Welcome to the Generational Contribution
The Generational Contribution is a tool for a nation state, that enables the handing over of a society to the next generation where the major climate and environmental problems have been solved.
The Generational Contribution has been designed outside of the tax systems, and is therefore not included in national budgets. Individual nation states determine the particular conditions and framework for the Generational Contribution in their own country.
In Sweden, the Generational Contribution works to achieve the Swedish ”Generational Goal.” Some countries lack a specific Generational Goal but instead have similar objectives regarding handing over a sustainable society to the next generation.
The Generational Contribution can be used effectively in all countries and involves businesses in a positive way; how it works is described on this website.
The Generational Contribution can be introduced in all countries
The Swedish Generational Goal
“The overall goal of environmental policy is to hand over to the next generation a society in which the major environmental problems are solved, without causing increased environmental and health problems outside Swedish borders.”
— The Swedish Parliamental definition of the environmental goal
Financial solution
What do we do when government funds are insufficient to reach the Generational Goal?
Currently, we are far from achieving the Generational Goal, and we therefore need to find other financing solutions.
To ensure funding, both public and private means are required, where private funds need to constitute a significant portion if the Generational Goal is to be achieved.
The Generational Contribution is the financing solution for the private sector.
The Generational Contribution
– The solution outside of the tax system
Businesses need to take a more defined role in the environmental and climate work ahead, and they need to be involved in a positive and meaningful way. Through the Generational Contribution, companies gain a greater freedom of choice, and the issue of responsibility is handled in a more democratic way. The size of the contribution is determined annually through the company’s climate and environmental reporting.
Considering the current global situation, it is unlikely that sufficient Government funds will be allocated to the areas of climate, environment, and nature in the coming years. Therefore, private funds are absolutely necessary and a prerequisite for nations to solve their climate and environmental problems.
The size of the Generational Contribution is set by each nation state
Each nation regulates which company categories—large, medium-sized, and small companies—are included and at what points in time the Generational Contribution takes effect. A company’s reported carbon dioxide emissions in Scope 1 and 2, according to the GHG-Protocol, constitute the calculation basis for how much a company shall contribute annually. When Scope 3 is to be included in the basis is determined by each nation. Furthermore, it is proposed that 6% of reported emissions in the company climate reporting be used as the basis for the size of the contribution, but a nation itself determines which percentage rate shall apply in the country. In addition to this, each nation sets a reference price for carbon dioxide emissions.
In summary, the nation state itself determines which Scopes are to be included, what percentage, and what reference price shall be used when calculating a company’s Generational Contribution.
Example Company Y, reference climate reporting previous year:
Reported emissions in Scope 1 and 2: 500 tonnes CO2
Reference price CO2: 70 EUR
Company Y’s Generational Contribution becomes 2100 EUR (500*6%*70 EUR)
The Generational Contribution is used for direct measures in nature and is allocated as follows
The Generational Contribution is distributed across different types of credits that generate increased biodiversity, healthy ecosystems, clean water, and increased carbon sequestration in the forest and agricultural landscape. Companies choose credits that directly finance local projects in their own country and thereby contribute to achieving national climate and environmental goals.
Example Company Y 6%, 2100 EUR, is allocated to local projects and distributed as follows:
2%, 700 EUR – Water credits – to achieve better water resilience and quality
2%, 700 EUR – Carbon credits – to secure and increase carbon sinks
2%, 700 EUR – Nature credits – to protect and preserve nature
The Generational Contribution is a tool for a nation that, through these credits, restores several parts of nature with the aim of solving major societal challenges, such as loss of biodiversity, climate change, food security, and disaster risk reduction.