Roadmap for U.S. Decarbonization emphasizes job creation, equity in Transition

A Committee of Experts in the United States collaborated to produce a sweeping policy blueprint for how the U.S. can reach net-zero carbon emissions by 2050.  Accelerating Decarbonization of the United States Energy System was published by the U.S. National Academies of Sciences, Engineering and Medicine in February 2021, and discusses how to decarbonize the transportation, electricity, buildings, and industrial sectors.  The Overview emphasizes goals of job creation and equity, with a need to build social license.  This aspect of the report is drawn out in “We risk a yellow vest movement”: Why the US clean energy transition must be equitable”  a summary which appeared in Vox.

From the report overview

“The transition represents an opportunity to build a more competitive U.S. economy, increase the availability of high-quality jobs, build an energy system without the social injustices that permeate our current system, and allow those individuals, communities, and businesses that are marginalized today to share equitably in future benefits. Maintaining public support through a three decade transition to net zero simply cannot be achieved without the development and maintenance of a strong social contract. This is true for all policy proposals described here, including a carbon tax, clean energy standards, and the push to electrify and increase efficiencies in end uses such as vehicle and building energy use. “

The report recommendations are summarized in this  Policy Table, and in a 4-page Highlights document.  These include:   Setting an emissions budget for carbon dioxide and other greenhouse gases • Setting an economy-wide price on carbon (though a low price is set “because of concerns about equity, fairness, and competitiveness”) • Establish a 2-year federal National Transition Task Force “to evaluate the long-term implications of the transition for communities, workers, and families,  and identify strategies for ensuring a just transition”.• Establish a new Office of Equitable Energy Transitions within the White House to act on the recommendations of the task force, establish just transition targets and  track progress • A  new independent National Transition Corporation. • A new Green Bank, initially capitalized at $30 billion, to ensure the required capital is available for the net-zero transition and to mobilize greater private investment • A comprehensive education and training initiative “to develop the workforce required for the net-zero transition, to fuel future innovation, and to provide new high-quality jobs” • Triple federal investment in clean energy RD&D at the Department of Energy over the next ten years,  as well as the support for social science research on the socio-economic aspects of advancing the transition.

The full report, 210 pages, is available free for download from this link  (registration required).

Benchmarking corporate Just Transition policies gives auto manufacturers like Tesla a low score

The World Benchmarking Alliance (WBA) announced in February that will combine its existing Corporate Human Rights Benchmarking  with its Climate and Energy Benchmarking of global corporations, to produce a Just Transition Benchmark Assessment .  The WBA has a practical objective:

“Trade unions and civil society organisations can use the transparency provided by these assessments to hold companies accountable, and governments can use them as evidence to inform policy making for a just transition. Additionally, investors and the companies themselves will be able to use the assessments as a roadmap to move towards practices to ensure no one is left behind in the decarbonisation and energy transformation.”

Assessing a just transition: measuring the decarbonisation and energy transformation that leaves no one behind  outlines the methodology of this new assessment exercise and invites stakeholders to contribute in an ongoing process till 2023. The proposed outcome is to publish Just Transition Benchmark assessments of approximately 450 companies in high-emitting sectors – in publicly available rankings,  as are the many other reports of the World Benchmarking Alliance. Assessing a just transition also includes results from a pilot project of the automotive sector to illustrate how the Just Transition assessments will be done. It synthesizes the findings from the WBA Automotive Benchmarking for 2020  with its Corporate Human Rights Benchmarking .

Global auto manufacturers are racing to produce electric vehicles, but are they respecting workers’ rights?

In combining the findings of the two existing benchmarking initiatives, Assessing a just transition states: “…. Some companies that demonstrated action on climate issues, such as low-carbon transition plans, emissions reduction targets and climate change oversight, disclosed very little, if any, information on how they manage human rights, and vice versa. This lack of correlation suggests that many automotive manufacturers still consider climate and human rights issues separately, to be addressed independently of each other, despite the fact that they are increasingly recognised as interconnected.”

A brief case study highlight of Tesla states:  “….. when observing the company’s approach to managing human rights, Tesla scores in the bottom third of companies assessed in the CHRB with an overall score of 6.3/100. This approach has come under recent scrutiny, with a 2020 shareholder resolution demanding Tesla improve its disclosures on human rights governance, due diligence and remedy. While the resolution did not pass (24.8% voted in favour), it highlights that even when a company contributes to decarbonisation, a lack of essential human rights policies and processes to prevent abuse of communities and workers cannot be overlooked.”

Related reports:

The WBA  Corporate Human Rights Benchmarking Report for 2020 Key Findings  includes five sectors: Agricultural products, Apparel, Extractives & ICT manufacturing – and for the first time ever, 30 companies in the Automotive manufacturing sector.   The report states: “The average score for automotive companies is 12%, the lowest score ever for a CHRB-benchmarked sector. Two thirds of the companies scored 0 across all human rights due diligence indicators. These poor results suggest implementation of the UNGPs is weak across the sector.”

Twenty-five “keystone” companies in the automotive industry have been benchmarked for their progress towards Paris goals since 2019. Results of the 2020 report are here , and a blog in December 2020 summarizes the results in  “A tale of two automotive companies: sluggish incumbents and opaque disruptors in the race to zero-emissions vehicles”.

 

Australian unions advocating for Just Transition, economic recovery, and decent jobs in renewables

As Australia endures more record-breaking heat in its current summer season, the Climate Council released a report in January:  Hitting Home: the Compounding Costs of Climate Inaction, which catalogues the natural disasters and their toll on the country.  New Climate Change legislation was introduced in November 2020 which would legislate a net zero emissions target by 2050 and establish a system of emissions budgeting.  A Parliamentary House committee has just concluded public hearings on the legislation, to which the Australian Council of Trade Unions (ACTU) submitted a brief:  No-one left behind: Australia’s transition to zero emissions . The ACTU chiefly calls for improved supports for workers in an energy transition, and the establishment of a national Just Transition or Energy Transition Authority . (The ACTU passed a more  detailed climate and energy transition policy statement in 2018  )

In November 2020, the ACTU also published Sharing the benefits with workers: A decent jobs agenda for the renewable energy industry, which provides an overview of the renewable energy sector in Australia, and features both best and worst workplace practices. The report proposes an agenda to improve the quality of jobs, with special attention to the small-scale solar industry. “Particular attention is paid to the current practice of outsourcing construction of renewable energy projects to labour hire contractors, which is where many of the poor employment practices occur, and to ensuring project developers are maximising local job creation through procurement, hiring and local content planning.”  

In August, the Victoria Trades Hall Council, released Transition from Crisis: Victoria Trades Hall Council’s Just Transition & Economic Recovery Strategy  which links climate change and Covid-19 in words that could apply in any country:

“….The scale of the fiscal response to COVID-19 shows that, when a government takes a problem seriously and commits to dealing with it, the finances to get the problem fixed can be found and the spending is supported by the general population. The implications for action on climate change are obvious. …..The trauma, disruption and dislocation caused by COVID-19 are unprecedented outside of war time. The response, with its restrictions of civil liberties and suppression of economic activity, has been necessary, proportionate to the threat, and largely accepted by the population. The deep irony is that acting proportionately to deal with climate change would require none of those infringements of liberties and would produce an economic transformation that would leave Victorians better off. Hence this strategy is not simply for a just transition but for an economic recovery and the reconstruction of Victoria. In the period of recovery, after COVID-19 has been brought under control, we must learn the lessons from the virus response, continue to mobilise the resources we need, build on the incredible growth in community spirit and mutual aid, and get to work to deal with climate change with a determination that is based on hope and necessary action for a better world. “

The Transition from Crisis report has many purposes, but ultimately it is a comprehensive discussion of policy ideas to help the transition to a socially just and sustainable society, with workers at the centre.  The strategy is built on eleven principles, which include inclusion of First Nations, gender equality, social equity, and new energy ownership models, among others.  The report discusses the many ways in which unions can advocate for climate change action and protect their members: through participation in tri-partite industrial planning,  training and retraining, occupational health and safety protection, collective bargaining, and union networking and cooperation. Regarding union cooperation for example,  the VTHC pledges “to participate in, or establish if needed, national and state level just transitions committees to formulate policies around just transition, provide support to individual unions, engage with state climate and environment organisations, and provide a conduit into national-level decision making.”

Just Transition for Pennsylvania estimated to cost $115,000 per worker in latest report from PERI

In the latest of a series of reports titled Green Growth Programs for U.S. States, researchers provide analysis and proposals for economic recovery for Pennsylvania, considering both the impacts of Covid-19 and a necessary transition to a cleaner economy.  In Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for Pennsylvania:  Job Creation, Economic Recovery, and Long-Term Sustainability, Robert Pollin and co-authors estimate that clean energy investments scaled at about $23 billion per year from 2021 to 2030 will generate roughly 162,000 jobs per year in Pennsylvania. They detail those investment programs for sectors including public infrastructure, manufacturing, land restoration and agriculture, and including plugging orphaned oil and gas wells.

The report estimates that 64,000 people are currently employed in Pennsylvania in fossil fuel-based industries – including in fracking for natural gas from the Marcellus Shale regions, as well as other oil and gas projects, coal mining, and fossil fuel-based power generation. As the state transitions away from fossil-fuel industries, the authors estimate that about 1,800 workers will be displaced each year between 2021 – 2030, and another 1,000 will voluntarily retire each year.  The authors estimate that the average costs of supporting these workers will amount to about $115,000 per worker, with an overall cost of about $210 million per year over the duration of the just transition program. The report emphasizes: “It is critical that all of these workers receive pension guarantees, health care coverage, re-employment guarantees, wage insurance, and retraining support, as needed”.

The full series of reports, Green Growth Programs for U.S. States, includes similar analysis and proposals for Ohio, Maine, Colorado, New York, and the state of Washington.  They  are co-written by experts including Robert Pollin,  Shouvik Chakraborty, Heidi Garrett-Peltier, Tyler Hansen, Gregor Semieniuk, and Jeannette Wicks-Lim.  The series is published by the  Department of Economics and Political Economy Research Institute (PERI) University of Massachusetts-Amherst.        

Survey of oil and gas workers shows little knowledge of energy transition

A report commissioned by international union coalition Industriall examines the geopolitics of fossil fuel producing countries (mainly, the United States, China, Europe and Russia) and the investments and performance of the Oil Majors (Chevron, ExxonMobil, Shell, BP, Total, as well as nationally-owned PetroChina, Gazprom and Equinor).  Energy transition, national strategies, and oil companies: what are the impacts for workers? was published in November 2020, with the research updated to reflect the impacts of Covid-19. 

In addition to a thorough examination of state and corporate actions, the report asked union representatives from four oil companies about how workers understand the energy transformation and its impact on their own jobs, and whether the concept of Just Transition has become part of their union’s agenda.     

Some highlights of the responses:

  • “the union members interviewed showed little knowledge about either the risks that the current transition process can generate for the industrial employee, or about the union discussion that seeks to equate the concern with the decarbonisation of the economy with the notions of equity and social justice. In some cases, even the term “Just Transition” was not known to respondents.”
  • Their lack of knowledge regarding the Just Transition can be justified by the fact that they do not believe that there will be any significant change in the energy mix of these companies.
  • Regarding information about energy transitions within the companies, “Managers are included, but the bottom of the work chain is not”
  • Lacking corporate policies or support, some  employees feel compelled to take responsibility for their own re-training

Echoing results of a similar survey of North Sea oil workers in the summer of 2020, published in Offshore: Oil and gas workers’ views on industry conditions and the energy transition, one European respondent is quoted saying: “In the end, everyone is looking for job security, good wages and healthy conditions. It doesn’t matter so much if the job is in another area, as long as it is in good working conditions”.

The researchers conclude that: “Far from being just a statement of how disconnected workers are from environmental issues, these researches reveal a window of opportunity for union movements to act in a better communication strategy with their union members, drawing their attention to the climate issue and transforming their hopes for job stability and better working conditions into an ecologically sustainable political agenda.”

The report was commissioned by Industriall and conducted by the Institute of Strategic Studies of Petroleum, Natural Gas and Biofuels (Ineep), a research organization created by Brazil’s United Federation of Oil and Gas Workers (FUP).