At COP29, discussions on climate finance highlighted the need to tax major oil and gas firms to address climate-induced damages. A proposal suggests that a small tax could increase the UN Fund for Responding to Loss and Damage by over 2000%, thus providing vital support for communities impacted by climate disasters. The call for taxing Big Oil is framed as a matter of climate justice and accountability, as their profits significantly contribute to climate crises.
During the recent United Nations climate change conference in Baku (COP29), discussions focused on establishing a new climate financial package amidst increasing hardship for vulnerable communities globally due to the climate crisis. A proposal highlights that a modest tax on merely seven of the largest oil and gas corporations could increase the UN Fund for Responding to Loss and Damage by over 2000%, according to research by Greenpeace International and Stamp Out Poverty. This financial measure could directly assist in addressing the damages from climate-related disasters.
Specifically, taxation of ExxonMobil’s 2023 extraction could offset half of the costs incurred by Hurricane Beryl, while imposing a tax on Shell’s operations could significantly alleviate the financial impact of Typhoon Carina in the Philippines. Additionally, taxing TotalEnergies’ extraction may surpass the costs incurred from the floods in Kenya in 2024. Introducing a Climate Damages Tax (CDT) would provide vital resources to those communities heavily affected by the consequences of climate change, driven by the actions of major petroleum companies, which reported collective earnings of nearly $150 billion last year.
Looking ahead, the proposition of establishing a long-term tax on fossil fuel extraction, combined with levies on windfall profits, could significantly contribute to financing climate action efforts. It is estimated that a CDT implemented in wealthy OECD countries, increased annually by $5 per tonne of CO2-equivalent on extracted fossil fuels, might generate around $900 billion by 2030, thus empowering governments and communities facing escalating climate threats.
Fundamentally, the responsibility of funding climate loss and damage rests on the principle of climate justice. The time has come to redistribute the financial responsibility for the climate crisis from its victims to those who have contributed to its escalation. Governments must adopt the climate damages tax alongside other revenue-generating mechanisms targeting the oil and gas sector. As evident from the data, Big Oil companies are significantly implicated in the ongoing crisis, and a resolute stand must be taken to ensure they contribute fairly to the solutions.
The increasing frequency and intensity of climate-related disasters have brought to light the pressing need for financial resources to support affected communities. In the context of the global climate crisis, discussions have intensified regarding who should shoulder the financial burden of climate loss and damage. Environmental organizations, notably Greenpeace International, are advocating for innovative financial solutions, such as a Climate Damages Tax on major oil and gas corporations, to hold those accountable for exacerbating climate issues. With governments indicating the necessity of a new financial package, there is an urgent call for action to compel fossil fuel companies to contribute toward climate recovery efforts.
The climate crisis requires immediate and effective action to address both its causes and impacts. Establishing a Climate Damages Tax on major oil and gas companies could drastically increase funds needed to aid communities affected by climate-related disasters, thereby promoting climate justice. The time has come for accountability and to ensure that those who have profited from fossil fuel extraction take responsibility for their role in the climate crisis. Strikingly, the call for action emphasizes the necessity of uniting efforts to compel polluters to contribute to climate recovery and financial support for vulnerable communities.
Original Source: www.greenpeace.org
