Grangemouth oil refinery in Scotland. The report authors say the proposed levy could be easily administered within existing tax systems.Grangemouth oil refinery in Scotland. The report authors say the proposed levy could be easily administered within existing tax systems.A new tax on fossil fuel companies based in the world’s richest countries could raise hundreds of billions of dollars to help the most vulnerable nations cope with the escalating climate crisis, according to a report.
The authors say a new extraction levy could boost the loss and damage fund to help vulnerable countries cope with the worst effects of climate breakdown that was agreed at thesummit in Dubai – a hard-won victory by developing countries that they hope will signal a commitment by developed, polluting nations to provide financial support for some of the destruction already under way.
The report is backed by dozens of climate organisations worldwide including Greenpeace, Stamp Out Poverty, Power Shift Africa and Christian Aid. “We need concerted global leadership to force the fossil fuel industry to stop drilling and start paying for the damage they are causing around the world. A climate damages tax would be a powerful tool to help achieve both aims: unlocking hundreds of billions of funding for those at the sharp end of the climate crisis while helping accelerate a rapid and just transition away from fossil fuels around the world.