Transition to a sustainable economy requires a fundamental change in how we use natural resources in a quantitative and qualitative way. Not only a substantial reduction of resource use is needed in a range of 3 to 5, but also a deep decarbonisation needs to take place, which results in zero GHG emissions by mid century. At the same time the growing national and international inequalities pose a challenge for implementation, where no one shall be left behind, as it is also prompted by the recently adopted SDGs.

The challenge is how the principles of social solidarity and justice on one hand and environmental sustainability on the other can be put into practice in developing decarbonisation pathways of economies. This is also of special importance in the CEE region, where (energy) poverty poses even higher challenges for policy interventions. The Energy Budget Scheme proposed by the Resource Cap Coalition will be presented in detail, and critically compared with other proposals from all over the world with similar objectives: the Carbon Fee and Dividend proposal from the US, the working examples of carbon tax and ecological tax reform and the Feasta proposal from Ireland. The proposals all aim to achieve among others a reduction in fossil fuels use, but the issues of policy effectiveness and equity, their feasibility and acceptability require careful consideration. The paper will provide an overview of these proposals from different aspects, while arguing for a comprehensive policy tool for deep decarbonisation, like the Energy Budget Scheme.

This media entry was a contribution to the special session „Deep decarbonisation and social justice – an overview of policy proposals“ at the 5th International Degrowth Conference in Budapest in 2016.