Just Transition proposals to protect workers’ interests in a report commissioned by Australia’s energy workers’ union

coal- from FOEAn October  29 report commissioned by CFMEU Mining and Energy union of Australia argues that  government will need billions of dollars for comprehensive  measures to support workers and communities  in a move away from coal-fired power generation. It calls for consultation and participation in planning, and an independent statutory Energy Transition Authority .  The Ruhr or Appalachia? Deciding the future of Australia’s coal power workers and communities  examines case studies from around the world – both successful and unsuccessful  – including South Wales (U.K.), Appalachia (U.S.), Singapore, Limburg (Netherlands) and the Ruhr Valley (Germany).  Within Australia,  the Hazelwood closure is judged as unsuccessful – due to a lack of advance planning – and the LaTrobe Valley experience as a positive model.  The report concludes that advance planning is essential to success, with a national framework …“ International evidence tells us that such a framework will require active participation from companies, workforce union representation, and government.”

The Ruhr or Appalachia?   report was written by Professor Peter Sheldon at the Industrial Relations Research Centre at the University of New South Wales. It includes an extensive bibliography of other studies of Just Transition. The report was commissioned by  CFMEU Mining and Energy union, which represents over 20,000 workers, mainly in coal mining and also in metalliferous mining, coal ports, power stations, oil refineries and other parts of the oil and gas production chain.  For briefer versions see the union’s press release “New Independent Authority Needed To Manage Transition For Energy Workers”, or a 4-page Executive Summary .

Climate Strikes: Children are leading the way

Greta ThurnbergAlthough all eyes have been on the Juliana vs. United States legal action in the U.S ( given the go-ahead again on November 2, according to  Inside Climate News ), other young people are taking up the fight against climate change.  In September, after record heat and forest fires in Sweden, Greta Thurnberg began to skip school to demonstrate outside the Swedish Parliament buildings, and, using the  hashtag #Fridays for Future ,  is calling for people to demonstrate in solidarity at their own government’s buildings on Fridays  – read “The Swedish 15 year old who’s cutting class to fight the climate crisis”  in The Guardian for more.

Greta has become a Nordic celebrity, and her protest has spread.  Australian kids from 8 to 15 began their own campaign on November 7, with a call for  a nation-wide strike on November 30 – Updates and news are at  #School Strike 4 Climate   (the website is here)  .

Charlie Angus protest

NDP MP Charlie Angus supports Sudbury striker

In  Canada,  an 11-year old in Sudbury Ontario credits Greta for inspiration and began striking from school in November, as reported by the Sudbury Star in “Young climate activist to strike Friday in Sudbury” (Nov. 2) and “Activism runs in the blood for Sudbury student “ (Nov.8) .  The article quotes her as asking: “If adults don’t care about our future why should I? What is the point of going to school?”

Further inspiration also comes from (slightly older) young adults in Canada, in “Meet 2018’s Top 30 Under 30 in Sustainability” in Corporate Knights magazine (Nov. 6). It profiles  young adults from 16 – 29 who have rolled up their sleeves in a variety of green projects, organizations,  and businesses.

Coal transition case studies argue for anticipation and early action

coal transitions report sept 2018Implementing coal transitions:  Insights from case studies of major coal-consuming economies , published on September 5, brings together the main insights from the Coal Transitions project, the international research program led by IDDRI and Climate Strategies.  The report provides an overview of the drivers of coal transition across the world (with brief mention of the Powering Past Coal Alliance and Canada), and concludes that coal transition is already happening, and that it is technically feasible and affordable. The report then presents case studies of coal transition in six countries: China, India, Poland, Germany, Australia and South Africa.

The analysis concludes that there are multiple policy options which have proven effective for coal transition, but warns that the meaningful consultation and participation of stakeholders early on in the decision-making process is critical to success. In an explanatory blog,  lead author Oliver Sartor states that coal transition policies: “…. must be context-specific and agreed between the relevant parties. However, the crucial success factor is to anticipate rather than wait until the economics turns against coal. A good preparation can allow for younger eligible workers to be more easily placed into alternative jobs, for older workers to retire naturally, and for tailored worker reconversion and job-transfer programs for workers in the middle of their careers.”

In addition to the Synthesis report, national reports for each of the six countries are available from the IDDRI here.

Corporate Climate Risk Disclosure needed to protect Pensions

To protect pensions, companies should be required to come clean on climate risk” writes Keith Stewart of Greenpeace Canada in an Opinion piece in the National Observer on November 27.  Stewart reports that Greenpeace Canada has filed a formal request under Ontario’s Environmental Bill of Rights, for the Ontario government to review the need for mandatory disclosure of climate-related risks in corporations’ financial filings. The government’s response is expected by the end of 2017.  This is the latest of recent and ongoing calls for increased corporate disclosure of the risks posed by climate change,  to protect investors and financial stability.  The issue has even made it to the conservative Report on Business of the Toronto Globe and Mail newspaper, in  “Business risk from climate change now top of mind for Canada’s corporate boards” (November 22)  . The article warns that Canada’s  stock markets are  particularly vulnerable to a potential “carbon bubble” in the valuations of fossil-fuel-dependent companies, given that the Toronto Stock Exchange is so heavily weighted with energy and mining companies (20 per cent for that category, as compared with only 2 per cent for clean technology and renewable-energy companies).  And that’s not the worst:  on the TSX Venture Exchange, mining and oil and gas companies account for 68 per cent of the index.  (Such a resource sector dependency was part of the reasoning given by the Norweigian Wealth Fund for its proposal to divest oil and gas investments (Nov. 16)).

Another related Globe and Mail article provides an excuse for the current state of climate risk disclosure in Canada in  “Companies Looking to Report Environmental Data Also Navigate Inconsistent Frameworks” (Nov. 22) . The article states that “There is a dizzying number of best-practice guidelines for climate disclosures” and lists the major ones – with information drawn largely from the Carrots & Sticks database . In fact, Carrots & Sticks lists  nine sustainability reporting instruments unique to Canada, in addition to widely-recognized international ones such as the Principles for Responsible Investment (PRI) Reporting Framework  and the OECD Guidelines for Multinational Enterprises  .  (Carrots & Sticks  is an initiative begun in 2006 by KPMG International, Stichting Global Reporting Initiative, UNEP, and the Centre for Corporate Governance in Africa, with the goal of encouraging and harmonizing financial disclosure guidelines.)

Most recently, the Task Force on Climate-related Financial Disclosures, led by Marc Carney and Michael Bloomberg, released their  landmark Final Report and Recommendations in 2016. The following Canadian pension funds have, at least on paper, supported it:  Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan, OPTrust, the Caisse de dépôt et placement du Québec and the British Columbia Investment Management Corporation.  The Canadian Securities Administrators  launched a Climate Change Disclosure Review  in March 2017 to investigate and consult re Canadian practice, which will issue a report “upon completion of its review”.

And across the globe in Australia, the  Australian Prudential Regulation Authority (APRA), the  regulator of the financial industry, has  also announced an industry-wide review of climate-related disclosure practices.  On November 29, an Executive Board member of the APRA delivered a speech, “The weight of money: A business case for climate risk resilience” , in which he outlines the Australian perspective on climate-related financial risks, and states:  “So while the debate continues about the physical risks, the transition to a low carbon economy is underway, and that means the so-called transition risks are unavoidable: changes to market sentiment, new financial or environmental regulations, or the emergence of new technologies with the potential to prompt a reassessment of the value of a large range of assets, and consequently the value of capital and investments.”  The speech is summarized in The Guardian.

Climate bargaining: a proposed model and a hint of urgency for progress

A Research Note  published in the Journal of Industrial Relations in July 2017 outlines how climate change and workplace relations are linked,  noting that “The link between climate change and ER is not simply a matter of industrial change, job loss and green jobs’ inferior wages and conditions.”  The article provides a brief review of academic studies on the issue, which notes how much it is on the margins, with the vast majority of research focused on a socio-political approach.  The main purpose of the article is the real world responses of the primary actors– unions and employer associations:  unions, with policy responses focused on Just Transition, and employers, with their own corporate social responsibility response.

Most importantly, the article then provides examples of “climate bargaining”, based on bargaining agreements, union policy documents and union reports from the U.K., Canada and Australia, from 2006 to 2014. With a focus on two “leadership” unions, the Australian National Tertiary Education Union (NTEU) and the Trades Union Congress (TUC) of the United Kingdom, the author concludes that “ER and climate change appear to be developing in two forms: embedded institutional and voluntary multilateral responses. Embedded institutional responses seek to integrate environmental commitments into EBAs via green clauses, while voluntary multilateralism moves away from formal clauses within legal frameworks and instead sees unions and employers pursue strategic workplace environmental projects that directly engage management and employees in environmental initiatives…. The voluntary multilateral model appears to offer a more successful and exciting integration of climate change and ER than simply bargaining for green clauses in enterprise agreements. Nevertheless, both approaches highlight the important role of the state in supporting these models via regulation and government-funded programmes.”

Climate change and employment relations ” was written  by Caleb Goods, who was a Co-Investigator in the Adapting Canadian Work & Workplaces to Climate Change (ACW) project and is now a Research Fellow at the University of Western Australia. His previous work includes Why Work And Workers Matter In The Environmental Debate (2016), and Greening Auto Jobs: A critical analysis of the green job solution (2014). Go to “Climate change and employment relations”  to download the article for a fee; only the abstract is available for free.