Final Report released by Canada’s Task Force on Just Transition

catherine mckenna hussan yussuff

Minister of Environment and Climate Change Catherine McKenna stands with Hassan Yussuff, Co-Chair of the Just Transition Task Force and President of the Canadian Labour Congress

The Task Force on Just Transition for Canadian Coal Power Workers and Communities was appointed by the Canada’s Minister of Environment and Climate Change in April 2018.  Their  report, completed in December 2018, was released to the public on March 11, 2019 :  A just and fair transition for Canadian coal power workers and communities – in French,  Une transition juste et équitable pour les collectivités et les travailleurs des centrales au charbon canadiennes .

This report provides ten recommendations for the workers and communities affected by the federal government’s 2016 policy decision to phase-out coal-fired electricity in Canada, as part of the Pan-Canadian Framework on Clean Growth and Climate Change.  A 2030 timeline was decided in  2018, and final  Regulations were released in November 2018.  There are 16 coal-fired generating stations left in Canada and nine mines which produce the thermal coal that feeds them, located in Alberta, Saskatchewan, New Brunswick and Nova Scotia.  Coal worker layoffs have already begun in Alberta, which has its own Workforce Transition Program  in place. Workers in the metallurgical coal industry, which is used to make steel, are unaffected by the coal phaseout.

The new federal report, A Just and fair transition for Canadian coal power workers is built upon 7 principles, and makes 10 recommendations. Those principles of a Just Transition include: 1. Respect for workers, unions, communities, and families; 2. Worker participation at every stage of transition; 3. Transitioning to good jobs; 4. Sustainable and healthy communities; 5. Planning for the future, grounded in today’s reality; 6. Nationally coherent, regionally driven, locally delivered actions; and, 7. Immediate yet durable support.   The report defines Just Transition, relates it to the Paris Agreement, provides an overview of coal mining work and provincial policies, and makes  ten broad recommendations, largely based on what the Task Force heard in its public engagement sessions across the four provinces in the summer of 2018.  “What we heard”  is an accompanying report which summarizes submissions and lists the dozens of communities and organizations involved.

Recommendations:  The Foundational recommendations of the Task Force include a call to  “embed just transition principles in planning, legislative, regulatory, and advisory processes to ensure ongoing and concrete actions throughout the coal phase -out transition: 1. Develop, communicate, implement, monitor, evaluate, and publicly report on a just transition plan for the coal phase-out, championed by a lead minister to oversee and report on progress. 2. Include provisions for just transition in federal environmental and labour legislation and regulations, as well as relevant intergovernmental agreements. 3. Establish a targeted, long-term research fund for studying the impact of the coal phase-out and the transition to a low-carbon economy.” Recommendations concerning workers include:  establish local transition centres to provide retraining,  relocation and social supports; establish a pension-bridging program for those forced to retire early; create a detailed and publicly available inventory of labour market information regarding coal workers, and create a comprehensive funding program to assist workers in securing a new job – including income support, education and skills building, re-employment, and mobility. Recommendations relating to communities include: identify, prioritize, and fund local infrastructure projects in affected communities, and establish a dedicated, comprehensive, inclusive, and flexible just transition funding program ; meet directly with affected communities to learn about their local priorities, and to connect them with federal programs that could support their goals.

$35 million was committed to Just Transition programs in 2018. The Task Force estimates that  “direct and indirect costs of the phase-out will stretch well into the hundreds of millions of dollars and the timeframe will go beyond 2030.”  It calls for  “additional and more substantial investments in Budget 2019 and budgets thereafter.”   Canada’s next budget will be delivered on March 19 – providing a gauge of the government’s intentions re Just Transition for coal workers and their communities.

The Canadian Labour Congress announcement concerning the Task Force Report release is  titled “Just Transition Task Force report has potential to put people at the heart of climate policy”, and pictures the members of the Task Force. In addition to Hassan Yussuff, President of the CLC and Co-Chair of the Task Force, union members included Gil McGowan (Alberta Federation of Labour), Mark Rowlinson (United Steelworkers), Scott Doherty (Unifor) , Tara Peel (Canadian Labour Congress), and Mark Wayland (IBEW).

Just Transition taskforce

Unions well-represented on Canada’s new Task Force on Just Transition – including Co-Chair Hassan Yussuff, President of the CLC

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Hassan Yussuff, President, Canadian Labour Congress

On April 25, Canada’s  Minister of Environment and Climate Change announced the members of the the Just Transition Task Force for Canadian Coal-Power Workers and Communities, to be co-chaired by Hassan Yussuff, President of the Canadian Labour Congress (CLC) and Lois Corbett, Executive Director of the Conservation Council of New Brunswick.  Biographies are here , revealing that six of the eleven members of the Task Force are unionists: two from the CLC, the Alberta Federation of Labour,  United Steelworkers, Unifor, and the International Brotherhood of Electrical Workers.  The press release by the Canadian Labour Congress states: “The world is watching. By launching this task force, Canada has the opportunity to set an international example on how to implement progressive policy to reduce emissions while keeping people and communities at the centre”.  A National Observer article provides context and background about the members of the Task Force, and some quotes from the press conference which announced it.  A CBC report also includes a video of the press conference.

The full Terms of Reference for the Just Transition Task Force were originally published in February 2018, and include a mandate to make recommendations to the Minister via an interim report and a final report due at the end of 2018. Members of the Task Force will meet with government officials at the local and provincial level, workers, stakeholders, academics, and also make site visits to coal plants and communities that will be affected by the accelerated phase-out of coal power in Canada.  The Task Force will no doubt benefit from the work of  Alberta’s  Advisory Panel on Coal Communities , which also examined the impacts on communities and workers of an end to coal-fired electricity by 2030, and proposed strategies to support workers through the transition. The Alberta Panel issued its recommendations  in a brief report, titled Supporting Workers and Communities in November 2017, resulting in a number of provincial  programs, described here .

At the international level, Canada has been active since joining with the United Kingdom to launch the Powering Past Coal Alliance in November 2017 at the Conference of the Parties (COP23), in Bonn in 2017.  Updates on that initiative are available from this link.  As of April 2018, there are over 60 countries and private businesses in the alliance. An April 2018 release  reports that Canada and the U.K. will collaborate with Bloomberg Philanthropies on the goals of the Alliance, including to produce research and case studies on the issue.   Also, at the One Planet Summit in December 2017,  Canada announced its partnership with the World Bank Group and the International Trade Union Confederation, to accelerate the transition from coal-fired electricity to clean sources in developing countries.

Canada announces a new Task Force on Just Transition for Coal-Power Workers

On February 16th, the Minister of Environment and Climate Change announced    amendments to existing regulations to phase out traditional coal-fired electricity by 2030, along with new greenhouse gas regulations for natural-gas-fired electricity.  The proposed regulations are open to comment until April 18, 2018.The government’s Technical Backgrounder is here.

In fulfilment of a promise made to Canadian unions at the COP meetings in Bonn in December 2017, the Minister also announced the creation of a Task Force on the Just Transition for Canadian Coal-Power Workers and Communities.  A detailed statement of the Terms of Reference calls for the Task Force to engage with specified stakeholder groups and provide policy options and recommendations by the end of 2018.  The Minister will appoint  9 members and 2 chairs –  with the strongest representation from labour unions, including  a representative from the from the Canadian Labour Congress; from a provincial Federation of Labour in an affected province; from a union responsible for coal extraction; from a union in coal power generating facilities; and from a union in the skilled trades related to coal power.  The rest of the Task Force will include a  workforce development expert,  a sustainable development expert; a past executive from a major Canadian electricity company or utility; and a municipal representative, identified in collaboration with the Federation of Canadian Municipalities.

Reaction is generally supportive, as exemplified by the Climate Action Network, or the Pembina Institute.  Members have not yet been named, although the expertise of the Coal Transition Coalition, chaired by the Alberta Federation of Labour, would appear to be essential. Their report, Getting it Right: A Just Transition Strategy for Alberta’s Coal Workers, was submitted to the Alberta Advisory Panel on Coal Communities in 2017, and recommended establishing an independent Alberta Economic Adjustment Agency to manage Just Transition.

 

U.K. Rolls out Green Policies, including Fighting Plastics, Phasing Out Coal, and Encouraging Divestment

Theresa May 2018 Facing criticism for recent  policy reversals which have resulted, for example, in falling investment in clean energy in the U.K. in 2016 and 2017 , the government has recently attempted a re-set with its policy document:  A Green Future: Our 25 Year Plan to Improve the Environment , released on January 11.    “Conservatives’ 25-year green plan: main points at a glance” (Jan. 11) in The Guardian summarizes the initiatives, which focused on reducing use of plastics (in line with a recent EU decision), encouraging wildlife habitat, and establishment of an environmental oversight body.  Specifics are promised soon; the Green Alliance provides some proposals in “Here’s what Theresa May should now do to end plastic pollution” (Jan. 11). George Monbiot is one of many critics of the government policy, in his Opinion Piece.

In the lead-up to the long-term Green Future policy statement, other recent developments have  included: 1.  Changes to investment regulations to encourage divestment.    “Boost for fossil fuel divestment as UK eases pension rules”  appeared in The Guardian on December 18 , stating:  “in what has been hailed as a major victory for campaigners against fossil fuels, the government is to introduce new investment regulations that will allow pension schemes to ‘mirror members’ ethical concerns’ and ‘address environmental problems.’    The rules are expected to come into force next year after a consultation period and will bring into effect recommendations made in 2014 and earlier this year by the Law Commission. ”

2. Coal Phase-out:  Also, on January 4, the British government responded to a consultation report by announcing CO2 limits to coal-fired power generation.  By imposing emissions limits, the government seeks to phase out coal-fired power by 2025, but still to allow flexibility for possible carbon capture operations, and for emergency back-up energy supply. The consultation report, Implementing the end of unabated coal: The government’s response to unabated coal closure consultation  , capped a consultation period which began in 2015.    The government’s policy response is  summarized in the UNEP Climate Action newsletter here  (Jan. 5).

 

Canada, the World Bank and International Confederation of Trade Unions announce a partnership to promote Just Transition in the phase-out of coal-fired electricity

One-Planet-Summit-sign2-1024x605Canada’s Environment and Climate Change Minister is back on the  international stage at the One Planet Summit in Paris, which is focusing on climate change financing – notably phasing out  fossil fuel subsidies, and aid to developing countries.  In a press release on December 12,  Canada announced a partnership with the World Bank Group to accelerate the transition from coal-fired electricity to clean sources in developing countries, stating: “This work also includes sharing best practices on how to ensure a just transition for displaced workers and their communities to minimize hardships and help workers and communities benefit from new clean growth opportunities. The transition to a low-carbon economy should be inclusive, progressive and good for business. We will work together with the International Trade Union Confederation in this regard.”   The World Bank Group announcement was briefer : “Canada and the World Bank will work together to accelerate the energy transition in developing countries and, together with the International Trade Union Confederation, will provide analysis to support efforts towards a just transition away from coal.”  The ITUC Just Transition Centre hadn’t posted any announcement as of December 13.

Other Canadian partnerships announced in a general press release: a Canada-France Climate Partnership to promote the implementation of the Paris Agreement through  carbon pricing, coal phase-out, sustainable development and emission reductions in the marine and aviation sectors; Canada was selected as one of five countries for a new partnership with the Breakthrough Energy Coalition led by Bill Gates; and Canada , along with five Canadian provinces, two U.S. states, and Mexico, Costa Rica and Chile, signed on to the Declaration on Carbon Markets in the Americas, to strengthen  international and regional cooperation on carbon pricing.

The World Bank, one of the organizers of the One Planet Summit, made numerous other announcements – including that it will no longer finance upstream oil and gas developments after 2019, and as of 2018, it  will report greenhouse gas emissions from the investment projects it finances in key emissions-producing sectors, such as energy. Such moves may be seen as a response to the demands of the Big Shift Global campaign of Oil Change International, which  released a new briefing called “The Dirty Dozen: How Public Finance Drives the Climate Crisis through Oil, Gas, and Coal Expansion  on the eve of the One Planet Summit.  Over 200 civil society groups also issued an Open Letter   calling on G20 governments and multilateral development banks to phase out fossil fuel subsidies and public finance for fossil fuels as soon as possible, and no later than 2020.  Signatories include Oil Change International, Les Amis de la Terre – Friends of the Earth France, Christian Aid, Greenpeace, Reseau Action Climat – Climate Action Network France, WWF International, BankTrack, Climate Action Network International, Global Witness, 350.org, Germanwatch, Natural Resources Defense Council, CIDSE, and the Asian Peoples Movement on Debt and Development.

In Canada, Environmental Defence is collecting signatures in a campaign to stop fossil fuel subsidies , stating  “ Together, federal and provincial governments hand out $3.3 billion in subsidies every year for oil and gas exploration and development. In 2016, Export Development Canada, a crown corporation, spent an additional $12 billion in public money to finance fossil fuel projects.”