G20 communique: Important step towards derisking renewable investment for developing countries
PRESS RELEASE
Scaling up renewable energy in developing countries is mission-critical for addressing the climate emergency and providing clean, safe energy for hundreds of millions who need it.
A major block has been the mispricing of the cost of capital making prospective renewable projects unprofitable. Stamp Out Poverty has been working with leading finance economists, such as Avinash Persaud, supporting the development of innovative financing structures to tackle this. National government platforms of developing countries, supported by multilateral development banks and others can create a clear, transparent mechanism for attracting international private investment, hedging the cost of capital risks, and ensuring investment benefits the projects and communities most in need.
In a landmark move for the initiative, the G20 has recognised the importance of this approach and agreed that ‘relevant institutions should work to ensure that risks are well captured, including by exploring to increase the transparency of credit ratings and country risk assessments.’ It further supported ‘the voluntary building-up of country platforms as one of the possible instruments to boost sustainable finance in emerging markets and developing economies. Platforms that are country-led, flexible, and well adapted to national circumstances work as efficient instruments to mobilize both public and private capital to finance projects and programs in developing countries, helping match mitigation, adaptation, and resilience building challenges with concrete flows of resources for just transitions.
Avinash Persaud, international finance expert and an architect of the Bridgetown Initiative said:
“Reducing the cost of capital for developing countries has been recognised as a priority at the G20 Summit to address the climate crisis on a global scale. By unblocking climate finance and making it more affordable for these nations, we empower them to supercharge renewable energy investments and build resilience—an urgent necessity in today’s climate landscape.
The G20 has a key role to play in supporting the streamlining of climate funds, managing foreign exchange risk, and enhancing transparency. These are critical steps not only for effective climate action but also for tackling global hunger and environmental degradation.”
David Hillman, Director of Stamp Out Poverty, said:
“This welcome development sets the scene for a step change in the scale of investment in tried and tested renewable energy production, such as wind and solar, in developing countries. After encouraging and supporting this area of work over the last two years, we are delighted to see it being supported at the G20 Summit.”
NOTES TO EDITORS
1. The G20 Communique:
45. Underlining the importance of progress towards making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, we welcome the initiative taken by Brazil’s G20 Presidency to establish the Task Force on a Global Mobilization against Climate Change (TF-CLIMA), bringing together the Sherpa and Finance tracks, while helping further mainstream climate change into the global financial, economic and development agendas. Building on TF-CLIMA, we will cooperate and join efforts to identify and address structural barriers to foster private L capital flows for climate action, particularly for developing countries. We recognize that relevant institutions should work to ensure that risks are well captured, including by exploring to increase the transparency of credit ratings and country risk assessments.
46. We will accelerate the reform of the international financial architecture so that it can meet the urgent challenge of sustainable development, climate change and efforts to eradicate poverty. We support the voluntary building-up of country platforms as one of the possible instruments to boost sustainable finance in emerging markets and developing economies. Platforms that are country-led, flexible, and well adapted to national circumstances work as efficient instruments to mobilize both public and private capital to finance projects and programs in developing countries, helping match mitigation, adaptation, and resilience building challenges with concrete flows of resources for just transitions.
https://www.gov.br/planalto/pt-br/media/18-11-2024-declaracao-de-lideres-g20.pdf
2. Avinash Persaud is special advisor on climate change to the President of the Inter-American Development Bank (IDB) and was a key figure in the Loss and Damage Fund negotiations.
3. Stamp Out Poverty
Stamp Out Poverty is an NGO with a long record of policy development in innovative finance solutions bringing together leading economists and thinkers with civil society to develop and champion powerful, practical ideas to raise the money needed to end extreme poverty and fight climate change. Ideas that bring accountability to the industries behind these problems.
For further information and comment contact:
David Hillman, Director, Stamp Out Poverty: dhillman@stampoutpoverty.org
The Climate Damages Tax: a guide to what it is and how it works (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.
EXECUTIVE SUMMARY: Executive Summary – The Climate Damages Tax: A guide to what it is and how it works (2024)
REPORT: The Climate Damages Tax: A guide to what it is and how it works (2024)
CDT Data Tables
For the following data, all figures should be taken as indicative only, and are based on the following assumptions:
- the CDT is introduced in 2021 in every jurisdiction globally
- the rate is increased as described in the report: introduced at $5 per tonne of CO2e, then increasing by $5 per tonne of CO2e each year until 2030, when it will be reviewed with the expectation of increasing by $10 each year up to 2050.
- the fossil fuel phase out follows the average of pathways P1, P2 and P3 in the IPCC Special Report on 1.5°C
- countries do not shift between income brackets or change their share of each fossil fuel usage globally over time
For the full methodology and sources, please see the report Appendix.
Potential CDT revenues globally by year
Year | Just Transition revenues ($bn) | Loss and Damage revenues ($bn) | Total CDT revenues ($bn) |
---|---|---|---|
2021 | 141 | 69 | 210 |
2022 | 256 | 125 | 381 |
2023 | 349 | 171 | 520 |
2024 | 423 | 207 | 631 |
2025 | 481 | 236 | 717 |
2026 | 526 | 258 | 783 |
2027 | 559 | 274 | 833 |
2028 | 582 | 285 | 867 |
2029 | 597 | 292 | 889 |
2030 | 605 | 296 | 902 |
2031 | 663 | 325 | 988 |
2032 | 706 | 346 | 1,052 |
2033 | 738 | 361 | 1,099 |
2034 | 759 | 372 | 1,130 |
2035 | 771 | 378 | 1,149 |
2036 | 777 | 380 | 1,157 |
2037 | 776 | 380 | 1,157 |
2038 | 771 | 378 | 1,149 |
2039 | 762 | 373 | 1,135 |
2040 | 749 | 367 | 1,116 |
2041 | 734 | 359 | 1,093 |
2042 | 717 | 351 | 1,068 |
2043 | 698 | 342 | 1,040 |
2044 | 678 | 332 | 1,010 |
2045 | 658 | 322 | 980 |
2046 | 637 | 312 | 948 |
2047 | 615 | 301 | 916 |
2048 | 594 | 291 | 884 |
2049 | 572 | 280 | 853 |
2050 | 551 | 270 | 821 |
Potential CDT revenues across all countries in 2021
Country of fossil fuel extraction | Just Transition revenues remitted to governments for domestic use ($m) | Loss and Damage revenues contributed to solidarity fund by fossil fuel extractors due to extraction activity within country ($m) | Total ($m) |
---|---|---|---|
US | 12,789 | 12,789 | 25,578 |
Canada | 3,034 | 3,034 | 6,068 |
Mexico | 1,514 | 649 | 2,163 |
Total North America | 17,337 | 16,472 | 33,809 |
Argentina | 386 | 386 | 772 |
Bolivia | 170 | 0 | 170 |
Brazil | 1,732 | 742 | 2,474 |
Colombia | 1,413 | 605 | 2,018 |
Ecuador | 294 | 126 | 419 |
Peru | 146 | 62 | 208 |
Trinidad & Tobago | 200 | 200 | 401 |
Venezuela | 1,381 | 592 | 1,973 |
Other S. & Cent. America | 118 | 51 | 168 |
Total S. & Cent. America | 5,839 | 2,765 | 8,604 |
Bulgaria | 339 | 145 | 484 |
Czech Republic | 316 | 316 | 632 |
Denmark | 75 | 75 | 149 |
Germany | 1,263 | 1,263 | 2,525 |
Greece | 266 | 266 | 532 |
Hungary | 56 | 56 | 112 |
Italy | 57 | 57 | 114 |
Netherlands | 182 | 182 | 364 |
Norway | 1,266 | 1,266 | 2,533 |
Poland | 913 | 913 | 1,826 |
Romania | 362 | 155 | 517 |
Serbia | 393 | 169 | 562 |
Spain | 20 | 20 | 39 |
Turkey | 982 | 421 | 1,403 |
United Kingdom | 572 | 572 | 1,145 |
Other Europe | 552 | 552 | 1,104 |
Total Europe | 7,613 | 6,427 | 14,040 |
Azerbaijan | 527 | 226 | 753 |
Kazakhstan | 2,178 | 933 | 3,111 |
Russian Federation | 14,180 | 6,077 | 20,258 |
Turkmenistan | 560 | 240 | 800 |
Ukraine | 674 | 0 | 674 |
Uzbekistan | 624 | 0 | 624 |
Other C’wealth of Independent States | 141 | 0 | 141 |
Total C’wealth of Independent States | 18,884 | 7,476 | 26,360 |
Bahrain | 75 | 75 | 150 |
Iran | 3,971 | 1,702 | 5,673 |
Iraq | 2,356 | 1,010 | 3,365 |
Kuwait | 1,161 | 1,161 | 2,322 |
Oman | 510 | 510 | 1,021 |
Qatar | 1,461 | 1,461 | 2,922 |
Saudi Arabia | 4,690 | 4,690 | 9,379 |
Syria | 47 | 0 | 47 |
United Arab Emirates | 1,599 | 1,599 | 3,197 |
Yemen | 37 | 0 | 37 |
Other Middle East | 178 | 76 | 255 |
Total Middle East | 16,084 | 12,283 | 28,390 |
Algeria | 1,322 | 566 | 1,888 |
Angola | 1,205 | 0 | 1,205 |
Chad | 80 | 0 | 80 |
Republic of Congo | 216 | 0 | 216 |
Egypt | 961 | 0 | 961 |
Equatorial Guinea | 98 | 42 | 140 |
Gabon | 103 | 44 | 147 |
Libya | 500 | 214 | 715 |
Nigeria | 1,872 | 0 | 1,872 |
South Africa | 2,482 | 1,064 | 3,546 |
South Sudan | 79 | 0 | 79 |
Sudan | 62 | 0 | 62 |
Tunisia | 36 | 0 | 36 |
Zimbabwe | 41 | 0 | 41 |
Other Africa | 487 | 209 | 696 |
Total Africa | 9,544 | 2,139 | 11,683 |
Australia | 4,056 | 4,056 | 8,111 |
Bangladesh | 264 | 0 | 264 |
Brunei | 100 | 100 | 200 |
China | 37,678 | 16,148 | 53,825 |
India | 10,943 | 0 | 10,943 |
Indonesia | 7,838 | 0 | 7,838 |
Japan | 10 | 10 | 20 |
Malaysia | 877 | 376 | 1,253 |
Mongolia | 696 | 0 | 696 |
Myanmar | 179 | 0 | 179 |
New Zealand | 21 | 21 | 41 |
Pakistan | 401 | 0 | 401 |
South Korea | 10 | 10 | 21 |
Thailand | 602 | 258 | 860 |
Vietnam | 866 | 0 | 866 |
Other Asia Pacific | 970 | 416 | 1,385 |
Total Asia Pacific | 65,510 | 21,393 | 86,903 |
Total World | 140,811 | 68,956 | 209,790 |
High income | 35,638 | 35,638 | 71,276 |
Upper middle income | 77,741 | 33,318 | 111,059 |
Lower middle income | 27,432 | 0 | 27,432 |
Low income | 283 | 0 | 283 |
The SDGs need real solutions, not failed ideas
Instead of the same old failed ideas, we need real solutions to the SDGs funding gap more urgently than ever. Public services – whether in high or low income countries – are best funded through public money, which can be spent where need is greatest rather than chasing profit. These solutions include Global Solidarity Levies – alongside cracking down on huge global companies that dodge paying taxes in low income countries, and wiping out unpayable debts for the lowest income countries.
Yet over the last decade, politicians in high income countries have tried to fob us off with failed ideas. Their favourite is the so-called ‘Billions to Trillions’ approach, which lets high income country governments off the hook by relying on huge global companies to voluntarily fill the SDGs funding gap.
They claim that if these companies are offered profit guarantees, backed up by $100 billion from the aid budget, they will invest one trillion dollars into essential public services in low income countries. But this approach has been called ‘mathematical gymnastics’ – experts suggest this sort of private investment could only double the aid budget at best.
Click here to read our report: Billions to Trillions: A Reality Check
More and more evidence – from both high and low income countries – also shows that public services such as hospitals and roads do not generate big profits. Guarantees then leave governments on the hook for sky-high payments decades to come.
In Lesotho, annual payments for one hospital built through a ‘Public Private Partnership’ (PPP) ended up costing half the country’s entire health budget. In 2018, Chancellor Philip Hammond vowed not to sign another ‘Private Finance Initiative’ (PFI) deal for UK public services for this reason, and the French Court of Auditors recommended the strategy be abandoned in 2017.
And private funding also neglects the most vulnerable.
The ‘Billions to Trillions’ approach ignores the evidence that low income countries are often left worse off, wastes scarce aid money, and doesn’t reach those most in need. And every day spent talking about ‘Billions to Trillions’ is a day wasted, when real solutions to fill the SDGs funding gap are being ignored. It’s time for governments to get real, and force those who can best afford to pay a bit more, to do so.
Published 15/04/19 2:44 am
Billions to Trillions: A Reality Check
Our new report, Billions to Trillions: A Reality Check authored by Sony Kapoor of the think tank, RE-DEFINE, was launched during the 2019 UN Financing for Development Forum in New York.
The report outlines why the mobilisation potential of blending has been oversold through the Billions to Trillions agenda by a factor of ten, and how continued blending evangelism is unhelpful in reaching the Sustainable Development Goals.
The Climate Damages Tax: a guide to what it is and how it works (2019)
Our original Climate Damages Tax report was been launched during COP24 in Katowice, Poland.
The report outlines how a Climate Damages Tax on the fossil fuel industry – those overwhelmingly responsible for the climate problem – could raise approximately $300 billion a year in revenues for loss and damage to help the most vulnerable people deal with the worst impacts of climate change, and billions more for just transition to renewable energy, jobs and transport.
REPORT: The Climate Damages Tax: A guide to what it is and how it works
EXECUTIVE SUMMARY: Executive Summary – The Climate Damages Tax: A guide to what it is and how it works
OPED: It’s time for those who caused climate change to pay for it
Please click here for the full data estimating potential CDT revenues.
Climate Damages Tax video
It’s time to make the fossil fuel industry pay for the damage it has caused.
See this short film to find out more:
Published 16/05/17 3:47 pm
Labour Pledges to Introduce Robin Hood Tax

Labour have announced they will modernise the current Stamp Duty on shares to bring in an extra £26 billion over the course of the parliament.
Published 12/09/12 9:16 am
The Banker
See Bill Nighy starring in our brilliant (even if we say so ourselves) launch film, seen by more than 1 million people. 831