UBIG Factsheet 11 | Priority number one: How a UBIG can help defeat hunger

UBIG Factsheet 11 | Priority number one: How a UBIG can help defeat hunger

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:

  1. Why does South Africa need a Universal Basic Income Guarantee?
  2. No one left behind: Why universal basic income makes more sense than targeted grants
  3. Jobs versus Grants: Are employment and basic income a policy trade-off?
  4. How a UBIG can support healthier kids, happier adults, and lifelong learning
  5. How a UBIG can advance gender justice and social cohesion
  6. Not just a handout: How a UBIG gives people the power to prosper
  7. “But how will we pay for it?” Financing a UBIG
  8. Modelling fiscal pathways to a basic income
  9. Work-seeking Conditionality is Just Bad Policy: Why a basic income should have no strings attached
  10. A True Safety Net: How a UBIG Can Support a Just Energy Transition
  11. Priority number one: How a UBIG can help defeat hunger