By DON McINTOSH, Associate Editor
Global warming isn’t coming. It’s already here.
From floods to forest fires, droughts to melting permafrost, rising
global average temperature is having an impact. The scientific consensus
is that human activity is contributing by increasing the amounts
of so-called “greenhouse gases” in the atmosphere. Greenhouse
gases exist in small concentrations in the atmosphere but have big
impacts on temperature. Carbon dioxide (CO2) is the best-known greenhouse
gas, but there are others, including methane and nitrous oxide.
The Intergovernmental Panel on Climate Change, a scientific body,
was formed by the United Nations in 1988 to study the risk of human-caused
climate change. Its latest report, in 2007, notes the observed increase
in global temperatures in the last half century, parallelling the
increase in greenhouse gas concentrations in the atmosphere. Temperatures
have risen about 1 degree Fahrenheit since the mid-20th century,
while CO2 concentrations have risen to 380 parts per million (ppm)
from 315 ppm in 1960.
There’s a special urgency to reduce the amount of greenhouse
gases being added to the atmosphere because of concern about a possible
tipping point, where increased temperatures themselves lead to additional
releases of greenhouse gases. For instance, hotter, drier forests
would be more likely to burn, releasing even more CO2 and reducing
the forests’ ability to convert atmospheric CO2 into oxygen.
Higher temperatures could also speed up the already melting Alaskan
permafrost and the vast Siberian peat bogs, which could result in
further release of CO2 and methane, a more potent greenhouse gas.
There’s a lot of scientific uncertainty about when a tipping
point would be reached, but the international community is hoping
that by limiting CO2 concentration to below 500 ppm (and temperature
increase to 3.6 degrees Fahrenheit over current levels), it can
be averted.
The reason you’re reading about this in a labor union newspaper
is that there are a lot of measures societies can take to achieve
the targeted reductions in greenhouse gas emissions, and which ones,
and how, will have major impacts on workers throughout the economy.
Some industries will be endangered, some will be transformed, and
some will see tremendous growth.
The United States is the world’s largest emitter of greenhouse
gases, adding an estimated 7.2 billion tons of CO2 equivalent to
the atmosphere in 2005 — about 22 percent of the world’s
total. Part of it is driving: The average American uses 500 gallons
of gas a year to drive 12,000 miles, producing five tons of carbon
dioxide. But electricity generation, industry, farming, and residential
use of fossil fuels also contribute. U.S. greenhouse gas emissions
are on track to increase one-third by 2030, but that trend will
have to turn around if the world is to limit CO2 to 500 ppm.
Government can limit greenhouse gas emissions by regulation, or
discourage emissions indirectly by taxing them (the so-called “carbon
tax” proposal). But a third approach is the one that is gaining
the most political support. It’s known as “cap and trade.”
Under a cap-and-trade system, the government sets a limit or “cap”
on the volume of greenhouse gases that certain sectors of the economy
would be allowed to emit, and issues a permit for each unit of those
emissions. Each year, the number of permits — and thus allowable
greenhouse gas emissions — would be ratcheted down. The government
would give or auction off the permits to emitters, and emitters
could trade the permits to each other in a regulated marketplace.
Companies that can make reductions cheaply would sell their unused
permits to companies that had a tougher time cutting emissions.
Thus, the market in permits would allow the necessary reductions
to be made as cheaply as possible.
Both presidential hopefuls Barack Obama and John McCain support
the cap-and-trade idea; Obama would auction the permits, while McCain
proposes giving them away. Giving them away limits industries’
economic pain. Auctioning generates resources that can be used to
speed the transition and cushion the hardships.
So far, the cap-and-trade proposal that came closest to passing
as the Climate Security Act of 2008, a bill introduced by Senators
Joseph Lieberman (I-Conn.), John Warner (R-Va.) and Barbara Boxer
(D-Calif.). The Lieberman-Warner bill would start by giving three-quarters
of the permits away and auctioning the remainder, but the percentage
auctioned would go up each year. The Senate debated the bill in
June, but failed to get enough votes to shut off debate and move
to a vote. No one expected the bill to become law, because it didn’t
have enough support to overcome a filibuster, much less override
a threatened presidential veto. The debate was seen as an airing
of the issues likely to come up when the proposal comes back next
year.
Organized labor was involved in the behind-the-scenes debate over
the bill, and was able to get the bill’s sponsors to incorporate
a number of union proposals, including a major expansion of the
Davis-Bacon prevailing wage requirement to non-federal alternative
energy projects. The AFL-CIO’s Building and Construction Trades
Department, and the Laborers and Operating Engineers unions support
the bill.
Labor unions wanted assurance that increasing costs for U.S. manufacturers
won’t drive production to countries that don’t have
the climate controls. So the Lieberman-Warner bill included steps
the United States could take if countries like China don’t
also adopt restrictions on greenhouse gas emissions. Any country
that had not capped emissions after the United States begins the
program would need to buy allowances in order to sell energy-intensive
goods in the U.S. market.
And answering concerns labor leaders raised about potential for
speculative abuse in the market for permits, Lieberman-Warner would
set up a working group to propose regulations to protect the market
from fraud and manipulation.
Unions also wanted benefits for workers who end up losing jobs
because of cap-and-trade. Under Lieberman-Warner, companies wouldn’t
get permits if they achieve reductions simply by closing down operations
and laying off workers. But some workers are likely to be displaced,
particularly in the extraction and transport of coal and at coal-burning
electricity plants. Lieberman-Warner would use revenues from the
auction of permits to provide a bridge to retirement for older workers
and retraining benefits for younger workers. The revenues would
also fund:
Above all, union leaders approach cap-and-trade as a way to revitalize
America’s manufacturing and support good-paying jobs in the
shift to a low-carbon economy.
“Solving the climate change crisis is an opportunity to
address the manufacturing crisis,” said AFL-CIO Energy Task
Force co-chair Bob Baugh at a House Energy subcommittee in June.
In a statement released in March, the AFL-CIO Executive Council
outlined some potentially bountiful sources of green-collar jobs:
modernization of high-voltage transmission lines to increase energy
efficiency; expansion of mass transit and passenger rail; energy
efficiency retrofits of public, industrial and commercial buildings;
weatherization of homes; and development of new automotive technologies,
not to mention wind, solar and geothermal.
The Lieberman-Warner cap-and-trade program would cover almost
nine-tenths of the sources of U.S. greenhouse gas emissions and
would be projected to reduce total U.S. greenhouse-gas emissions
to roughly 5.8 billion tons a year by 2020 and 2.7 billion tons
by 2050.
“Our nation can lead a new technological revolution in the
way energy is generated and used,” Baugh told the House subcommittee.
“That can be of benefit to the world as a whole, and serve
as a foundation for the revival of the middle class in the United
States.”