FINDING THE FINANCE - TAX JUSTICE AND THE CLIMATE CRISIS

Given the scale of the climate challenge, this climate finance must dramatically scale up from the current inadequate target of US$100 billion a year, to a figure that is much more in line with the needs of climate vulnerable countries in the Global South, that better reflects the historic responsibilities of rich polluting countries to repay the climate debt they owe to the countries on the front. [...] These countries have a clear obligation, recognised under the UNFCCC Convention and the Paris Agreement, to provide climate finance to support climate vulnerable ‘developing’ countries to adapt to the climate crisis, to address the impact of climate-induced loss and damage, and to transition to greener pathways. [...] CONCLUSIONS AND RECOMMENDATIONS At present, two-thirds of climate finance is given to so-called “developing” countries in the form of loans, further indebting already indebted countries on the front lines of the climate crisis who have done little to contribute to the problem. [...] The key is to build progressive, gender-responsive and climate sensitive tax systems and to ensure that the transition includes gender and human rights impact assessments, with a particular focus on the most vulnerable populations Rich polluting countries with the greatest historic responsibility for the climate crisis could raise at least US$539 billion, and up to US$2.15 trillion every year by i. [...] If we are to raise the finance needed to respond to the climate crisis, we need the IMF and most importantly, Ministries of Finance and Revenue Authorities, to become real champions of tax justice, taking on board the importance of tax policies that are progressive, gender-responsive and climate-sensitive.