Safeguarding the UK’s manufacturing jobs with climate action: carbon leakage and jobs is a September Briefing paper from the U.K. Trades Union Congress. The report estimates that between 368,000 – 667,000 jobs could be offshored from Britain if industries fail to meet climate targets and the UK falls behind other countries on climate action. The regions most at risk are the North West, Yorkshire and the Humber, and West Midlands; the industries with most jobs at stake are: iron and steel , glass and ceramics, and chemicals. The report outlines the actions needed to “future proof” British jobs, specifically: 1. Public investment, which the report states is too low, stating that the UK’s green recovery investment plans are just a quarter (24%) of France, a fifth (21%) of Canada, and 6% of the USA’s plans (when adjusted for population size). 2. Clear policies on decarbonisation across the economy – aligning actual plans with targets; and 3. Rules on local content – specifically, a local content requirement for offshore wind of at least 80%, with local supply chain commitments required and stringently enforced for all energy and infrastructure projects. In addition to the call for beefed-up local content requirements, the report calls on the government to: Implement the Green Jobs Taskforce recommendations in full; Level up investments in green infrastructure, including industrial decarbonization, in line with its G7 peers, extending to 2030; Establish a Just Transition Commission, including representation from employers and unions, to oversee the workforce aspect of the transition to Net Zero; • Introduce a permanent short-term working scheme to help protect working people through periods of future industrial change.
An article in North American Wind Power discusses the new FIT program and concludes that wind power projects will suffer. He notes, “As long as the Small FIT cap remains at 500 kW, the FIT program is no longer accessible to wind developers, except for those using small-scale turbines”, and “The greater latitude given to municipalities in the location and siting of wind farms may make permitting more difficult for developers and preclude the siting of wind farms in municipalities that have a strong anti-wind bias.”
Ontario Power Authority FIT 3.0 documents are available at:http://fit.powerauthority.on.ca/newsroom/october-9-2013-FIT-3-final-documents, with an August 16, 2013 background document about Domestic Content Regulations at:http://fit.powerauthority.on.ca/newsroom/august-16-2013-program-update, and the Minister’s Letter of Direction at:http://powerauthority.on.ca/sites/default/files/page/DirectionAdministrativeMatters-renewables-Aug16-2013.pdf
Local Content Requirements and the Renewable Energy Industry – A Good Match? By Jan-Christoph Kuntze and Tom Moerenhout is available at: http://ictsd.org/i/publications/165193/?view=details
The World Trade Organization has upheld its original decision and ruled that the domestic content regulations of Ontario’s Green Energy Act violate international trade law. Existing contracts signed under the Act will continue, but the WTO decision calls for the Green Energy Act to be amended to remove the requirement for local production in future renewable energy contracts. “Ontario loses final WTO appeal on Green Energy Act” by Shawn McCarthy, Globe and Mail (May 6) is at http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ontario-loses-final-wto-appeal-on-green-energy-act/article11731010/ .
A summary of the WTO proceedings, including a link to the review decision (file #WT/DS412), in English and French is available from the WTO at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds412_e.htm . The Council of Canadians reaction is at “Ontario urged to defy unreasonable WTO ruling against Green Energy Act” at http://www.canadians.org/media/trade/2013/06-May-13-2.html , and the United Steelworkers union also urges Ontario to continue to fight, stating that “This is just the latest example of trade agreements being used to override our sovereignty and our freedom to implement environmental and economic development initiatives.” (see press release at http://www.newswire.ca/en/story/1159683/wto-ruling-must-not-end-fight-for-green-jobs-steelworkers ).
The Ontario Ministry of Energy has not yet made a formal response to the decision; however, in a related announcement on May 6th, it announced a 6-month review of the regional energy planning process to be more inclusive of municipal and local input. (See http://news.ontario.ca/mei/en/2013/05/new-ontario-government-strengthens-energy-planning.html ).