Levies on Equity Transactions to Finance Climate Action (2025)
Mobilising substantial new resources is essential to address the climate crisis, particularly for low-income developing countries disproportionately affected by its impacts. Financial Transactions Taxes (FTTs) on equity trading, already implemented in several countries and generating around $17 billion annually, represents an underutilised revenue stream. Drawing on FTTs that already exist, such as in France, the paper shows that an additional $87 billion per year could be raised. This could significantly contribute to climate action, especially for Loss and Damage, which requires grants-based finance.
The report was written by renowned experts in the field of FTTs, Gunther Capelle-Blancard and Avinash Persaud, on behalf of the Global Solidarity Levies Task Force (GSLTF), an initiative launched at COP28 and led by France, Kenya and Barbados.
REPORT Levies on Equity Transactions to Finance Climate Action
UNCTAD report on Blended Finance (2019)
Read the UNCTAD report on the contribution of blended finance to achieving the SDGs. It finds that under the blended finance approach, ‘low-income and the least developed economies seem to be losing out, alongside efforts to ensure environmental protection in countries affected by natural disasters’.
Read the report here
Reinforcing Resilience
Keval Bharadia, Laurey Boughey – Intelligence Capital, September 2019
Developing on the 2017 proposal from former banker Professor Avinash Persaud, previous Head of Derivatives Trading at the London Stock Exchange Keval Bharadia and Stamp Out Poverty’s Research and Policy Officer Laurey Boughey make the case for the inclusion of foreign exchange transactions in a comprehensive financial transactions tax, raising an additional £10bn over the course of a 5 year Parliament.
Read the new report here.
The Currency Transaction Tax - enhancing financial stability and financing development
Read Sony Kapoor’s original report for the Tobin Tax Network back in 2004: The Currency Transaction Tax – enhancing financial stability and financing development.
Financiers Letter
More than 50 financiers have come out in support of the financial transactions tax (i.e. Robin Hood Tax, FTT), arguing that it will reduce financial instability and raise significant additional government revenue.
To read the letter: Click here
Improving resilience, increasing revenue
Avinash Persaud – Intelligence Capital, May 2017
Former banker makes the case for modernising the UK’s current stamp duty on shares which could bring in an extra £4.7bn/year, £23.5bn over the course of a 5 year Parliament.
EU FTT revenue estimations
Manfred Bergmann – European Commission D-G Tax, June 2016
This short paper estimates revenue from a financial transactions tax at €22bn.
Read more about EU FTT Revenue Estimations
The European Financial Transactions Tax: A way to end AIDS
Coalition PLUS et al – Coalition PLUS, November 2016
Coalition PLUS and a number of international solidarity organisations write this report. They identify the European FTT as a method of raising revenue to bridge the gap in funding to end HIV/AIDS by 2030.
Read the full report here
A summary of the report:
1. The objective set by the UN to end HIV/AIDS by 2030 is realistic provided we have funding available
2. There is a funding shortfall of $7bn per year needed to realise these ambitions
3. 30% of the European FTT is enough to bridge this funding gap.
A financial transaction tax would help ensure Wall Street works for Main Street
Josh Bivens and Hunter Blair – Economic Policy Institute, July 2016
The report argues that the U.S. economy is still recovering from the financial crisis of 2008. The financial transactions tax (FTT) would help ensure the financial sector compensates other sectors of the economy (particularly U.S. households) for the damage the sector inflicted.
Through generating tax revenues, decreasing the fees Americans pay on their investments, and shrinking unproductive parts of the financial sector, an FTT would help Wall Street work for Main Street.
Read the full report here
A summary of the report:
1. A well-designed FTT on the sale of stocks, bonds, derivatives, and other investments would be an efficient and progressive way to generate tax revenues.
2. The report analyses conservative and higher revenue projections
3. Regardless of the level of revenues raised, an FTT would be a win-win for the U.S. economy.
4. Higher revenues would result in more funds for social insurance programs and much-needed public investments.
5. Lower revenues would be the result of the FTT crowding out financial transactions of little value to the U.S. economy. This would boost Americans’ incomes through lowering fees on financial services, such as the management of 401(k)s and other accounts.
Reigning in Wall Street to benefit all Americans: the case for the financial transactions tax
Dean Baker, July 2016
This report makes a detailed case for a financial transactions tax (FTT) in the USA, which could raise around $105bn annually to cover the costs of free college education and help reduce income inequality.
