Oil and gas are costing us the earth

ScotE3 will have a stall at the Scottish Trades Union Congress in Aberdeen for 25th – 27th April. We’ve produced a leaflet for the delegates. The text is reproduced here.

Fuel Poverty

Everyone knows that we are in a cost-of-living crisis.  Most of us in Scotland rely on natural gas for cooking and heating and North Sea gas is a guided missile sent into every home in the country which will drive thousands of new people into poverty and will kill the most vulnerable.  Oil and gas producers are making mega profits and demanding money with menaces.  They’ve unilaterally torn up the social contract that they operate under and have weaponised gas.  The 54% increase on 1st April will be followed by another steep rise later this year.  

Before this happened around a quarter of Scots lived in fuel poverty.  As a result of the price rises, hundreds of thousands more will be dragged into a position where they are forced to make impossible choices between food and heating.  The response from the Tories has been derisory. Their so-called Energy Security Plan does nothing to tackle immediate hardship and doubles down on the most expensive energy options for the longer term – nuclear, oil and gas, hydrogen for heating and carbon capture and storage.

Business as usual

There is a simple reason why the Tories have made these choices.  In the face of the climate and cost of living crises they’ve chosen to protect the interests of big oil.  It’s not just that they won’t tax the enormous profits that are being made from North Sea Oil and Gas – it’s that they are following the logic of the oil industry’s ‘North Sea Transition Deal’.  

A phony deal

The Deal aims to continue the exploitation of North Sea oil and gas up to and beyond 2050.  It talks about a net-zero oil and gas basin where the greenhouse gas emissions from the oil and gas would be captured and stored.  This is not going to happen, certainly not in the next few decades, and the consequence will be that the UK will fail to meet its contribution to restricting global temperature rises.  

Maintaining profits – wasting resources

Following the ‘Transition Deal’ drives high-cost energy options at every step and leaves working people to pay the price.   Under the UK government plan, most of the electricity produced by the new nuclear power stations will be required to produce the hydrogen for domestic heating.  Using electricity to produce hydrogen for domestic heating at large scale is hugely inefficient.  Moreover, nuclear produces much more carbon emissions over its lifecycle than wind or solar.

http://www.pixabay.com CC0

The alternative

There is an alternative.  Electricity produced by wind and solar is already much cheaper than that produced by nuclear, oil and gas and the costs of renewables continue to fall.  The money the Tories want to spend on new nuclear is enough to retrofit most homes across the UK – creating jobs, improving health and well-being, and cutting energy demand.  Moreover, an economy based on renewables results in many more jobs than the fossil fuel and nuclear options.

A challenge for the trade union movement

Right now, industry, unions and both the Westminster and Holyrood governments are signed up to the North Sea Transition deal.  It’s time for a decisive shift in policy.  Just transition, indeed arguably any transition that restricts temperature rises to 1.5 degrees, is incompatible with the ‘North Sea Transition Deal’.  

A new policy for the union movement

Tackling the cost-of-living crisis and the climate crisis means breaking the partnership with big oil that is inherent in the Transition Deal and campaigning for an end to the development of new North Sea oil and gas and the rapid planned phase out of existing fields.  Large-scale investment in renewables and a massive programme of retrofitting would result in lower energy prices and reduced carbon emissions.   A serious plan would include support for the oil and gas work force while they transition to new jobs and ramping up options for reskilling, education and training in the new industries.

No more subsidies

The oil and gas industry has been subsidised heavily over the lifetime of the North Sea.  The subsidies must stop.  Working people are suffering because what they pay for energy fuels super profits for big oil and goes into the pockets of the richest in society whose wealth grows as hedge funds speculate on the oil market.  There’s plenty 

of money to pay for an energy transition.

Among the components of a new policy for the workers movement should be: 

Massive investment in wind, solar and tidal energy.

Large-scale expansion of energy storage options.

No more North Sea development. 

Taking the North Sea into public ownership and beginning a planned phase out of production.

Support for oil and gas workers to transition to new jobs.

Regulate energy prices to consumers and tax big oil and the rich to end the cost-of-living crisis.

COP26 gave us a glimpse of the potential power when the workers movement and the climate movement come together.  Together we can win.

About ScotE3

Check out our website at https://scote3.net The resources page includes short briefings designed to be used in the workplace and created under an open license so that you can modify and adapt them providing you acknowledge ScotE3 as the original source of the material.  We are keen to produce more briefings and we’d welcome suggestions for new briefings and updates to existing ones. We can also provide speakers for trade union branch meetings and discussions. 

Come along to our stall and have a chat.

Green Jobs in Scotland – a review

In April the Scottish Trades Union Congress (STUC) published a new report ‘Green Jobs in Scotland’. written by Transition Economics.  The headline finding is that the decarbonisation of the Scottish economy could lead to 367,000 new jobs.  That’s about 16% of the number of workers employed currently in Scotland.  

The jobs message is powerful but it’s not new.  More than a decade ago the ‘Million Climate Jobs’ pamphlet looked at how large numbers of new jobs are essential to the transition to a zero-carbon economy. It estimated that a million new jobs are needed across the UK; scaled by population size this means around 100,000 jobs for Scotland.  This prediction was confirmed by a December 2018 report by the Green European foundation, which provides regional estimates for job creation in Scotland.  Six months later the Sea Change report showed how a planned run down of North Sea Oil and Gas could mean many more, new, skilled jobs in renewables.  The STUC report adds to this body of evidence. However, the challenge remains for trade unionists and climate campaigners alike to take the evidence, make it widely known and build a mass movement to make it happen.  

Green Jobs in Scotland comprises 103 pages of densely packed analysis covering six broad sectors of the Scottish economy.  It’s important to note that it is not a critique of either the Scottish or UK’s policies on climate.  It takes as given, for example, the fact that both governments’ have strategies based on large scale use of carbon capture and storage.  What it does do, sector by sector, is take current targets and policy recommendations and analyse in detail what needs to change for decarbonisation targets to be achieved.  The graphic illustrates how, in the best case scenario, 367,000 new jobs would be distributed across six major industry sectors.  

The report repays careful reading, not just because it provides solid evidence to back up the case for climate jobs, but also because, working within mainstream assumptions about the economy it shines a light on significant dangers along the road to transition.  

The Transition Economics team highlight the inadequacy of current climate action plans and argue that for targets to be achieved the Scottish Government’s timeline to meet its 2045 targets needs to be revised

Scotland’s net zero emissions by 2045 target, decarbonisation has to accelerate.

They also make it clear that, to date, the promise of jobs has been illusory. Indeed, job numbers in the renewable sector have been in decline.  This is a direct result of policies that have relied on the market.  And the report makes it clear, that while with the right policies and funding in place, 367,000 new jobs in the Scottish economy is a possible outcome, without such policies the number of new jobs might be as low as 156,000.  It concludes that 

… it is also possible for Scotland to decarbonise without significant domestic job creation – and that those jobs created could be primarily precarious and under-paid. 

The report gives examples of the consequences of giving free rein to the private sector. For example, in offshore wind and solar 

… employment in renewable energy …has been below standard. Jobs tend not to be unionised, and there have been reports of large multinational energy utilities like EDF trying to avoid unionisation of their (new) renewables divisions, despite union recognition across the rest of the company. The wind power Sector Deal created by the UK Government excludes any provision for trade unions. This adds to significant Health & Safety concerns with wind power, repeated violations, and recent deaths amongst onshore wind workers.

An investigation revealed that migrant workers hired to work on crane ships and guard vessels for offshore windfarm construction and offshore cable-laying sites were paid a fraction of the minimum wage and made to work more than 12 hours a day – both at the Beatrice site and others.  Instead of ensuring acceptable labour standards, the UK government has now repeatedly extended a waiver work for permit requirements in the wind sector to facilitate the employment of foreign crews – raising concerns about poor safety and human rights conditions for migrant workers, as well as concerns about local jobs and training opportunities in the sector.

Throughout, the report assumes that climate projects will be undertaken by the private sector with public participation.  The role for participation is to set policy goals, make investments and provide some level of regulation – legislation on fair work practices for example.  One example that is given notes that there are serious skill shortages in some sectors and recommends a co-ordinated approach to skills provision for the climate transition through the creation of a new public body – Climate Skills Scotland.  The new organisation’s role would be


to play a co-ordinating and pro-active role to work with existing providers (e.g. FE colleges) to quickly roll out the new qualifications required. 

So essentially, public participation means supporting and facilitating the private sector.  But given the track record of the private sector there must be grounds for questioning whether this level of participation is adequate. It’s clearly right to suggest, as the report does, that there is no certainty that the headline figure of almost 400,000 jobs will be achieved, or that jobs will be unionised and provide good pay and conditions.  Even if both Holyrood and Westminster step up the pace and address investment in the projects outlined in the report, the private sector will still be driven by profit maximisation.  That’s why renewable job numbers in Scotland have declined, why renewable projects source production on the other side of the world resulting in massive carbon footprints, and why wage rates and working conditions are driven to the bottom.  Scot.E3 argues that public participation is not enough to ensure that we meet zero carbon targets or to ensure that the jobs that accrue from transition are good jobs.  We need public ownership and democratic control.   

Finally, the report touches upon three areas which, in our view, require urgent attention if Scotland’s roadmap for transition to zero carbon can have any credibility.  The first of these is North Sea Oil and Gas.  Most oil and gas production is not included in Scottish emissions figures or in targets for emissions reductions. The report notes that:

Scotland’s oil and gas output is equivalent to an additional 180.3 MtCO2e when used, more than four times greater than Scotland’s own greenhouse gas emissions [our emphasis].  

These uncounted emissions represent a whole herd of elephants in the room and must be addressed as part of a planned, coordinated and just transition.  This requires a sharp shift from the current policy, espoused by both Holyrood and Westminster, of maximum economic recovery of North Sea hydrocarbons.  It also requires a break with the long-term partnership with big oil which has been cemented over 50 years by massive subsidies from the public purse and is now driving the policy focus on hydrogen production in order to sustain the industries dominant economic position.  

The report is critical of a focus on hydrogen production from oil (blue hydrogen), arguing that it could delay progress with green hydrogen produced by electrolysing water. However, in line with its overall concentration on existing government policy it fails to look at the serious criticisms that have been made of zero carbon plans that foreground hydrogen.  

Finally, the report notes how the private companies contracted to build energy from waste plants have tried to drive through serious cuts in pay and working conditions.  However, it is uncritical of a strategy that requires a continual stream of waste for burning (and thus generating greenhouse gas emissions) for decades to come) and is incompatible with a zero-carbon transition and the Scottish Government’s aspirations for a circular economy.

New Report – Green Jobs in Scotland

A report released today, written by Transition Economics for the STUC shows how the transition to a low or Zero carbon economy could create a large number of new jobs. The report’s findings underline the need for planning, public investment and public control and consequences if these steps are not taken.

New STUC report shows the potential for up to 367,000 green jobs in Scotland. However poor policy choices could see less than 131,000 jobs being created.

Written by Transition Economics, “Green Jobs In Scotland” looks at how energy, buildings, transport, manufacturing, waste, agriculture and land-use need to be decarbonised, and sets out how Scotland can maximise green job creation, as well as fair work and effective worker voice in these jobs. It finds:

  • Energy: The transition to zero-carbon energy could see 30,000 – 95,000 jobs created over 15+years. However, this will require a national energy generation company, local content rules, and upgrades to ports and manufacturing sites. Without policies like this we could see less than 16,000.
  • Buildings: Decarbonising buildings & broadband could see 61,000 – 136,000 jobs created over 10+years, plus a further 22,000 – 37,000 jobs over 3 years in building new social housing. This area holds the greatest potential for job creation but requires billions of investment – including in a street-by-street retrofitting programme run directly by Local Authorities.
  • Transport: Upgrading and expanding transport could see 26,000 – 60,000 jobs over 10+ years with a further 11,000-13,000 ongoing jobs in operations. However, this will require significant investment in municipally run electric buses, railways, shipping, cycle and walking infrastructure etc.
  • Manufacturing and Industry: Heavy industry is particularly hard to decarbonise but 5,000 – 9,000 jobs could be created in steel, CCS and re-manufacturing, while existing employment numbers in chemicals and refining could be protected. However, even achieving this will require investment in plant conversions and an industrial strategy to promote domestic manufacturing.
  • Waste: The circular economy and waste management could provide 17,000 – 23,500 jobs. But this needs policies to boost recycling capacity, improve waste collection, scale up the deposit and return scheme, develop tool libraries, expand reverse logistics services, and expand remanufacturing.
  • Land-Use and Agriculture: Greening land-use and agriculture could create 17,000 – 43,000 jobs over 12+ years. But this requires significant investment in reforestation and rewilding, alongside support for local organic farming and stronger enforcement of labour standards in Scottish agriculture.

The recommendations in the report span UK, Scottish and Local Government, with the scale of public investment required to meet climate targets and potential job levels exceeding what the Scottish Government alone can access under the current financial settlement. However, calls for a more active industrial strategy, far greater levels of public ownership and significant public investment noting that employment in Scotland’s low-carbon and renewable energy economy decreased in 2019.

You can read the full report here.

Building Worker Power

On the Wednesday following the ScotE3 conference on Saturday 16th November the Scottish Trades Union Congress is holding an important event in Glasgow. Contact Louise Ireland, lireland@stuc.org.uk for booking details,

 Building Worker Power in the Context of the Climate Crisis: An STUC Energy Conference

 Wednesday 20th November, 2019

9.00 am – 4.30 pm

The Lighthouse, Mitchell Lane, Glasgow

energy graphic