Proposals for a green transition that is just and inclusive in Ontario

decent_work_in_the_green_economy-coverDecent Work in the Green Economy, released on October 11 , combines research on green transitions worldwide with the reality of  labour market trends in Ontario, and includes economic modelling of  Ontario’s cap and trade program, conducted by EnviroEconomics and Navius Research.  The resulting analysis identifies which sectors are expected to grow strongly under a green transition (e.g. utilities and waste management and remediation),  which will see lower growth (e.g. petroleum refining and petrochemical production), and which will see a transformation of skills requirements (e.g. mining, manufacturing, and  forestry). Section 3 of the report discusses the impacts on job quality (including wages, benefits, unionization, and job permanence), as well as skills requirements.  The general discussion in Section 3 is supplemented by two detailed Appendices about the employment impacts by economic sector,  and by disadvantaged and equity-seeking groups (which includes racialized workers, Indigenous people, workers with disabilities, newcomers, women, and rural Ontarians.) A final  Appendix describes the modelling behind the analysis, which projects employment impacts of low carbon technologies by 2030.

The paper calls for a comprehensive Just Transition Strategy for Ontario, and proposes  six core elements illustrated by case study “success stories”.   These case studies include the Solar City Program in Halifax, Nova Scotia, (which uses local supply chains and accounted for local employment impacts), and the UK Transport Infrastructure Skills Strategy (which incorporated diversity goals and explicit targets in workforce development and retraining initiatives).  An important element of the recommended Just Transition Strategy includes a dedicated Green Transitions Fund, to transfer funding for targeted programs to communities facing disproportionate job loss; to universities or colleges to provide specialized academic programs; to social enterprise or service providers to carry out re-training programs; to directly impacted companies to invest in their employees; and to individuals in transition (much like EI payments).

The authors also call for better data collection to measure and monitor the link between green economy policies and employment outcomes, and better mechanisms for regular, ongoing dialogue.  This call for ongoing dialogue seems intended to provide a role for workers (and unions, though they are less often mentioned). The authors state: “No effort to ensure decent work in the green economy will be successful without meaningfully engaging workers who are directly impacted by the transition, to understand where and how they might need support. Just as important will be the ongoing engagement with employers and industry to understand the changing employment landscape, and how workers can best prepare for it.” And, on page 39,  “Public policy will be a key driver in ensuring that this transition is just and equitable. …. Everyone has a role to play in this transition. Governments, employers, workers, unions and non-profit organizations alike must remember that if we fail to ensure that the green transition is just and inclusive, we will have missed a vital opportunity to address today’s most pressing challenges. But if we design policies and programs that facilitate this transition with decent work in mind, they have the potential to benefit all Ontarians.”

Decent Work in the Green Economy was published by the  Mowat Centre at the University of Toronto, in cooperation with the Smart Prosperity Institute at the University of Ottawa.  In addition to economic modelling, the analysis and policy discussion is based on an extensive literature review as well as expert interviews and input from government, industry, labour and social justice representatives. Part of the purpose of the report is to initiate discussion “between those actively supporting the transition to a green economy and those advocating for decent work” as defined by the ILO.  Further, the report states: “ Importantly, this conversation must address the need for equal opportunities among historically disadvantaged and equity-seeking groups who currently face barriers to accessing decent work.”

International action on Just Transition: what’s been accomplished, and proposals for the future

ituc logoJust Transition – Where are we now and what’s next? A Guide to National Policies and International Climate Governance  was released on September 19 by the International Trade Union Confederation, summarizing what has been done to date by the ITUC and through  international agencies such as the  ILO, UNFCCC, and the  Paris Agreement.  It also provides short summaries of some transition situations, including the Ruhr Valley in Germany, Hazelwood workers in the LaTrobe Valley, Australia, U.S. Appalachian coal miners and the coal mining pension plan, Argentinian construction workers, and Chinese coal workers.  Finally, the report calls for concrete steps to advance Just Transition and workers’ interests.

The report defines Just Transition on a national or regional scale, as  “an economy-wide process that produces the plans, policies and investments that lead to a future where all jobs are green and decent, emissions are at net zero, poverty is eradicated, and communities are thriving and resilient.” But the report also argues that Just Transition is important for companies, with social dialogue and collective bargaining as key tools to manage the necessary industrial transformation at the organizational level.  To that end, the ITUC is launching “A Workers Right To Know” as an ITUC campaign priority for 2018, stating, “Workers have a right to know what their governments are planning to meet the climate challenge and what the Just Transition measures are. Equally, workers have a right to know what their employers are planning, what the impact of the transition is and what the Just Transition guarantees will be. And workers have a right to know where their pension funds are invested with the demand that they are not funding climate or job destruction.”

The ITUC report makes new proposals. It calls on the ILO to take a more ambitious role and to negotiate a Standard for Just Transition by 2021, carrying on from the Guidelines for a just transition towards environmentally sustainable economies and societies forAll  (2015).   The ITUC also states “expectations” of how Just Transition should be given greater priority in the international negotiation process of the United Nations Framework Convention on Climate Change (UNFCC), so that:  Just Transition commitments are incorporated into the Nationally Determined Contributions (NDCs) of countries; Just Transition for workers becomes a permanent theme within the forum on response measures under the Paris Agreement, and Just Transition is included in the 2018 UNFCCC Facilitative Dialogue. It also calls for the launch of a “Katowice initiative for a Just Transition” at the COP23 meetings to take place in Katowice, Poland in 2018, “to provide a high-level political space”.  Finally, the ITUC calls for expansion of the eligibility criteria of the Green Climate Fund to allow  the funding of Just Transition projects.

Just Transition – Where are we now and what’s next? is a Climate Justice Frontline Briefing from the International Trade Union Confederation, with support from the Friedrich Ebert Stiftung and is based upon Strengthening Just Transition Policies in International Climate Governance by Anabella Rosemberg, published as a Policy Analysis Brief by the Stanley Foundation in 2017.

Other Just Transition News:  In Calgary in September, the  Just Transition and Good Green Jobs in Alberta Conference took place, sponsored by BlueGreen Alberta, with updates on national and provincial developments and with a global perspective from Samantha Smith, Director of the ITUC’s Just Transition Centre as the keynote speaker.  A companion event, the 3rd Annual Alberta Climate Summit, hosted by the Pembina Institute and Capital Power,  also included a session on  “Just Transition: Labour and Indigenous Perspectives” which featured Andres Filella (Metis Nation of Alberta), Samantha Smith(Just Transition Centre) and Heather Milton-Lightening ( Indigenous Climate Action Network).

In advance of these events, the Alberta government had announced  on  September  11  the launch of  the Coal Community Transition Fund to assist Alberta communities impacted by the mandated coal-phase out in the province.   Municipalities and First Nations can apply for grant funding to support economic development initiatives that focus on regional partnerships and economic diversification.  Further funding is anticipated from the federal government, with retraining programs also expected after the Advisory Panel on Coal Communities  provides its recommendations in a report to the government, expected this fall.

Just Transition for the coal industry is expensive – but cheaper than failure to address the needs

July 2017 saw the release of  Lessons from Previous Coal Transitions:  High-level Summary for Decision-makers , a synthesis report of case studies of past coal mining transitions in Spain, U.K., the Netherlands, Poland, U.S., and the Czech Republic – some as far back as the 1970’s.  Some key take-aways from the report:  “Because of the large scale and complexity of the challenges to be addressed, the earlier that actors (i.e. workers, companies and regions) anticipated, accepted and began to implement steps to prepare and cushion the shock of the transition, the better the results”; “the aggregate social costs to the state of a failure to invest in the transition of workers and regions are often much higher that the costs of not investing from an overall societal perspective.” While the level of cost details varies in the case studies, it is clear that costs are significant.  For example, the case study of Limburg, Netherlands states that the national government spent approximately 11.6 billion Euros (in today’s prices) on national subsidies to support coal prices and regional reconversion, in addition to  several 100 million per year in EU funds. “One estimate also suggested that in the Dutch case, all told, regional reinvestment in new economic activities also cost about 300 to 400 000€/per long-term job created.”  Limburg is also cited as “remarkable for the relatively consensual nature of the transition between unions, company and government.”  (see page 10).

The Synthesis report and individual case study reports of the six countries are available here . These are the work of the Research and Dialogue on Coal Transitions project, a large-scale research project led by Climate Strategies and the Institute for Sustainable Development and International Relations (IDDRI) , which also sponsors the Deep Decarbonization Pathways Project.  Future reports scheduled for 2018: a Global report, and a Round Table on the Future of Coal.

U.K. Unions call for Transformative Transition and Energy Democracy

The Public and Commercial Services Union of the U.K. (PCS), with 180,000 civil service members, chose its annual delegate conference in late  May  to release  Just transition and Energy Democracy,  a thorough discussion of climate change impacts and solutions, which argues that “Far from being a distraction, climate change can reinforce trade union organisation, show their contemporary relevance particularly to young members, and start to place trade unions at the very centre of the crucial and urgent debate about what we mean when we talk of a just transition.”    The paper argues for energy democracy as a fundamental right, and  references a 2016 report  Public ownership of the UK energy system – benefits, costs and processes , which states that energy democracy is necessary for the development of renewable energy and financially possible to achieve .  Just Transition and Energy Democracy  sets out a framework for the public sector role in this energy transition, and states, “For PCS therefore we advocate that a just transition is also a transformative process for economic and social justice, going beyond market based solutions and negotiation within a framework of green capitalism.” In the transformative scenario a just transition “will address the inherent inequality and injustice of the capitalist system”.  Step one in the process would be the  creation of a National Climate Service similar to the U.K.’s National Health Service (NHS), to ensure there is a body to create the jobs needed to lower greenhouse gas emissions.

The University and College Union (UCU) also debated and carried a resolution     concerning climate change and Just Transition at its convention in June, and adopted a  resolution to take to the TUC conference in September, enumerating actions, including support for energy democracy.

Jeremy_Corbyn_speaking_at_the_Labour_Party_General_Election_Launch_2017

Photo by Sophie Brown, from Wikipedia Commons

Reaction of unions to the surprise Labour surge in the U.K. election is summarized in the June/July newsletter of the Greener Jobs Alliance.  All cite the importance of the Labour Party manifesto, For the many, not the few ,  which included proposals for energy democracy through publicly owned, locally accountable energy companies and cooperatives. It also proposed an industrial and skills strategy to drive investment in electric vehicles, home insulation, new low carbon technologies for heavy industries like steel, and a ban on fracking.

$1.5 billion will buy new renewable energy projects, good green jobs, and environmental justice in New York State

On  June 2, New York Governor Andrew Cuomo announced that his state would invest $1.5 billion in renewable energy projects through the Clean Climate Careers Initiative.  The program has three elements:  “supercharge” clean energy technologies, create up to 40,000 clean energy jobs by 2020, and  achieve environmental justice and Just Transition for underserved communities. Both the Governor’s press release and one from the Worker Institute at Cornell University Industrial and Labor Relations School attribute the inspiration for the new renewable energy initiative to the  “Labor Leading on Climate” program at the Worker Institute.

The  Institute has just published Reversing Inequality, Combatting Climate Change: A Climate Jobs Program for New York State (June 2017),  in which Lara Skinner and  co-author J. Mijin Cha argue for an “audicious”  job creation plan which would create decent green jobs in the building, energy, and transport sectors.  The report provides case studies and specific proposals to reduce GHG emissions – for example, to retrofit all public schools in the state to reach 100 percent of their energy efficiency potential by 2025, reduce energy use in all public buildings by 40 percent by 2025, install 7.5 GW of offshore wind by 2050,  rehabilitate New York City public transit, and construct and improve the existing high-speed passenger rail corridor between Albany and Buffalo, and between New York City and Montreal.  The report also includes a recommendation to establish a Just Transition Task Force – a recommendation incorporated in Governor Cuomo’s plan.

In the plan announced  by Governor Cuomo, $15 million has been committed “to educators and trainers that partner with the clean energy industry and unions to offer training and apprenticeship opportunities, with funding distributed to the most innovative and far-reaching apprenticeship, training programs and partnerships.  ”  The state is also committed to the use of a Project Labor Agreement framework for the construction of public works projects associated with the initiative.

A Working Group on Environmental Justice and Just Transition has been appointed and staffed, with a first meeting scheduled for June.  It will advise the administration on the integration of environmental justice principles into all agency policies, and to shape existing environmental justice programs.  The press release includes endorsements from the NYC Environmental Justice Alliance and unions, including: Greater New York Building Construction Trades Council, New York State AFL-CIO, New York City Central Labor Council, AFL-CIO, IBEW Local 3, Transport Workers Union, Utility Workers Union Local 1-2,  United Association Plumbers & Pipefitters, and the past Secretary Treasurer of Service Employees International Union.

Governor Cuomo’s  Renewable Energy initiative was announced one day after Donald Trump’s  withdrawal from the Paris Climate Accord, and after the Governor had signed an Executive Order  reaffirming New York’s  commitment to the Paris goals, and had launched a Climate Alliance with the states of California and Washington.