How a UBIG Can Support a Just Energy Transition
As South Africa faces the dual challenge of reducing greenhouse gas emissions and ensuring economic equity, a Universal Basic Income Guarantee (UBIG) emerges as a transformative solution in the move towards a Just Energy Transition (JET). The shift to renewable energy—essential for combating climate change—will disrupt industries like coal, leading to widespread economic and social impacts.
The Role of a UBIG in a JET
A UBIG, provided to all without conditions, offers a financial safety net to help individuals and communities navigate these disruptions. By guaranteeing a minimum income, a UBIG:
- Cushions workers and communities from economic shocks.
- Builds resilience to climate-related crises.
- Encourages sustainable practices and adaptation to new economic systems.
- Equitably redistributes the risks and benefits of the energy transition.
What Makes a JET “Just”?
The Just Energy Transition focuses on accountability, resilience-building, and ensuring equitable opportunities for adaptation. For South Africa, moving away from coal-based energy is crucial to meet international climate goals, but it must be done inclusively. Workers and communities must receive compensation, reskilling opportunities, and financial support to adapt.
Why UBIG Is Essential
While targeted interventions help displaced workers, the ripple effects of economic changes extend to entire communities, including informal workers and caregivers. A UBIG ensures no one is left behind, addressing gaps in current social protection measures and enabling societal resilience.
Building Resilience and Encouraging Adaptation
International evidence shows cash transfers help communities withstand crises. For example, programs in Bangladesh, Brazil, and Ethiopia have demonstrated how financial support can mitigate the effects of floods, droughts, and economic shocks. A UBIG provides a foundation for communities to adopt sustainable practices and transition more confidently to low-carbon economies.
Redistributing Climate Risks and Gains
Climate change disproportionately affects the vulnerable. By implementing UBIG through progressive financing, South Africa can address historical inequities and ensure fair distribution of climate burdens. While not a standalone solution, UBIG represents a vital step toward a fairer, greener future.
Other factsheets in the series include:
- Why does South Africa need a Universal Basic Income Guarantee?
- No one left behind: Why universal basic income makes more sense than targeted grants
- Jobs versus Grants: Are employment and basic income a policy trade-off?
- How a UBIG can support healthier kids, happier adults, and lifelong learning
- How a UBIG can advance gender justice and social cohesion
- Not just a handout: How a UBIG gives people the power to prosper
- “But how will we pay for it?” Financing a UBIG
- Modelling fiscal pathways to a basic income
- Work-seeking Conditionality is Just Bad Policy: Why a basic income should have no strings attached
- A True Safety Net: How a UBIG Can Support a Just Energy Transition
- Priority number one: How a UBIG can help defeat hunger
- The pitfalls of poverty targeting: The drivers and impacts of widespread exclusion from the SRD grant
Amaarah is a Junior Programme Officer in the Rethinking Economics for Africa project. She is currently studying towards her Masters in Applied Development Economics at Wits University.
Dr James Musonda is the Senior Researcher on the Just Energy Transition at the IEJ. He is also the Principal Investigator for the Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods project, covering South Africa, Ghana, and Kenya.
Dr Basani Baloyi is a Co-Programme Director at the IEJ. She is a feminist, development economist and activist. She gained her research experience while working on industrial policy issues in academia, at the Centre For Competition, Regulation and Economic Development (CCRED) and Corporate Strategy and Industrial Development (CSID) Unit.
Dr Andrew Bennie is Senior Researcher in Climate Policy and Food Systems at the IEJ. He has extensive background in academic and civil society research, organising, and activism. Andrew has an MA in Development and Environmental Sociology, and a PhD in Sociology on food politics, the agrarian question, and collective action in South Africa, both from the University of the Witwatersrand.
Juhi holds a Bachelor of Arts degree in International Relations and Sociology from Wits University and an Honours degree in Development Studies from the University of Cape Town. Her current research focus is on social care regimes in the South African context, with a particular focus on state responses to Early Childhood Development and Long-Term Care for older persons during the COVID-19 pandemic. Her other research areas include feminist economics, worlds of work and the care economy.
Bandile Ngidi is the Programme Officer for Rethinking Economics for Africa. Bandile has previously worked at the National Minimum Wage Research Initiative and Oxfam South Africa. He holds a Masters in Development Theory and Policy from Wits University. He joined the IEJ in August 2018. Bandile is currently working on incubating the Rethinking Economics for Africa movement (working with students, academics and broader civil society).
Liso Mdutyana has a BCom in Philosophy and Economics, an Honours in Applied Development Economics, and a Masters in Applied Development Economics from Wits University. His areas of interest include political economy, labour markets, technology and work, and industrial policy. Through his work Liso aims to show the possibility and necessity of economic development that prioritises human wellbeing for everyone.
Joan Stott holds a Bachelor of Business Science in Economics and a Master’s in Economics from Rhodes University. She brings to the IEJ a wealth of experience in public finance management, policy development, institutional capacity-building, and advancing socioeconomic and fiscal justice.
Siyanda Baduza is a Junior Basic Income Researcher at IEJ. He holds a BSc in Economics and Mathematics, an Honours degree in Applied Development Economics, and is currently completing a Master’s degree in Applied Development Economics at the University of the Witwatersrand. Siyanda’s research focuses on the impacts of social grants on wellbeing, with a particular focus on the gendered dynamics of this impact. His interests include applied micro-economics, policy impact evaluation, labour markets, gender economics, and political economy. He is passionate about translating economic research into impactful policy.
Shikwane is a Junior Programme Officer at IEJ focusing on civil society support and global governance in the G20. He has a background in legal compliance, IT contracting and student activism. He holds degrees in Political Studies and International Relations, as well as an LLB, from the University of the Witwatersrand.
Dr Tsega is a Senior Researcher focusing on Women’s Economic Empowerment within the G20. She examines gender equity in economic policy, with expertise in food systems and small enterprise development. She holds a PhD in development studies from the University of the Western Cape, an MA in Development Economics, and degrees in Development Studies and Economics from UNISA and Addis Ababa University.
Nerissa is a G20 Junior Researcher at IEJ, focusing on advancing civil society priorities within the G20 framework. She bridges data, research, and policy to advance inclusive economic frameworks. She is completing a Master’s in Data Science (e-Science) at the University of the Witwatersrand, and holds Honours and Bachelor’s Degrees in International Relations with distinction. She has worked as a Research Fellow at SAIIA and a Visiting Research Fellow at Ipea in Brazil.
Dr Mzwanele is a Senior Researcher supporting South Africa’s G20 Sherpa with policy research. He holds a PhD in Economics from the University of Birmingham and an MSc from the University of the Witwatersrand. His work covers open macroeconomics, trade, finance, and higher education policy, and he has published widely on inequality, unemployment, household debt and higher education curriculum reform.
Kamal is the Project Lead for IEJ’s G20 work, focusing on sovereign debt and development finance. He holds a BComm (Hons) in Applied Development Economics from the University of the Witwatersrand and an Erasmus Mundus Joint Masters in Economic Policies for the Global Transition. He has worked with SCIS, UNCTAD and co-founded Rethinking Economics for Africa.