Pope Francis recently renewed his call for a global universal basic income (UBI) during the World Meeting of Popular Movements, emphasizing that implementing such a measure is not just an act of compassion but also of strict justice. The concept of UBI has gained momentum internationally as a means of income redistribution and economic security, particularly as a fundamental human right. Advocates argue that a global UBI would not only eradicate world poverty but also address the historical wealth disparities between the Global North and Global South by redistributing resources equitably.
Critics of the UBI movement often highlight concerns about the cost implications for governments. However, Equal Right, a nonprofit organization advocating for UBI, has proposed sustainable funding solutions in their paper “Climate Justice Without Borders”. Their modeling suggests that levying charges on global fossil fuel extraction and implementing progressive wealth taxes on the ultra-rich could generate substantial revenue to finance a global UBI. Additional taxes on global commons, such as land and artificial intelligence tools, could further contribute to funding the initiative.
Although a monthly UBI payment of around $70 may not seem significant to everyone, it could be transformative for the 712 million people living in extreme poverty worldwide. Pilot programs in various countries have demonstrated the positive social and economic impacts of providing cash assistance to individuals. However, sustainable financing mechanisms for a global UBI are essential, as taxable resources may diminish over time, particularly as carbon emissions decrease and wealth redistribution occurs.
To ensure the longevity and sustainability of a global UBI, Equal Right proposes the establishment of a Global Commons Fund (GCF) funded by revenues from the fossil fuel charge. The GCF would invest in the green economy and distribute UBI dividends to all citizens, aiming to become self-sustaining within approximately 20 years. The fund would also support debt relief for developing countries, provide grants for climate mitigation, and incentivize governments to uphold environmental stewardship by keeping fossil fuel reserves in the ground.
The “cap and share” model proposed by Equal Right not only funds a global UBI but also addresses the pressing need for climate finance and mitigation. By placing a global cap on carbon extraction and implementing charges on fossil fuel companies under this framework, the system aims to mitigate climate change while promoting economic justice. UBI programs have shown potential in influencing households to adopt cleaner fuel options and supporting conservation efforts in regions like the Amazon.
As the world prepares for COP29 and discussions on climate finance intensify, the “cap and share” system presents a radical yet necessary approach to funding a global UBI while advancing climate and economic justice. Embracing innovative solutions like these can pave the way for a more sustainable and equitable future for all, aligning with the goals of the Paris Agreement and ensuring that no one is left behind in the pursuit of a just society.
