Report on the Global Commons Fund Proposal for a Just Transition Aligned with Sustainable Development Goals

Introduction: Addressing the Climate Crisis through a Just Transition

The global community faces an urgent imperative to transition to a green economy in response to the climate crisis. The focus has shifted from whether to transition, to how to do so equitably. A just transition must extend beyond fossil fuel workers to include unemployed populations, Indigenous peoples, youth, and vulnerable communities in the Global South, who bear the least responsibility for climate change but suffer its greatest impacts. This approach aligns with several Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 10 (Reduced Inequalities), SDG 13 (Climate Action), and SDG 16 (Peace, Justice and Strong Institutions).

Global Commons Fund: A Sovereign Wealth Fund for Global Justice

A new proposal by Patrick Brown and Tomás Paes de Carvalho introduces the concept of a Global Commons Fund, an international Sovereign Wealth Fund (SWF) designed to redistribute carbon revenues globally. This fund would finance a Universal Basic Income (UBI) and targeted climate investments, reimagining SWFs as instruments of global justice rather than solely national savings mechanisms.

Turning Fossil Wealth into Shared Security

Traditionally, Sovereign Wealth Funds manage income from nonrenewable resources at the national level. Brown and Carvalho argue for their expanded role to:

1. Capture and invest the economic value of fossil fuel extraction,
2. Support social equity, and
3. Enhance climate resilience for future generations.

This approach supports SDG 8 (Decent Work and Economic Growth), SDG 11 (Sustainable Cities and Communities), and SDG 17 (Partnerships for the Goals).

Examples from Brazil’s cities of Maricá and Niterói demonstrate how local SWFs funded by oil royalties can sustainably finance basic income programs, buffering against fossil fuel revenue volatility and supporting vulnerable populations. However, replicating such models globally requires broader access to resources, which the Global Commons Fund aims to provide.

Cap and Share Model: Establishing a Global SWF for Climate Justice

The Global Commons Fund underpins the “Cap and Share” model developed by the nonprofit Equal Right. The model proposes:

• A legally binding global cap on fossil fuel extraction,
• A carbon charge applied to extraction licenses, and
• The creation of a global Sovereign Wealth Fund to manage and redistribute revenues.

This fund would operate with a clear justice mission, investing in global climate solutions and distributing cash dividends equally to all individuals worldwide. Initial payments are projected at approximately $30 per month, with potential annual revenues reaching up to $5 trillion. A portion of the fund would finance climate grants targeted at the most affected communities, supporting SDG 7 (Affordable and Clean Energy), SDG 10 (Reduced Inequalities), and SDG 13 (Climate Action).

By embedding the just transition within a global financial framework, the Global Commons Fund democratizes the benefits of decarbonization, converting fossil fuel wealth from a source of corporate profit and environmental harm into a shared public good.

The Importance of Sovereign Wealth Funds in Achieving Sustainable Development

The strength of this proposal lies in its long-term perspective. Unlike temporary aid or compensation programs, SWFs—when governed transparently and invested ethically—promote intergenerational equity, ensuring that the costs of today’s transition do not compromise future stability. This supports SDG 16 (Peace, Justice and Strong Institutions) and SDG 17 (Partnerships for the Goals).

Brown and Carvalho’s approach reframes the climate finance dialogue from questioning how to afford a just transition to demonstrating how to design a transition that finances itself inclusively. The Global Commons Fund exemplifies how Sovereign Wealth Funds, restructured for justice and sustainability, can be pivotal in achieving a fair and sustainable climate future aligned with the Sustainable Development Goals.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 1: No Poverty – The article discusses Universal Basic Income (UBI) funded by carbon revenues to support vulnerable populations, addressing poverty reduction.
2. SDG 7: Affordable and Clean Energy – The transition from fossil fuels to a green economy is central to the article’s theme.
3. SDG 10: Reduced Inequalities – The proposal emphasizes social equity, inclusion of marginalized groups such as Indigenous peoples, youth, and communities in the Global South.
4. SDG 13: Climate Action – The article focuses on climate crisis mitigation through fossil fuel caps, carbon charges, and investment in climate solutions.
5. SDG 16: Peace, Justice and Strong Institutions – The article highlights transparent governance and ethical investment of Sovereign Wealth Funds (SWFs) for intergenerational equity.

2. Specific Targets Under Those SDGs

1. SDG 1
   • Target 1.2: Reduce at least by half the proportion of people living in poverty in all its dimensions.
   • Target 1.3: Implement social protection systems including basic income schemes.
2. SDG 7
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
3. SDG 10
   • Target 10.2: Empower and promote social, economic and political inclusion of all.
4. SDG 13
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Target 13.a: Implement the commitment undertaken by developed-country parties to the UNFCCC to mobilize climate finance.
5. SDG 16
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicator for SDG 1
   • Proportion of population covered by social protection systems, including basic income programs (implied by UBI implementation).
2. Indicator for SDG 7
   • Proportion of renewable energy in the total energy consumption (implied by fossil fuel extraction cap and transition to green economy).
3. Indicator for SDG 10
   • Measures of income inequality and inclusion of marginalized groups in economic benefits (implied by redistribution of carbon revenues and equity focus).
4. Indicator for SDG 13
   • Amount of carbon revenues collected and redistributed (implied by carbon charge and SWF revenue projections).
   • Number and scale of climate grants targeted to affected communities.
5. Indicator for SDG 16
   • Transparency and governance quality of Sovereign Wealth Funds (implied by emphasis on transparent governance and ethical investment).

4. Table of SDGs, Targets, and Indicators

Source: commondreams.org