Proposed Tax on Fossil Fuel Giants Could Generate $900 Billion by 2030

Climate Damages Tax Proposal Could Raise Billions for Climate Change Mitigation

A new tax proposal targeting fossil fuel giants in the world’s richest economies aims to raise funds to support nations affected by climate change.

Overview

The “Climate Damages Tax” report suggests an additional levy on carbon emissions by fossil fuel entities in OECD countries.

Financial Impact

• If implemented in 2024 at $5 per tonne of CO2 equivalent, escalating by $5 annually, the tax could raise around $900 billion by 2030.
• Projections indicate the levy might generate $720 billion by the end of the decade.

Utilization of Funds

The report proposes allocating $720 billion to an international loss and damage fund, with the remaining $180 billion as a “domestic dividend” for climate transition in richer nations.

Support and Endorsement

The tax proposal is endorsed by various climate organizations globally, including Greenpeace, Stamp Out Poverty, Power Shift Africa, and Christian Aid.

Advocacy

Areeba Hamid from Greenpeace UK views the tax as a means to hold the fossil fuel sector accountable for the damage they cause worldwide.