At COP29, proposals for new taxes on cryptocurrencies and plastics were introduced, aiming to generate up to USD 41 billion annually for climate finance. Prime Minister Mia Mottley confirmed that additional taxes could increase this figure to USD 690 billion. Key proposals include a cryptocurrency transaction tax and a levy on plastics, both designed to address environmental impacts and promote funding for climate initiatives.
The discussion at the World Climate Change Conference (COP29) has introduced potential new taxes on the cryptocurrency and plastics sectors to raise significant climate finance. The Global Solidarity Levies Task Force proposed these levies could generate approximately USD 41 billion a year, targeting high-polluting industries. Prime Minister Mia Mottley of Barbados emphasized that combined efforts with further taxes on fossil fuels and financial transactions could lead to annual revenues as high as USD 690 billion. The proposed cryptocurrency tax might range between 0.1 percent and 20 percent on transactions, with a projected yield of USD 15.8 billion to USD 323 billion annually. Furthermore, taxing Bitcoin mining could bring in an additional USD 5.2 billion per year. Challenges in enforcing these taxes remain due to the anonymity associated with cryptocurrency transactions. The Task Force also suggests a 5 to 7 percent tax on plastics, expected to raise USD 25 billion to USD 35 billion annually. This levy aims to change market dynamics, incentivizing a shift toward sustainable alternatives. The upcoming Global Plastics Treaty discussions will further explore the intersection of taxation and climate impacts. Lastly, a proposal for a 2 percent global wealth tax on billionaires aims to support climate finance initiatives, shifting the dialogue from voluntary contributions to structured funding mechanisms.
The proposed taxes on cryptocurrencies and plastics arise from discussions aimed at addressing the escalating financial needs associated with climate change. These measures come at a critical time when countries, particularly in the Global South, require additional financial resources to mitigate and adapt to climate impacts. The Global Solidarity Levies Task Force, comprising representatives from various nations, advocates for these new levies to contribute significantly to global climate finance and promote equitable responses to the climate crisis.
In conclusion, the proposed taxation on cryptocurrencies and plastics represents a strategic initiative to bolster climate finance, aiming for substantial annual revenue to support climate-resilient projects. The support from international leaders highlights the urgency of re-evaluating financial frameworks to address climate change systematically. By proposing these levies, the discussions at COP29 seek to implement fair and impactful funding mechanisms, moving away from reliance on voluntary contributions to more sustainable financial practices.
Original Source: www.ipsnews.net
