The Importance of Public Pathway for Energy Transition: Main Discussions in Bali TUED Meeting

“What we are currently witnessing is not an energy transition, but an energy expansion that focuses on corporate profit,” Sean Sweeney from Trade Union for Energy Democracy (TUED) firmly delivered this sentence in the TUED South Asia-Pacific Regional Policy Meeting in Bali, Indonesia, from 29 to 31 July, 2024.

The meeting was attended by 59 trade union leaders/activists from Bangladesh, India, Indonesia, Philippines, Nepal, South Korea, USA, UK and South Africa who discussed a just energy transition and the importance of a public pathway alternative in achieving that goal. In that meeting, Sean also asserted that we must support the public pathway, not only aiming for public ownership but also to move away from a pro-profit and privatization neoliberal approach to energy.

“Privatization will only hinder energy transition process dan will leave the South in a deeper debt crisis and lack of investment to move towards low carbon economy,” he added.

Therefore, in TUED’s analysis, trade unions must call for the “public pathway” approach to energy transition, that is informed by three principles.

First, reclaim and restore. Public companies must be reinstated as the primary institutions responsible for the implementation of the energy transition, must be transparent, accountable, and respect workers’ rights.

Second, decommodification. Ending the practice of tying revenues (and profits) to the sale of electrons by volume (“volumetrically”), which prioritise social and ecological value over profit. And the third is demarketisation. Reversal of neoliberal laws and regulations that enable energy corporations operating with commercial priorities and work with a non-commercial term.

Previously, Indah Budiarti from PSI, in her opening speech, said that Public Services International (PSI) has always defended public services in the face of privatisation threats. In the energy sector, we have seen too many Independent Power Producers use their legally binding Power Purchase Agreements to drain tax-payers’ money for their shareholders.

“The IPP-PPA model proves to be a disgrace for too many communities,” she said.

She added to emphasize the statement that PSI supports the public pathway approach 100%.  It’s not just about ownership; it’s also about breaking with the neoliberal “energy for profit” / “privatise to decarbonize” approach that has impeded the energy transition and has left the Global South with more debt and low investment in low-carbon energy alternatives.

Meanwhile, Irene HongPing Shen from TUED presented TUED’s milestones for the first two years. She explained that trade unions must seek an alternative towards public and work together to mitigate the climate change. In 2018, the first document on “Trade Union and Just Transition” was published. The paper criticized trade unions’ position against just energy transition. The paper also exposed the dynamics of social dialogue that was proven ineffective and discouraged trade union to voice against the neoliberal policies.

For the last two years, TUED had accomplished so many things. And it did not stop there, TUED wanted to to more to ensure that the transition is truly just and does not leave anyone behind.

SungHee Oh from the Korean Public Services Transport Workers Union (KPTU) talked about privatization of public services in South Korea that was imposed by the IMF’s bailout following the financial crisis of 1997 – 1998. The privatisation has caused workers outsourcing. The rejection against privatization of electricity utilities then emerged. What she presented was evidence that the privatisation harmed many people.

Hence, in 2021, KCTU encouraged its affiliated to form a Special Committee on Responding to the Climate Crisis. The committee has been fighting for a public energy transition in public transportation sector and campaigned for reduction of carbon emission.

While Andy Wijaya, General Secretary of the Persatuan Pegawai PT PLN Indonesia Power (PP-IP) Indonesia explained the fight to defend public energy in Indonesia. He highlighted the laws and regulations on electricity system in Indonesia that were changed and altered to accommodate the liberalization. This process had adverse impacts on public services, particularly water, oil, gas, and electricity.

“Trade unions in Indonesia are working hard to defend our public energy and fighting against the detrimental privatisation. Even today, we are in the process of filing a judicial review against labor cluster of the Job Creation Law,” he said.

Joy Hernandez from the ITUC A-P also supports the public pathway by saying that public pathway provided an opportunity for the South to share technologies and skills also in a public space. Energy technology transfer specifically can be done to address the continue increasing emission in the electricity sector.

Key Discussions in the TUED South Asia-Pacific Regional Policy Meeting

Those are the statements from trade union leaders in the first session of the TUED South Asia-Pacific Regional Policy Meeting with the focus of energy transition and trade unions’ role. Other than those leaders, there were many other speakers. Moreover, this meeting covered a wide range of topics, such as exchange of experiences, trade unions involvement in the climate policies, opportunities and challenges for women activists, and the public pathway to energy.

On the first day, Sean Sweeney from TUED presented the “What is Public Pathway.” This presentation opened the discussion about the importance of public pathways to energy transition. The group discussion that followed discussed the history and evolution of TUED South platform for the last two years, and focused on important achievements from the previous regional meetings.

The second day of the meeting discussed regional realities and policy challenges in relation to energy expansion. The session titled “Energy Expansion: Assessing Technical and Policy Challenges” facilitated by Smritee Lama from GEFONT, Nepal, highlighted political challenges faced by countries in the Asia Pacific region, especially in their efforts to reduce the use of fossil fuel. This session emphasized the importance of public pathways in responding those challenges.

On the third day, the group discussion on the draft of power sector trade union statement discussed the main points proposed in the draft. This discussion was aimed at planning a long term work for TUED South Asia-Pacific, including training, campaigns and other interventions to help build regional solidarity and improve collective understanding.

These three days meeting was divided into fourteen sessions. The first session discussed the history and evolution of TUED South Platform for the last two years. This session highlighted key milestones and significant outcomes from the meetings in sub-Sarah Africa as well as Latin America and the Caribbean. Representatives from these meetings provided insights into the progress and achievements that have shaped the TUED South platform, providing a foundation for the Asia-Pacific regional meeting.

In session two, representatives from Nepal, Indonesia, and the International Trade Union Confederation: Asia-Pacific shared their insights and experiences on trade unions’ role in the struggle for a just transition. The crucial involvement of trade unions in shaping climate policy was highlighted in and positioned in the context of the imperatives of the low carbon energy

Representatives from transport sector unions in the Philippines and Nepal shared their experiences and insights from local campaigns related to the energy transition in  session three. The reflections emphasized the critical role that unions play in advocating for policies that ensure a just and equitable transition for all workers.

Meanwhile, session four was a roundtable discussion to explore the challenges and opportunities for women activists in the struggle for a just energy transition. This session presented representatives from India, Indonesia, Sri Lanka, and the Philippines who shared their reflection on different challenges and opportunities for women in the context of struggle for a just energy transition. Drawing from their extensive experience in the sector, these speakers discussed the critical roles women play in advancing sustainable energy initiatives and the specific obstacles they encounter. This session explored strategies for supporting women’s leadership and active participation in shaping the future of energy policies and practices within the trade union movement and the workplace itself.

Next, session five invited participants to join breakout groups to share and discuss their own experiences and insights reflecting on the content presented for the day. The aim is to foster a deeper and consolidated understanding and broaden participation among attendees. 

The next session was about charting the historical trajectory of neoliberal electricity market reforms, beginning with the “standard model” initiated by the World Bank in the 1990s. The session focused on the changes to how public energy companies were “unbundled”, marketized; electricity was commodified, and (in some instances) for-profit independent power producers (IPPs) gained a major foothold.

Several questions discussed in the session were: what is a plausible trade union approach to reclaiming national and regional utilities to full public control? Can the neoliberal reforms be reversed? What should unions fight for in the short to medium term?

Session seven explored The TUED analysis that maintained that what the region (and the world) is witnessing is an energy expansion, not a transition. Fossil fuel use is at record levels, and emissions continue to rise. This session reflects on the political challenge posed by rising energy use in the Asia-Pacific region, and the disconnect between these trends and “net zero” emissions targets adopted by China, India, Indonesia and others.

While session eight discussed the Just Energy Transition Partnerships (JETPs) with Indonesia, Vietnam, and South Africa mark a continuation of neoliberal structural adjustment policies that began in the late 1980s and 1990s. These and similar initiatives lead to more debt while imposing conditionalities to create “an enabling environment” for the private sector.

This session examined potential domestic financing alternatives (for example, wealth taxation) as well as the potential significance of China’s growing lending capacity as part of Belt & Road Initiative (BRI).

Next session focused on the potential role of public transport and electromobility in the effort to reduce emissions, improve air quality, reduce traffic congestion, and address inequalities. Participants considered the impact of electromobility on electricity systems as well as supply chain concerns related to batteries and manufacturing capacity.

This closing session reflected on the proceedings of the regional meeting and propose an outline for a 3 – 5-year work plan which may include training, campaigns and other interventions to help build regional solidarity and improve collective understanding.

Closing

In the three days of intensive discussion and profound thoughts, the TUED South Asia-Pacific Regional Policy Meeting in Bali has underlined the importance of public pathway in the just energy transition. With different challenges faced by countries in the Asia Pacific region, trade union leaders asserted that public pathways are the key to ensure that the energy transition is sustainable, inclusive, and just.

The meeting did not only strengthen the solidarity of trade unions in the region but also provided strategic guidance for the future. The discussions in the three days meeting were rich and insightful and helped to clarify that addressing the climate change must involve each and every stakeholder with workers on the front line. The rejection against privatisation and neoliberal approach to energy sector were the central theme of the meeting, emphasized that public control and active participation of the people is the best way to materialize a just energy transition. From the experience of South Korea to Indonesia, the meeting highlighted the need of policies that in favor of public services and interest. With strong commitment and cross-border cooperation, TUED South Asia-Pacific is ready to advocate and implement the needed changes. This meeting ended with high enthusiasm, participants brought home hopes and a concrete plan for the future of a just and sustainable energy for all.