the  Institute for Catastrophic Loss Reduction at Western University; Vice-Chair Lynette Mader is the Manager of Provincial Operations for Ontario for Ducks Unlimited Canada and an expert on species-at-risk.  The other eight Panel members include Blair Feltmate , head of the Intact Centre on Climate Adaptation at the University of Waterloo and Chair of the Government of Canada Expert Panel on Climate Adaptation and Resilience Results.

ontario auditor general 2019The Advisory Panel was announced on the one-year anniversary of the Made-in-Ontario Environment Plan.   On December 4,  that policy initiative was reviewed when the provincial Auditor General tabled her annual report in the Legislature, including  Volume 2:  Reports on the Environment . In 183 pages and three chapters, the report provides an overview of  1. environmental issues in Ontario; 2. Operation of the Environmental Bill of Rights, and 3. Climate Change: Ontario’s plan to reduce Greenhouse Gas Emissions. The report details the government’s performance and finds that it has double-counted emissions reductions in some cases, over-estimated potential impacts of its own policies,  and is nowhere near able to meet its own 2030 emissions reductions targets.   The National Observer summarizes the report in “Ontario Auditor General slams Doug Ford’s climate policies”  and an analysis at the  TVO website tells a similar story in  “Ontario’s Auditor General gives the Tories’ climate plan a failing grade”.  This latest report follows on the previous  highly-critical report of the outgoing Environmental Commissioner,  A Healthy, Happy, Prosperous Ontario: Why we need more energy conservation  (March 2019), and  the Failure to Launch   report in October 2019 by Environmental Defence.

Youth launch lawsuit against Ontario government

All of these negative findings won’t help the government as they prepare to defend themselves against a new  climate change lawsuit by Ontario youth  who claim that the  Ford government’s softening of emissions reductions targets “will lead to widespread illness and death,” and thus has violated their charter rights under Section 7 of the Canadian Charter of Rights and Freedoms.  Seven  applicants from communities across Ontario, ranging in age from 12 to 24, are represented by lawyers from Ecojustice and Stockwoods LLP .  Details are in the Ecojustice  Case Backgrounderan overview of the action appears in the National Observer in  “These Ontario kids are taking climate protest from streets to courthouse” (Nov. 26).

mathur v province of ontario

66 recommendations from Special Advisor in investigation of Ontario’s 2019 record-setting floods

Disastrous and record-setting flooding occurred across the province of Ontario between April and July 2019, with 23 municipalities declaring states of emergencies.  In July 2019, the government appointed Doug McNeil, an experienced public servant from Manitoba, as Special Advisor on Flooding , with a mandate to consider the flood management and land use systems in Ontario.  His report was submitted to the government on October 31 and made public on November 28 – the press release is here. flooding firefighterThe 157-page  Report of an Independent review of the 2019 flood events in Ontario describes in detail the complex administrative and regulatory system which governs the province’s flood management , and  concludes that “the government and its partners were effective at reducing and mitigating flood risks…. the flooding was caused by a combination of weather conditions and found no human error or negligence in the operation  of “water control structures” (translation: dams).

Reaction to the report includes “Doug Ford government ducks fiscal responsibility for severe flooding” in the National Observer  (November 28) – which points out: “The first Ford budget had slashed by 50 per cent the flood management funds given to conservation authorities by his ministry to protect Ontario’s watersheds and canceled tree-planting efforts that limit flood damage.”  A Toronto Globe and Mail article focuses on the home-owners perspective in their overview “Ontario homes at risk of flooding should be made public: report”The Toronto and Region Conservation Authority reacted positively– their press release notes that many of their recommendations and comments about urban flooding were incorporated in the Special Advisor’s recommendations.  It is notable that the Chair of the TRCA was appointed on the same day as a member of Ontario’s new Advisory Panel on Climate Change.

The Special Advisor makes sixty-six recommendations for improved action and coordination by the provincial ministries and conservation authorities, and calls for sustained funding for  budgets related to flood management .  Recommendations include:

  • #3: “That the following be incorporated into the Provincial Policy Statement: • The reference to “impacts of a changing climate” throughout the Provincial Policy Statement helps to bring it to everyone’s attention and should be included in the Preamble as well.”
  • #15: That the Province consider adopting legislation that will require flood risk properties to be identified in some way that is publicly accessible, at the very least on the property title, to ensure that prospective buyers are aware.
  • #16 That municipalities consider utilizing local improvement charges to help finance and install (or upgrade) shoreline protection works, and if necessary, that the Province provide municipalities with enhanced authority to do so.
  • #52: That the Province continue the dialogue with the Insurance Bureau of Canada and the federal government on the steps needed to make flood insurance more available to more Ontarians.
  • #66: That the Province maintain, at a minimum, the current level of funding in departmental budgets and programs related to everything flood (i.e. existing approval processes and associated policies and technical requirements, floodplain mapping, maintenance of flood infrastructure, satellite imagery, etc.).