the taxation of fossil industries at the heart of the battle to finance the climate transition

by time news

2023-12-09 06:00:12

This is a new front to watch for multinational oil and gas companies. Already at the heart of the debates at the 28th Conference of the Parties on Climate (COP28) in Dubai (United Arab Emirates), where negotiators are looking for the right words to reduce the production and consumption of fossil fuels, industrialists are also in the target of those who want to capture part of their profits to finance the climate transition. “There are many flows that do not contribute to solutions to avoid the most catastrophic consequences of climate changedeclared, Wednesday December 6, Laurence Tubiana, president of the European Climate Foundation, which participates in the work of a task force on international taxation. It’s about lifting a taboo. »

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Conceived during the summit for a new global financial pact organized in Paris on June 12 and 13, this group was launched by France and Kenya, joined by Antigua and Barbuda, Barbados and Spain. He should work on “new financial resources”, in the words of the Elysée. The initial intention is rather clear: to involve the largest emitters of greenhouse gases. At COP28, Ms. Tubiana, Ali Mohammed, special envoy for the climate of the Kenyan president, and Avinash Persaud, special envoy of the Prime Minister of Barbados, have already discussed the first avenues of taxes, on business seats in air transport , on transactions and financial services, on maritime transport, but also on barrels of oil…

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“The impacts of climate change are becoming much greater than the resources we have availablesaid Mr. Mohammed, before discussing one of the most complex knots in climate diplomacy. We are willing to make efforts on mitigation, of course, but we are constrained by our financial situations. » In the Nairobi Declaration, released at the end of the September 4-6 African climate summit, leaders already pushed forward a carbon tax on fossil fuel trade, shipping and aviation.

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“We are not asking for 1 trillion, we are asking for 2.5% of their profits, this is what we need for loss and damage in developing countriescontinued Mr. Persaud. As a former banker, I am often faced with former colleagues who tell me “these are very good ideas, but it is impossible to implement”. There are already 30 billion dollars in taxes [28 milliards d’euros] which are levied every year on financial transactions, it must be extended to other sectors. »

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