Newly proposed tax on fossil fuel giants could raise $900bn by 2030
The report has the backing of dozens of climate organisations worldwide, including Greenpeace, Stamp Out Poverty, Power Shift Africa and Christian Aid. Photograph:( Others )
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The authors of the report calculate that if the tax takes effect in 2024, initially at $5 per tonne of CO2 equivalent, escalating by $5 annually, by 2030 it would raise around $900 billion in total
The authors of the report calculate that if the tax takes effect in 2024, initially at $5 per tonne of CO2 equivalent, escalating by $5 annually, by 2030 it would raise around $900 billion in total
A new tax proposal which targets fossil fuel giants within the world's richest economies could raise hundreds of billions of dollars to aid vulnerable nations grappling with the adverse effects of climate change.
The "Climate Damages Tax" report, unveiled on Monday (Apr 29), advocates for an additional levy on carbon emissions by fossil fuel entities located in Organisation for Economic Co-operation and Development (OECD) countries.
Would the tax make significant contributions to the fight against climate change?
As per the Guardian, projections suggest that the levy could potentially raise $720 billion (£580 billion) by the end of this decade.
The authors of the report calculate that if the tax takes effect in 2024, initially at $5 per tonne of CO2 equivalent, escalating by $5 annually, by 2030 it would raise around $900 billion in total.
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Of the forecasted revenue, $720 billion would be earmarked for the international loss and damage fund, they propose. The remaining $180 billion could be redistributed as a "domestic dividend," supporting communities within richer nations with a fair climate transition.
As per David Hillman, the director of the Stamp Out Poverty campaign and co-author of the report, this "demonstrates that the richest, most economically powerful countries, with the greatest historical responsibility for climate change, need look no further than their fossil fuel industries to collect tens of billions a year in extra income by taxing them far more rigorously."
"This is surely the fairest way to boost revenues for the loss and damage fund to ensure that it is sufficiently financed as to be fit for purpose," he added.
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The report has the backing of dozens of climate organisations worldwide, including Greenpeace, Stamp Out Poverty, Power Shift Africa and Christian Aid.
The proposed tax, as per Areeba Hamid, a joint director at Greenpeace UK, is an equitable strategy to compel the fossil fuel sector "to stop drilling and start paying for the damage they are causing around the world".
(With inputs from agencies)
