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.

 

 

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

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

In his introduction, he states:

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

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

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

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

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

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.

Success stories from Appalachian coal mining communities

appalachiaA new report was released on October 31 by the Reclaiming Appalachia Coalition, a group which seeks to spur coal mine reclamation projects throughout Central Appalachia.  A New Horizon: Innovative Reclamation for a Just Transition profiles 19 projects in Kentucky, Ohio, Virginia and West Virginia, including data centres, a YMCA Wellness Centre, as well as many ecotourism projects.  Although much is specific to the U.S. funding opportunities, the case studies offer instructive descriptions of the challenges and obstacles faced by the communities, and also attempt to quantify the economic impacts of each project.

The press release describes the progressive approach used to create a “new horizon”: “In the past, efforts to reuse old mine sites too often resulted in sparse, lasting economic activity. Surface mined areas near population centers became shopping centers, hospitals and other standard uses, but more remote sites were either completely abandoned, converted to low-productivity cattle grazing lands, or developed into speculatively built industrial parks or golf courses at great taxpayer expense. Those “if you build it, they will come” projects now largely sit empty. To break from this unsuccessful approach to coal site reclamation, the Reclaiming Appalachia Coalition established six guiding principles to identify optimal repurposing projects, including ensuring they are appropriate to the place in which they are occurring, that they include non-traditional stakeholders in decision-making, and are environmentally sustainable and financially viable long-term.”

The report was published as part of the launch of a new website, ReclaimingAppalachia.org, by the Reclaiming Appalachia Coalition, which consists of organizations in four states — Appalachian Voices in Virginia, Appalachian Citizens’ Law Center in Kentucky, Coalfield Development Corporation in West Virginia, and Rural Action in Ohio — and a regional technical expert, Downstream Strategies, based in West Virginia. The website as a whole is intended as an information and education resource , providing best practices and information about potential U.S. funding sources.

Australian unions support offshore wind development as a means for Just Transition

Putting the ‘Justice’ in ‘Just Transition’: Tackling inequality in the new renewable economy  is a report released on November 7, co-written by the Australian Manufacturing Workers Union, the Electrical Trades Union, the Gippsland Trades and Labour Council and the Victorian Trades Hall Council . This is the latest development  in a union campaign to promote Australia’s offshore wind industry  , focusing on the Star of the South project, Australia’s first proposed offshore wind farm.  The report calls Australia offshore wind campaignfor government policies to support the emerging industry and to make the Star of the South “ the best possible example of a just transition” by diversifying the job opportunities for workers and communities currently reliant on coal, oil and gas.

Specifically, the new report recommends:

  • the Commonwealth establish an energy transition authority to work with states and regions, develop a stand-alone Offshore Renewables Act, and create an agency responsible for facilitating the development of offshore renewable energy in Commonwealth waters;
  • the development of offshore and onshore renewable energy master plans that incorporate assessments of supply chains, procurement and infrastructure;
  • ensuring renewable energy financing, targets, contracts, licensing and approvals require the maximising of local jobs, including planning for direct redeployment of workers from fossil fuel industries;
  • the Victorian Government establish a just transition group to ensure a well-planned energy transition with the best possible social outcomes by formally consulting with relevant stakeholders including trade unions, employers and communities;
  • maximising the social benefit of the Star of the South project by requiring local design, manufacturing, and construction;
  • funding of appropriate training and retraining through local TAFEs, along with minimum apprentice ratios; and
  • maximising the number of jobs available by ensuring good rosters and reasonable hours of work.

The Maritime Union of Australia (MUA) represents seafarers supplying the offshore oil and gas industry, as well as workers in Newcastle’s coal terminals, and port and tug workers in coal export ports in New South Wales and Queensland.  The MUA is  part of the Offshore Alliance ,which works to organise workers and improve conditions in the offshore oil and gas industry. The MUA position on renewable energy and a discussion of the Just Transition campaign are available here ; the MUA maintains a petition here .