Deep decarbonization is possible: Suzuki Foundation presents a litmus test for climate change policies in Canada’s 2019 election

Suzuki zeroing-in-on-emissions-canadas-clean-power-pathways-reviewIf, as a new article in The Conversation argues, “To really engage people, the media should talk about solutions”  (May 30) , then the report published by the David Suzuki Foundation on May 29 is right on target.  Zeroing in on Emissions: Charting Canada’s Clean Power Pathways  argues: “Responding to the urgency of climate change can feel overwhelming, but our research confirms we have the solutions and strategies needed to drive national actions and innovations to meet our climate commitments.”  It is important to note that the commitment under consideration is reduction of  greenhouse gas emissions by 80 per cent or more by 2050, and the study focuses only on energy policy, not all sectors of the economy.

The report examines academic, government and business models and studies related to  deep decarbonization for Canada, with special reference to the Deep Decarbonization
Pathways Project , the Trottier Energy Futures Project  and the
Perspectives Énergétiques Canadiennes . The full list of referenced publications takes up 15 pages of the report.  Based on this review of expert research, recommendations are presented, in ten essential policy priorities: 1.  Accelerate clean power  2. Do more with less energy  3. Electrify just about everything  4. Free industry from emissions 5. Switch to renewable fuels  6. Mobilize money  7. Level the playing field  8. Reimagine our communities  9. Focus on what really matters and # 10. Bring everyone along, which  opens with a quote from Canada’s 2018  Task Force on Just Transition Report. The section states: “If well-managed, the clean-energy transition can be a strong driver of job creation, job upgrading, good jobs and reducing inequality. Conversely, a poorly managed transition risks causing unnecessary economic hardship and undermining public support for needed emission-reduction policies. Transition should be seen as part of a broader green economic development strategy that supports community economic development and diversification.” The discussion includes the issues of justice and equality, and Indigenous rights.

According to the press release, this report is meant to influence the discourse in the upcoming election: “These 10 strategies are a litmus test that all climate plans during the 2019 federal election should be held accountable to…. “Actions such as pricing and limiting carbon pollution, prioritizing electrification with clean energy sources and accelerating industry investment in zero carbon solutions must be part of any credible climate plan in 2019.” In addition, it lays the foundation for a three-year project called Clean Power Pathways, “to transition Canada’s energy system at a scope, scale and speed in line with the scientific consensus to avoid climate breakdown.”  The report has grown out of collaborative research sponsored by the Trottier Family Foundation, which remains involved in the upcoming Clean Power Pathways research.

Zeroing in on Emissions: Charting Canada’s Clean Power Pathways is accompanied by a 4-page Executive Summary  and was also summarized by The Energy Mix here  (June 2).

Are there lessons for Newfoundland in a Just Transition strategy for the U.K. Offshore oil industry?

sea-change-cover-212x300Sea Change: Climate Emergency, Jobs and Managing the Phase-Out of UK Oil and Gas Extraction was released on May 15 by Oil Change International, in partnership with Platform and Friends of the Earth Scotland.  The press release summary is here . The report examines the offshore oil and gas industry in the U.K., with special attention to the transition for workers and communities currently dependent on oil  – making it highly relevant to Canadians, especially Newfoundlanders.   Sea Change argues that  with the right transition policies, clean industries could create more than three jobs for every North Sea oil job at risk, which can enable an “equivalent job guarantee” for every oil worker.

The report contrasts two pathways available for the U.K. and Scotland to stay within Paris climate limits:   1. Deferred collapse, in which the countries “continue to pursue maximum extraction by subsidising companies and encouraging them to shed workers, until worsening climate impacts force rapid action to cut emissions globally; the UK oil industry collapses, pushing many workers out of work in a short space of time.” Or  2. Managed transition: in which countries “stop approving and licensing new oil and gas projects, begin a phase-out of extraction and a Just Transition for workers and communities, negotiated with trade unions and local leaders, and in line with climate change goals, while building quality jobs in a clean energy economy.”

To achieve the clearly superior “managed transition” pathway, the report recommends that the U.K. and Scottish Governments:

  • Stop issuing licenses and permits for new oil and gas exploration and development, and revoke undeveloped licenses;
  • Rapidly phase out all subsidies for oil and gas extraction, including tax breaks, and redirect them to fund a Just Transition;
  • Enable rapid building of the clean energy industry through fiscal and policy support to at least the extent they have provided to the oil industry, including inward investment in affected regions and communities;
  • Open formal consultations with trade unions to develop and implement a Just Transition strategy for oil-dependent regions and communities.

offshore oil rigOffshore Oil and Gas in Newfoundland: In Newfoundland, the importance of the offshore oil industry is evidenced by the fact that a  snap election was called shortly after the province reached agreement with the federal government on royalty payments on April 1.  The two governments announced agreement on  a “renewed Atlantic Accord”  – including the “Hibernia Dividend Backed Annuity”, valued at $2.5 billion for the province, according to a CBC report . This is new money that comes from Ottawa’s 8.5 per cent stake in the Hibernia offshore project, and will be paid out in annual installments over 38 years. According to the Q1 2019 Company Benefits Report ,   Hibernia operations employ 1,458 workers, of which 90.8% are Newfoundlanders.

The federal and provincial governments are also closely intertwined in a new consultation process which was launched for the Regional Assessment of Offshore Oil and Gas Exploratory Drilling East of Newfoundland and Labrador  in April, along with the Canada-Newfoundland and Labrador Offshore Petroleum Board. The provincial Minister is quoted in the federal press release:  “Our government is committed to working collaboratively with our federal partners to ensure responsible development of our oil and gas industry. The Regional Assessment is an important step towards exempting routine, low impact activities, such as exploration wells, where potential impacts and standard mitigations are well known, from federal assessment. This is another step we are taking to achieve the vision we set out in Advance 2030 to benefit all Newfoundlanders and Labradorians.”

The Advance 2030 document, released in 2018, is subtitled:  A Plan for growth in the  Newfoundland and Labrador Oil and Gas Industry, and is based on the government’s commitment “to resource development as a key economic driver and to positioning the industry for continued growth.”   In releasing the Advance 2030 report, the government announced some long-term targets, including the direct employment of at least 7,500 people in operations, drilling of over 100 new exploration wells by 2030, and doubling oil production by 2030.  That same Liberal government was returned to power as a minority government on May 16, and compiles news of oil and gas development  here .

 

English language version of Germany’s Coal Transition Report now available, with independent analysis of employment impacts

The final report of the German Commission for Growth, Structural Change and Employment (Coal Exit Commission) was delivered in January 2019, and is now available in an English language version.  The Clean Energy Wire  is a German news service written in English, and updates the implementation of the Report’s recommendations.  For example, an article from April 4 states that Germany’s federal government and coal mining states have agreed on a programme worth 260 million euros to provide fast support to regions affected by the coal exit – a first step in the estimated 40 billion euros  needed over the next 20 years.  On April 8, it published  “Mining union wants more efforts to unleash energy transition’s job potentials” , providing an English language  summary of German statements by the leader of IG BCE.

The Wuppertal Institute commented on the Commission’s findings and made its own recommendations in Assessment of the Results of the Commission on Structural Change  . The report commends the Commission for finding a consensus path forward amidst very strong competing interests, but looking ahead, it calls for  public education and acceptance, as well as policy tools “to push ahead vigorously with the expansion of renewable energies, to create the necessary framework conditions with the expansion of the electricity grid and to implement a holistic approach to the energy transition which, above all, takes the potential of energy efficiency into account to a much greater extent than before. ”

coal miner germanyAlso in the wake of the Coal Exit Commission report, researchers at the German Institute for Economic Research , the Wuppertal Institute  and the Ecologic Institute released a detailed joint report explaining why the coal phase-out is needed and how it can become a success. It also provides facts and figures on the German coal industry, including a list of all large coal plants . The summary press release is here .  Phasing Out Coal in the German Energy Sector:  Interdependencies, Challenges And Potential Solutions  argues that the benefits of phasing out coal exceed the costs and will province  new economic opportunities, with jobs in demand-management, storage, “power-to-x applications”, and efficiency technologies. Of particular interest is Section 4 of the report,  which includes statistics and discussion of employment effects.  Approximately 18,500 persons are employed directly in lignite-fired power plants and lignite mining, with another 4,000 to 8,000 in coal-fired power plants. The report finds that, by 2030, approximately  two thirds of the direct employees would be eligible for normal retirement, and another 10% would be eligible for early retirement schemes at the age of 55.   For younger employees, some jobs will be created in dismantling power plants and for remediation. For others who will need to find new jobs, the report holds up the example of Vattenfall in Berlin, where trainees under a rotation scheme can learn different skills in various functions . The report acknowledges that the wage level in the lignite industry is far higher than comparable new employment. It also discusses the availability of   EU, German Government and Federal State funds to finance structural change in the lignite regions.  EU support includes policy support under the Platform for Coal Regions in Transition,  established in December 2017, as well as EU funds.

 

 

 

Ontario Environmental Commissioner report falls on deaf ears as Ford government slashes energy efficiency programs,attacks carbon pricing (again)

ECO 2019 health happy prosperous Ontario coverA Healthy, Happy, Prosperous Ontario: Why we need more energy conservation  is the final report of Ontario’s Environmental Commissioner Dianne Saxe, released on March 27. The report documents the province’s energy use, argues for the value of energy conservation, and makes recommendations:  for improving utility conservation programs and energy efficiency programs for homeowners, and for urban planning policies to promote greater population density in “compact, complete communities” with jobs, transit and housing. The official summary of the report is here  ; a summary  was published by The National Observer on March 27.

This is the final report of the Environmental Commissioner because the ECO Office  has fallen to the pro-business agenda of the Doug Ford government: after April 1, it no  longer acts as an independent agency reporting directly to the Legislature, but will be merged into the Office of the Auditor General. The Commissioner has been critical of government policies – for example,  in the  annual Greenhouse Gas Reduction Progress Report for 2018, Climate Action in Ontario: What’s next? (September 2018).  With the 2019 Energy Conservation Progress report,  The Happy Health report , she states that current government policies encourage the use of fossil fuels in the province and will result in higher energy costs for consumers, higher greenhouse gas emissions, and increased air pollution, with associated adverse health impacts.

The “Government of the People” slashes energy efficiency, promotes P3’s: Despite the blunt criticism and recommendations of the Environment Commissioner (and many others), the Ford government continues to implement its “pro-business” agenda.  It is planning cancellations to consumer energy efficiency programs, as reported by  The  National Observer on March 20, “Exclusive: Doug Ford’s government slashing programs designed to save energy in buildings”  (March 20) and in “Ontario Slashes Energy Efficiency Programs, Delays Promise to Cut Hydro Rates”  in the Energy Mix  (March 25), which summarizes the Globe and Mail article, “Ontario Pulls the plug on energy conservation programs”  (subscription required).  A day later, the Globe and Mail said the cutbacks will include “subsidies for modern lighting, such as LED bulbs, more efficient air conditioners and furnaces, and upgrades to commercial refrigeration equipment. The government will also centralize the delivery of eight programs aimed at businesses, low-income seniors, and First Nations communities…”

On March 19, the government posted “Ontario Moving to Increase Innovation and Competition in Infrastructure Market” (March 19) , stating that it is  “ working for the people to make the province a leading destination for investment and job creation by increasing innovation and competition in its public-private partnership (P3) market.” This will include action to “Open P3 projects to greater innovation by making output specifications less prescriptive and rebalancing the Infrastructure Ontario bid evaluation criteria to better reward design innovation.”  Incidentally, the Ontario’s government is also willing to take credit for  federal infrastructure programs: as described in the March 12 press release, Ontario Launches $30 Billion Infrastructure Funding Program . In fact, the $30 billion refers to combined federal, provincial, and local funding  over the next 10 years through the federal Investing in Canada Infrastructure Program. The provincial share is a maximum of 33% .

And finally, the Ford government continues its attacks on carbon pricing:  A March 25 press release, “Ontario closes the book on cap and trade carbon tax era”  announces that “the  total compensation amount is $5,090,000 for a total of 27 participants” as a result of the the Cap and Trade Cancellation Act, 2018 (Oct. 2018) .  The press release continues: “But in one week, the federal government will impose a brand-new job-killing carbon tax, punishing the hardworking people of Ontario… Our government remains part of a growing coalition of provinces across Canada that oppose this cash-grab, which raises the cost of essentials like home heating and gasoline.”   The reality is that as of April 1st, the federal carbon pricing backstop will take effect in Ontario and the three other provinces that failed to design their own carbon pricing system under the Pan-Canadian Framework  — Saskatchewan, Manitoba, and New Brunswick.

Ecofiscal-Commission-10-Myths-about-Carbon-Pricing-Infographic-vertical-1.jpgThe EcoFiscal Commission is the latest to defend carbon pricing, with 10 Myths about Carbon Pricing in Canada – saying “Myths and misleading statements, however, continue to damage the debate over carbon pricing. A debate based on poor information does a disservice to Canadians….this new report will improve the quality of the debate by drawing on the best available evidence to debunk ten common myths. The report aims to serve as a resource for Canadians who want to learn what the evidence says about carbon pricing and its impacts on emissions, the economy, affordability, and jobs.”

The constitutional challenge to the carbon backstop is awaiting the court’s decision in Saskatchewan, and in Ontario, the court case will begin in late April. All related court documents are here .  Also in April,  the Ontario government releases its budget on the 11th.

Alberta Federation of Labour’s 12-point Plan, and the art of communicating Just Transition

AFL-Final-logoThe Alberta Federation of Labour has launched a campaign “by and for Alberta’s workers” in advance of the provincial election in Spring 2019. The  Next Alberta Campaign website compares the party platforms of the NDP and the United Conservative Party (UCP) , characterized as  “pragmatists” and “dinosaurs” – with a clear preference for the pragmatist NDP platform.  In a March 13 press release, the AFL also released their own 12 Point Plan with this introduction by Gil McGowan, AFL President : “The old policy prescriptions of corporate tax cuts and deregulation .. are particularly ill-suited to the challenges we face today. And simply waiting for the next boom, as Alberta governments have done for decades, is not an option because it probably won’t happen. Like it or not, our future is going to be defined by change. So, the priority needs to be getting our people and our economy ready for that change, instead of sticking our heads in the sand.”

What exactly does the AFL propose?  Their 12 Point Plan includes initiatives around five themes: Support Alberta’s oil & gas industry; Diversify the economy; Invest in Infrastructure; Invest in people (by investing in public services, including expanding medicare, child care and free tuition, and expanding pension plans); and Protect Workers’ Rights.  With a very pragmatic orientation, the document has no mention of “Just Transition” or coal phase-out, and emissions reduction is proposed in these terms:  “Reduce carbon emissions, as much as possible, from each barrel of oil produced in Alberta so, we can continue to access markets with increasingly stringent emission standards.” 

On the issue of the oil and gas industry, the Plan states:

We need to build new pipelines to access markets other than the U.S.

We need to incentivize and support oil and gas companies in their efforts to reduce emissions so we can continue to access markets with increasingly stringent environmental standards.

Our goal should be to make sure that Alberta is last heavy oil producer standing in an increasingly carbon constrained world.

On the issue of Infrastructure, the 12-Point Plan calls for:

procurement policies need to be revamped, for example, to use Community Benefit Agreements which emphasize the public interest by awarding contracts to companies that hire local, buy local and achieve thresholds related to environmental, social, and economic factors.

companies and contractors working on public infrastructure projects need to comply with labour standards, provide fair pay, and provide training for Albertans.

Research into communicating energy policies:   The Alberta Narrative Project  released a report,  Communicating Climate Change and Energy in Alberta  in February,  documenting Albertan’s voices on issues of climate change, oil sands, politics, and more.  Some highlights are cited in  “Lessons in talking climate with Albertan Oil Workers” (Feb. 21), including:

“In Alberta, recognising the role that oil and gas has played in securing local livelihoods proved crucial. Most environmentalists would balk at a narrative of ‘gratitude’ towards oil, but co-producing an equitable path out of fossil fuel dependency means making oil sands workers feel valued, not attacked. Empathic language that acknowledges oil’s place in local history could therefore be the key to cultivating support for decarbonisation.

…..This project was also one of the first to test language specifically on energy transitions. While participants were generally receptive to the concept, the word ‘just’, with its social justice connotations, proved to be anything but politically neutral. In an environment where attitudes towards climate are bound to political identities, many interviewees showed a reluctance to the idea of government handouts, even where an unjust transition would likely put them out of a job. Rather, the report recommends a narrative of ‘diversification’ rather than ‘transition’, stressing positive future opportunities instead of moving away from a negative past.”

The Alberta Narratives Project is part of the global Climate Outreach Initiative,  whose goal is to understand and train communicators to deliver effective communications which lead to cooperative approaches.  The Alberta Narratives Project, with lead partners The Pembina Institute and Alberta Ecotrust,  coordinated  75 community  organizations to host 55  facilitated “Narrative Workshops” around the province, engaging an unusually  broad spectrum of people: farmers, oil sands workers, energy leaders, business leaders, youth, environmentalists, New Canadians and others.

pembina energy alberta 2019Pembina Institute communications seem to reflect the goal of an inclusive, constructive tone. For example, their pre-election report,  Energy Policy Leadership in Alberta , released on March 8, makes recommendations regarding renewable energy, energy efficiency,  coal phase-out, methane regulation, and “legislating an emissions reduction target for Alberta that is consistent with ensuring Canada meets its international obligations under the Paris climate agreement.”  Also, Pricing Carbon Pollution in Alberta (March 8), which places carbon pricing in the history of the province since 2007, stresses the benefits, and makes recommendations relevant to the current political debate.