Pushing for a New Sustainable Deal for Europe Answering the environmental crisis and jobs crisis

1. Pushing for a New Sustainable Deal for EuropeAnswering the environmental crisis and jobs crisis Judith Kirton-Darling 3 April 2012

2. 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 (24 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: although Cancun saw 2 biggest GHG emitters come to the table and make committments for 2020 (USA/China), global committments are too weak offering no means to avoid a 2°C increase by 2100 (IPCC). Currently we are on-line for a 4°C increase globally, with the associated loss of biodiversity, increased threat to human development and increased conflicts.

3. Maurice Strong: initiator of Earth Summit 1992 “2012 must go well beyond the environmental and sustainable development communities to include the principal policy and decision-makers on the range of systemic issues that will determine the future and sustainability and security of life as we know it. 2012 may indeed be the last opportunity we have to achieve such ambitious but necessary goals before the risks we face become irreversible. ”

4. International and European sustainable development agendas • Globally • Rio+20 (June 2012) • Qatar COP18 (December 2012) • Cooperation with ITUC • Bilateral relations • SustainLabour • EU tripartite relations (US, Canada, China) • European • Roadmap 2050 • Transport White Paper • Energy Efficiency Directive • Resource Efficiency Roadmap • Energy Roadmap • High Level Working Group/Social Dialogue/Spring Alliance

5. Green Economy- four ways? • Reduce, reuse and recycle, including making all production green, may be the panacea – a market liberalistic 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

7. 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: Global Green Fund, FTT etc. • Framework for Just Transition • Resource-efficiency framework?

8. 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)

9. Financing the transformation The 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)). German government estimates investment of 22% GDP needed to achieve -30% by 2020. 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 $1.6 tn Source: Redefine/Greens-EFA 2011

10. Reorient existing funds and look at innovative solutions • Internationally, a Green Investment Fund (created at Copenhagen) should be launched now, with US$100 billion a year to 2020, and should be complementary to Overseas Development Aid (ODA) – squabbles are on-going in advance of Durban • At European level we need to: • Mobilise and reinforce existing financial resources such as: through the EU budget, Strcutural Funds in the current 2007-13 framework, use of European Investment Bank and European Bank for Regional Development, and address the Multi-Annual Financial Framework 2013-2020 • 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)

11. 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

12. What is « Just Transition »? « Just transition and the promotion of decent work » were included for the first time in a climate agreement in Cancun – 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: • Dialogue between governments and key actors, including social partners • 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 • 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 • Strong and effective social protection systems

13. Jobs must be at the centre of policy • For ETUC, all sectors have a role to play (ETUC studies 2007/2009/2011) • 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 green jobs across the entire workforce, from green collar workers through skilled workers, craftsmen and entrepreneurs to highly qualified technicians, engineers and managers.

14. More precarious work cannot produce sustainable green jobs • Better compensated jobs tend to be of better quality: wages are not the enemy • Improved competitiveness can and should be reached by other means than by lowering labour costs : R&D and innovations and their financing; energy efficiency; industrial policies; technological platforms • Greening => improvements of energy efficiency => decrease in energy bills => improvement of productivity => decrease of ULC=> better competitiveness • Increasing job quality => increasing jobs satisfaction => increases of productivity=> better competitiveness

15. A 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 of -20% by 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

16. Economic crisis has reduced price of EUAs and created surpluses: the arguments to increase our EU target Source: European Commission 2011

17. Ensuring the finance and Just Transition: setting the right domestic target • 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 (& Rio+20) • 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% efforts à l’extérieur de l’Europe) = 95%

19. Merci pour votre attention ! Judith Kirton-Darling www.etuc.org

20. Références « Changement climatique et emploi » 2007 « Les dérèglements climatiques, les nouvelles politiques industrielles et les sorties de crise » 2009 http://www.etuc.org/a/7585 http://www.etuc.org/a/3675 Impact sur l’emploi du changement climatique et des mesures de réduction des émissions de CO2 dans l’Union européenne à 25 à l’horizon 2030

21. Brochure 2010 de la CES disponible à l’adresse : www.etuc.org/a/6789

22. Résolutions et positions récentes de la CES Résolution sur le changement climatique, les nouvelles politiques industrielles et les sorties de crise (2009) http://www.etuc.org/a/6595 Position sur le financement et la gestion des politiques climatiques (2010) http://www.etuc.org/a/7396 Résolution « Un nouveau deal durable pour la CES et dans la perspective du sommet de Cancun » (2010) http://www.etuc.org/a/7744 Résolution sur la stratégie énergétique pour l’Europe 2011-2020 (2010) http://www.etuc.org/a/7953