This article explores a sustainable model for a global Universal Basic Income (UBI) through a ‘cap and share’ scheme targeting fossil fuel extraction. It references Pope Francis’s advocacy for UBI as a tool for economic and social justice. The proposal details potential funding mechanisms, such as charging fossil fuel extraction and taxing wealth, which could collectively transform lives, particularly for the 712 million people in extreme poverty. The article outlines the need for a Global Commons Fund, highlighting its dual role in financing UBI and facilitating a green transition, while stressing the importance of addressing both climate change and economic inequity.
A comprehensive and sustainable model for a global Universal Basic Income (UBI) through a ‘cap and share’ scheme for fossil fuels is proposed, addressing key challenges such as climate change and global poverty. The model’s viability is underscored by Pope Francis’s advocacy for UBI, emphasizing its potential as a reflection of compassion and a means of achieving social and economic justice. Current economic disparities highlight wealth concentration in the Global North, resulting in insufficient financial resources for Global South countries to implement national UBIs. Therefore, a global UBI not only aims to eradicate poverty but also seeks to equitably redistribute wealth from affluent nations. Importantly, financial sustainability for a universal UBI is a pressing concern. Research conducted by Equal Right indicates that establishing a charge on fossil fuel extraction, estimated at $135 per tonne, could generate approximately $5 trillion annually, thus funding a UBI of at least $30 per person. Additionally, a progressive wealth tax on the ultra-wealthy and a minimal financial transactions tax could substantially augment this income. While a monthly payment of $70 may appear modest, it could significantly transform the lives of over 712 million individuals living in extreme poverty. Evidence from pilot programs across various countries demonstrates the economic and social advantages of cash distributions. Nevertheless, the model recognizes the inherent limitations in taxing fossil fuels as emissions decline and wealth becomes distributed more evenly. This underscores the urgency for sustainable financing measures. Simultaneously, transitioning away from fossil fuels presents vast opportunities for development, especially in the Global South. This transition is currently hindered by exploitative loan practices, perpetuating cycles of debt. To ensure the longevity and reliability of UBI and support green transitions, the establishment of a Global Commons Fund (GCF) is proposed. This fund would collect revenues from fossil fuel charges, reinvest in green technology, and distribute dividends as UBI. Drawing from successful sovereign wealth funds, such as Norway’s, it is speculated that the GCF could achieve self-sustainability within approximately 20 years, supplemented by initial contributions from wealthier nations. Moreover, the GCF would alleviate debt burdens on impoverished nations while providing financial support for climate initiatives. A robust regulatory framework is essential to prevent further degradation of shared resources, proposing a global cap on carbon extraction guided by scientific benchmarks aimed at limiting global temperature increases. Ultimately, the ‘cap and share’ model not only provides a pathway for funding a global UBI but also addresses the critical challenges posed by climate change and inequity. By integrating principles of climate justice and economic equity, UBI could serve as a powerful instrument for societal transformation. Successful UBI initiatives have already demonstrated enhanced community resilience and sustainable practices, suggesting a promising trajectory for its global implementation. As attention focuses on future climate negotiations, policymakers are encouraged to consider the possibilities presented by the ‘cap and share’ system in pursuit of a fair and sustainable future for all.
The concept of a Universal Basic Income has gained significant momentum in recent years as a potential solution to address poverty and income disparity globally. It proposes that every individual receives a regular, unconditional sum of money to cover basic living expenses, thereby ensuring economic security. The advocacy for a global UBI is particularly pressing in light of escalating economic inequalities exacerbated by the sustained exploitation of resources primarily favoring wealthier nations, particularly in the Global North. Pope Francis and various international organizations are increasingly vocal about the necessity of such income distribution as a mechanism for social justice. Coupled with the urgent need for climate action, innovative funding models such as the proposed ‘cap and share’ system are being explored to reconcile these pivotal issues.
In conclusion, the proposed ‘cap and share’ model offers a multifaceted approach to funding a sustainable global Universal Basic Income while addressing urgent climate challenges. By implementing a scheme that generates substantial revenue from fossil fuel extraction and wealth taxation, it aims to provide essential financial support to those in extreme poverty globally. Moreover, the establishment of a Global Commons Fund could enable long-term financial stability for UBI and facilitate necessary transitions towards greener economies. Ultimately, the intersection of climate justice and economic equity heralded by this model presents a promising avenue for fostering a more equitable world, as underscored by the calls from global leaders like Pope Francis.
Original Source: www.aljazeera.com
