Mini-case: The BlueGreen Alliance: A New Way of Thinking for Sustainability.
Group 4 Essay
IMS.3310.003
Authored By:
Matthew Lim, Scott Obert, Ryan Kim, Ryan Davis, Jaime DeLeon, Oscar Guevara
The Blue Green Alliance (BGA) is an isolationist snub at the efforts of the global attempt
in curbing the output of greenhouse gases that lead to global warming. While the BGA works to
pair environmental agencies with American industry, it doesn’t actively engage in the global
community. American protests in joining the organization came from the Bush administration
claiming that the protocol didn’t provide enough ‘bang for the buck’. In 2007, the US produced
approximately 25% of the planet’s greenhouse gases with respect to the rest of the industrialized
world.
But, “the problem is,” says U.S. Special Envoy Todd Stern, “Kyoto only covers 20% of
the actual emissions because of its sole focus on the developed nations.”
One of the initial members to the BGA, United Steel Workers (USW), partner to the
Sierra Club, has been an advocate of many large environmental concerns and measures to curb
the continued damage to the environment. USW’s commitment to environmental consciousness
includes the successful advocacy for the amendments to the Clean air act in 1990 (initially
passed in 1963) along with other policies that gave workers and people of the country the ‘right
to know’ about the presence and use of toxic chemicals. In forming the BlueGreen Alliance, the
USW partnered with the Sierra Club understanding the intersection of economic growth,
environmental challenges and the damaging impacts of globalization. The duo shed light on a
perception where American industries were sinking under the weight of a global economy. Their
moral stance focused on a global economy where goods are easily imported from countries that
don't subscribe to the same labor, environmental and human rights standards as the United
States.
The USW’s partner in the cause, the Sierra Club, has a great legacy in the forming of the
Occupational Safety Health Administration (OSHA) to protect workers in their field of business.
While they have always been advocates of worker safety and exposing the ills of toxic chemicals
in the workplace, their impact has been largely domestic. Their primary concern always lies in
the preservation of national parks and the lobbying for green policies such as efforts to prevent
climate change. Despite their green initiative, the Sierra Club came into a bit of controversy in
2012 when they had accepted over $26 million in gifts from the natural gas industry, mostly
from the CEO of Chesapeake Energy. Michael Brune learned of the gifts when he succeeded
Carl Pope as executive director of the Sierra Club in 2010. Brune terminated the financial
agreement with Chesapeake Energy but did not disclose the amount of the financial donations
publicly at the time.
The BGA has a continued presence in the leadership of individuals who are great
advocates of their cause in American politics. In 2009, Executive Director of the BGA David
Foster addressed the Senate Committee on Environment and Public Works on comprehensive
legislation in pursuit of good jobs in pursuit of a greener economy. Fine points are made
regarding legislation towards capping emissions and creating incentives for US businesses to
create more of a clean energy economy, but you shouldn’t have to pass new legislation to inspect
plant maintenance to see if the factories’ pipes are not leaking potentially toxic waste into the
surrounding environment. In highlighting the benefits of passing a Renewable Energy Standard,
the highlight again is the number of jobs created across the states. Along side projected job
increases are anecdotal stories of people who are actually working to develop their business
around green technology to include guided solar panels, turbines for wind energy and improved
steel production for windmill hubs. The confound though arises though is what would prevent
the US from joining the global community in the Kyoto Protocol whose mission serves the same
ecological cause to benefit the US along with our ecosystem as a whole. The Kyoto Protocol is
an international treaty extending the 1992 United Nations Framework on Climate Change
(UNFCC). The agreement commits state parties to reduce greenhouse emissions by [5% based
on 1990 standards] and has outlined specific greenhouse gases to be controlled in the first
commitment period of 2008-2012.
Climate Change
Climate change is an important issue for BlueGreen Alliance (BGA). In addition to USW
and Sierra Club, other BGA partners include Communications Workers of America, National
Resources Defense Council, Laborers International Union of North America, and the Service
Employees National Union. The creation of jobs and reduction of greenhouse gases is one of
BGA’s most important issues that they are currently dealing with. BGA believes that global
warming is evolving into an environmental and economic epidemic that must be dealt with
immediately, both in U.S. legislation (reducing emissions) and by creating energy efficient jobs.
A goal of BGA is the creation of millions of new and existing, green-energy jobs,
particularly in manufacturing and construction. An example for potential construction jobs
includes repairing and replacing natural gas distribution pipelines for cleaner fuel. This form of
construction would create 313,000 jobs for American workers alone. Infrastructure is a big issue
when it comes to BGA’s goal for producing cleaner fuel and energy. Broken down infrastructure
systems include: natural gas distribution, water pipes, and the roads and bridges in our states.
These failed systems create excess carbon pollution and other greenhouse gas emissions that
contribute to climate change. They also cost the U.S. time and money. Repairing failing
infrastructure systems like transit, energy and water could create 2.7 million jobs across the
economy and increase the U.S. Gross Domestic Product (GDP) by $377 billion. Another area for
job creation is manufacturing. You might ask yourself, how would green energy withstand the
grueling demands to power the United States’ infrastructure today? BGA proposes we create
installments in green energy systems. For example, wind energy from turbines, solar panels,
geothermal and biomass projects are a great source of energy to help power the fundamental
systems serving the U.S. BGA not only stops there; they have said that with energy efficient
startups, broadband investments, and mass transportation systems; they all have the power to
modernize the country’s manufacturing capabilities if certain policies are passed. In the past 18
months in the United States, over 1.2 million construction workers were laid off for various
reasons, but if these manufacturing projects were to pass legislation, it could create millions of
new jobs across the country.
BGA’s other main issue is reducing emissions and greenhouse gases. Their main goal is
to reduce U.S. emissions by at least 80 percent from 1990 levels by 2050. Other goals include
reducing emission levels below 2005 emission levels by the year 2020. The Environmental
Protection Agency (EPA) is creating new standards, which will decrease carbon emissions in the
United States. These new regulations by the EPA are known as the “Clean Power Plan”. Its
purpose is to reduce carbon emissions from power plants while also expanding renewable energy
and energy efficiency efforts that create jobs across the country. The Clean Power Plan draft
“establishes state-by-state carbon emissions rate reduction targets, and offers flexible framework
under which states may meet those targets. It would reduce electricity sector emissions by an
estimated 30 percent below 2005 levels by 2030” (Google Clean Power Plan). The “Zero
Emission Vehicle Action Plan” is another way in which BGA plans to reduce U.S. emissions.
The plan insists on getting 3.3 million plug-in electric vehicles on the road by 2025. By creating
a strong market in the Zero Emission Vehicle Action Plan, it will require the creation of
recharging stations nationwide for the growing number of electric cars (another avenue for job
creation). This plan will have a massive impact on helping to reduce motor vehicle pollution
across the country, and shift the U.S. into an era of clean energy solutions.
Trade Policies
In 2006, the newly established partnership of steel and coal union workers joined hands
with environmentalists to campaign a set of policies that focused on trade and environmental
policies. Under its initiatives, BGA advocates for the adoption of fair trade policies to leverage
job growth for the middle-class workers, while moving America towards the consumption of
home-grown clean energy.
BGA maintains that U.S. manufacturing has been neglected for the last 60 years as the
country focused its attention on globalization and the financial sectors. With the end of WWII,
the International Monetary Fund (IMF) formed in 1945 to restore the world’s financial payment
system. As world trade ballooned with the inception of “trade not aid”, the U.S. steadily let go of
its competitive advantage. Beyond the criticisms of historical events, the Trade Promotion
Authority (Fast Track) is at the heart of today’s BGA’s censure. This policy gives the president
the power to create trade agreements without congressional involvement.
The alliance believes past and current “trade agreements made the economies of scale of
the U.S. market available to overseas producers while the U.S. obtained no reciprocal market
access.” (Foster) Unfair trade policies have deep and lingering impacts according to BGA. An
open trade system gives developing countries an opportunity to obtain the levels of technology
and cost-effective production many developed countries already have. As oversea competition
grows, the strength of the U.S. economy is more and more dependent on its competitors.
Domestic goods become less attractive as foreign competition is now able to supply more
affordable goods to consumers. Thus, incentives for domestic growth diminishes, infant
industries crumble and investors redirect their capital and operations overseas. In response, BGA
has developed programs like “Buy America” and others to revitalize domestic production and
jobs.
Its second objective targets climate-change legislation. The alliance has proposed policies
that address the unchecked environmental issues. Even current regulations like the American
Clean Energy and Security act are not comprehensive enough to prevent the irreversible impacts
of climate change. BGA is focused on setting new renewable energy standards, further restricting
cap-and-trade levels, and attaching long-term border adjustment provisions to prevent “carbon
leakage”.
Perhaps the most fundamental objective for BGA is job creation. BGA claims “more than
56,000 U.S. factories have closed or moved overseas.” In a study conducted by the BGA, their
“base case” projections revealed that only 11,000 jobs would be created within the waste
management sector by 2030. But under its “Green Economy Scenario”, BGA could generate an
astonishing 1.7M jobs within the same 15 year projection.
While the intentions appear respectable and advocate for proactive efforts, there is
something to say about the new partnership. The formation of hardened union workers and
environmentalist is curious and unusual. It warrants one to explore what is beyond the surface to
find some possible explanations and motives. Even today, a stagnant thinking is among the old
and neo-mercantilists. Exports are favored as it presumably creates jobs, while imports are
heavily detested. However, union membership in the last quarter century has steadily declined
from its peak at 36 percent to its current 8 percent rate. Perhaps a brilliant move or mere
coincidence, labor unions began rallying alongside environmentalists in 2008 in an effort to
change legislation. Initial victory came after an amendment to the Lacey Act, which now
requires importers to identify the source of wood products. Seemingly benign, many argue these
type of adoptions are deliberate strategies which are disguised protectionism. The goal is to
create a complex maze of nontariff barriers designed to further complicate the already existing
tariff restrictions. The ulterior motive is strategically designed to slow and even discourage
imports to force domestic firms to source within the borders.
Does BGA’s policies really benefit the domestic greater good? In order for the policies to
be effective, greater trade restrictions are necessary to reach sustainability. Oddly enough, many
believe that restricting imports translates into a higher demand for domestic labor. This mentality
undercuts the ideas of free trade. Unfortunately, coercion is at play and politicians are a key
component to the BGA’s agenda. The effects are both real and subtle in terms of costs. The net
benefits to BGA are heavily outweighed by the costs to the rest of the U.S. In order to kick off
BGA’s programs, it requires over $150B in government subsidies in addition to the perpetuities
needed to sustain the programs. Hidden among the language, unions demand mandates that set
wages well above the market averages as well as the assurance of those wages through long-term
union contracts. Interestingly enough, while union membership has declined, U.S. manufacturing
has steadily received the highest portion of FDI inflows.
What role do environmentalists have in BGA? Most environmental activists lack the key
ingredient, which is funding. Under its “saving the planet” umbrella, environmentalist and
unions have overlapping interests. Environmentalists turn their attention to the industries which
emit high pollutants and consume large natural resources. They too, advocate tighter import
restrictions, but in the form of banning importation of wood or minerals illegally logged or
mined. As a substitute, energy must be created through the alternative forms, mainly by way of
wind and solar infrastructure. Inevitably, its union partners will be tasked with manufacturing the
infrastructure.
The growth of globalization is largely made possible by the phenomenon of free trade.
Historically, a country’s openness to trade leads to greater gains and FDI. The chart below
illustrates how the two elements lead to benefits.
There is also an interesting connection between a country’s environmental standards and FDI.
The graph below illustrates that a higher environmental standard index (ESI) leads to higher FDI.
Can BGA’s policies offer a new approach to sustainability? It’s important to understand
the composition of the alliance, and only after this will the ulterior motives become redundant.
Historically, unions are centric thinkers who focus on bettering and protecting their members.
The stagnant beliefs persist, but now its protectionist views are merely being disguised under
their new title; environmentalism. From an economic view, the fair trade theory focuses on the
relative gains, not the absolute ones. No matter what trade theory the U.S. adopts, the economic
mechanisms are still at work. Consumer preferences and choices change as the cost of goods
increase.
Works Cited:
Testimony of David Foster. Executive Director, BlueGreen Alliance. “David Foster Advocates
Comprehensive Legislation Before Senate Committee.” Bluegreenalliance.org. Oct. 2009.
<http://www.bluegreenalliance.org/news/publications/testimonyofdavidfosterussenatecommittee
onenvironmentandpublicworks>
Lombardozzi, Brain, “Buy America: One Element of the Solution to our Job Crisis.”
Bluegreenalliance.org. Aug. 2011.
< http://www.bluegreenalliance.org/blog/buyamericaoneelementofthesolutiontoourjobcrisis>
Maskus, Keith. Rising Protectionism and U.S. International Trade Policy. Economic Review,
Federal Reverse Bank of Kansas City. July 1984.
"BlueGreen Alliance / Blue-Green Blog / Republicans Divided on Climate Change
Agenda." BlueGreen Alliance. BlueGreen Alliance, 15 Jan. 2015. Web. 08 Mar. 2015.
"BlueGreen Alliance / Latest News / State of the Union: Respond to Climate Change, Invest in
Clean Economy." BlueGreen Alliance. BlueGreen Alliance, 12 Feb. 2013. Web. 08 Mar. 2015.
"BlueGreen Alliance / Blue-Green Blog / Blog Archive." BlueGreen Alliance. BlueGreen
Alliance, n.d. Web. 08 Mar. 2015.
BlueGreen Alliance / Blue-Green Blog / Blog Archive. “U.S. to Seek WTO Settlement of
Chinese Wind Energy Subsidy Dispute. Dec. 2010.
<http://www.bluegreenalliance.org/blog/archive?month=december-2010>