A TRUE SAFETY NET

The Institute for Economic Justice proposes a universal basic income guarantee (UBIG) as a foundational safety net for South Africa's transition from fossil fuels to clean energy. The document asserts that while targeted support for displaced workers is necessary, a UBIG is essential to cover those indirectly affected, such as informal workers and carers, and to prevent people from falling through gaps in social protection. It highlights international evidence from countries like Bangladesh, Brazil, and Ethiopia to demonstrate how cash transfers mitigate climate-induced crises and reduce negative coping strategies. Furthermore, the text argues that a UBIG facilitates environmental adaptation by providing the financial stability needed for reskilling and sustainable consumption, while promoting a more equitable distribution of climate risks between the Global North and Global South.

• A UBIG is necessary to complement targeted social protection because the energy transition creates ripple effects that impact entire economic ecosystems, including informal workers, contract workers, and carers who are not directly employed in the fossil fuel industry.
• South Africa's Just Energy Transition Implementation Plan (JET-IP) has allocated R6.5 billion for social protection for affected communities, but research indicates a lack of funds specifically earmarked for workers in affected value chains.
• Cash transfers provide a critical financial buffer that reduces negative coping strategies—such as selling assets at low prices or relying on child labour—and allows households to better withstand and recover from climate shocks.
• International evidence demonstrates that cash transfers are often more effective than in-kind aid; for example, in Nigeria during the COVID-19 pandemic, cash was more effective than food parcels in raising consumption and dietary diversity.
• UBIG can facilitate environmental adaptation and sustainable habits, as seen in Indonesia where cash transfers reduced tree cover loss by 30%, and in Brazil's Bolsa Verde programme, which achieved a 44-53% reduction in deforestation.
• There is a global imbalance in climate risk and responsibility, with high and middle-income countries producing over 80% of emissions while the poorest countries contribute less than 1%, necessitating international financial support for social protection like UBIG in the Global South.

APA

Institute for Economic Justice (2024). A TRUE SAFETY NET. https://iej.org.za/wp-content/uploads/2024/11/IEJ-UBIG-10-fact-sheet.pdf

Chicago

Institute for Economic Justice. A TRUE SAFETY NET. 2024. https://iej.org.za/wp-content/uploads/2024/11/IEJ-UBIG-10-fact-sheet.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=A TRUE SAFETY NET |date=October 2024 |url=https://iej.org.za/wp-content/uploads/2024/11/IEJ-UBIG-10-fact-sheet.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2024true, author = {{Institute for Economic Justice}}, title = {{A TRUE SAFETY NET}}, institution = {Institute for Economic Justice}, year = {2024}, month = oct, url = {https://iej.org.za/wp-content/uploads/2024/11/IEJ-UBIG-10-fact-sheet.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }