The Climate Damages Tax: a guide to what it is and how it works (2024)

Posted Monday, 29 April 2024 by Richard

New Climate Damages Tax report launched on 29 April 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.

See what the Guardian has to say at https://www.theguardian.com/environment/2024/apr/29/taxing-big-fossil-fuel-firms-raise-billions-climate-finance

Read the full report at the Stamp out Poverty website, https://www.stampoutpoverty.org/the-climate-damages-tax-a-guide-to-what-it-is-and-how-it-works-2024/

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