During a recent meeting in Bonn, representatives of developing countries have expressed a strong urge for wealthy nations to allocate hundreds of billions of pounds towards climate action. This funding, they contend, could be procured through the imposition of green levies on defence, technology, and fashion firms, as well as financial transactions.
The G77+China consortium, representing 134 developing countries, has submitted an unpublished document advocating for affluent nations to raise $1.1 trillion annually to assist poorer nations in curbing emissions, adapting to climate change, and mitigating its effects. They proposed that prosperous countries need only expend 0.8% of their GDP annually to raise $441 billion, which would then mobilise adequate private finance to reach the $1.1 trillion target.
A foremost argument contends that developed countries can raise $441 billion “without compromising spending on other priorities entirely by adopting targeted domestic measures”, including a “financial transaction tax”, a defence company tax, a fashion tax, and a “Big Tech Monopoly Tax”.
Diego Pacheco, a Bolivian negotiator for the Like-Minded Developing Countries group, has also underscored the availability of finance and the absence of political commitment from rich nations to prioritise climate change. He has proposed that developed countries redirect military budgets towards climate change efforts or implement taxes on luxury products.
The document presented at the meeting has also emphasized the potential to raise billions through levies on international shipping, aviation, fossil fuels, and financial transactions. It has also suggested green taxes on top technology, fashion, and defence companies, with the expectation of generating substantial revenues.
The proposals advanced by developing countries have raised pertinent questions regarding the obligation of developed nations to furnish climate finance to poorer countries. This matter is anticipated to be a major source of contention at forthcoming climate summits.
In conclusion, the call for green taxes on technology and fashion companies, as well as other measures, reflects the urgency and seriousness with which developing nations regard the climate crisis. As the world grapples with the imperative for climate action, it is imperative for developed countries to thoughtfully consider their financial contributions and responsibilities in addressing global climate challenges.