A TRUE SAFETY NET

This factsheet by the Institute for Economic Justice argues that a universal basic income guarantee (UBIG) is a necessary component of a Just Energy Transition (JET) in South Africa. It posits that while targeted support for displaced workers is essential, a UBIG provides a foundational safety net for those indirectly affected by the shift from fossil fuels to clean energy, builds climate resilience against extreme weather, and facilitates the adoption of sustainable habits.

• A universal basic income guarantee (UBIG) is proposed as a critical support mechanism for South Africa's Just Energy Transition (JET) to protect communities and workers affected by the shift from coal power to renewable energy. While targeted initiatives for displaced workers are necessary, a UBIG ensures that those indirectly affected—such as people in the informal economy, contract workers, and carers—do not fall through the gaps of social protection.
• The document highlights a gap in current South African social protection for the energy transition. Although the Just Energy Transition Implementation Plan (JET-IP) allocates R6.5 billion for social protection in affected communities, research indicates that no funds have been specifically set aside for workers in affected value chains or broader social protection for those communities, with most investment directed toward private sector infrastructure.
• Cash transfers, including a UBIG, enhance climate resilience by providing a financial buffer that prevents the poorest households from resorting to negative coping strategies during crises, such as selling assets at low prices, using child labour, or taking high-risk loans.
• International evidence demonstrates that cash transfers are effective in mitigating the impacts of climate-induced crises. Examples include Bangladesh, where transfers increased food spending and evacuation likelihood during floods; Ethiopia, where the Productive Safety Net Programme increased caloric intake during storms; and Niger, where transfers helped households weather drought.
• A UBIG can facilitate environmental adaptation and the adoption of sustainable practices by reducing the economic fear associated with transitioning away from fossil fuels. The document cites examples where cash transfers led to reduced deforestation: a 30% reduction in tree cover loss in Indonesia and a 44-53% reduction through Brazil's Bolsa Verde programme.
• The document argues that a UBIG funded by progressive mechanisms can more equitably distribute the risks and benefits of climate change. It notes a global imbalance where high and middle-income countries are responsible for over 80% of global emissions despite making up just over 50% of the population, while the poorest countries contribute less than 1%.

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} }