Climate organisations are calling upon member countries of the G7 to institute additional taxes on the fossil fuel industry to raise money for supporting communities devastated by the effects of climate change.
- According to Greenpeace, taxation on the extraction of oil, gas, and coal in the world’s richest economies would raise US$720 billion by 2030.
- This tax, labeled ‘The Climate Damages Tax’, would then be allocated to a Loss and Damage Fund for developing countries to deal with the deleterious effects of climate change.
- Greenpeace believes that the tax would disincentivize fossil fuel extraction and consumption and accelerate demand for green energy alternatives.
Africa is set to become one of the beneficiaries of this push because its contribution to the global carbon footprint is minute but the effects of climate change in the continent are widespread.
“Africa stands at a critical crossroads. Establishing an ambitious New Collective Quantified Goal (NCQG) is crucial for scaling up climate finance to developing countries particularly in Africa to tackle the scale of the prevailing crisis,” Murtala Touray, Program Director at Greenpeace Africa said.
According to the African Development Bank (AfDB), climate change will cost African economies 15% of their GDP in the next six years. Climate activists insist that wealthy nations are not paying their ‘fair share’ in climate finance meant to balance out the climate burden.
The activists also said that green energy alternatives like Solar and Wind Power have a high potential in the continent but funding remains scarce. Africa only receives 2% of the global investment in renewable energy.
“African nations possess immense potential to lead the global transition to renewable energy, but this potential is undermined by continued fossil fuel exploitation and inadequate climate finances,” Fred Njehu, Pan African Political Strategist for Greenpeace Africa said.
The COP29 opened its doors in Baku, Azerbaijan on Monday, where more than 100 world leaders will speak about their commitments, targets, and concerns on the climate protection agenda. Key on the conference’s agenda will be the prioritization of climate finance to Africa.
The conference has been criticised by vocal climate change organisations for being toothless in its mandate even as many countries in the world, especially island nations, face rising sea levels due to global warming.
“The implementation of the COP29 agreement must deliver concrete plans aligned with the 1.5°C goal, specifically on a new collective quantified goal on finance. We refuse to let COP29 become another platform for empty promises, promoting false solutions, and greenwashing,” Njehu added.
