Co-op News (August 2019)

USA
A Green New
Deal ‘can help electric
co-ops kick fossil fuels’
p A coal-fired power plant in the USA
Researchers in the US want a government
programme to help rural economies
through the move to renewable energy.
In their report, Rural Electrification 2.0,
they say: “The US public is increasingly
demanding clean energy to pursue energy
independence and reduce greenhouse
gas emissions.”
Written by Erik Hatlestad, from Clean
Up the River Environment Minnesota;
Katie Rock, of the Center for Rural Affairs;
and Liz Veazey, of Omaha non-profit We
Own It, the report says electric co-ops
source 67% of their energy from fossil
fuels – despite the fact that the falling cost
of renewables could save them hundreds
of millions of dollars by 2030.
This is partly because the sector is stuck
with financial commitments to the coal
power stations which supply them.
“Rural communities could better
pursue a clean energy future if current
debt on existing coal plant infrastructure
could be eliminated in exchange for a
requirement to invest in clean energy and
energy efficiency,” said the report.
“Incoming cash from ratepayers is
being used to pay off debts from old,
uneconomic coal plant infrastructure.
By being relieved of these debt-laden
assets, co-operatives would have more
resources to invest in clean energy,
although there is a need to ensure that
member-owners see economic benefits
of these policies.”
It argues that this goal can be met
through federal regulatory action, debt
bailouts, credit asset swaps, securitisation
or Rural Utility Service refinancing.
Such mechanisms would form part of
a Green New Deal, which could also find
ways to help coal-producing communities
hit by the transition, the report added.
New chair at the helm of NCBA-Clusa
US apex body NCBA-Clusa has elected
Erbin Crowell as chair of its board. Also
executive director of the Neighboring
Food Co-op Association, he takes over
from Andrew Jacob, who served two terms
in the role. Mr Crowell initially joined the
co-operative movement through Equal
Exchange, a worker co-op pioneering
Fairtrade products.
Co-op Bank of Kenya rescues struggling credit union
Kenya’s Co-operative Bank has agreed
to bail out one of the country’s largest
credit unions, which is having liquidity
issues. The savings and credit co-op
Metropolitan Sacco was facing difficulties
due to non-performing loans amounting
to KES1.2bn (£9.3m). The credit union
has 100,00 members and assets
of KES13.6bn (£105m).
Woccu charity launches monthly donation scheme
The charitable arm of the World Council
of Credit Unions (Woccu) has launched a
monthly donation scheme to a choice of
credit union related causes: the Priority
Fund, Project Storm Break, the Global
Women’s Leadership Network, the Global
Classroom, and World Council Young
Credit Union Professionals. Regular
donations can be set up online at:
doglobalgood.org/give
Joint China venture for Land O’Lakes and Agrifirm
Two agri co-ops are starting a joint
animal feed venture in China to leverage
existing market knowledge, insights,
technologies and research capability. USbased
Land O’Lakes and the Netherlands’
Agrifirm have more than 20 years’ market
experience in China. The new business –
Agrilakes – will be based in Tianjin.
Co-ops contribute 3.4% to Canadian economy
The co-op sector represents 3.4% of
Canada’s economy and 3.6% of its jobs,
according to a new study quantifying the
direct, indirect and induced economic
impacts of co-ops and credit unions.
Research shows the value-added GDP
impact of the co-op sector in Canada is
CA $61.2bn. (£36.98bn) a year.
AUGUST 2019 | 19