Developing countries want rich nations to give them hundreds of billions of dollars for climate action, suggesting this could be raised by taxing defence, technology and fashion companies, as well as financial transactions.
At UN talks on a new post-2025 climate finance goal in the German city of Bonn, the umbrella group for 134 developing countries said wealthy governments could raise $1.1 trillion a year, needed by poorer nations to curb emissions, adapt to climate change and deal with the damage it causes.
An unpublished position paper by the G77+China, seen by Climate Home, maintains that rich countries would “only” need to spend 0.8% of their GDP per year to raise $441 billion. That would mobilise enough private finance to reach $1.1 trillion a year, it adds.
It notes that 0.8% of GDP is much less than the 6.9% of GDP developing countries currently spend paying interest on their debt.
The paper says developed countries can raise $441 billion “without compromising spending on other priorities entirely by adopting targeted domestic measures” such as a “financial transaction tax”, a defence company tax, a fashion tax and a “Big Tech Monopoly Tax”.
It argues that “the matter in question is not whether the resources exist, it is whether there is political will to prioritise climate change”.
Bolivian negotiator Diego Pacheco, who often speaks for the influential Like-Minded Developing Countries group, told Climate Home that rich countries were trying to pass their responsibility to provide climate finance onto the private sector and development banks that mainly offer loans.
“The [argument of a] lack of public finance is not true,” he said. “There is a lot of finance available and political will is lacking.”
He suggested that developed countries should shift military budgets towards tackling climate change or tax luxury products “because luxurious patterns of consumption are also a driver of the climate crisis”.
Innovative sources
Referring to the document in talks on the new finance goal yesterday, Saudi Arabia’s negotiator justified a tax on arms manufacturers by saying that military emissions of planet-heating gases represent 5% of global historical emissions.
“One… potential idea is to have a tax on defence companies in developed countries,” he said, suggesting it could be put forward. “We also realise that a financial transaction tax can actually generate a lot of revenue as well.”
At the COP28 climate summit last November, France and Kenya launched a taskforce to look into innovative levies that could raise money for climate action. They said they planned to examine taxes on international shipping – which has already agreed to introduce one – aviation, fossil fuels and financial transactions but did not refer to fashion, technology or defence companies.
Global brands targeted
According to the document, a financial transaction tax would raise about $240 billion a year over a decade through a 0.5% tax on trades, 0.1% on bonds and 0.005% on derivatives “only for Wall Street”.
About $57 billion a year could be raised from a 5% tax on the annual sales of the top seven technology firms, it says. Those would include Amazon, Apple and Google. “The ‘Big Tech’ firms hold a global monopoly on technologies, upon which developing countries have been reliant,” the paper argues.
About $34 billion a year could come from a 5% tax on the annual sales of the roughly 80 top fashion firms in developed countries, it says. This would hit brands like Louis Vuitton, Dior and Nike.
The G77+China group adds that the fashion sector comes behind only fossil fuels and agriculture in the size of its emissions – “however, unlike fossil fuels and agriculture, high-end brands are not critical for food and energy security”.
Around $21 billion a year could come from a 5% tax on the annual sales of the top 80 defense firms in developed countries, the paper says. This would include US firms like Lockheed Martin, Northrop Grumman and Boeing, the UK’s BAE Systems and France’s Thales.
All these measures would result in finance flows mainly from developed to developing countries, the document notes, except for the technology tax where “flows would be mixed as consumer[s] would shoulder the cost”.
Quality – not just quantity – matters in the new climate finance goal
Pacheco said the proposals originated within the Arab Group, before winning support from the wider G77+China group. Developed countries have yet to publicly respond to the ideas.
Under the UN climate change process, the group of developed countries defined back in 1992 have so far had the sole responsibility to provide climate finance to developing nations.
Developed-country governments are now pushing hard to change this, so that wealthier and high-emitting developing countries like Saudi Arabia would also contribute towards the new post-2025 finance goal.
This is one of the divisive issues government negotiators will wrangle over this week and next in Bonn to prepare the ground for an expected agreement on the finance goal at COP29 in Baku in November.
(Reporting by Joe Lo; editing by Megan Rowling)
The post Developing countries suggest rich nations tax arms, fashion and tech firms for climate appeared first on Climate Home News.
Developing countries suggest rich nations tax arms, fashion and tech firms for climate
Climate Change
Asheboro, North Carolina, Is Under Pressure to Control Discharges of a Toxic Chemical Into Drinking Water Supply
The EPA wants the city of 28,000 to rein in an industrial solvent, 1,4-Dioxane, from its wastewater discharges. So far, Asheboro has refused.
ASHEBORO, N.C.—Some members of the public in attendance at the Environmental Protection Agency hearing last week called the City of Asheboro’s actions “despicable.” Others said they were “shameless.” And still another remarked that those who pollute the water—which data show Asheboro is doing—await “a special circle of hell.”
Climate Change
Can COP30 mark a turning point for climate adaptation?
Cristina Rumbaitis del Rio is a senior advisor on adaptation and resilience and Pan Ei Ei Phyoe is a climate adaptation and resilience consultant with the United Nations Foundation.
COP 30 compels the world to make a decision. Already 3.6 billion people are highly vulnerable to rapidly worsening climate impacts such as droughts, floods, and heat stress. Meanwhile, Glasgow-era climate finance commitments are expiring, and elements of the Global Goal on Adaptation (GGA) are yet to be finalized.
This November provides the opportunity to elevate the issue of adaptation and resilience – and for countries to demonstrate they grasp the urgency and are prepared to act.
Success at COP30 will hinge on how three key questions are answered:
- Will countries agree on a new adaptation finance target backed with real commitments?
- Will countries finalize architecture to track progress toward the Global Goal on Adaptation and implement the UAE Targets for Global Climate Resilience?
- Will adaptation receive elevated political attention at COP30?
A new adaptation finance target backed with real commitments
Belém will test whether negotiators can agree on a new adaptation finance goal that is anchored in clear targets, timelines, and accountability. The Glasgow Climate Pact’s goal to double adaptation finance is set to reach its deadline at the end of this year and countries are facing the question of what, if anything, comes next.
The form of the finance goal also matters: will it be a provision-based target ensuring measurable public contributions, or a mobilization target dependent on less transparent private leverage?
After two consecutive years of falling short, all eyes will be on whether the Adaptation Fund can finally meet its mobilization target and secure a multi-year replenishment to deliver predictable support.
Multilateral development banks (MDBs) are under pressure to demonstrate how to integrate adaptation into country-platform approaches including aligning finance for accelerated country-driven action and providing fast-start financing for implementation of National Adaptation Plans. NAPs have been completed by 67 developing countries and are underway in another 77 countries.
Climate adaptation can’t be just for the rich, COP30 president says
Vulnerable countries currently need an estimated $215 billion-$387 billion annually to adapt to climate change, far exceeding available funding. And developed countries face growing expectations to renew or grow their bilateral commitments beyond Glasgow-era pledges that are expiring this year or next.
Without tangible new finance commitments, the ambition of the Global Goal on Adaptation risks remaining rhetorical.
System to track progress on the Global Goal on Adaptation
The GGA still has no mechanism to measure progress, despite being established under the Paris Agreement in 2015, shaped through multiple work programs since 2021, and further expanded by the UAE Framework for Global Climate Resilience of COP28 which set 11 targets and launched the UAE-Belém Work Programme.
Agreeing on a robust, streamlined indicator set that is both scientifically sound and usable by countries with differing capacities will be one of the hardest tasks at COP 30. These outcomes will be a test of whether we can move from measuring resilience to building it.
Foreign aid cuts put adaptation finance pledge at risk, NGOs warn
Negotiators must settle the inclusion of equitable means-of-implementation indicators covering finance, technology, and capacity building. Finally, they must decide what comes next under the UN Framework Convention on Climate Change to ensure the UAE targets are acted upon within the next two to five years.
Those targets include seven that set resilience priorities for water and sanitation, food and agriculture, health, ecosystems, infrastructure, livelihoods and cultural heritage.
Adaptation needs greater political attention at COP30
Last week, COP30 President Corrêa do Lago released the first-ever COP presidency letter focused on elevating adaptation, calling for solutions that will make Belém the “COP of adaptation implementation”. His task now is to embed that principle across every strand of COP30’s delivery architecture.
One test lies in how realistically adaptation is integrated into the Baku-to-Belém Roadmap to $1.3 trillion to be released by the presidency. The implementation of the COP 30 Action Agenda, which provides a blueprint for collective climate action and solutions, could become the bridge between political vision and practical delivery on adaptation.
Questions remain on whether Brazil’s leadership on adaptation thus far will position adaptation as a political priority that will be reflected in leaders’ statements at the opening of COP30. The inaugural High-level Dialogue on Adaptation – hosted by the outgoing COP President Azerbaijan and Brazil – is another opportunity where countries can reaffirm and institutionalize adaptation as a permanent pillar of climate action.
In the role as the host and president of COP30, Brazil has repeatedly stressed the importance of matching adaptation with actual resources and accountability, highlighting adaptation as one of the five guiding stars of the Paris Agreement alongside mitigation, finance, technology, and capacity building.
With the right outcomes in Belém on finance targets, measurement systems, and political commitments, COP30 could be remembered as the moment adaptation financing and implementation finally matched the scale of the challenge.
The post Can COP30 mark a turning point for climate adaptation? appeared first on Climate Home News.
Climate Change
Cranberry Farmers Consider Turning Bogs into Wetlands in Massachusetts As Temperatures Rise
The state is helping to transform cranberry bogs to into habitats that broaden conservation and climate change resilience.
What happens when a region no longer has the ideal climate for its star crop?
Cranberry Farmers Consider Turning Bogs into Wetlands in Massachusetts As Temperatures Rise
-
Climate Change2 years ago
Spanish-language misinformation on renewable energy spreads online, report shows
-
Climate Change3 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change Videos2 years ago
The toxic gas flares fuelling Nigeria’s climate change – BBC News
-
Greenhouse Gases1 year ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Greenhouse Gases3 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change1 year ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits
-
Renewable Energy4 months ago
US Grid Strain, Possible Allete Sale
