SMART Solutions for BIG Problems

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)

Lessons from COVID-19 for Addressing Loss and Damage in Vulnerable Developing Countries

This is the first in a series of 3 briefings under the banner: Unpacking Finance for Loss and Damage, produced by Stamp Out Poverty, Heinrich Böll Stiftung (Washinghton, DC), ActionAid International, Bread for the World and Practical Action.

This briefing examines how the size of the Covid crisis and the level of required response teaches us to reset our level of ambition, both to speed up and scale up  climate action to meet the challenges of loss and damage.

Read the briefing

Published 09/08/19   3:08 pm

We're hiring!

Hi all,

We at Stamp Out Poverty are hiring for a Digital Campaigns and Communications Officer to help us get our message out there!

If you think that could be you, please send your CV and a cover letter to office@robinhoodtax.org.uk by 23:59 on Monday 26th August.

Please ensure that your cover letter addresses the points raised in the Person Specification.

When applying, please start your email subject ‘Application for DC&CO – <your name>’

Find out more >>> Job Description

——————————

Job Title: Digital Campaigns and Communications Officer

Organisation: Stamp Out Poverty

Address: N1, London

Salary: £27,000

Contract: Full-Time 

Closing Date: 1st September at 23:59

Interview Date: Friday 6 September

Start Date: ASAP

The role

The Digital Campaigns and Communications Officer will have at least two years experience in the digital aspects of the post. The post holder will contribute to the design of campaign strategy and tactics, coordinate with allies, and implement all aspects of campaigns while working collaboratively with a top-notch team. The post holder will be responsible for supporter engagement, the organisation’s online and offline presence and feeding into strategy.

We are looking for someone with excellent communication and interpersonal skills, with a proven ability to lead projects and manage competing priorities under pressure. You will have good knowledge and experience of digital communications techniques and experience of delivering online and offline advocacy campaigns.  This is a challenging and varied role, ideal for someone with a passion for social justice.

Who we are

Stamp Out Poverty (SOP) campaigns for smart solutions to big problems. We are best-known campaign for the Robin Hood Tax (RHT) Campaign, where we call for an extra taxation of the financial sector, which could raise billions to fight poverty and climate change at home and abroad. It is a campaign with fairness at its heart that looks to turn the global economic crisis into an opportunity for the world. It’s a fast paced and popular campaign combining longer-term proactive work with reactive responses to opportunities that arise.

We also help coordinate the international Change Finance coalition, demanding a stable, democratic financial system that delivers for people and planet. SOP’s other campaigns include the Climate Damages Tax (pushing for taxation of the fossil fuel industry to pay for a just transition and to help those facing destruction from a changing climate) as well as challenging the privatisation of aid.

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Climate Damages Tax Campaign launched

Watch the Climate Damages Tax launch here!

The Climate Damages Tax campaign launch was held in London on April 16th, with Caroline Lucas MP (Green Party Co-Leader), Barry Gardiner MP (Shadow Minister for International Climate Change), Foreign Minister for Vanuatu Ralph Regenvanu MP, Avinash Persaud (Head of Economic Reconstruction of Dominica post-Hurricane Maria) and Emele Duituturaga of the Pacific Islands Associations of NGOs.

L-R: Ralph Regenvanu MP (Minister of Foreign Affairs, Vanuatu), Emele Duituturaga (Executive Director, Pacific Island Association of NGOs), Avinash Persaud (Head of Economic Reconstruction of Dominica, post Hurricane Maria), Barry Gardiner MP (Shadow Minister for International Climate Change), Caroline Lucas MP (Green Party Co-Leader)

 

Caroline Lucas MP pledges the Green Party’s support for a Climate Damages Tax

 

“Fossil fuel companies must become part of the solution they have created. We need to ask how much, and who pays?” – Barry Gardiner at the Climate Damages Tax launch

 

“Hurricane damages can be measured in dollars and cents but also in broken lives. The climate wars have started. This is the front line” – Avinash Persaud at the Climate Damages Tax launch

 

“Last week Vanuatu declared a state of emergency yet again. We do not have the resources to respond. We need commitment from our more developed partners, those who caused climate change” Ralph Regenvanu MP at the launch of the Climate Damages Tax

 

“Vanuatu produces 0.0016% of world climate emissions and yet is disproportionately feeling the negative effects. We just can’t afford what’s happening in our country” – Ralph Regenvanu MP at the Climate Damages Tax launch

 

“Where is the justice that those of us who are the least responsible for climate change loss and damage bear the greatest burden? Enough is enough” – Emele Duituturaga at the Climate Damages Tax launch

Find out more about the Climate Damages Tax

CDT Data Tables

For the following data, all figures should be taken as indicative only, and are based on the following assumptions:

1. the CDT is introduced in 2021 in every jurisdiction globally
2. 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.
3. the fossil fuel phase out follows the average of pathways P1, P2 and P3 in the IPCC Special Report on 1.5°C
4. 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 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:

 

When will the world’s polluters start paying for their mess?

Ministers from climate vulnerable countries support for the call for a Climate Damages Tax to fill the growing need for loss and damage finance – Joseph Isaac, Minister of the Environment for Dominica; Ronny Jumeau, Ambassador to the UN and US for Seychelles; Anisul Islam Mahmud, Minister of the Environment, Bangladesh; and Ralph Regevanu, Minster for Foreign Affairs, Vanuatu.

Read their op-ed here.

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