The Climate Finance Plan Leaders Won’t Consider at COP29? Tax the Rich

The world desperately needs to pull the plug on fossil fuels. So agree most of the official delegates from nearly 200 nations who have gathered this month by the Caspian Sea for the 29th annual global “Conference of the Parties” on climate change—COP29 for short—in Azerbaijan’s capital city Baku.

But not all the estimated 70,000 attendees at this year’s COP are practicing what they should be preaching. Private jet arrivals at Baku’s international airport, news reports note, have just doubled.

What makes that such a big deal? Practically nothing symbolizes wanton disregard for our Earth’s environment more dramatically than private jet travel. A corporate executive taking a single long-haul private jet flight, points out the Travel Smart Campaign’s Denise Auclair, “will burn more CO2 than several normal people do in an entire year.”

Instead of taxing the world’s wealthiest at higher levels, rich nations want to give their richest more opportunities to become ever richer.

Researchers at Oxfam have just gone through the flight records of 23 global billionaires. Those airborne souls averaged 184 private jet flights each over a recent single year. They each essentially circumnavigated the globe 10 times over. Their flights averaged 2,074 tons of carbon emissions, an outlay an average person globally would take 300 years to emit.

Extravagances like private jets help explain why global carbon emissions last year expanded by 1.3%. To get climate anywhere near under control, United Nations Secretary-General António Guterres noted on the eve of this month’s COP29 extravaganza, the world’s nations ought to be reducing carbon emissions by at least 9% a year.

“The world is still underestimating climate risks,” Guterres added. “It’s absolutely essential to reduce emissions drastically now.”

And that reducing will only unfold, the U.N. secretary-general emphasized in his COP29 opening remarks, if the world’s nations address the pivotal contribution to climate catastrophe that our world’s wealthiest are making.

“The rich cause the problem,” as Guterres explained, “the poor pay the highest price.”

Observers have tagged this year’s global environmental gathering the “climate finance COP.” The key question before all the official government delegates gathered in Baku: Who will actually pay the bill for addressing the climate change crisis?

Back in 2009, national delegations to that year’s COP gathering pledged to raise an overall annual $100 billion over the next 15 years. The world’s nations have since then met that target only once. Any new annual target for the next 15 years, most researchers and activists agree, needs to run considerably higher, anywhere from $500 billion to $5 trillion higher.

No one can reasonably expect governments alone, COP principals from rich nations counter, to come up with anywhere near that level of support. These rich-nation COP delegations want to encourage private investors to get more involved in financing new climate initiatives.

In other words, instead of taxing the world’s wealthiest at higher levels, rich nations want to give their richest more opportunities to become ever richer.

Nations rich with fossil fuels most heartily agree. The “onus” for financing moves to counter the climate crisis, COP29 President Mukhtar Babayev from Azerbaijan is arguing, “cannot fall entirely on government purses.”

Our globe’s richest nations would also like to expand the trading of “carbon credits,” transactions that let wealthy developed nations delay making costly emissions cuts at home by underwriting much less costly climate actions in poor nations.

But the offset projects that developed nations underwrite, The Guardiannotes, have regularly overpromised and underdelivered, leaving “wildfires burning through forests that were supposed to be protected and emissions from renewable energy projects being counted on balance books even though they would probably have been built anyway.”

This year’s CO29 conference will wrap up on November 22, and no serious climate change analyst is predicting any consensus that could significantly slow our globe’s ever more perilous progress to climate collapse. Developed nations, Bloomberg’s Mark Gongloff observes, remain “loath to pitch in more than $100 billion a year.”

“Transitioning the world to clean energy alone,” counters Gongloff, could actually cost $215 trillion by 2050.

How could the world make real progress toward those trillions? Guardian environmental editor Fiona Harvey earlier this week ran down some promising options.

Nations could for starters, Harvey notes, put a serious tax bite on the “unprecedented” profit bonanza that fossil fuel companies have enjoyed ever since Russia invaded Ukraine in 2022. Those companies have pocketed well over a quarter-trillion dollars in profits in the two years since.

Nations could also place new taxes on the jet flights our richest so enjoy or move to end the more than $650 billion spent annually in the developing world on subsidies for fossil fuels and polluting industries. Better yet, in a world where our five richest billionaires have more than doubled their wealth since 2020, we could adopt the 2% annual tax on billionaire wealth that Brazilian president Luiz Inácio Lula da Silva has proposed.

A global tax along that line could raise $250 billion per year from just the world’s 100 richest families.

The only sure thing about initiatives like these: No proposals that could make a real climate difference will get any serious attention at COP29, as the prime minister of Albania, Edi Rama, observed in his brief and biting remarks to conference-goers. Rama opened his address to COP29 by noting that he had decided to ditch his prepared remarks after spending some time in the conference’s leaders lounge.

The global notables in that lounge, Rama continued, had all gathered to “eat, drink, meet, and take photos together, while images of voiceless speeches from leaders play on and on and on in the background.”

“To me, this seems exactly like what happens in the real world every day,” he went on to explain. “Life goes on with its old habits, and our speeches, filled with good words about fighting climate change, change nothing.”

Concluded Rama, a former artist and the current chair of his nation’s Socialist Party: “What on Earth are we doing in this gathering, over and over and over, if there is no common political will on the horizon to go beyond words and unite for meaningful action?”

That inaction—in the face of overwhelming global public support for greater pro-climate action—continues to comfort our world’s most fantastically wealthy.