Utility Workers Union and UCS estimate costs to transition U.S. coal miners and power plant workers in joint report

Hard on the heels of the April statement by the United Mine Workers Union, Preserving Coal Country: Keeping America’s coal miners, families and communities whole in an era of global energy transition, the Utility Workers Union of America (UWUA) jointly released a report with the Union of Concerned Scientists on May 4: Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape. This report is  described as “a call to action for thoughtful and intentional planning and comprehensive support for coal-dependent workers and communities across the nation.” The report estimates that in 2019, there were 52,804 workers in coal mining  and 37,071 people employed at coal-fired power plants – and that eventually all will lose their jobs as coal gives way to cleaner energy sources. Like the United Mine Workers, the report acknowledges that the energy shift is already underway, and “rather than offer false hope for reinvigorated coal markets, we must acknowledge that thoughtful and intentional planning and comprehensive support are critical to honoring the workers and communities that have sacrificed so much to build this country.”

Specifically, the report calls for a minimum level of support for workers of five years of wage replacement, health coverage, continued employer contributions to retirement funds or pension plans, and tuition and job placement assistance. The cost estimates of such supports are pegged at $33 billion over 25 years and $83 billion over 15 years —and do not factor in additional costs such as health benefits for workers suffering black lung disease, or mine clean-up costs. The report states: “we must ensure that coal companies and utilities are held liable for the costs to the greatest extent possible before saddling taxpayers with the bill.”  Neither do the cost estimates include the recognized needs for community supports such as programs to diversify the economies, or support to ensure that essential services such as fire, police and education are supported, despite the diminished tax base. 

The report points to the precedents set by Canada’s Task Force on Just Transition for Canadian Coal Power Workers and Communities ( 2018), the German Commission on Growth, Structural Change and Employment (2019), as well as the New Mexico Energy Transition Act 2019  and the Colorado  Just Transition Action Plan in 2020.  The 12-page report, Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape was accompanied by a Technical Report, and summarized in a UCS Blog  which highlights the situation in Illinois, Michigan, and Minnesota. A 2018 report from UCS Soot to Solar   also examined Illinois.

Colorado Office of Just Transition defers actions for worker protection in new Final Action Plan

In 2019, the State of Colorado established the first state-level Office of Just Transition (OJT)  through House Bill 19-1314 .  As required by that legislation, the OJT  submitted its final Just Transition Action Plan on December 31, 2020, based largely on the Draft Plan submitted by its Just Transition Advisory Committee (JTAC)  in August 2020.  (The structure, mandate, and documentation from the consultation process are  accessible here; an excellent summary is provided by the State press release here .

The December Just Transition Action Plan offers discussion and strategy recommendations organized in three sections: communities; workers; and financing. The estimated cost is $100 million, and the time frame calls for actual closures to finish in 2030. (Perhaps the leisurely schedule will be reviewed in light of events: the Denver Post reported on January 4 that Xcel- Energy announced it will close its Hayden coal plant significantly earlier than planned –  beginning in 2027).  The December Action Plan strategies are dominated by concerns for communities, with six detailed strategies outlined. Recognizing that some communities are more dependent on coal than others, and that average wages are also different across communities, the plan designates four communities as priority Tier One communities, and others as Tier Two communities, as defined in an Appendix. The Hayden plant is located in a Tier One community.

Actions for workers’ benefits, environmental justice are deferred 

Regarding workers, there are 3 action strategies. The Just Transition Advisory Committee made recommendations to provide displaced workers with  temporary benefits related to “wage and health differential” and “wage and health replacement” in  the Draft Plan in August, but the final Plan states: “too much uncertainty remains around cost and scalability for us to feel comfortable advancing this recommendation — especially in the midst of the COVID pandemic and resulting economic downturn.” Instead, the Office for Just Transition:  “will drive a serious process to gain more certainty about costs, scalability, potential sources of funding, and possible alternatives at the state level. And we will engage a broad range of stakeholders in a dialogue about whether the State should implement such a strategy — and how it might do so.” This includes discussions with coal-related employers regarding their willingness to provide severance and retirement benefits.

This Plan also discusses and ultimately deflects and defers responsibility for the environmental justice concerns expressed in the 2019 enabling legislation  , which recognized “a moral commitment” to “the disproportionately impacted communities who have borne the costs of coal power pollution for decades”. This December Plan states: “we agree with the JTAC that these issues are best addressed in that broader context, which is why we are following its suggestion that OJT participate actively in emerging interagency efforts — led largely by the Colorado Department of Public Health and Environment — rather than creating our own independent (and potentially isolated) approach….. OJT will continue to rely on the advice of the Disproportionately Impacted Communities subcommittee of the JTAC, and it will play as active a role as possible in broader interagency efforts. As with our work on behalf of transition communities and workers, this is a long-term challenge to which we make a long-term commitment.”

The final report is summarized in an article in The Colorado Sun , which emphasizes the explicit goal for the Office of Just Transition to “Encourage the federal government to lead with a national strategy for energy transition workers”.  This is perhaps thanks to the leadership of Dennis Dougherty, Chair of the Colorado Just Transition Advisory Committee, Executive Director of the Colorado AFL-CIO, and through them, a representative to the National Economic Transition project – a grassroots organization of representatives from U.S. coal communities.  That ongoing project released a National Economic Transition Platform in the summer of 2020 .

Employment and Job loss experience of Canada’s oil and gas, coal workers

In September 2020, Canada’s oil and gas industry employed approximately 160,100 workers –a 0.9% increase from August 2020, but a 14% drop from September 2019.  In that same one-year period, employment in the services sub-sector decreased by 29%;  the pipelines sub-sector decreased by  30% and the exploration and production sub-sector increased by 3%.  These statistics are based on Statistics Canada’s Labour Force Survey (LFS) data,  made available on the  Employment and Labour Force Data Dashboard provided by PetroLMI, a labour market agency specializing in the oil and gas industry, jointly funded by government-industry.  Their September 2020 blog is here, summarizing the current trends ; an archive of PetroLMI reports re the trends and forecasts is here – most recently, The LNG Opportunity in Canada: Employment Prospects and Requirements (June 2020).

In addition to providing regular labour force data by industry, on September 22 Statistics Canada released two studies in its Economic Insights series:  How Do Workers Displaced from Energy producing Sectors Fare after Job Loss? Evidence from the Oil and Gas”  Industry    and How Do Workers Displaced from Energy producing Sectors Fare after Job Loss? Evidence from coal mining. Both studies use data, (including age),  from Statistics Canada’s Longitudinal Worker File, covering the period 1995 to 2016, for  workers permanently laid off from those industries..  

Job loss experience for oil and gas workers

How Do Workers Displaced from Energy producing Sectors Fare after Job Loss? Evidence from the Oil and Gas” Industry reports that “job loss leads to substantial and persistent earnings declines”, although “three years or five years after being displaced, a significant fraction of workers displaced from this sector earn more than they did in the year prior to job loss.”  Data show that re-employment has become progressively more difficult, and for workers laid-off in 2015 or 2016, less than two-thirds found paid employment in the following year, with most moving outside the oil and gas industry – construction being the most common sector for re-employment. CBC produced a summary of the Statistics Canada report in an article here , augmenting it with personal stories and commentary from economists.

Coal workers’ job loss experience

Similar analysis (the reports are authored by the same Statistics Canada economists) appears in  How Do Workers Displaced from Energy producing Sectors Fare after Job Loss? Evidence from coal mining . Contrary to the trend for oil and gas workers, finding employment within a year of lay-off became easier for coal workers more recently: 67% for workers laid-off in 1995 compared to 89% for those laid-off in 2005 . However, regarding earnings loss, the report compares coal data with all industries, and states: “These numbers imply that about half of workers laid-off from coal mining and from other industries during the 2004-to-2011 period saw their annual wages and salaries drop by at least 30% in the short term. Since coal miners are paid higher-than-average wages …. the median declines in annual wages and salaries of coal miners displaced from 2004 to 2011 amounted to roughly $14,800 (in 2016 dollars) in the short term, more than twice the median declines (of about $6,100) experienced by other laid-off workers.” Conclusions are similar to those in the report on oil and gas workers: a  transition to “green jobs” has not materialized, and “ for many coal miners and other workers, job loss leads to substantial and persistent earnings declines”, but, “the financial consequences of job loss are not uniform for all displaced workers. …. Three years after job loss or five years after job loss, a significant fraction of displaced workers earn more than they did in the year prior to job loss.”

Coal-mining closures and energy transitions – impacts on women, youth, and communities

SEIdistributional-impacts-photo-1374x916In April 2020, the Stockholm Environment Institute (SEI) published a Working Paper which analyses the research to date on mine closures – with an emphasis on coal mine closures.  Distributional impacts of mining transitions: learning from the past  states that few studies have dealt with the distributional impacts, and those which do exist focus on developed countries (largely the U.K., but some from Canada – including  the closure of iron mines in Schefferville Quebec in the 1990’s). Authors Strambo and Aung focus on the financial, psychological and labour-related impacts of mining closure, with a special attention to gender and youth impacts.  Their report also discusses the effectiveness of implemented policy responses and initiatives in supporting these two social groups.

Strambo and Aung, along with Atteridge,  wrote a related report, Navigating Coal Mining Closure and Societal Change: Learning from Past Cases of Mining Decline,  published by the SEI in July 2019.  It is an extensive, broader  bibliographic review and analysis which includes a detailed explanation of the search methods used. It concludes:

“Economic and employment impacts of closure are much more thoroughly documented in the literature than social and political impacts. On economic impacts, more attention needs to be paid to the distributional impacts of mine closure, because a smooth and “just” transition requires design measures that target the specific vulnerabilities of different groups in mining areas. Reducing social inequality is likely to be a particularly important success factor in post-mining transitions, especially in developing countries, where mining regions have often been characterized by high wealth concentration and very limited (if any) benefits in terms of human or social development … Political and social impacts of closure have also been understudied.”

The  SEI also recently published two Papers related to gender aspects of just energy transitions:  Assessing the gender and social equity dimensions of energy transitions , which synthesized findings from 67 peer-reviewed academic articles, mostly related to rural women in Asia and Africa.  A brief 5-page  synthesis report, Ensuring just and equitable energy transitions  summarizes the state of international research.

In January 2020, the Stockholm Environment Institute was ranked as the world’s top think tank on environmental policy issues in the annual 2019 Global Go To Think Tanks Index, by the University of Pennsylvania. SEI, headquartered in Sweden but with seven international locations, is  a prominent member of Think Sustainable Europe , a network if think tanks created in late 2019.  It also  hosts the  secretariat of the UN-affiliated Leadership Group for Industry Transition  .

Saskatchewan announces $10 million aid for Estevan and Cornach coal transition

A February 28 press release from the government of Saskatchewan announced funding to support the communities of Estevan  and Cornach     – the province’s principal coal-producing communities – as they transition after the federally- mandated phase-out of traditional coal-fired electricity generation by 2030.  Estevan is scheduled to receive $8 million and Cornach  $2 million in this provincial announcement – money that had already been pledged in the government’s Throne speech in October 2019 .

Climate Justice Saskatoon has studied and compiled research into  the coal transition for these two communities as a project called Future of Coal.  A useful timeline highlights key developments in the phase-out process from 2017 to 2019 and a report,   Bridging the gap: Building bridges between urban environmental groups and coal-producing communities  (2018), reports on “in-depth conversations with coal and service industry workers, town administrators, union representatives, and farmers”  in Cornach and Estevan.

The federal Task Force on a Fair and Just Transition for Canadian Coal Power Workers and Communities visited the two communities – briefly noted in their What we Heard report  and reported at length by the Estevan Mercury newspaper here.   The  Regina Leader Post reported in detail on the anxiety and frustration of workers in  “ ‘Energy city’ feeling powerless as coal phase-out haunts Estevan” (June 2019) . Workers are members of  United Mine Workers Local 7606 ,  and many are hoping that investment in carbon capture and storage (CCS)  might prolong their working lives.  A  video explains their view of  CSS  here on the Local 7606 website .

New Roadmap for German coal phase-out includes worker payments till 2043

After intensive negotiations, on January 16 the German government, its coal mining states and several major utilities agreed on a roadmap for shutting down the country’s lignite-fired power plants, making Germany the first country in the world with an actual plan to end both nuclear and coal-fired power production.  Most critics say that the roadmap deadline of 2038 is too slow, although it adheres to the deadline recommended by Germany’s Coal Exit Commission  in 2019.  Analysts also criticize an exception which allows a new coal-fired power plant – Datteln 4 –  to come online in summer 2020. (Activists pledge to oppose it). A summary of the agreement is provided by Clean Energy Wire, as well as in “Bye Bye Lignite: Understanding Germany’s Coal Phase-out”  in Deutsche Welle (Jan. 16), or  “How Hard Is It to Quit Coal? For Germany, 18 Years and $44 Billion” in the New York Times (Jan. 16) .  Reaction to the plan appears in  “Hambach Forest: Germany’s sluggish coal phaseout sparks anger” in Deutsche Welle which states that, although the iconic Hambach forest will be saved, activists and local residents are “appalled” because surrounding villages will not. General reactions from German media appear in English in  “’Historic compromise’ or “pact of unreason”? – media reactions to Germany’s coal exit deal” (Jan. 17).

An estimated 20,000 people are employed in Germany’s lignite industry — of which 15,000 work in open-pit mines and 5,000 in lignite power plants. For them,  adjustment payments (not yet quantified) will be provided until 2043, following the pattern of  provisions for workers in the hard coal sector phase-out which ended in 2018.  The coal workers’ union, Industriegewerkschaft Bergbau, Chemie, Energie (IG BCE),  said the agreement would “set the benchmark” for a socially acceptable and climate-friendly transformation and would “lay the groundwork for linking social and climate justice.” The leader of the IG BCE stressed that the phase-out roadmap has to be complemented by a “phase-in roadmap” for renewables, which needs to be done urgently.

In addition to billions in compensation to the utility companies such as giant RWE, there are to be support payments for the affected states of Brandenburg, Saxony-Anhalt, Saxony and North Rhine-Westphalia –  a total of 14 billion euros until 2038 for direct investments in the regions,  and another 26 billion euros provided by the federal government for  “further measures” to strengthen local economies.

 

 

Alberta coal phase-out experience as a blueprint for just transition

Parkland alberta coal_phaseout_coverOn November 20, the Parkland Institute at the University of Alberta released a new report: Alberta’s Coal Phase-out: A Just Transition? .  Acknowledging that there is no single approach to just transition, co-authors Ian Hussey and Emma Jackson consider some common values and approaches expressed in the just transition literature: support for re-employment or alternative employment, income and benefit support, pension bridging and early retirement assistance, and retraining and educational programs for workers.  The press release quotes Ian Hussey: “While far from perfect, the Alberta transition programs provide a blueprint that will become increasingly important in the coming decades as the world makes the shift away from fossil fuels.”

The report evaluates the real-world experience of the coal phase-out in Alberta, which began in 2012 under the federal Conservative Harper government, and accelerated after 2015 under the provincial policies of the New Democratic Party. It describes in detail the events and context of the provincial transition policies, and uses case studies of three companies – TransAlta, ATCO, and Capital Power- as well as  a community case study of Parkland County.  The report concludes with an analytic discussion, evaluating the government’s transition programs for workers and for coal communities.  The full report is here ; an Executive Summary is here .

The report is a joint publication of the Parkland Institute at the University of Alberta, and the Corporate Mapping Project,  a joint initiative led by the University of Victoria, the Canadian Centre for Policy Alternatives BC and Saskatchewan Offices, and the Parkland Institute.

Equity for marginalized workers needed in Canada’s Just Transition policies

mertins kirkwood2019 who is includedA new discussion of Just Transition in Canada was released in August 2019, Who is included in a Just Transition? Considering social equity in Canada’s shift to a zero-carbon economy.    Co-authors Hadrian Mertins-Kirkwood, senior researcher at the Canadian Centre for Policy Alternatives,  and Zaee Deshpande provide this introduction:  “After establishing a conceptual framework for just transition, including a distinction between reactive and proactive approaches, we analyze Canada’s existing transition policies to determine who is benefiting from them and who is excluded. We specifically consider gender identity, Indigenous status, racialized identity and immigrant status in our analysis of coal communities covered by the transition. We find that the main beneficiaries of present just transition policies are Canadian-born white men, which reflects their disproportionate presence in the coal workforce. However, many socially and economically marginalized people also face costs and risks from the same climate policies but do not share in the benefits of transition policies, which means these policies may lead to further marginalization.”  The conclusions are supported by the labour market analysis based on Statistics Canada employment data, combined with a synthesis of federal and Alberta Just Transition policies currently in place for the coal industry.  The paper makes a series of policy recommendations including targeted training, apprenticeship and education for people from marginalized groups.

The August report was co-published by  the Canadian Centre for Policy and  Adapting Canadian Work and Workplaces to Climate Change project (ACW), as was a 2018 report by  Mertins-Kirkwood, Making decarbonization work for workers: Policies for a just transition to a zero-carbon economy in Canada,  in which he sets out the distinctions between “reactive” and “proactive” Just Transition policies.  In November 2019, a related article by Mertins-Kirkwood and Ian Hussey, “A top-down transition: A critical account of Canada’s government-led phase-out of the coal sector,” will appear in the forthcoming international book Just transition(s): social justice in the shift towards a low-carbon world, to be published by Pluto Press .

Recommendations for Just Transition coal phase-out in Europe

Bela Phasing-out-coal-a-just-transition-coverPhasing out coal – a just transition approach  was released as a Working Paper by the European Trade Union Institute in April – the latest of several publications on the topic by ETUI Senior Researcher and ACW associate Béla Galgóczi . Following  a summary of the role of coal in the European economy and the current employment structure of the broader coal sector, the paper provides an up-to-date summary of energy policies and just transition policies in France, Germany, Poland and Spain, and also looks at lessons learned from past phase-out experiences in the Ruhr Valley of Germany, Hazelwood coal plant in  Australia, and ENEL, Italy.  He notes that  a clear distinction should be made between hard coal regions, like the German Ruhr or Silesia in Poland, which are strongly-industrialized regions with a high level of urbanization and  a greater economic diversity,  and brown coal regions  such as German Lusatia or the Polish Lodzkie region, which  are rural areas with low population densities and employment concentrated in the mining and energy sectors.  The paper concludes that successful just transition requires, amongst other things: specific and targeted just coal transition policies with government involvement at the central and regional level; a properly-funded, specific mine closure agency, or a specialized agency for employment transitions for several years; individualized active labour market policies and personal coaching; and active EU-level financial support.

The author has made similar arguments  in a 5-page ETUI  Policy Brief,  From Paris to Katowice: the EU needs to step up its game on climate change and set its own just transition framework  (2018), and in his detailed  report  published by the ILO in October 2018 : Just Transition Towards Environmentally Sustainable Economies  and Societies for All, previously summarized in the WCR.

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.

 

 

 

Budget 2019 provides modest funding for climate change improvements – Just Transition, electric vehicles, energy efficiency

budget2019Updated March 25, 2019 with reactions.

No clean economy vision is evident in the  pre-election budget , Investing in the Middle Class, delivered by Canada’s Finance Minister on March 19.  The National Observer has a Special Report on Budget 2019 , composed of  twelve focused articles covering the range of notable provisions. Mitchell Beer provides a good summary of the Budget’s climate-related provisions, in “Morneau’s Pre-Election Budget Boosts ZEVs and Energy Retrofits, Extends New Fossil Subsidy”  in the Energy Mix (March 20).  Elizabeth May, leader of the Green Party is quoted in that article, and says that the climate provisions are “pathetic” – a similar reaction to that of Environmental Defence,which states more diplomatically that “funding for climate change in this budget does not match the scale of the challenge”. Similarly, the Canadian Centre for Policy Alternatives reaction judges the climate provisions as “modest efforts to move forward on greening the economy”, although calls the just transition plan “an important precedent.”  The Canadian Labour Congress reaction is a lengthly commentary on many worker-related initiatives  – including the issue of Just Transition.

UPDATED: Hadrian Mertins-Kirkwood weighed  in with his overall analysis, in “Budget fiddles while climate crisis burns” (March 20), judging the initiatives as modest and inadequate to the urgent task – with the greatest disappointment being the ongoing support to the oil and gas industry.  Similarly, Climate Action Network Canada  states that “business as usual policy is no longer acceptable to respond to the climate crisis and the level of climate action that citizens, students, workers and communities are urgently demanding.”

On the issue of Just Transition:  The Budget plan text on Just Transition reiterates the previous Budget’s pledge of $35 million over five years for Just Transition of coal workers.  In its reaction, the Canadian Labour Congress  acknowledges the new pledge of  $150 million in infrastructure funding to directly assist resource-based municipalities, but quotes Hassan Yussuff, Co-Chair of Canada’s Task Force on Just Transition: “… Canada’s unions are looking forward to working with the Minister of Natural Resources as the newly named lead minister, but are disappointed to see that the government has not addressed key Task Force recommendations to support workers, in terms of income, training and reemployment needs. Without this, workers will be left behind.”

More details appear in  “Coal workers get cash in budget but lack of details risks ‘major blowback”  in the National Observer (March 19), including that the  $150 million infrastructure funding will not flow until the 2020-2021 fiscal year.  Funds  will be delivered by Western Economic Diversification Canada at a rate of $21 million a year over 4 years,  and the Atlantic Canada Opportunities Agency , at a rate of $9 million a year for 4 year.

On the issue of fossil fuel subsidies:  The government  reaffirmed its long-standing (and unfulfilled) commitments to phase out fossil fuel subsidies , and pledged to establish an expert committee to examine the issue. Here is the reaction from the Stop Funding Fossils Initiative: “This year marks the tenth anniversary of Canada’s G20 commitment to phase out fossil fuel subsidies. Yet, despite moderate progress in the 2017 budget, Canada remains the largest provider of fiscal support to oil and gas production in the G7 relative to the size of its economy…. the Government of Canada has doubled down on fossil fuels by introducing billions of dollars in new subsidies in the past year. Budget 2019 allocates a further $100 million over four years to the Strategic Innovation Fund, aiming to help the oil and gas industry reduce emissions. ”

(Coincidentally, the 2019 Annual Fossil Fuel Report Card  was released on March 20, revealing  that global banks have invested nearly US$2 trillion in fossil projects since the Paris Agreement was signed, and Canada’s Bank of Montreal, RBC, ScotiaBank and CIBC  are amongst the worst offenders. )

On the issue of electric vehicles: Budget 2019 included a number of policies  aimed at speeding  up EV adoption, including a  2040 deadline to phase out new internal combustion vehicle sales, and consumer rebates for purchases of electric and hybrid vehicles ($5000 for purchases under $45K).  Despite recent reports that EV supply is restricting purchases, the government did not institute a mandatory sales mandate for car manufacturers. Businesses will be allowed to deduct the full value of a new ZEVehicle  worth up to $55,000 in the year they purchase it.  The government also pledged $130 million over the next five years  to build electric vehicle charging stations – specifically including workplaces in the named locations.  The National Observer summarizes these proposals in “Canada proposes rebates for electric cars, voluntary sales mandate”. 

UPDATED:  Unionists and local politicians staged a protest rally at the Windsor plant which manufactures the Chrysler Pacifica Hybrid on March 22. CTV Windsor  reported  that leaders of Unifor Local 444 and local  NDP politicans are  infuriated that the consumer incentives carry a price limit set at $45K  – excluding the Canadian-built Pacifica Hybrid, priced at $54,000.  The  CBC also reported  “Federal rebate on electric cars will push consumers to buy American, NDP says” .  And an Opinion piece by Will Dubitsky,  “Stalled: why North American lags as China and Europe lead the way on electric vehicles”  in the  National Observer (March 20)  calls the EV purchase incentives “a halfway measure offering less than the consumer rebate programs elsewhere,” and judging the $130 million over five years  for charging and refuelling stations “mediocre” compared to equivalent commitments in California and the EU.

On the issue of infrastructure and the built environment:  The text of the government’s announcement relating to energy efficiency is here , and a Backgrounder: Strong Communities, Affordable Electricity and a Clean Economy  is also relevant.     Initiatives include $1.01 billion in funding, immediately, to increase energy efficiency in residential, commercial and multi-unit buildings – in the form of financing and grants to retrofit community buildings, financing for municipal initiatives to support home retrofits, and financing to improve energy efficiency and support on-site energy generation in affordable housing developments .  Funds will be administered through the Green Municipal Fund of  the Federation of Canadian Municipalities.   Macleans magazine summarizes this, as well as infrastructure funding, in “Cities are billion-dollar winners in Budget 2019”   which states that “the biggest single new spending item in the budget is a $2.2 billion “one-time transfer” through the federal Gas Tax Fund. That money doubles the usual federal-municipal transfer through that mechanism. The windfall is intended to address “serious infrastructure deficits” in municipalities and First Nations communities.”

 

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

German Coal Exit Commission recommends Just Transition measures but a 2038 deadline

coal machine germanyOn January 26, the German Commission on Growth, Structural Change and Employment, (better known as the Coal Exit Commission) delivered its highly-anticipated report and a “roadmap” for lignite coal plant closures in the country. The report calls for Germany to end coal-fired power generation by 2038 – subject to reviews by independent experts in 2026, 2029, and 2032, when it  will be decided if the deadline can be advanced to 2035. The 28 official Commissioners, drawn from industry, unions, environmental NGOs, community leaders and government, negotiated for six months , with all but one voting in favour of the final recommendations. Greenpeace voted “yes”, but also issued a dissenting opinion, stating  “Germany finally has a road map for how to make the country coal-free. There will be no further coal plants. Greenpeace and other groups made sure that the commission has clearly supported keeping Hambach forest. However, the report has a grave flaw: the speed is not right.” Other participants, including Sir Nicholas Stern, also criticized the slow speed of the plan.  The Powering Past Coal Alliance , of which Canada and the U.K. were founding members, state that, in order to meet the goals of the Paris Agreement,  “a coal phase-out is needed by no later than by 2030 in the Organisation for Economic Co-operation and Development and in the European Union.”

A compilation of reactions from Commissioners is here. From Michael Vassiliadis, head of the miners’ union IG BCE :“We have found a compromise after 21 hours of negotiations that cannot make us happy, but leaves us overall satisfied. We managed to shield the employees in coal power generation from social hardships from the structural change. At the same time, the coal phase-out is closely tied to verifiable progress with the future energy mix, the expansion of renewables and the grids. The regions get money for structural change, to create new quality jobs. The commission laid the foundation for a new Energiewende of reason.”

The 336-page report is currently available in German only; , but it is well summarized in English in a Fact Sheet from Clean Energy Wire. According to CLEW, key issues addressed are the stability and pricing of energy supplies for Germany, CO2 reduction, and compensation to industry.  Regarding Just Transition for workers and communities, the report devotes almost 40 pages to the economic measures for the regional economies and workers. While the report itself doesn’t estimate those costs, an article in Der Speigel   states that communities will receive 40 billion euros in structural assistance over the next 20 years.  The Commission calls for the coal mining regions to remain energy-oriented, through the development of innovative technologies, such as electricity storage, renewable energy, or power-to-gas production .

The Commission’s recommendations are expected to be accepted by government, but there is a long road ahead in passing legislation and negotiating financing, as outlined in  “German government stands ready to move on coal exit proposal” (Jan. 29). The coal exit will be one part of the government’s Climate Action Law package, promised for the end of 2019.

Growth and diversity in the U.S.clean energy industry

Two new reports foresee employment growth in the U.S. renewable energy industry – despite the chilling effect of the tariffs on solar equipment imposed  by the Trump administration, as described in a Solar Energy Industry Association press release in December.   The first study, Clean Energy sweeps across rural America  (November 2018) by the Natural Resources Defence Council examines job growth in wind, solar, and energy efficiency in rural regions throughout the Midwest U.S., and finds that the number of clean energy jobs grew by 6 percent from 2015 to 2016 (a higher rate than the economic in general), to a total of  nearly 160,000 in 2017.  In 2017, in the rural parts of every midwestern state except North Dakota and Kansas, more people worked in clean energy than in the entire fossil fuel industry.  The report emphasizes the outsized impact of job opportunities in rural areas in which job growth is normally negligible or even negative. The report also profiles examples of  community solar programs operated by co-ops and investor-owned utilities.

A second report  models the impact of  replacing Colorado’s coal plants with a mix of wind and solar backed by battery storage and natural gas.  This report was prepared by consultants Vibrant Clean Energy and commissioned by energy developer Community Energy Inc., with a main focus on cost savings and carbon emissions.  However, it also forecasts job impacts under three scenarios (keeping coal plants to 2040, gradually retiring coal plants, and retiring all coal plants in 2025), and overall,  it forecasts a 52% increase in employment in the electricity industry.

The January 9 press release  quotes a representative from Community Energy Inc:  “The key to unlocking these benefits is to create a legal framework that enables utilities to voluntarily retire the coal plants. Otherwise, it could take years to negotiate or litigate utility cost recovery, replacement power costs and impact on local communities.” The full Coal Plant Retirement study is here .

Finally, the Solar Energy Industries Association issued a press release in early December, highlighting its 2018 initiatives to improve gender equity and diversity – including the creation of the Women’s Empowerment Initiative, which includes summits to increase women’s leadership and various industry opportunities.  In September 2018,  the SEIA signed a Memorandum of Understanding  to help the solar industry recruit and employ more students from the 101 Historically Black Colleges and Universities.  This will include hosting a national jobs fair, individual jobs fairs at the HBCU schools and bringing solar companies to campuses for recruitment.   A webinar series on diversity and inclusion is scheduled for SEIA member companies in 2019.

Talking Just Transition in the heart of coal country: COP24 delegates gather in Katowice, Poland

cop24 just transitionRepresentatives of almost 200 nations are meeting  at the 24th annual Conference of the Parties (COP24)  in Katowice, Poland from December 3 to 17.  Their goal is to negotiate a “rulebook” to turn the Paris Agreement pledges of 2015 into reality – basically, trying to find agreement on a host of implementation details so that the world can limit warming to 2, preferably 1.5 degrees C.

Katowice coal museum

Museum to coal mining in Katowice, Poland

With Poland as the host country and the  location of the meetings in the centre of the country’s coal region, it was inevitable that Just Transition would have a high profile at COP24 . The first day of the meetings at the Polish Pavilion was devoted entirely to discussion of the Solidarity and Just Transition Silesia Declaration  which has been signed by Poland’s President and heads of 44 other countries. The Declaration states that social approval of changes is essential for the transition to a  low-carbon economy and the social security of workers in affected communities is the first and foremost policy goal. Although the International Trade Union Congress is meeting for its 4th World Congress in Copenhagen in the week of December 2,  it released a statement of support for the Silesia Declaration, stating “This declaration means that workers and their unions will have a seat at the negotiating table and workers’ voices will be heard when climate policies are developed and implemented. Good social dialogue processes are a crucial factor to make the changes to industries, sectors and national economies that will stop dangerous climate change and unleash a 65 million low-carbon jobs dividend by 2030. ”

Also at the ITUC World Congress, Canadian Labour Congress president Hassan Yussuff delivered a speech (radio broadcast here ) on December 5 about on how Canadian unions are dealing with climate change.  The European Trade Union Confederation is also participating in the discussion on Just Transition –notably with participation in the  December 3 session  ‘Game changer for the future of work: Towards a just transition with gender equality’ . A list of ILO sessions and events regarding Just Transition and Decent Work is here .

December 10 has been designated as “Ambition and Just Transition Day”, and on December 13, Canada and the U.K. , as co-founders of the Powering Past Coal Alliance, will co-host a Side-event  to showcase the PPCA progress and to launch a new report on global coal economics by Carbon Tracker . mapping just transition 2018Already  launched at COP24:  Just Transition: Mapping Just Transition(s) to a Low Carbon World , published by the Just Transition Research Collaborative (JTRC), part of the U.N. Research Institute on Social Development (UNRISD). It focuses on Brazil, Germany, Kenya, South Africa, the United States, and Canada – with contributions from Hadrian Mertins-Kirkwood.  The report discusses how differently Just Transition has been framed, and provides case studies of how it is being implemented in the six countries.

The Climate Action Network- Canada (CAN-Rac) is participating at COP24 and released a Brief which sets out five goals for the meetings, including  Just Transition goals. CAN-Rac calls for stronger institutional recognition of just transition – by  including a Just Transition commitment  in the official Nationally Determined Contribution, and by including it as a permanent theme within the COP meetings (which guarantees it status as an agenda item and as part of the official work programme). CANRac  supports the Polish Solidarity and Just Transition Silesia Declaration, recognizing the need for a carefully planned process built on social dialogue.  Within the Canadian context,  the Brief calls for an ongoing mandate for the federal Just Transition Task Force and an expansion beyond coal phase-out, to include all fossil fuel sectors. Finally it states: “The contribution of Indigenous communities in the creation and implementation of just transition policies and national plans is essential.”

What will Canada do at the COP24?  The International Institute for Sustainable Development (IISD) makes its predictions in “The End of Coal? What to Watch for at the Upcoming UN Climate Conference (COP24)” . Environment and Climate Change Minister McKenna will not arrive at the meetings until December 9 ; December 10 has been declared “Ambition and Just Transition Day”, and December 13,  “Coal-free Day”. On December 13,  McKenna , along with the other co-founder, U.K.’s Claire Perry, will co-host a Powering Past Coal Side-event to showcase the PPCA progress and spotlight a new report, Powering Down Coal  by Carbon Tracker.

In advance of leaving for COP24, the Minister pledged  that Canada will set more ambitious GHG emissions targets when the Paris Agreement begins in 2020 –  which is a good thing since recently released data from the Global Carbon Project shows Canada is one of the world’s top ten polluters, and the current target of reducing emissions 30% below 2005 levels by 2030 is generally considered insufficient (even if we were to meet it).  The 2018 Emissions Gap Report from the U.N. documents just how insufficient the efforts of all countries have been.

How to  Keep up to date with COP24:  The United Nations Framework on Climate Change (UNFCC) website has comprehensive coverage including highlights, official documents, photos, and webcasts from the meetings.  The  International Institute for Sustainable Development (IISD) also provides detailed daily coverage, including photos, in its Earth Negotiations Bulletin  (and has also written a Short Guide to COP24  as an introduction to how it all works).  For media coverage:  Climate Home News has extensive and expert coverage of all aspects and The Guardian, as always, has strong coverage.  For the latest  developments, follow Environment and Climate Change Canada’s  Twitter feed here ;  also   #JustTransition  ; #Climate Justice ; and for a variety of views ,  #COP24Katowice .

 

Preview of the recommendations by Canada’s Just Transition Task Force

Hassan Yussuff head shotIn a November 5 article, “ Federal panel privately urges Trudeau government to do more for coal workers”  ,  National Observer reporter Carl Meyer reveals that the Just Transition Task Force Interim Report is already in the hands of the Minister of Environment and Climate Change, though not yet publicly available. Canada’s Just Transition Task Force was launched in April 2018 – an  11-member advisory group co-chaired by Canadian Labour Congress president Hassan Yussuff,  to “ provide advice on how to make the transition away from coal a fair one for workers and communities.”  The Task Force Terms of Reference   allowed for 9 months for the report; Environment and Climate Change Minister McKenna said on  November 2 : “We’re still reviewing the report, but as we talk about the need to power past coal and our commitment in Canada to phase out coal by 2030, we know there has to be a priority to supporting workers and communities.” A formal response is expected in November, and given the Minister’s leadership role in the international  Powering Past Coal Alliance and the public spotlight of the upcoming COP24 meetings in Katowice Poland in early December, that deadline is likely to be met.

The National Observer article of November 5, along with an April 2018 article about the Task Force launch, provide good background to the Task Force.  The new article emphasizes the different needs of different provinces – notably Alberta, Saskatchewan, New Brunswick, and Nova Scotia.  Most of the article is based on interviews with a few Task Force members.

But what are the Report’s Recommendations?  One member states that  “A lot of the recommendations are directly connected to what we heard from municipalities, from workers, from unions and from communities.”  The comments about the actual  recommendations are far from earth-shattering, but include:  1. Just Transition policies should be enshrined in legislation so that they are not as vulnerable to changing governments; 2. The  government should commit to infrastructure funding for municipalities in order to attract other businesses and offset job losses; 3. Support to workers should be extended, to help people quickly and efficiently access benefits like employment insurance, retraining, and relocation assistance.  These fall along the same lines as the 2017 Recommendations from the Alberta Advisory Panel  on Coal Communities , which are more detailed and which also accounted for First Nations issues.

A list of Task Force members is here. In addition to co-Chair Hassan Yussuff, there are members from the CLC, the Alberta Federation of Labour,  United Steelworkers, Unifor, and the International Brotherhood of Electrical Workers.

 

Updated: New Just Transition agreement for Spanish coal miners called a model for others

The new government of Spain, in power since May 2018, has reached a new Just Transition agreement with coal miners, to further the coal phase-out which has been underway since the early 2000’s.   Approximately 1,000 miners and contractors at 10 mines will lose their jobs at the end of 2018, but according to a report in The Guardian (Oct. 26) “Unions hailed the mining deal – which covers Spain’s privately owned pits – as a model agreement. It mixes early retirement schemes for miners over 48, with environmental restoration work in pit communities and re-skilling schemes for cutting-edge green industries.”  The cost of the program is estimated at 250 million Euros.

UPDATED:  For the most detailed summary of this new agreement, see the press release from IndustriALL : “Spanish coal unions win landmark Just Transition deal”    (Nov. 1)  .  It includes a link to the 37-page actual agreement – in Spanish only – and quotes the Sustainability Director of IndustriALL, who states that it is a model agreement, and “The deal sets a precedent for responsible transition through social dialogue.”

Spain’s coal industry employed more than 100,000 miners in the 1960s, but today only 2.7% of the country’s electricity is powered by coal.  The country had already done a good job of its coal phase-out, according to Coal Transition in Spain, published in 2017 by The Institute for Sustainable Development and International Relations (IDDRI)  and Climate Strategies Just Transition project.   That report draws on Spanish language resources to provides a thorough overview of employment statistics, policy instruments and stakeholder positions from previous coal phase-out. It also evaluates the success of measures taken, including training and early retirement incentives, community and infrastructure investment. The press release from IndustriALL summarizes the history from a different, union viewpoint.

Updated: What are the prospects for a Just Transition in U.K. communities?

desmog_uk_blue_logoOn October 30, DeSmog UK  began a new series of reporting titled  Just Transition, from Fossil Fuels to Environmental Justice , which it describes as “a comprehensive exploration of the UK‘s prospects for a just transition towards a sustainable future and environmental justice.”  The first installment, Part One: Kingdom of Coal  profiles Fife, Scotland: the history of its coal mine closures around 2002, and the transition to its current situation as the site of a gas extraction facility run by Shell and an ethylene production plant operated by ExxonMobil. The report states that the Scottish Environmental Protection Agency (SEPA) has issued fines and final warning letters to both Shell and Exxon for the flaring conducted at the two sites; a SEPA investigation into the flaring is underway, with a report scheduled for November 2018.  Finally, Kingdom of Coal discusses the  prospects for a just transition for Fife to a renewable energy industry,  in the  context of the Just Transition principles proposed by the Friends of the Earth Scotland. The impending Brexit  threatens funding from the European Investment Bank (which was used to build  the Beatrice Wind Farm in the Moray Firth), and “wider economic insecurity makes longer-term investments, such as hiring more apprentices, growing the workforce and investing in new machines and premises, increasingly challenging.”

Update: Part 2 of the series, City of Oil  appeared on November 7 and profiles Aberdeen Scotland.  Employment there centres on the harbour and the specialist tasks associated with the North Sea offshore oil and gas industry  – decommissioning oil platforms at the end of their life, laying sub-sea cables, servicing and maintaining offshore drilling platforms – and representing the new economy, the offshore wind turbines of  the Vattenfall installation.  Through interviews, the report describes the workplace issues of the workers on ships under flags of convenience in the North Sea , changes to shift schedules for oil rig workers, and  a growing problem of poverty.

Just Transition, from Fossil Fuels to Environmental Justice is described by DeSmog UK as : “This powerful new series starts from the basis of understanding that current lifestyles are dependent on oil and plastic, and that we are all to some degree complicit and integrated into the present system. It looks at how the UK can achieve the immediate, transformative and radical changes to the economy and society necessary to address the climate crisis. And it addresses this transformation through the perspectives of the communities that will be most affected.”

Just Transition Summit in Saskatchewan – updated

saskfordward just transition jobsAlthough Alberta is the clear leader in oil and gas production in Canada, the province of Saskatchewan ranks second, with about 13% of Canada’s total crude oil production.  Saskatchewan also derives approximately 40 per cent of its power from coal.  Yet on October 27 and 28, progressive organizations in that province convened an enthusiastic forum,  Just Transitions: Building Saskatchewan’s Next Economy Summit in Regina. Sessions most related to employment issues included:  “Transitioning Employment and Work”,   moderated by Hadrian Mertins-Kirkwood of the Canadian Centre for Policy Alternatives, and including panels on  “Labour and Just Transition” by Unifor, CUPW and SEIU West.  There was also a session on “Phasing out Coal” , presented by Climate Justice Saskatoon and Chris Gallaway of the  Alberta Federation of Labour. The full list of presentations is here .

Hosting organizations included: Saskforward   , the Corporate Mapping Project, Climate Justice Saskatoon , the Regina Public Interest Research Group and Unifor.

Local media coverage appeared in the Regina Leader-Post newspaper, and several items at CBC-Saskatchewan, including:  “Indigenous perspective must be heard on climate change, Regina conference told” ;  “Regina summit looks at what shift from coal to renewable energy means for future of Sask. Economy” (specifically reporting on the  town of Coronach, home of the Poplar River coal mine and associated Poplar River Generating Station, threatened by the federal government’s goal to phase-out coal generated electricity by 2030); and an Opinion piece by Emily Eaton from the University of Regina “Beyond ‘jobs versus environment’: Transitions to renewable energy present opportunities for us all”  (Oct. 25).

winds of change saskatchewanEmily Eaton was one of the authors of  “Winds of Change: Public Opinion on Energy Politics in Saskatchewan” , published in April 2018 by the Canadian Centre for Policy Alternatives Saskatchewan office.  Based on a public opinion poll of 500 Saskatchewan adults, the report summarizes the political climate in Saskatchewan and shows that despite the government’s opposition to carbon taxes and the Pan-Canada Framework on Clean Growth and Climate Change, there is public support for a transition away from fossil fuels, and for government investment in solar and wind power.

The Saskatchewan event follows the Just Transition and Good Jobs for Alberta 2018 meetings, held in Edmonton on October 22 and 23, with active participation and sponsorship of USW, Unifor, and the Alberta Federation of Labour.  This was the third year of meetings, coordinated by BlueGreen Canada.

Update:  In November, Climate Justice Saskatchewan  has released a report, The Future of Coal in Saskatchewan: Bridging the Gap: building bridges between urban environmental groups and coal-producing communities in Saskatchewan . The report summarizes what was heard during 17 interviews with citizens of the small coal-producing communities of Estevan and Coronach during the spring of 2018, and draws some conclusions which might have application for other social justice and climate justice initiatives.  In general, the interviews exposed the unique challenges of each rural community, but found a common sense of uncertainty stemming from a lack of planning and communication about phasing out coal, bound up in wider challenges of rural decline, agricultural trends, and the boom-and-bust cycles of oil and gas.

 

 

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.

German report proposes innovative “Just and In-time” Transition policies

German Just and intime policy coverJust and In-time  Climate Policy: Four Initiatives for a Fair Transformation  was released  on August 31 by the German Advisory Council on Global Change (WBGU). The paper  makes innovative proposals for  the German climate change policy in an international perspective. The four exemplary initiatives under discussion relate to (1) “the people affected by the structural change towards climate compatibility” (specifically, Just Transition for coal-mining regions), (2) the legal rights of people harmed by climate change (including financial support for citizens bringing climate liability suits), (3) the dignified migration of people who lose their native countries due to climate change, (through the vehicle of an international climate passport),  and (4) the creation of financing instruments for just & in-time transformation processes.

Regarding the transitions required by coal phase-out, the paper discusses the concept of Just Transition, but argues that it may be too slow for the emissions reduction challenge the world faces.  Instead it uses the term “Just and In-Time” transition,  reviewing  past structural transition models  but concluding that they will not be sufficient.  “Purposive decarbonization requires forward-looking, early, proactive intervention by the state in alliance with other actors.” The report  proposes to reach that goal through “an  overarching ‘Zero Carbon Mission’ on multiple political levels”- local, regional, national, and international.

Regarding citizens’ legal rights and climate liability, the paper states: “Under certain circumstances, companies that contribute to climate change through emissions can sue for damages in the courts if they are forced by state authorities to close their plants. Yet the legal rights of people affected by massive climate damage vis-à-vis large corporations partly responsible for climate change are completely uncertain. The WBGU recommends that the German Federal Government should support a number of promising pioneer lawsuits, particularly those brought by people and communities harmed by climate change, against major corporations that have a significant responsibility for global warming, and assume the litigation cost risks for these lawsuits. It should furthermore use its influence internationally to ensure that the people affected are given opportunities to take legal action across national borders.”

Regarding climate migration, the report urges the German government to advocate at Katowice for a “climate passport” for climate-driven migrants “as a sign of intergenerational justice and responsibility”,  and that “Countries with considerable responsibility for climate change should open their doors as host countries to people with a climate passport.”

Regarding the financial instruments to support transformation, the paper proposes that transition funds be created by pricing greenhouse-gas emissions (e.g.through carbon taxes), and be supplemented by revenue from a reformed inheritance or estate tax. “The transformation funds should accelerate the implementation of the climate and sustainability goals via investments and holdings in key industries, and use the profits generated for early and participatory structural change.”  The  WBGU also recommends providing support for economically weaker countries to build up their own transformation funds and manage structural change via a facility at the World Bank or regional development banks.

The German Advisory Council on Global Change (WBGU), an independent, scientific advisory body established by the German government in 1992.  The paper was released  in anticipation of  the 24th Conference of the Parties to the UN Framework Convention on Climate Change to be held in Katowice in December.  The German Commission on Growth, Structural Change and Employment is also underway now, with the goal of contributing to the COP24 discussion on coal transition planning.

 

Job protection gets high priority in Germany’s Commission on phase-out of brown coal

According to a March 2018 report by Clean Energy Wire, Germany’s coal industry, ( hard coal and lignite coal), employed approximately 36,000 workers in 2016, in contrast to 160,000 people employed in the wind power industry and 340,000 in the entire renewable energy generation sector.  Yet on June 6,  Germany’s Special Commission on Growth, Structural Economic Change and Employment was launched to study and make recommendations for social and economic policy  for a phase-out of lignite coal in Germany by the end of 2018. The word “coal” does not appear in its name, reflecting the political tension surrounding the issue.  Groups such as The Green Party,  WWF Germany and Greenpeace Germany are critical, as summarized in “Why are German coal workers so powerful, when there are so few?” in Climate Home News (Aug. 14) , which states that ” “saving jobs in the coal sector is its first priority, followed by designing the structural change in the coal regions towards low-carbon economies, with climate protection and coal phase-out coming last.”

Although much information about the Commission is in German, Clean Energy Wire ( based in Berlin) publishes in English, and  is monitoring the Commission’s progress  . It  has produced two Fact Sheets that are essential reading: 1.  Coal in Germany, a Fact Sheet  (Dec. 2017) ( full of facts and figures about the industry); and  2. Germany’s Coal Exit Commission, a Fact Sheet  – which includes a list of  the members of the Commission –  representatives from government, industry, academia, environmental groups,  and these unions: German Trade Union Confederation (DGB) ; Ver.di (Service industries)  and IG BCE  (mining, chemicals and energy industries). Position statements from some of the members of the Commission are here  ; IG BCE states: “The people in the mining regions do not need an accelerated exit from coal.. .The path for a phase out of coal-fired power generation has long been mapped out. What they need is an entry into structural change that secures good industrial work. That’s what we will work towards in the commission.”  From another member, Germanwatch: “The coal exit is aligned with the goals of the Paris Climate Agreement and has the potential to be the foundation for a fair structural change and a modernisation of the economy. One hopes that the economic associations involved do not obstruct, but put the opportunities front and centre.”

On August 3 that the Germany’s Employment Minister presented a 6-point plan, summarized in “Employment minister suggests infrastructure projects for coal mining regions” .

Further background and opinion:  

From Euractiv: “Leaked: Germany’s planned coal commission shows little interest for the climate”    (June 1)   and “ Germany launches coal commission in a bid to protect climate and jobs”  (June 7)

From DW, “Germany′s mining communities brace themselves for post-coal era” (June 1)   and  “Germany’s coal exit: Jobs first, then the climate” from DW   (June 26);

Contrast the European coverage with “New Commission studies unprecedented, orderly coal phase out for Germany” in The Energy Mix (August 14) .

 

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

Hassan Yussuff head shot

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.

Alternative Budget proposals for a Just Transition and a low carbon economy

The Canadian Centre for Policy Alternatives released its 23rd Alternative Budget (AFB) on February 22 in Ottawa, in advance of the federal government’s February 26 Budget release. According to the summary at Behind the Numbers “Our budget puts forward bold progressive policy ideas rooted in a rigorous economic and fiscal framework. Our approach considers not just standard budget items but delivers a gender-based analysis, examines income distribution effects, and projects the impacts on poverty rates.” High priority areas for the CCPA include universal child care, pharmacare, gender equity, free tuition, and a green, low carbon economy.

The report argues that the current, relatively low unemployment levels make this an opportune time to begin  “in earnest, the just transition to a green jobs future.” In a section called  “Industrial Strategy and Just Transition” the report  calls for a National Decarbonization Strategy to be developed through broad consultation, and to act as a co-ordinating body for other AFB proposals – notably an enhanced Low Carbon Economy Fund to support cities and infrastructure investments, and a trade promotion strategy.  A new $500-million Just Transition Transfer (JTT) is proposed,  to flow federal funds to provinces –  for workers and communities  affected through actions under the  National Decarbonization Strategy or for existing provincial just transition programs, such as Alberta’s Coal Workforce Transition Fund.  Finally, the AFB calls for  a new $1Billion Strategic Training Fund to increase training capacity at colleges and trade schools  – with the funds contingent on improved representation of  women, racialized Canadians, immigrants, First Nations and other groups that have been historically excluded from the skilled trades.

Regarding the environment, some of the  top-level goals are : Remove all direct and indirect subsidies for fossil fuel exploration, development and transportation; enforce a stringent national carbon pricing standard  (rising to $50 per tonne by 2020); contribute Canada’s fair share of global climate financing; improve energy efficiency for Canadian homes, with $600 million annually to offset the costs of  retrofitting and construction; create a network of protected areas covering 17% of Canada’s land and freshwater and 10% of its oceans; strengthen environmental protection laws and make advances toward sustainable fisheries, and invest $50 million annually for a stronger environmental data and science system at Statistics Canada.

Read the full Alternative Federal Budget 2018  in English  or in French.

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.