Pushing for a New Sustainable Deal for Europe

Answering the environmental crisis and jobs crisis

Judith Kirton-Darling12-13 February 2013

Unsustainable Development

• Current situation is unsustainable at European and global levels:• Economically: a banking system that does not function properly, is

unable to guarantee the necessary investments and is further promoting speculation

• Socially: high unemployment – highest recorded levels globally (26 million in Europe : 1/5 of young workers on average, to 45% of Spanish young workers) – ½ global workforce working in insecure conditions. Environmental degradation is increasing social inequalities between and within countries.

• Environmentally: global committments are too weak offering no means to avoid a 2°C increase by 2100 (IPCC). Currently we are on-line for at least 4°C increase globally, with the associated loss of biodiversity, increased threat to human development and increased conflicts.

Green Economy- four ways?

• Reduce, reuse and recycle, including making all production green, may be the panacea – a market liberal view. Worst case: green-washing and greening greed

• De-growth or a critical approach to the system of economy, based on what is know as hard sustainability

• Distributive growth, tries to look at SCP in a ‘frugal’ way

• Global transition – incremental change with strengthening key institutions

Action on climate has jobs impact

Source: Eurofound 2013

Austerity can’t deliver

• Austerity measures will not build a greener, fairer Europe or world. They will not deliver the jobs and skills, nor the fair and just transition to a sustainable economic future vital for us all.

• To tackle the triple challenges of climate change, resource depletion and the banking crisis, we need a sustainable new deal, with investment in energy- and resource-efficiency, greening jobs, greening skills and above all, worker involvement.

• Key elements at European level and internationally:– Framework on GHG emissions reductions: Ambitious reduction targets for

domestic GHG emissions (respecting IPCC analysis: -25 to -40% by 2020 for developed countries on 1990 levels to reach -80 to -95% by 2050)

– Financing framework: Green Climate Fund, FTT etc. – Framework for Just Transition– Resource-efficiency framework?

New functions for the state and public services

– Liberal state: core functions were economic– Welfare state: social core functions were

added to the economic functions– Environmental state: sustainable functions

are included (supporting sustainable infrastructure, consumption, taxation)

Financing the transformationThe Commission estimates investments of €270 billion/per year are necessary to achieve

a reduction of 80 to 95% by 2050 in Europe (1.5% GDP additional investment (total19% GDP)).

Internationally:• Stern report (2006): 1% global GDP in additional investment• UNEP (2011): US$1.05-$2.59 trillion a year• IEA: US$46 trillions or US$750 billion a year between 2010-2030 and US$1.6 trillions

a year between 2030-2050• Bloomberg New Energy Finance (2010): additional investments in clean energy of

US$500 milliards a year by 2020 to achieve 2°C max increase by 2100. • McKinsey (2008): €500-€1.100 billion by 2030

In comparison: in 2009, US$312 billion in fossil fuel subsidies vs.US$57 billion in renewable energies

Or, the IMF says that rich countries have provided $9.2tn in government support for the financial sector in credit crunch, while emerging economies spent $1.6tn

Source: Redefine/Greens-EFA 2011

Reorient existing funds and look at innovative solutions

• Internationally, developed countries committed to mobilize US$100 billion a year to 2020. It’s time to put promises into practice:

• The Green Climate Fund should be adequately funded and should become operational• $100bn should be based on public money (ensures predictability, geographical balance)• Climate finance must be additional to Overseas Development Aid (ODA) existing

commitments

• At European level we need to:• Mobilise and reinforce existing financial resources such as: through the EU

budget (20% target), through European Investment Bank and European Bank for Regional Development.

• Reform the governance of funds and loans, notably through respect for social rights and conventions (ILO labour standards, UN human rights charter) and environmental standards as a precondition for financing projects

• Generate new sources of revenue through a Financial Transaction Tax, Eurobonds and Project bonds, as levers for private capital investment

• Create a carbon price signal through CO2 taxation (with conditions)

Giving the right economic signals

• A means of improving competitiveness while reducing some labour costs and promoting energy- and resource-efficiency

• Need to ensure effective financing for social protection systems so not a direct conversion

• Polluter-pays principle: need to internalise the external social and environmental costs in calculations of investment risk

What is « Just Transition »? « Just transition and the promotion of decent work » were included for the first

time in a climate agreement in Cancun and Just transition is now an important dimension of the UN Climate regime – now these should be applied through a European Just Transition Roadmap 2050 to accompany long-term climate and energy policies

For the ETUC there are 5 pillers to a Just Transition:• Regulation not market alone• Dialogue between governments and key actors, including social partners.

The respect of human and trade union rights: democratic participation and the respect of these rights are essential to ensure a fair deal for workers and their communities

• Creation and maintenance of decent green jobs through investment in low-carbon technologies, R&D, innovation under the umbrella of coherent and coordinated industrial policies, including a strong public policy framework

• Active training and education strategies ensuring workers are able to prepare themselves for the transition to greater energy- and resource-efficiency

• Strong and effective social protection systems

Jobs must be at the centre of policy For ETUC, all sectors have a role to play (ETUC studies

2007/2009/2011/2012) Green jobs span a wide range of occupational profiles, of skills

and educational backgrounds. Some constitute entirely new types of jobs but most build on traditional professions and occupations, with more or less modified job contents and competences

Even in the case of new industries and technologies, such as wind and solar power generation, the supply chains consist largely of traditional industries like iron and steel and the manufacture of machine parts

There is evidence of the potential for greening jobs across the entire workforce, from green collar workers through skilled workers, craftsmen and entrepreneurs to highly qualified technicians, engineers and managers.

Job creation depends on the regulatory framework

More precarious work cannot produce sustainable green jobs

• Green jobs are not necessarily decent jobs – they must be made decent jobs:– Secure employment– Safe working environments– Investment in training and education– Labour and trade union rights and worker involvement

• Improved competitiveness can and should be reached by other means than by pressing labour costs: e.g. R&D, innovation and their financing; energy efficiency; industrial policies; technological platforms

• Better compensated jobs tend to be of better quality: wages are not the enemy-they are the engine of our economies

A rights & organising agenda: key role for energy- and resource efficiency at the workplace

• Workplaces (& transport to work) 50% of EU GHG emissions, changing workplace attitudes means engaging with workers, engaging with corporate/workplace strategy but has the added benefit of changing behaviour outside the workplace. The ETUC is pushing for:• EU and national binding targets on energy efficiency and energy

savings (new law fixes limits to 2020) • New and extended rights for shop stewards in health and safety and

environmental matters• Supporting initiatives through training programmes and financing

measures• Managing and anticipating skills and jobs developments through social

dialogue• Reinforcing the principle that building a low-carbon economy means

improving existing skills much more that creating specific ‘green skills’• Reinforcing the capacity of workers in all jobs and sectors to get

involved and play their role: on the offensive not on the defensive!• ETUC Green Workplaces agenda

Ensuring the finance and Just Transition: setting the right domestic targets

• ETUC has been calling for European leadership in the face of the threat of a double dip recession, but we also need leadership internationally in UNFCCC

• Europe should promote a New Sustainable Deal together with more ambitious climate and energy targets, based on binding energy efficiency targets, to ensure sustainable growth, investment in infrastructures and public services, and investor engagement

• We should get too fixated on the short-term of 2020 but should be thinking about what is necessary to reach the goals of 2050, according to the Commission that means:• 2020: 25-30%• 2030: 40%• 2040: 60%• 2050: 80% (plus 15% external action) = 95%

Thanks for listening!

Judith Kirton-Darling

www.etuc.org

References

“Climate change and employment” 2007

“Climate disruptions, new industrial policies and ways out of the crisis” 2009

http://www.etuc.org/a/7585http://www.etuc.org/a/3675

Impact of climate change on employment and measures to reduce CO2 emissions in the European Union 25 by 2030

ETUC 2010 brochure available at this address: www.etuc.org/a/6789

Recent resolutions and positions of the ETUC

• Resolution on climate change, new industrial policies and ways out of the crisis (2009)http://www.etuc.org/a/6595

• Position on the financing and management of climate policies (2010)http://www.etuc.org/a/7396

• Resolution “A sustainable new deal for the ETUC and with a view towards the Cancun summit” (2010)http://www.etuc.org/a/7744

• Resolution on the energy strategy for Europe 2011-2020 (2010)http://www.etuc.org/a/7953

• Resolution on COP17 and Durban (October 2011)http://www.etuc.org/a/9159

• Resolution on Rio+20: Strengthening the social dimension of sustainable development (October 2011)http://www.etuc.org/a/9162

• Resolution “Putting just transition into action in Europe and globally: ETUC position towards Qatar COP18” (June 2012)http://www.etuc.org/a/10041

• ETUC resolution on the efficient use of natural resources (December 2012)http://www.etuc.org/a/10652

Our Green Workplace guides: http://www.etuc.org/a/10376 (shopfloor) & http://etuc.org/a/9751 (union officers)