Thread by @climate_vguard

We have a plan ⚒️ Here's how the fossil fuel industry can be nationalised and dismantled in the UK (1/15) 🧵

Two legal pathways exist to nationalising the UK fossil fuel industry: legislation and central bank quantitative easing (QE). Let's begin with legislation. (2/15)

All past nationalisations in the UK have been done through an Act of Parliament. This includes the fossil fuel industry, which was nationalised after WWII through the Coal Industry Nationalisation Act 1946 and Gas Act 1948. (3/15)

We propose that legislation be called the Fossil Capital Abolition Act. This Act would establish the Fossil Abolition Agency (FAA), which would be similar to the Boards that were established to manage nationalised industries after WWII. (4/15)

The FAA would assume immediate ownership of all fossil assets and begin a rapid fossil phase out according to declining annual production quotas. FAA personnel would include scientists, engineers, and fossil fuel workers with expert industry knowledge. (5/15)

We imagine that the FAA would sit within a reimagined Energy Department, responsible for coordinating the zero-carbon energy transformation. The Energy Department would also include a workers-led Just Transition Agency. (6/15)

Full market value compensation of oil and gas companies operating in the UK would be £296 billion. But there is nothing in UK law that mandates full compensation. (7/15)

For obvious reasons, we argue that fossil fuel shareholders should receive zero compensation. Only pension funds investing in fossil fuels should be compensated. In the UK, this would lower the bill to ~£128 billion. (8/15)

But what if there isn't enough support for a Fossil Capital Abolition Act? Imagine:

The year is 2025 - Labour is elected on a policy to stop new fossil licenses. But the PM wants to go further with nationalisation and dismantling. Unfortunately, the votes don't exist. (9/15)

In this circumstance, the PM can order The Treasury to direct the Bank of England to buy shares ("fossil equity") in all fossil fuel companies operating in the UK through QE - bringing the industry under public control. (10/15)

Once purchased, fossil equity (and ownership rights) would be transferred to the FAA, which can be created without Parliamentary approval. From then on, the dismantling can begin. (11/15)

Although the Bank of England has autonomy over monetary policy (the domain of QE), the Bank of England Act 1998 stipulates that The Treasury can take control to uphold the "public interest" during "extreme economic circumstances." Climate breakdown checks the box. (12/15)

The nature of this pathway - actually buying shares - mandates full compensation of £296 billion. Both pathways also entail corporate debt acquisition worth £500 billion. But this can be paid off over the long-term. (13/15)

Total cost then comes to £628 billion for the legislation pathway and £796 billion for the QE pathway. Comparatively, the Bank of England has spent over £895 billion on QE to stabilize the financial sector. (14/15)

A smaller amount of money is required to stabilize the one planet that sustains life. (15/15)

Read the full report: climatevanguard.org/nationalise-th…

#EndFossil #EmergencyResponse