Berlin, 31.08.2018. Climate policy can only be successful if it's designed to be fair. This requires that the urgency of climate protection is taken seriously and that the interests of those affected — both as potential victims of climate change and as those impacted by the necessary structural change for climate protection — are given equal consideration. This is the message of a new <link https: www.wbgu.de pp9 internal-link internal link in current>policy paper entitled <link https: www.wbgu.de pp9 internal-link internal link in current>"Time-just Climate Policy: Four Initiatives for Fairness", which the WBGU is presenting today to Federal Environment Minister Svenja Schulze and the State Secretary at the Federal Ministry of Education and Research, Georg Schütte. 

The occasion for the paper is the 24th Conference of the Parties to the UN Framework Convention on Climate Change, taking place in Katowice in December. Among the topics on the agenda will be how to deal with loss and damage caused by climate change, as well as the fair management of structural change in regions that have previously been heavily shaped by carbon-intensive industries (just transition). Typically, these are, on one hand, population groups in developing countries that are particularly hard hit by climate change, and on the other hand, workers employed in carbon-intensive industries, such as those in coal-mining regions. Fair and forward-looking solutions need to be developed for both groups. The WBGU recommends that the Federal Government advance a timely and just climate policy through four exemplary initiatives: the aim is to link timely decarbonisation with fair solutions for the people affected. 

Addressing structural change early and ensuring participation

Decarbonisation requires rapid structural change in regions that have previously been defined by coal mining. Early, transparent, and participatory dialogue about the potential "winners" and "losers" of the inevitable phase-out of coal, as well as forward-looking development models for the affected regions, offers a great opportunity. As an initiative for a timely and just transformation, the WBGU recommends launching a "Zero Carbon Mission". It should provide professional support for regional structural change and offer financial backing. The aim is to reduce social risks, enable globally responsible action, facilitate networking among those affected, and strengthen their capacity to act.

Creating legal protection for people harmed by climate change

Companies that contribute to climate change through their emissions may, under certain circumstances, pursue legal claims for compensation if they are forced by the state to shut down their facilities. By contrast, the legal claims of people affected by severe climate damages against large corporations that bear shared responsibility for climate change remain entirely unresolved.  The WBGU recommends that the Federal Government support a number of promising landmark cases brought by people and communities particularly harmed by climate change against large corporations that bear shared responsibility for climate change, and that it cover the litigation cost risks for these cases. Furthermore, it should work at the international level to ensure that legal recourse across national borders is made available to all those affected.

Creating dignified migration options for people who are forced to leave their homes due to climate change

At present, protection and support for people forced to leave their homes due to climate change remains inadequate. As a sign of international justice and responsibility, the WBGU recommends that the Federal Government propose a climate passport for climate-related migrants. It is modelled on the "Nansen Passport" for stateless persons, which enabled hundreds of thousands of people to find refuge in safe countries after the First World War. The climate passport should initially grant the populations of small island states — whose territory is at risk of becoming uninhabitable due to climate change — access to and rights equivalent to citizenship in safe countries. Dignified and safe migration should also be made possible in the future for nationals of other states and internally displaced persons affected by climate change. Countries with significant responsibility for climate change should make themselves available as host countries for holders of a climate passport. Germany should advocate for the introduction of such a climate passport within the framework of the upcoming round of negotiations in Katowice. 

Promoting just structural change through transformation funds

The structural change required for climate protection demands a consistent reorientation of financial flows. The WBGU recommends that the Federal Government and other states establish transformation funds. These funds should have a threefold steering effect, with their establishment, investment strategy, and use of profits all aligned with the requirements of a timely and just transformation towards climate compatibility. Through investments and shareholdings in key industries, the transformation funds should accelerate the implementation of climate and sustainability goals, and deploy the profits achieved to support the early and participatory shaping of structural change. The volume of the transformation fund should be built up through the pricing of greenhouse gases, supplemented by revenue from a reformed inheritance or estate tax. In addition, the WBGU recommends supporting economically weaker countries in establishing their own transformation funds and managing structural change through a facility at the World Bank or regional development banks.

Background: Transformation towards sustainability

An essential component of a global transformation towards sustainability is the swift and complete decarbonisation of the world economy. In order to meet the goals agreed in the Paris Agreement in 2015 — to limit climate change to well below 2°C — global CO2 emissions should peak no later than 2020 and be reduced to zero by around mid-century.

The WBGU: Policy advice on global change