Empowering Energy Justice

A US perspective on closing the carbon cycle to defossilize difficult-to-electrify segments of our economy

Electrification to reduce or eliminate greenhouse gas emissions is essential to mitigate climate change. However, a substantial portion of our manufacturing and transportation infrastructure will be difficult to electrify and/or will continue to use carbon as a key component, including areas in aviation, heavy-duty and marine transportation, and the chemical industry. In this Roadmap, we explore how multidisciplinary approaches will enable us to close the carbon cycle and create a circular economy by defossilizing these difficult-to-electrify areas and those that will continue to need carbon. We discuss two approaches for this: developing carbon alternatives and improving our ability to reuse carbon, enabled by separations. Furthermore, we posit that co-design and use-driven fundamental science are essential to reach aggressive greenhouse gas reduction targets.

Why do Mines Fail to Obtain a Social License to Operate?: Insights from the Proposed Kallak Iron Mine (Sweden) and the Prosperity/New Prosperity Gold-Copper Mine (Canada)

Opposition to mines endures even in countries with relatively strong environmental assessment processes and regulations. Why proposed mines fail to obtain a social license to operate is analyzed by developing a framework comprised of three concepts-process legitimacy, distributional outcomes, and values compatibility-drawing from the social license to operate, interactive governance, and environmental justice literatures. The framework is applied to understand opposition from local Indigenous people to two mine projects, one in Sweden and the other in British Columbia, Canada. Evidence from interviews with Sami legal experts and Reindeer Herding Community representatives and an advisor with the Tŝilhqot'in National Government, as well as from secondary sources is used to analyze the contestation. Despite the proposed mines being situated in different governance contexts, the reasons for the opposition are markedly similar - environmental assessment processes are illegitimate, distributional outcomes unfair, and values incompatible. The comparative empirical analysis leads to refining the framework as a scaffold with values compatibility as the foundational plank, rather than three independent planks contributing to a social license to operate. The analysis offers insights into company commitments to Indigenous engagement, enhancements to process legitimacy, and evolving and paradigmatic shifts in governance processes, as articulated by Indigenous peoples and international governance mechanisms such as the 2007 United Nations Declaration on the Rights of Indigenous Peoples.

The Emerging Potential of Microgrids in the Transition to 100% Renewable Energy Systems

International, national, and subnational laws and policies call for rapidly decarbonizing energy systems around the globe. This effort relies heavily on renewable electricity and calls for a transition that is: (i) flexible enough to accommodate existing and new electricity end uses and users; (ii) resilient in response to climate change and other threats to electricity infrastructure; (iii) cost-effective in comparison to alternatives; and (iv) just in the face of energy systems that are often the result of—or the cause of—procedural, distributive, and historical injustices. Acknowledging the intertwined roles of technology and policy, this work provides a cross-disciplinary review of how microgrids may contribute to renewable electricity systems that are flexible, resilient, cost-effective, and just (including illustrative examples from Korea, California, New York, the European Union, and elsewhere). Following this review of generalized microgrid characteristics, we more closely examine the role and potential of microgrids in two United States jurisdictions that have adopted 100% renewable electricity standards (Hawai‘i and Puerto Rico), and which are actively developing regulatory regimes putatively designed to enable renewable microgrids. Collectively, this review shows that although microgrids have the potential to support the transition to 100% renewable electricity in a variety of ways, the emerging policy structures require substantial further development to operationalize that potential. We conclude that unresolved fundamental policy tensions arise from justice considerations, such as how to distribute the benefits and burdens of microgrid infrastructure, rather than from technical questions about microgrid topologies and operating characteristics. Nonetheless, technical and quantitative future research will be necessary to assist regulators as they develop microgrid policies. In particular, there is a need to develop socio–techno–economic analyses of cost-effectiveness, which consider a broad range of potential benefits and costs.

The Impact of Divestment Announcements on the Share Price of Fossil Fuel Stocks

Several prominent institutional investors concerned about climate change have announced their intention or have divested from fossil fuel shares, to limit their exposure to the industry. The act of fossil fuel divestment may directly depress share prices or stigmatize the industry’s reputation, resulting in lower share value. While there has been considerable research conducted on the performance of the fossil fuel industry, there is not yet any empirical evidence that divestment announcements influence share prices. Adopting an event study methodology, this study measures abnormal deviations in stock prices of the top 200 global oil, gas, and coal companies by proven reserves, on days of prominent divestment announcements. Events are analyzed independently and in aggregate. The results make several notable contributions. While many events experienced short-term negative abnormal returns around the event day, the effects of events were more pronounced over longer event windows following the New York Climate March, suggesting a shift in investor perception. The results also find that divestment announcements related to campaigns, pledges, and endorsements all have a significant effect over the short-term event window. Finally, the results control for the general underperformance of the industry over the estimation window, attesting that the price change is caused by divestment announcements. Several robustness tests using alternate expected returns models and statistical tests were conducted to ensure the accuracy of the result. Overall, this study finds that divestment announcements decrease the share price of the fossil fuel companies, and thus, we conclude that ‘divestors’ can influence the share price of their target companies. Theoretically, the result adds new knowledge regarding the efficacy of the efficient market hypothesis in relation to divestment.

Environmental Justice Research: Contemporary Issues and Emerging Topics

Environmental justice (EJ) research seeks to document and redress the disproportionate environmental burdens and benefits associated with social inequalities. Although its initial focus was on disparities in exposure to anthropogenic pollution, the scope of EJ research has expanded. In the context of intensifying social inequalities and environmental problems, there is a need to further strengthen the EJ research framework and diversify its application. This Special Issue of the International Journal of Environmental Research and Public Health (IJERPH) incorporates 19 articles that broaden EJ research by considering emerging topics such as energy, food, drinking water, flooding, sustainability, and gender dynamics, including issues in Canada, the UK, and Eastern Europe. Additionally, the articles contribute to three research themes: (1) documenting connections between unjust environmental exposures and health impacts by examining unsafe infrastructure, substance use, and children’s obesity and academic performance; (2) promoting and achieving EJ by implementing interventions to improve environmental knowledge and health, identifying avenues for sustainable community change, and incorporating EJ metrics in government programs; and (3) clarifying stakeholder perceptions of EJ issues to extend research beyond the documentation of unjust conditions and processes. Collectively, the articles highlight potentially compounding injustices and an array of approaches being employed to achieve EJ.