At COP29 in Baku, negotiators are exploring a climate financial package to address the devastating costs of climate change, particularly for vulnerable communities. A tax on major oil and gas firms could significantly boost funds for loss and damage claims. With projections indicating that such taxes could raise around $900 billion by 2030, the focus is on shifting the financial burden from victims to those responsible for climate pollution, emphasizing the necessity of climate justice.
At the recent UN Climate Change Conference in Baku (COP29), representatives are engaged in crucial negotiations to secure a climate financial package addressing the significant costs stemming from the ongoing climate crisis. Acknowledging the severe impacts on vulnerable populations worldwide, discussions now center on determining the financial responsibility for these losses.
An analysis by environmental organizations, including Greenpeace International and Stamp Out Poverty, indicates that a modest tax levied on just seven of the largest oil and gas corporations could amplify the UN Fund for Responding to Loss and Damage by over 2000%. For instance, taxing ExxonMobil’s 2023 extraction would generate sufficient funds to cover approximately half of the damages from Hurricane Beryl, while a similar tax on Shell could mitigate the impacts caused by Typhoon Carina in the Philippines. Moreover, taxing TotalEnergies could address over thirty times the damages incurred from the floods in Kenya in 2024.
The introduction of a Climate Damages Tax (CDT) is posited as a sustainable financial solution to meet the urgent needs of communities and local administrations grappling with climate-induced challenges. These corporations collectively amassed nearly $150 billion in profits last year. Implementing a long-term tax on fossil fuel extraction, paired with taxes on excess profits, is projected to yield an estimated $900 billion by 2030, which can be utilized to bolster climate action initiatives globally.
Central to this discourse is the principle of climate justice. It is imperative to transfer the financial burden of climate change from those adversely affected to the entities responsible for climate pollution. Governments across the globe must implement the Climate Damages Tax and other innovative mechanisms targeted at the oil and gas sector to secure the necessary resources.
Furthermore, Abdoulaye Diallo, Co-Head of Greenpeace International’s Stop Drilling Start Paying project, emphasizes that the data firmly indicate the complicity of major oil companies in exacerbating the climate crisis. To instigate true climate justice, leveraging financial penalties against polluters is essential, which has been underscored by recent demonstrations through which climate survivors and activist groups have united to demand accountability from energy companies.
In conclusion, as deliberations at the conference continue, it is critical for all stakeholders to coalesce around the need for a financial structure that ensures climate polluters contribute meaningfully to rectifying the damages they have caused. Proactive measures must be adopted without delay to address the pressing climate challenges faced by at-risk communities worldwide.
The issue of climate loss and damage has gained considerable attention, especially during global climate change conferences. The prevailing understanding is that the climate crisis disproportionately impacts vulnerable communities, necessitating financial measures to support recovery and adaptation efforts. There is a growing consensus among environmental advocacy groups regarding the need for fossil fuel companies to bear the financial responsibilities for the damages incurred due to climate change, which their activities have significantly contributed to.
The urgent need for financial accountability among polluting oil and gas companies has emerged as a primary focus in the discourse surrounding climate justice. A Climate Damages Tax could provide substantial resources to assist communities facing the brunt of climate impacts. Building a financial structure that holds these corporations accountable is essential in mitigating climate change effects and fostering a more equitable response to the crisis.
Original Source: www.ipsnews.net
