Global Leaders Propose $25 Billion Levy on Oil Revenues to Tackle Climate Crisis Impact

Bingkai Karya – A group of prominent individuals, including former world leaders and economists, is advocating for a $25 billion levy on the substantial revenues of oil-producing nations. The proposal, endorsed by 70 international figures, aims to address the impact of climate disasters on the world’s most impoverished and vulnerable populations. 

The call comes ahead of the UN climate summit, Cop28, beginning in Dubai. Former UK Prime Minister Gordon Brown, a signatory to the letter, emphasized the need to break the deadlock on climate finance and kickstart funding for mitigation and adaptation efforts in developing countries. The suggested levy, representing a small fraction of oil revenues, would contribute to a fund addressing “loss and damage” in climate-affected regions.

 The letter, addressed to Cop28’s president-designate and the current G20 president, highlights the significant windfall profits of oil-producing states, stressing the urgency of financial commitments to support affected nations. The proposed levy, equivalent to about 3% of oil and gas revenues from major petrostates, could initiate a program of investment in vulnerable regions. The authors also emphasize the responsibility of both historic and current emitters to contribute guarantees and grants to meet the annual $1 trillion needed for development and climate funding in the global south. 

The letter suggests that various sources, including levies on frequent flyers and international shipping, could contribute to the necessary funds. The UAE is reportedly considering a contribution to the loss and damage fund, though not in direct response to the proposed levy. The leaders attending Cop28, including King Charles III, UK Prime Minister Rishi Sunak, UN Secretary-General António Guterres, and Pope Francis, are expected to discuss these critical financial issues during the summit.


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