Green Jobs and Justice

Green jobs and justice in low carbon Wales Acknowledgements The Bevan Foundation gratefully acknowledges the contribution of the Wales TUC towards the costs of undertaking this project. The conclusions, and responsibility for any errors or omissions, are however those of the author. Report Author: Victoria Winckler The Bevan Foundation Innovation Centre Victoria Business Park Festival Drive Ebbw Vale NP23 8XA T: 01495 356702 E: [email protected] W: www.bevanfoundation.org December 2009 The Bevan Foundation is a company limited by guarantee registered in Wales and a registered charity no. 1104191 Contents EXECUTIVE SUMMARY 1 1. INTRODUCTION 3 2. CARBON EMISSIONS IN WALES 6 3. DRIVERS FOR CHANGE 9 4. THE IMPACT ON THE ECONOMY AND EMPLOYMENT 13 5. BUILDING A LOW CARBON ECONOMY IN WALES 19 6. GREEN AND FAIR JOBS IN WALES 26 Annex 1 Measuring Greenhouse Gas Emissions 29 Annex 2 List of documents reviewed 31 References 32 Endnotes 35 EXECUTIVE summary Climate change the amount of energy used, the price of carbon means economic and of other inputs, supply chain and spin off change effects, and the risk of ‘leakage’ overseas. • The evidence on climate change is • In the UK the Welsh economy is the most at risk ‘incontrovertible’ and action is already being of change because of the importance of large taken to reduce greenhouse gas emissions at carbon-emitting industries (e.g. iron and steel) – global, EU and UK levels as well as in Wales and about 18,000 jobs could be affected. locally. • A further 100,000 jobs are in sectors likely to • Changing to a low carbon economy will involve see significant change e.g. power generation, a major restructuring of production and automotive, construction. employment. The key question is who will pay the price of change. • About 20,000 new jobs could be created in new ‘low carbon’ sectors, e.g. renewable energy and Wales will have to energy efficiency, and in existing industries. reduce its greenhouse gas emissions • But the low carbon goods and services sector is relatively weak in Wales compared with the rest • Wales has high levels of emissions per head. of the UK. S E 1 L Industry accounts for more than half of these. A W N The Welsh Assembly O B R • The Welsh Assembly Government is committed A Government has lots C to reducing greenhouse gases by 3% a year in W O of strategies and is L N areas of devolved competence. Non-devolved I taking some action E C I areas are included in the UK target to reduce T but it is not enough S U emissions by 26% by 2020. J D N • The Welsh Assembly Government has produced A S B O • The reductions are being achieved through a large number of strategies and plans on J N E carbon trading schemes, taxation and environmental issues as well as a green jobs E R regulation, and changes in consumer demand strategy. G and habits. Wales is at risk of losing jobs from vulnerable sectors and might not benefit from jobs in new low carbon industries. • Reducing greenhouse gas emissions will mean some jobs will disappear, many will change, and some jobs will be created. • Estimating the impact of change is complex as it depends on the characteristics of the company, • There are many initiatives to promote renewable • Ensure that new green jobs are decent jobs. energy, encourage domestic energy efficiency and sustainable construction, and advise • Recognize the key role of employees in businesses. ‘greening’ workplaces and support a green workplace campaign. • The various strategies could be more joined-up, both with each other and with action on the • Develop support for communities vulnerable to ground. change. • There is a significant gap in strategy and action • Establish a sound evidence base for its low on skills. carbon policies and actions. • There needs to be a more robust evidence base that informs thinking and actions. • There needs to be a firm commitment to a ‘just N transition’ to a low carbon economy. O I T A D N U O F The Welsh Assembly N A V E Government needs B 2 to do more The Welsh Assembly Government should: • Put fairness and job creation at the centre of its climate change and green jobs strategies. • establish a high-level group lead by the First Minister to drive forward the transition to low carbon. • Ensure the green jobs strategy is joined up with other strategies and with action on the ground. • Focus on job creation. • Report progress regularly to Wales TUC and others. • Produce comprehensive action plans to support vulnerable sectors and their workforces. • Urgently address the skills needed for a low carbon future. 1. INTRODUCTION It is now widely known that the evidence on ‘a restructuring of the economy comparable climate change is ‘incontrovertible’, and that the only to the industrial revolution’. costs of action to reduce carbon emissions are Canadian Labour Congress 2001 less than the costs of inaction in the long term. The debate has moved on from whether climate Others have used similarly dramatic terms – change is occurring to how deep and rapid cuts Cedefop (2009, p.1) says the changes are ‘the in carbon emissions need to be. second greatest economic transformation after the industrial revolution’, while the Climate Group The Welsh Assembly Government has pledged to (2007, p.4) also refers to a ‘low carbon economic contribute to global and UK efforts to reduce its revolution’. carbon emissions, through a 3% annual cut in areas of devolved competence. A raft of strategies Whether the change is of such a magnitude or and plans has been produced to achieve these not, previous periods of significant economic reductions, covering everything from energy restructuring have often left ordinary workers, their generation and energy efficiency to waste and families and communities bearing the brunt of transport. change. Large parts of Wales are still paying the price for the rapid shift away from industrial However, the reduction of carbon emissions will production over the last 30 years. The prospect of not only affect the environment: it will have a further large-scale change, without any off-setting major impact on the economy employment too. action, would not only be morally wrong and S E 3 L More than nine years ago, the Canadian Labor socially damaging, but it could also reduce public A W Congress likened the change that was likely to and workers’ support for tackling climate change. N O B R occur as: A C W O L N I E C I T S U J D N A S B O J N E E R G The Canadian Labour Congress and other labour • The second is that workers and communities and trade union organizations, including the TUC, should be actively involved in the process of have argued that the burden of adjusting to a low change. Not only is this a matter of fairness but carbon future must not be borne solely by it also enables transition to be faster and more workers and their communities (Canadian Labour efficient. Congress, 2001; TUC, 2008). They have stressed that the transition to a low carbon, sustainable • The third is that a just transition can have economy must be ‘just’ – and so the term ‘just additional benefits for the wider economy, transition’ has been coined to embrace the idea. through long term planning, research and Three key ideas underpin a ‘just transition’: development and the reduction of poverty and social exclusion. • The first is that workers and communities should not bear the brunt of change. In terms of These ideas have been developed into a set of employment, it is not clear whether there will be principles for the UK, which are shown in Figure 1. a net loss or gain of jobs but there will undoubtedly be ‘job churn’, with new jobs not Although the idea of a ‘just transition’ has gained necessarily being the same type or in the same some international currency, it has been marginal location as old jobs. A just transition would to discussion in the UK until very recently. mean that job loss is minimized, new jobs have However, the recent UK government’s low carbon decent terms and conditions, and that workers industrial strategy (Department for Business, and communities are helped with change. Innovation and Skills, 2009) makes a commitment Figure 1 Just Transition principles 1. Meaningful environmental transition and sustainable development N O I Environmental transition is both inevitable and desirable. Environmental degradation is one of the most serious T A D N threats facing humankind; all sections of society need to work together to prevent further damage to the planet’s U O F natural ecosystems. N A V E B 4 2. Representation and employee involvement It is essential that all sections of society have their perspectives voiced, considered and defended in decision- making bodies dealing with environmental transition. This includes representation at a variety of levels, from seats on national policy-making fora to involvement in more specific local negotiations, such as those surrounding environmentally triggered plant closures. 3. Stable employment and long-term planning A key element in ensuring a Just Transition is the long-term planning necessary to achieve stable employment. This does not just involve keeping individuals in work: it also includes preserving job equity, and ensuring that pay, conditions and health and safety do not suffer as a result of the changes that occur. At the heart of the Just Transition concept is recognition that ensuring social justice in the transition to a low carbon economy cannot be based on the vain hope that the market alone will provide.

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