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climate finance
The Climate Finance Plan Leaders Won’t Consider at COP29? Tax the Rich
A global 2% annual tax on billionaire wealth could raise $250 billion per year from just the world’s 100 richest families.
Nov 19, 2024
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.
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UN Climate Chief Warns Inaction on Emissions Will Deliver 'Inflation on Steroids'
"Climate finance is global inflation insurance. Rampant climate costs should be public enemy number one," the U.N. official told world leaders at COP29.
Nov 12, 2024
As he addressed world leaders at the United Nations Climate Change Conference in Baku, Azerbaijan on Tuesday, U.N. climate chief Simon Stiell made the case that action against the planetary emergency can help combat an economic problem plaguing nations around the world: inflation.
Far from a threat reserved for future generations, Stiell told ministers gathered for day one of the conference's World Leaders Climate Action Summit that the climate crisis was "fast becoming an economy killer," already slashing some nations' gross domestic products by up to 5%.
"The climate crisis is a cost-of-living crisis," Still said, "because climate disasters are driving up costs for households and businesses. Worsening climate impacts will put inflation on steroids unless every country can take bolder climate action."
Stiell's remarks come amid growing discussion of the impact of inflation on political stability following the victory of Donald Trump in the U.S. presidential election last week. In the wake of Trump's win, commenters have pointed out that almost every country that voted in 2024 voted to oust the incumbent party, and inflation following the Covid-19 pandemic and Russia's invasion of Ukraine is one prominent explanation.
Stiell told the leaders gathered at COP29 that they should learn from that inflation spike when making decisions about climate.
"Let's learn the lessons from the pandemic—when billions suffered because we didn't take the collective action fast enough when supply chains were smashed," Stiell said. "Let's not make that mistake again."
"Climate finance is global inflation insurance," Stiell continued. "Rampant climate costs should be public enemy number one."
"Unless emissions plummet and adaptation soars, every economy will face far greater fury."
In his remarks to the leaders summit, U.N. Secretary-General António Guterres also emphasized the economic impacts of climate-fueled disasters.
"No country is spared," Guterres said. "In our global economy, supply chain shocks raise costs—everywhere. Decimated harvests push up food prices—everywhere. Destroyed homes increase insurance premiums—everywhere."
Guterres also tied the climate emergency to economic inequality, citing a recent Oxfam study finding that billionaires emit more greenhouse gases in an hour and a half than an ordinary person will during their entire life.
"This is a story of avoidable injustice. The rich cause the problem, the poor pay the highest price," Guterres said, adding that "unless emissions plummet and adaptation soars, every economy will face far greater fury."
However, both U.N. leaders saw hope in a rapid and equitable transition to renewable energy.
"Bolder climate action can drive economic opportunity and abundance everywhere. Cheap, clean energy can be the bedrock of your economies. It means more jobs, more growth, less pollution choking cities, healthier citizens, and stronger businesses," Stiell said.
Guterres argued that "the economic imperative is clearer and more compelling with every renewables roll out, every innovation, and every price drop" and called doubling down on fossil fuels "absurd."
"The clean energy revolution is here," Guterres continued. "No group, no business, and no government can stop it. But you can and must ensure it is fair, and fast enough to limit global temperature rise to 1.5°C."
Currently, national policies put the world on track for 3.1°C of heating, which scientists warn would have devastating consequences for ecosystems and human communities.
Both Stiell and Guterres urged leaders to rapidly reduce their climate pollution and agree to a new finance goal at COP29 to help developing countries fund their green transitions and adapt to increasing climate impacts.
"On climate finance, the world must pay up, or humanity will pay the price," Guterres said.
Stiell warned that "billions of people simply cannot afford for their government to leave COP29 without a global climate finance goal."
"These are not easy times, but despair is no strategy, and it's not warranted," Stiell concluded. "Our process is strong, and it will endure. After all, international cooperation is the only way humanity survives global heating. The time for hand-wringing is over; so let's get on with the job."
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Climate Campaigners Demand COP29 Free of 'False' Finance Solutions
"We are hurtling toward 3° of warming; human rights can't withstand dangerous distractions," said one climate justice advocate.
Nov 11, 2024
The 2024 United Nations Climate Change Conference has been called the "climate finance" conference, with participants expected to establish a new annual target for providing funds for the Global South to confront the climate crisis—but campaigners on Monday expressed concern that on the first day of the summit, there are already signs leaders will push for "false solutions" that only perpetuate planetary heating.
An annual climate finance target of $100 billion was set by policymakers in 2009, but that pledge expires at the end of 2024 and advocates say it's just a fraction of what is needed to help developing countries invest in climate crisis mitigation and adaptation to planetary heating.
Tasneem Essop, executive director of Climate Action Network, which includes more than 1,900 global civil society groups, told The Guardian that "a down payment of $5 trillion" annually in climate finance is needed, noting that "the debt is much larger."
But Sébastien Duyck, senior attorney for the Center for International Environmental Law, said the Azerbaijani presidency of the 29th Conference of the Parties of the U.N. Framework Convention on Climate Change (COP29) is already looking "to speed up the endorsement of new standards on carbon markets."
"This is extremely alarming. If this moves forward, it would be a real cop-out by governmental delegations gathered in Baku," said Duyck, referring to the capital of Azerbaijan, where COP29 is being held over the next 11 days.
Duyck pointed to new standards that were passed ahead of COP29 by a supervisory body with the aim of operationalizing and expanding carbon markets—pricing mechanisms that allow governments and other entities to trade greenhouse gas emission "credits."
"Fully operationalizing carbon markets on Day 1 would set a terrible precedent for the next two weeks, starting COP29 on a disastrous note and eroding the trust needed to achieve a bold, transformative agreement on finance," said Jax Bongon, climate justice policy officer for IBON International.
Proponents say carbon markets allow wealthy countries or corporations to purchase "carbon credits" from countries in the Global South; in exchange, governments in developing countries are paid to build renewable energy infrastructure, plant trees, or take other sustainable steps.
Those steps are thought to "buy time" for the wealthy country or company to cut down on their own pollution. But the scheme has been exposed as allowing companies to continue polluting without the supposed "offsets" actually helping to mitigate the climate crisis.
Lise Masson, climate justice and energy advocacy officer at Friends of the Earth (FOE), emphasized that "carbon markets are not climate finance, and we cannot accept these neocolonial schemes to be propped up as a success of COP29."
"Decisions at COP29 threaten to open the floodgates for a global carbon market that would have devastating impacts on communities in the Global South, on Indigenous peoples, and on small peasant farmers first and foremost," said Masson.
Marta Scaaf, who directs Amnesty International's climate justice program, warned COP29 delegates may "bypass accountability norms on Day 1 and issue recommendations to govern carbon markets, which are essentially pollution permits."
Essop suggested that carbon markets are being pushed as a false solution in order to save wealthy countries from having to provide what is needed for the Global South to mitigate the climate crisis and adapt to the hurricanes, flooding, drought, and other extreme conditions that have been linked to planetary heating.
"Five trillion dollars is what we come here to demand," Essop said. "Governments out there are absolutely capable of finding the money that does wrong in the world. They found the money for military spending. They found the money for the genocide in Gaza. They find the money to subsidize and support the fossil fuel industry. To come here and say that they do not have money is absolutely untruthful and unacceptable."
Meena Raman of FOE Malaysia stressed that climate finance "isn't charity; it's reparations for a climate debt long overdue."
"Grants must replace loans, and loss and damage funding must also be scaled up tremendously to meet the needs of impacted countries in the Global South," said Raman. "Debt cancellation for the Global South is essential to break cycles of injustice. The money exists: redirecting funds from global military spending and climate justice are paths forward."
The international human rights group Global Witness drove home the point by taking over the web address that some might arrive at if they were looking for more information about COP29.
Visitors to cop29.com on Monday were met with the words "Payback Time."
"We've taken over cop29.com to unite the millions of people demanding justice," said Global Witness. "This summer broke heat records again. Wildfires, droughts, and storms are killing thousands and driving up the cost of food, energy, and insurance. Worse is coming."
"COP29 is our moment," added the group. "The loss and damage fund was created to help developing nations that are being hit hardest by climate chaos... Fossil fuel companies rake in billions. They must pay into the fund to help communities rebuild, adapt, and repair some of the damage they've caused."
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