The article discusses a sustainable model for global universal basic income (UBI) via a ‘cap and share’ scheme for fossil fuels, aiming to redistribute wealth and combat climate change. Pope Francis advocates for global UBI as an embodiment of justice and compassion, emphasizing its need for social equity. Equal Right’s study suggests funding UBI through fossil fuel taxes and a progressive wealth tax, acknowledging that this initiative could significantly benefit impoverished populations while promoting green economic transitions. The proposal also emphasizes sustainability through the establishment of a Global Commons Fund to support climate mitigation efforts and prevent exploitation of resources.
The proposal for a sustainable global universal basic income (UBI) is underscored by a viable model that utilizes a ‘cap and share’ scheme for fossil fuels. This model not only addresses wealth redistribution but simultaneously aims to fight against climate change. The advocacy for global UBI gained renewed momentum recently when Pope Francis, at the World Meeting of Popular Movements, reiterated its significance, characterizing it as both an act of compassion and “strict justice.” This perspective positions UBI not merely as a solution for poverty alleviation but as an embodiment of social justice, particularly in light of historical resource exploitation that has resulted in wealth concentration in the Global North, while many Global South nations struggle to fund their own basic income initiatives. Opponents of UBI often cite its potential financial burden on governments. However, a model developed by a nonprofit organization, Equal Right, posits that a global fossil fuel extraction charge of $135 per tonne could generate approximately $5 trillion annually, facilitating a UBI of at least $30 per month for individuals. Furthermore, implementing a progressive wealth tax, coupled with a minor financial transactions tax, could enhance this financial framework, potentially providing an additional $38 for each person globally. Crucially, while an initial monthly payment of approximately $70 may not seem significant to many, it could provide transformative support to the 712 million individuals living in extreme poverty worldwide. Previous pilot programs from diverse countries, including Canada, India, Finland, and Brazil, have illuminated the substantial social and economic advantages of cash distributions. Despite the potential for funding UBI through carbon and wealth taxes, concerns persist regarding the sustainability of these financial resources in a future characterized by decreasing carbon emissions and improved wealth distribution. To address this, Equal Right advocates for the establishment of a Global Commons Fund (GCF). This initiative would utilize funds collected from fossil fuel taxation to support the green economy while simultaneously distributing UBI dividends to citizens. According to projections, similar funds could achieve self-sustainability within 20 years with an initial investment from wealthier nations. The GCF aims to alleviate debt in poorer countries and provide vital resources for climate adaptation efforts. A critical component of this model is the proposal for a global cap on carbon extraction, guided by scientific research to maintain temperature increases within 1.5 degrees Celsius. By implementing this cap, fossil fuel companies would incur charges for the fossil fuels they extract. This ‘cap and share’ framework not only facilitates the financing of a global UBI but is also designed to combat the climate crisis, proposing the necessary socio-ecological transformation to remain within the planet’s ecological limits. UBI could also serve as an effective tool in environmental strategy; empirical evidence from pilot programs in India illustrates that households receiving UBI are more likely to adopt cleaner energy solutions. As international discussions regarding climate responsibilities intensify, particularly in light of COP29, the compelling narrative surrounding the ‘cap and share’ proposal prompts policymakers to consider the dual benefits of funding a global UBI while ensuring climate justice. By embracing this innovative approach, it is possible to pave the way for a sustainable and equitable future where economic and climate justice coexist.
The discourse surrounding universal basic income (UBI) has gained traction in recent years as a solution to poverty and socioeconomic inequality. The concept advocates for unconditional cash payments to individuals, enabling them to meet their basic needs, thereby promoting economic security as a fundamental human right. However, implementing a global UBI poses significant financial challenges, particularly for nations with less fiscal capacity. The ‘cap and share’ scheme provides a solution by leveraging global fossil fuel extraction revenues to fund UBI, addressing both income inequality and the pressing climate crisis brought on by fossil fuel dependency.
In summary, the establishment of a sustainable global UBI through a ‘cap and share’ model offers a multifaceted approach to addressing both poverty and environmental challenges. By administrating a fossil fuel extraction charge and fostering a Global Commons Fund, this initiative not only aims to redistribute wealth equitably but also supports a transition towards a greener economy. Advocates believe that implementing such measures in alignment with climate goals and equitable economic practices could significantly impact global poverty alleviation, making the call for global UBI a pivotal element in the pursuit of a just and sustainable future.
Original Source: www.aljazeera.com
