Rich countries could raise five times more money than poor countries are asking for in climate finance
Research by Oil Change International, published on Tuesday, highlights that rich countries could raise five times more money than poor countries are demanding in climate finance, through taxes on fossil fuels and billionaires, and ending harmful subsidies.
Developing nations are asking for at least $1 trillion a year to help them cut greenhouse gases and manage the ever-intensifying natural disasters. But rich countries across the globe are delivering much less than this in conventional climate finance.
The research found that a tax on billionaires could generate $483 billion, $327 billion through a financial transaction tax, $112 billion through taxes on sales of a big technology, arms and luxury fashion, and $454 billion through a redistribution of 20% of public military spending.
Global leaders meeting at UN general assembly
Last year, global leaders agreed to phase out fossil fuels. During the COP28 Summit in Dubai, participants also agreed to operationalise the Loss and Damage Fund to compensate vulnerable countries for the brutal consequences of climate change.
Stopping subsidies to fossil fuels is expected to free up $270 billion of public money in rich nations, and nearly $846 billion globally. Taxes on fossil fuel extraction are estimated to amount to $160 billion in the rich countries and $618 billion globally, reported the Guardian.
“There is no shortage of public money available for rich countries to pay their fair share for climate action, at home and abroad,” said Laurie van der Burg at Oil Change International. Today, governments are meeting at the UN general assembly in the US to discuss pressing issues.
