Designing welfare systems for a 1.5° future

As the climate crisis deepens, the interplay between welfare systems and climate policies becomes increasingly critical. Historically, social and environmental goals have often been treated as separate, sometimes conflicting, objectives. This dichotomy hampers progress toward sustainable well-being and hinders efforts to achieve the objectives of the Paris Agreement and the EU Green Deal. Climate policies, such as reducing consumption and scaling down high-emitting industries, can disproportionately impact vulnerable populations, exacerbating social inequality. Conversely, well-designed welfare policies, such as income ceilings or universal basic services, can reduce inequality while lowering carbon footprints. For example, the top 10% of EU emitters are responsible for 41% of emissions, more than the bottom 50% combined. Policies targeting these disparities are both socially and environmentally beneficial. Research conducted within the EU 1.5° Lifestyles project highlights that a synergistic approach — integrating welfare reforms with ecological objectives — can address socio-ecological challenges effectively. Two policies emerge as pivotal: Working Time Reduction (WTR) and Universal Basic Services (UBS). These strategies aim to promote equity, well-being, and ecological sustainability simultaneously, reducing household carbon footprints (Policy Brief 1, 2) while mitigating social tensions.