The Climate Damages Tax: A guide to what it is and how it works (2024)
There is a price for heating up the planet. Currently it is borne to a vast extent by the populations affected by ever-intensifying climate impacts. Although their products are the root cause of the crisis, to date, the fossil fuel producers have gotten away with not paying. The Climate Damages Tax (CDT) proposal, underpinned by the Polluter Pays principle, makes the case that it is high time for the producers to bear a substantial proportion of the costs for losses and damages that result from the burning of fossil fuels. The CDT is a fee on the extraction of each tonne of coal, barrel of oil, or cubic meter of gas. The report proposes that the substantial additional revenue raised is allocated in two ways. Firstly, to boost finance for the newly set up Loss & Damage Fund allowing richest, most polluting, countries to make their contributions without unfairly costing their citizens. Secondly, it will generate a significant domestic dividend that can be channelled to climate action nationally, helping to pay for the necessary support for workers and communities to transition away from fossil fuels, towards green energy and transport. The report sets out how the CDT would work and its considerable revenue potential.
EXECUTIVE SUMMARY: Executive Summary – The Climate Damages Tax: A guide to what it is and how it works (2024)
REPORT: The Climate Damages Tax: A guide to what it is and how it works (2024)
Lessons from COVID-19 for addressing loss and damage in vulnerable developing countries
This is the first in a series of 3 briefings under the banner: Unpacking Finance for Loss and Damage, produced by Stamp Out Poverty, Heinrich Böll Stiftung (Washington, DC), ActionAid International, Bread for the World and Practical Action.
This briefing examines how the size of the Covid crisis and the level of required response teaches us to reset our level of ambition, both to speed up and scale up climate action to meet the challenges of loss and damage.
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.
Billions to Trillions: A Reality Check
Our new report, Billions to Trillions: A Reality Check authored by Sony Kapoor of the think tank, RE-DEFINE, was launched during the 2019 UN Financing for Development Forum in New York.
The report outlines whay the mobilisation potential of blending has been oversold through the Billions to Trillions agenda by a factor of ten, and how continued blending evangelism is unhelpful in reaching the Sustainable Development Goals.
The Climate Damages Tax: A guide to what it is and how it works (2019)
Our original Climate Damages Tax report was launched in 2019 during COP24 in Katowice, Poland. The report outlines how a Climate Damages Tax on the fossil fuel industry – those overwhelmingly responsible for the climate problem – could raise approximately $300 billion a year in revenues for loss and damage to help the most vulnerable people deal with the worst impacts of climate change, and billions more for just transition to renewable energy, jobs and transport.
Note: The updated report was published in 2024 for more details click here
EXECUTIVE SUMMARY: Executive Summary – The Climate Damages Tax: A guide to what it is and how it works
REPORT: The Climate Damages Tax: A guide to what it is and how it works
OPED: It’s time for those who caused climate change to pay for it
Please click here for the full data estimating potential CDT revenues.
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.
Closing the Stamp Duty Loophole
Avinash Persaud – Intelligence Capital, April 2015
This paper estimates that £1.2bn to £1.9bn could be generated by closing loopholes in the UK’s stamp duty on share transactions, leading to an increase in total revenues from £3.1bn to £4.3bn to £5.0bn. 4175
Taxing Transactions in Financial Derivatives: Problems and Solutions
Avinash Persaud – Intelligence Capital, September 2014
In this report, Professor Persaud dismantles arguments made by bank lobbyists fighting against the Financial Transactions Tax. 3913
Financial Transactions Tax: Myth Busting
Hillman D and Ashford C, 2012
Stamp Out Poverty have created an extremely useful ‘FTT Myth-Busting’ paper which covers 12 common ‘myths’ concerning the impact of the FTT which continue to be peddled by our opponents. All of which can be shown to be false. 844
