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loss and damage
Big Oil Tax Could Boost Global Loss and Damage Fund by 2000%
"The damages resulting from the industry’s operations are disproportionately borne by people who did not cause the crisis," said one campaigner.
Nov 18, 2024
A modest tax on the world's seven largest oil and gas companies could generate hundreds of billions of dollars by the end of the decade to assist poor and vulnerable communities with the impact of the climate crisis, according to a new analysis out Monday from the groups Greenpeace International and Stamp Out Poverty.
The groups found that a tax on fossil fuel extraction, which would increase each year, combined with additional taxes on excess profits would grow the UN's Fund for Responding to Loss and Damage by more than 2,000%.
The loss and damage fund was created two years ago during the COP27 summit in Egypt with the aim of helping vulnerable countries confront the risings costs of climate disasters. Last year, a group of nations that included the United States made their first financial pledges to the fund—though the size of the U.S. pledge was panned as "paltry" by climate justice advocates. As one of the world's largest fossil fuel emitters, the initial pledge of $17.5 million was miniscule relative to the hundreds of billions in fossil fuel subsidies the U.S. government handed out in 2022.
Total commitments to the loss and damage fund currently hover at around $720 million, according toThe New York Times.
This year, at COP29 in Baku, Azerbaijan, boosting the money in the fund is top of mind for a number of UN leaders.
"The $700 million is obviously insufficient," Jorge Moreira da Silva, the executive director of the United Nations Office for Project Services, toldthe Times.
"In an era of climate extremes, loss & damage finance is a must. And we must get serious about the level of finance required. At #COP29, I urged governments to deliver. In the name of justice," U.N. Sectary-General António Guterres wrote on X as the summit kicked off last week.
The joint analysis—which focused on world's largest publicly traded oil and gas companies, a group that includes ExxonMobil, Shell, Chevron, TotalEnergies, BP, Equinor, and Eni—illustrates how major polluters could be tapped to support the fund.
Stamp Out Poverty researchers have "found that home government collection of volume-based [climate damages tax] is feasible, with many countries already collecting volume-based revenue from oil and gas producers," according to the report.
The briefing notes that the Climate Damages Tax "would be a fee on the extraction of each tonne of coal, barrel of oil or cubic metre of gas, calculated at a consistent rate based on how much CO2e [carbon dioxide equivalent] is embedded within the fossil fuel."
To illustrate the impact of this tax, Greenpeace and Stamp Out Poverty looked at the estimated costs associated with multiple extreme weather events in 2024 alongside the hypothetical tax revenue.
Hurricane Beryl, which impacted multiple Caribbean islands, Mexico and the U.S. Gulf Coast, caused at least $6.6 billion in estimated damages and losses, according to the report. Meanwhile, imposing a hypothetical Climate Damages Tax on the 2023 carbon emissions from ExxonMobil alone would raise enough money to cover nearly half of that price tag.
ExxonMobil made $38.6 billion in adjusted earnings for 2023, so levying a tax of $5 per tonne of CO2e in 2023 would yield $3.19 billion. Over the first year, the combined revenue from all seven companies would be over $15 billion. As the levy was increased over the two following years, that annual figure would grow to over $37 billion. The analysis, according to its authors "contributes to the growing civil society call for long term tax on fossil fuel extraction."
The report comes on the heels of two weeks of worldwide protests by Greenpeace activists and allies, during which some demonstrators confronted fossil fuel executives about their role in fueling climate disaster and demanded that they "pay for the climate damage they cause."
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Who Should Pay for Climate Damage? Majority of the World Agrees: Big Oil
"As governments debate how to finance climate action, they can be confident that making polluters pay is not only fair, but also far more popular and effective than placing the burden on ordinary citizens."
Nov 04, 2024
A multinational survey commissioned by Greenpeace International and published Monday revealed that a majority of respondents favor making fossil fuel companies pay for being the main cause of the climate emergency.
Greenpeace International's Stop Drilling, Start Paying campaign commissioned the strategic insight agency Opinium Research to survey 8,000 adults in eight countries—Australia, Argentina, France, Morocco, Philippines, South Africa, the United Kingdom, and the United States—ahead of this month's United Nations Climate Change Conference, also known as COP29, in Baku, Azerbaijan.
"Asked about who should bear the most responsibility for climate change impacts, the most popular option across all eight countries in the survey was making oil and gas companies pay, with high-emitting countries and global elites ranked second and third," Greenpeace International said in a summary of the survey, adding that "60% of all surveyed countries see a link between profits of the oil and gas industry and rising energy prices."
The survey also found that two-thirds or more of respondents are angry about Big Oil CEOs getting huge bonuses even as their products exacerbate the planetary emergency; fossil fuel expansion; industry disinformation; and the "historic and ongoing role of oil and gas companies in conflict, war, and human rights violations."
Eight in 10 respondents said they were worried about climate change. However, more than twice as many people surveyed in the Global South said the climate emergency has personally affected them than respondents in the Global North.
According to Greenpeace International:
Imposing a fair climate damages tax on extraction of fossil fuels by OECD countries—proposed by the charity Stamp Out Poverty and supported by 100 NGOs, including Greenpeace International—is one example of a tax on big polluters. This could generate $900 billion by 2030... This would be key for annual climate-related loss and damage costs, estimated to be between $290-$580 billion by 2030 in low-income countries, as well as for reducing the emission of heat-trapping greenhouse gases and adapting to the impacts of the climate crisis in all countries.
"This research shows how taxing the wealthy polluters-in-chief—companies like Exxon, Chevron, Shell, Total, Equinor, and Eni—has become a mainstream solution among people, cutting across borders and income levels," said Stop Drilling, Start Paying co-chair Abdoulaye Diallo. "As governments debate how to finance climate action, they can be confident that making polluters pay is not only fair, but also far more popular and effective than placing the burden on ordinary citizens for a crisis for which they bear little or no responsibility."
The Opinium survey was published on the same day that Amnesty International called on the richer countries most responsible for the climate emergency to "fully pay for the catastrophic loss of homes and damage to livelihoods" in Africa.
"African people have contributed the least to climate change, yet from Somalia to Senegal, Chad to Madagascar, we are suffering a terrible toll of this global emergency which has driven millions of people from their homes," said Samira Daoud, Amnesty's regional director for West and Central Africa. "It's time for the countries who caused all this devastation to pay up so African people can adapt to the climate change catastrophe."
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Pacific Islands Summit Highlights Disproportionate Climate Impacts
U.N. Secretary-General António Guterres stressed that "the region urgently needs substantial finance, capacities, and technology to speed up the transition and to invest in adaptation and resilience."
Aug 26, 2024
As more than 1,500 delegates from over 40 nations gathered in Tonga for the 53rd Pacific Islands Forum Leaders Meeting, climate defenders on Monday urged the world's biggest polluters to do much more to phase out the fossil fuels that are driving a planetary emergency disproportionately affecting low-lying island countries, which are among the world's lowest greenhouse gas emitters.
"Tonga's vision for the 53rd Pacific Islands Forum Leaders Meeting (PIFLM53) is for the Pacific to move beyond policy deliberation to implementation—to achieve transformation by building better now," summit organizers said in a statement affirming the event's mission to "develop collective responses to regional issues and deliver on their vision for a resilient Pacific region of peace, harmony, security, social inclusion, and prosperity."
"We may be small island countries but we are a force to be reckoned with."
Addressing attendees at the summit's opening ceremony in the Tongan capital of Nuku'alofa, Pacific Islands Forum (PIF) Secretary-General Baron Waqa of Nauru called for regional unity to tackle common challenges.
"We may be small island countries but we are a force to be reckoned with," he said. "We are at the center of geostrategic interest, we are at the forefront of a battle against climate change and its impacts."
Speaking at Monday's opening session, United Nations Secretary-General António Guterres lamented that "humanity is treating the sea like a sewer. Plastic pollution is choking sea life. Greenhouse gases are causing ocean heating, acidification, and a dramatic and accelerating rise in sea levels."
Guterres—who warned in Samoa last week that low-lying island nations face the threat of climate "annihilation"—said that "Pacific islands are showing the way to protect our climate, our planet, and our ocean: By declaring a climate emergency and pushing for action, and with your declarations on sea-level rise, and aspirations for a just transition to a fossil fuel-free Pacific. But, the region urgently needs substantial finance, capacities, and technology to speed up the transition and to invest in adaptation and resilience."
"The young people of the Pacific have taken the climate crisis all the way to the International Court of Justice," Guterres added. "You have also rightly recognized that this is a security crisis—and taken steps to manage those risks together."
Mahoney Mori, who chairs the Pacific Youth Council and is the PIFLM53 youth representative from the Federated States of Micronesia, called out the international community's failure to adequately fund climate mitigation initiatives like the loss and damage fund—which developing nations say will require an annual investment of at least $400 billion, or nearly 10 times the amount pledged at last year's United Nations Climate Change Conference in Dubai.
"Despite the commendable pledges from the United Nations and world leaders such as the Paris agreement, the existing global finance mechanisms still hindered community-based and youth organizations from accessing critical support," Mori said. "The Pacific's grassroots organizations struggle to meet global standards amidst this crisis and time is running out."
As leaders met for PIFLM53 amid torrential rains, a 6.9-magnitude earthquake rocked Tonga's main island of Tongatapu. While there was no damage reported and no tsunami warning issued, summit attendees said the temblor underscored vulnerabilities faced by low-lying island nations.
Leaders and activists from Pacific island nations took aim at regional giant Australia—which has been perennially ranked as one of the world's worst climate-wreckers in U.N.-backed Sustainable Development reports—for insufficient climate action.
"We recognize Australia's desire to present itself as a climate leader and co-host the COP alongside the Pacific," Pacific Islands Climate Action Network regional director Rufino Varea said in a statement, referring to Australia's bid to help lead the 2026 United Nations Climate Change Conference, or COP31.
"However, true leadership must not merely be aspirational; it must be actionable," Varea continued. "To date, Australia has expanded gas production instead of aligning its practices with the urgent needs of the Pacific. This does not reflect the leadership we need."
"If Australia is to demonstrate genuine commitment, it must align its domestic and international climate policies with our goals and advocate earnestly for a fossil fuel-free Pacific," he stressed. "It must also commit to ambitious climate actions, ensure effective climate finance is delivered to Pacific island countries, and contribute substantially to the loss and damage fund."
"If these steps are not taken, we risk witnessing a COP that concedes failure—declaring that critical targets were missed, and that Pacific communities continue to be exploited as mere labor resources for the enrichment of others," Varea added.
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