Palau Makes History with Cap and Share Pledge: A Bold Step Forward for Climate Justice
Zainab Bie - Director, Asia Pacific at Equal Right
Earlier this year, Palau became the first country to sign Equal Right’s Cap and Share Pledge, a climate justice initiative that promises to address both environmental degradation and economic inequality.
As the world grapples with the escalating climate crisis, the need for bold, equitable, and transformative solutions has never been more urgent. Against this backdrop, the small nation of Palau has taken a historic step that could reshape the global fight for climate justice. This landmark decision not only positions Palau as a global leader in climate action but also sets a powerful example for other nations as we approach COP30.
At Equal Right, we believe that climate justice is inseparable from economic justice. The Cap and Share model embodies this principle by ensuring that the financial burden of climate action is shifted to polluters while empowering the communities most affected by the crisis. Palau’s commitment to this model is a testament to the power of visionary leadership and a reminder that even small nations can drive monumental change.
Palau is highly vulnerable to climate change impacts, including rising sea levels, extreme weather events, and loss of biodiversity.
What is Cap and Share?
Equal Right’s Cap and Share model is a revolutionary approach to tackling the twin crises of climate change and economic inequality. At its core, the policy caps fossil fuel extraction, reducing greenhouse gas emissions while generating trillions of dollars in climate finance. Unlike traditional funding mechanisms, Cap and Share does not rely on government budgets or taxpayer money. Instead, it places the burden for climate finance on the biggest polluters, and ensures that the wealth generated from the world’s natural resources is shared equitably among all people.
The revenue generated from this model is distributed directly to individuals in the form of climate grants and a global Universal Basic Income (UBI). In its first year alone, Cap and Share is projected to raise over £5 trillion, funding payments of at least $30 per month to every person on the planet. For communities on the frontlines of climate change—such as those in low-lying island nations like Palau—this financial support can be pivotal to helping them grapple with the devastating impacts of rising sea levels, extreme weather events, and economic instability.
Cap and Share is more than just a policy; it is a vision for a fairer, more sustainable world. By holding polluters accountable and redistributing wealth to those who need it most, this model bridges the gap between climate action and social justice.
Why Palau’s Leadership Matters
Palau’s decision to endorse the Cap and Share Pledge is a watershed moment in the fight for climate justice. As a small island nation, Palau is acutely vulnerable to the impacts of climate change. Rising sea levels threaten its very existence, while its economy—heavily reliant on tourism and fisheries—faces increasing instability due to environmental degradation. By signing the Cap and Share Pledge, Palau has sent a clear message to the international community: bold action is not only necessary but achievable. Palau’s leadership is a beacon of hope, proving that climate justice is within reach if we have the courage to embrace innovative solutions.
A Call to Action Ahead of COP30
As the world prepares for COP30, Palau’s historic pledge serves as a rallying cry for other nations to follow suit. The time for incremental change has passed; what we need now is a transformative global response to the climate crisis. Cap and Share offers a roadmap for achieving this transformation, providing a practical and equitable framework for climate action.
Equal Right’s Cap and Share model could serve as a bridge between the failures of past climate negotiations and the renewed optimism for global action at COP30. Palau’s leadership is a call to action for other countries to follow suit and help create a just, sustainable, and resilient future for all.
To learn more about the Cap and Share model and how you can support this transformative initiative, explore our Cap and Share Visual Summary and join us in the movement for economic justice without borders.
Palau has shown us the way. Now, it’s up to the rest of the world to follow. The time for bold action is now. The time for climate justice is now.