THE CLIMATE DAMAGES TAX

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)

Stamp Out Poverty campaigns for powerful, practical ideas.
Ideas that will raise the money to end extreme poverty and fight climate change.
Ideas that bring accountability to the industries behind these problems.

Stamp Out Poverty campaigns for the Robin Hood Tax on trades by banks and other big speculators, so the finance sector meets the cost of its own crises and makes a fairer contribution to society.

We campaign for the Climate Damages Tax on fossil fuels at the point of extraction, so the fossil fuel industry foots the bill for the damage caused to vulnerable countries by climate change.

Our Vision

Stamp Out Poverty believes that a world without extreme poverty, death from preventable diseases or devastation from climate change is not only possible but entirely achievable. The means to overcome these problems are within our grasp – the money is out there – if politicians are willing to act, and get this money to where it is needed.

We urgently need money to reverse cuts to our public services. We need it to fight diseases like HIV/AIDS. And we need it to support communities on the front line of climate change.

Stamp Out Poverty campaigns for powerful, practical ways to raise the money needed to end global poverty and tackle climate change. We believe the best ways to do this are ones that are: