Summary:
A new global initiative is exploring ways to generate climate and development funding through targeted levies on undertaxed sectors.
The Global Solidarity Levies Task Force, formed by France, Kenya, and Barbados, has launched a public consultation on 16 proposed levies, aiming to mobilize finance from industries that contribute significantly to global emissions.
The options include taxes on private jet fuel, cryptocurrency transactions, fossil fuel windfall profits, financial transactions, and plastic production. The consultation, open until February 28, 2025, invites feedback from experts, industry leaders, and organizations. The discussion builds on momentum from major international efforts, including the 2023 Summit for a New Global Financial Pact and COP29.
The findings will be presented at key global financial meetings throughout 2025, culminating at COP30.
Reimagining global finance: consultation on 16 new levies to fund climate and development action
Paris | France – The Global Solidarity Levies Task Force has today launched an open consultation to gather feedback on innovative straw-man proposals for 16 levies on sectors that are undertaxed and contribute disproportionately more to global carbon emissions.
The task force – which was established by France, Kenya and Barbados – has put forward 16 options for ‘solidarity levies’ for consultation, to invite views on how they can be made to generate finance for climate and development action.
The consultation includes options for levies on:
- Aviation, such as fuel from private jets and international flights, and premium or frequent flyer tickets.
- Cryptocurrency, on transactions, capital gains, and energy used in mining.
- Fossil fuel extraction, excess/windfall profits, and minimum corporate taxation.
- Global shipping emissions (‘Well-to-Wake’).
- Financial transactions, such as a new or enhanced levy on stocks.
- Plastic polymer production.
- International carbon pricing mechanisms through linked or expanded emissions trading schemes and a global carbon price floor.
- High-net-worth individuals.
The consultation, which builds on the momentum from the 2023 Summit for a New Global Financial Pact, Bridgetown Initiative, Nairobi Climate Declaration and COP29, invites input from experts, industry and organizations worldwide.
“We are examining ways to mobilize finance at scale while bringing more climate justice and fairness to our current tax system,” said Laurence Tubiana and Ismail Momoniat, Co-Leads of the Task Force Secretariat. “These straw-man proposals bring us one step closer towards that aim as they are designed to generate discussion and refine pathways towards financing solutions for climate and development action.”
Solidarity levies can help restore balance to the global financial system, something which is especially relevant as people worldwide grapple with the rising cost of living. For example, coal, oil, and gas companies produce over 75% of global greenhouse gas emissions, yet the five largest firms alone reported $281 billion in profits over the past two years. Meanwhile, fossil fuel subsidies surged to $7 trillion in 2023, underscoring the misalignment between corporate profits and public costs.
The consultation is open until 28 February 2025 and seeks perspectives from NGOs, academia, industry and stakeholders across sectors. Feedback will inform government dialogue on the levies and help shape solidarity levy proposals, which the task force will put forward for countries and organisations in the Coalition of Solidarity Levies to assess.
The task force will provide updates on its work at the 5th Finance in Common Summit (Cape Town, South Africa), World Bank / IMF Spring Meetings (Washington D.C, USA) and 4th International Conference on Financing for Development (Seville, Spain), before concluding its work at COP30 in Brazil. The ambition is to have a “coalition of the willing” ready to implement a solidarity levy domestically while using revenues to fund climate action, development and access to health globally and domestically.
The levies put forward in the consultation represent the views of the Secretariat to the Global Solidarity Levies Task Force. They do not represent the policy positions of the governments who are members of the Coalition for Solidarity Levies, nor any individuals or partners.
For more details and to participate, visit the consultation.
Article Source:
Press Release/Material by Global Solidarity Levies Task Force
Featured image credit: kjpargeter | Freepik
