ILO calls for international solidarity to build climate-proof social protection systems

ILO News (BRUSSELS) – Vast segments of the world’s population are not protected against routine lifecycle risks and even less so against climate risks. At a conference entitled “A climate-proofed social protection”, organized by the Belgian Federal Public Service for Social Security, the ILO presented some of the key findings of its World Social Protection Report 2024-26.

The climate crisis already has a great impact on people and societies. Extreme events, such as heatwaves, hurricanes and floods, and the loss of biodiversity can trigger the spread of diseases, temporary income losses and displacement, exacerbating the need for social protection

said Shahra Razavi, Director of the ILO Social Protection Department.

Climate change and the transition from brown or unsustainable industries to green sectors increase the risk for unemployment. We also see declining incomes from environmentally harmful practices. Displaced workers will need help to transition to new jobs and sectors.

“For the first time, 52,4% of the global population is covered by at least one social protection benefit, a good improvement from 2015. But big gaps remain”, the Director said. Whilst coverage rates are high in Europe and Central Asia, in Africa, only about 19% of the population has access to one form of social protection.

Globally, only one in five persons has the possibility to benefit from unemployment benefits. In the 50 countries most vulnerable to climate change, only 25 per cent of the population benefits from effective coverage by at least one social protection cash benefit, and in the 20 most vulnerable countries the coverage rate is under 10 per cent. These countries are doing badly in terms of preparedness.

Comprehensive social protection systems can mitigate the impacts of climate policies and help people adapt to climate related shocks. However, this means getting the basics rights: building systems that provide universal coverage and a range of benefits requires adequate financing mechanisms.

High-income countries in the Global North are historically responsible for 92 per cent of the excess CO2 emissions that are driving climate breakdown, while least developed countries and small island states accounted for only 3.8 and 1 per cent respectively. Rich countries have an ecological debt to pay.

Domestic resource mobilization provides the lifeline for all social protection systems, and progressive taxes on income and property, and social contributions can help close the gap. Evidence shows that considerable fiscal space could also be generated by carefully and progressively removing explicit and implicit fuel subsidies (by increasing carbon pricing schemes in a way that charges for the environmental costs of carbon). Several countries have done this, including Indonesia and Egypt.

Ms Razavi underlined the need for an enabling global financial architecture, including by addressing debt distress that is reducing the fiscal space for social investment, and providing access to international contingency financing in times of crisis.

“Countries should set realistic but ambitious targets to extend their social protection systems. Reaching at least a two-percentage-point annual increase in social protection coverage is feasible. Global evidence from the ILO World Social Protection Database shows this rate of progress is realistic based on the trends we have seen over the past decade”, the Director explained. “Social protection is a strategic investment that promotes poverty and inequality reduction, social inclusion and productivity,” she concluded.