At COP29, discussions focus on funding the costs of climate change. A small tax on major oil companies could increase the UN Fund for Responding to Loss and Damage significantly. Taxing these companies’ revenues could cover damages from severe weather events this year, highlighting a need for a Climate Damages Tax that holds polluters accountable and funds climate action.
At the upcoming United Nations climate change conference, COP29, in Baku, delegates are under pressure to finalize a climate financial agreement addressing the escalating costs due to climate change. The pressing issue revolves around determining the financial responsibility for the adverse effects suffered by vulnerable populations globally. According to a report by Greenpeace International and Stamp Out Poverty, implementing a minimal tax on the largest oil and gas corporations could significantly boost the United Nations Fund for Responding to Loss and Damage, increasing it by over 2000%.
Taxing the profits from 2023 extraction activities of major oil companies could mitigate the financial impact of extreme weather events linked to climate change. For instance, levying charges on ExxonMobil’s extraction can cover nearly half the expenses of Hurricane Beryl, while a tax on Shell’s extraction might finance a significant portion of the damages from Typhoon Carina in the Philippines. Additionally, taxing TotalEnergies could equate to more than 30 times the costs associated with the anticipated floods in Kenya for 2024.
A proposed Climate Damages Tax could channel much-needed finances to the frontline communities severely affected by environmental degradation due to fossil fuel companies, which collectively reported nearly $150 billion in earnings last year. An ongoing proposal suggests that a long-term tax on fossil fuel extraction, combined with levies on excess profits, could yield approximately $900 billion by 2030 across wealthy OECD nations, providing critical support for those grappling with climate impacts.
The issue of who bears the financial burden for climate loss and damage raises profound questions of climate justice. It is essential to reallocate the financial responsibilities from those most affected to those who have significantly contributed to the crisis. By implementing the Climate Damages Tax and other revenue-generating strategies, governments worldwide can begin to address the inequities surrounding climate change as they demand accountability from the oil and gas industry.
As underscored by recent advocacy efforts, including demonstrations by climate-affected communities alongside Greenpeace activists, there is a growing momentum to hold fossil fuel companies accountable for their detrimental impact on the environment. Activists have symbolically delivered items representing the loss suffered by families due to worsened climate events directly to corporate offices of energy regulators.
In summary, it is imperative for governments to compel climate polluters to cease drilling operations and take financial responsibility for their contributions to the climate crisis. The time has arrived for collective action and raising our voices to demand fairness and accountability from those profiting from environmental devastation.
The topic of climate loss and damage is increasingly prominent, especially as vulnerable communities face intensified hardships due to climate change. The UN climate conferences seek to address these issues, with a significant focus on financing mechanisms that can support affected populations. Environmental organizations are advocating for the imposition of taxes on major oil and gas companies as a crucial step toward financing climate adaptation and mitigation efforts. These taxes are seen not only as a financial remedy but also as a matter of justice, demanding accountability from those responsible for exacerbating the climate crisis.
In conclusion, addressing climate loss and damage necessitates a comprehensive strategy that holds the fossil fuel industry accountable for its significant role in the climate crisis. The proposed Climate Damages Tax, along with other financial mechanisms, has the potential to generate substantial funding for vulnerable communities impacted by climate change. By shifting the financial burden from those affected to the responsible parties, we can take significant strides towards achieving climate justice and ensuring a sustainable future.
Original Source: www.greenpeace.org
