At the recent COP29, discussions have been centered on establishing a financial package to address climate loss and damage, emphasizing the necessity for fossil fuel companies to shoulder financial responsibilities for climate-related disasters. A proposed Climate Damages Tax could generate substantial funds, advocating for climate justice by reallocating financial burdens from victims to polluters. Activists have united with disaster survivors to call for accountability from major oil and gas corporations.
At the UN Climate Change Conference in Baku (COP29), officials are working diligently to reach a consensus on a new climate financial package amidst the escalating climate crisis. Vulnerable communities are disproportionately affected by climate-related disasters, prompting critical discussions regarding financial responsibilities. An analysis by Greenpeace International and Stamp Out Poverty highlights that a minor tax on the world’s seven largest oil and gas companies could increase the UN Fund for Responding to Loss and Damage by over 2000%. This tax could offset the financial burden incurred by extreme weather events linked to climate change.
For instance, imposing a tax on ExxonMobil’s 2023 extraction revenue could cover nearly half the costs associated with Hurricane Beryl, while levies on Shell could address significant portions of the damages from Typhoon Carina in the Philippines. Moreover, taxing TotalEnergies’ extraction could exceed costs related to Kenya’s flooding. Hence, the proposed Climate Damages Tax (CDT) not only aims to generate funds for communities most affected by climate change but also holds companies accountable for their contributions to the crisis.
A comprehensive CDT, applied across wealthier OECD countries and adjusted annually by US$5 per ton of CO2-equivalent fuel extracted, could potentially garner approximately US$900 billion by 2030. This financial support is essential for governments and communities facing the negative impacts of climate change. The issue of who should bear the financial responsibility for climate damage fundamentally calls for climate justice, advocating for a shift from victims to perpetrators of the crisis.
Activists have joined survivors of climate disasters in protests, emphasizing a collective demand for accountability from the oil and gas sectors. They have delivered symbolic items representing personal losses to oil companies such as TotalEnergies and Equinor, reinforcing the need for these entities to accept financial accountability for their role in exacerbating climate issues. Abdoulaye Diallo, Co-Head of the Stop Drilling Start Paying project at Greenpeace International, emphasizes the necessity of raising collective voices to demand action from governments and the fossil fuel industry.
It is incumbent upon governments and civil society to advocate for a tax system that will compel climate polluters to cease their detrimental practices and contribute to the mitigation of climate loss and damage.
The ongoing climate crisis disproportionately affects vulnerable populations worldwide, leading to intensified hardships from extreme weather events driven by climate change. As countries gather at climate summits, discussions gravitate towards establishing financial mechanisms that allocate responsibilities for climate-related costs. In this context, the proposal for a Climate Damages Tax emerges as a pivotal suggestion to ensure that major fossil fuel companies contribute to the resolution of the damage they cause, promoting an equitable approach to climate justice and reparatory measures.
In conclusion, addressing the substantial costs associated with climate loss and damage requires a shift in financial responsibility from affected communities to the fossil fuel industry. A proposed Climate Damages Tax could generate crucial funds necessary for supporting those most affected by climate change. To achieve true climate justice, it is essential that governments adopt innovative financial mechanisms to hold companies accountable for their contributions to the climate crisis. Collective advocacy and persistent activism are vital components of this effort.
Original Source: www.ipsnews.net