Continuing
our series on a ‘just transition’, Ludovic Voet stresses that
allocating European funding is no substitute for a strategy to achieve
it.
Is
setting up a ’Just Transition Fund’ going to be the answer to the
challenges facing the European Union in its efforts to achieve a
carbon-neutral economy? The European Trade Union Confederation and
civil-society organisations such as the Climate Action Network have
welcomed this initiative by the European Commission president, Ursula
von der Leyen’s, but the €4.8 billion budget on the table has been
described as a ‘drop in the ocean’.
The term ‘just transition’ is
increasingly common but needs definition. It means that social justice
must be at the core of steps necessary to combat climate change and
workers must not pay the price with their jobs and livelihoods. Trade
unions emphasise four requirements: solidarity to support regions and
sectors most affected by decarbonisation, strong social protection and
the right to (re)training, robust social dialogue and creation of
high-quality jobs.
Unions have two major concerns about the
commission proposal. The first is a reallocation of resources: any new
fund must bring in new money, not simply redistribute existing finances.
Secondly, a fund, while necessary, must be just part of an overarching
and holistic strategy to address climate change and its impact on
workers and society. We should therefore start by setting the strategy
and then design the right tools—including the financing—not the other
way around.
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Mainstreamed
Von der Leyen’s mission letter,
in September, called on the commissioner for cohesion and reforms,
Elisa Ferreira, to design a Just Transition Fund to ‘offer tailored
support for the most affected, for instance those in industrial, coal
and energy-intensive regions undergoing significant local
transformations. There should be close coordination between the Just
Transition Fund, employment and social funds, as well as the InvestEU
programme.’
We want to see what this means in detail. As
the climate emergency intensifies, trade unions insist that ‘just
transition’ should be mainstreamed in all policy strands and across all
areas of the EU budget. Certainly, there needs to be strong
co-ordination between the future Just Transition Fund, the European
Social Fund Plus (ESF+), the European Globalisation Fund (EGF), the
InvestEU programme and the European Fund for Regional Development. But
the scope of this new fund should be clearly defined, to avoid confusion
with existing mechanisms or diluting resources across too many sectors
and regions.
We welcome the proposal for a Green New Deal but it
must include a comprehensive Just Transition Strategy, to be launched in
2020, with a social and economic impact assessment carried out in close
collaboration with the social partners. This strategy must involve all
the relevant commission departments and cover areas such as agriculture,
transport, energy, waste management and urban planning, based on the
principles in the European Pillar of Social Rights.
It means defining specific plans for decarbonisation in every industry.
What does just transition to a carbon-neutral transport, trade or
chemicals sector look like, for example?
If we are serious about tackling
the climate challenge, these decisions cannot wait. All EU
macroeconomic policies and trade agreements should be aligned with the
objectives of the Green New Deal and the EU must strive to build
international consensus with other major economies to avoid carbon
leakage—combating climate change is a global fight.
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Greater resources
The
new fund should add resources to those already available at EU level,
not take money from the existing cohesion-policy envelope. Instead, the
much greater resources available through cohesion-policy funding should
be available and investment should match the needs identified during the
socio-economic impact-assessment phase. Coping with other structural
developments affecting the EU economy—such as globalisation,
digitisation and robotisation—-will meanwhile also require massive
financial, legal and policy commitments.
To boost resources, the
ETUC wants EU action to impose fair and effective taxation, combating
tax avoidance and fraud. The phasing out of environmentally harmful
subsidies, for example to fossil-fuel projects, as well as income from
the Emissions Trading System, could also contribute. Just-transition
investments should be excluded when national deficits are assessed in
the Stability and Growth Pact, allowing public authorities to spend on
services and infrastructure.
Just-transition principles must be a
political priority for the EU, to anticipate change, avoid social
disruption and deal with restructuring. The Just Transition Fund is just
one step on a long march to making that priority real.
The prime
function of the fund should be to address the problems facing workers in
regions that are economically dependent on the sectors in the frontline
of decarbonisation. This means providing technical assistance and
supporting all efforts to transform these economies and diversify their
industries. The existing European Platform for Coal Regions in Transition is an example of good practice which can be adapted to other contexts.
Existing
jobs must be replaced like-for-like—not with temporary or precarious
work—and policies must avoid widening inequalities in society or
increasing energy poverty. Education and reskilling are important
elements, but of little use if no alternative work is available.
Inclusive approach
Policy-makers
have to understand the diversity of the regions affected. Local
restructuring must be done ‘on the ground’, not by one-size-fits-all
measures imposed from above. Most of all, an inclusive approach must
involve workers, trade unions and communities and allow them to take
ownership at every step of the process. Without the commitment of
well-informed workers, the EU will be wasting its money and the short
time we have to secure a sustainable planet. The quality of spending is
as important as the size of the budget. Funding must target countries
and activities which protect workers and accelerate decarbonisation.
Yet
this comes at a time when governments are facing pressure to cut back
EU expenditure. The Multiannual Financial Framework will be back on the
European Council agenda in mid-December. The arguments go on but, with
delegates having gathered for the United Nations COP meeting, yet more
evidence has emerged from the UN and the World Meteorological Organization that the fight against climate change cannot wait.
The
Green New Deal must set targets to take account of the increasingly
sober scientific data on the impact of greenhouse-gas emissions. The
challenge facing the EU is not just about money but is rather one of
political will. The ETUC will be closely monitoring the proposals coming
from the new commission and doing everything in its power to protect
workers and their communities.
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