“Taxing the Super-Rich for Climate Action: A Game-Changer in Global Policy”
The idea of taxing the super-rich to fund climate action has gained significant traction on the international agenda during Brazil’s G20 presidency. According to research by international NGO Oxfam, the world’s richest individuals have likely already exceeded their fair share of the annual global carbon budget.
Based on data from 2019, Oxfam estimates that the 77 million “super-rich” individuals in the global top 1% of earners, with an average income of $310,000 per year, emit 2.1 tonnes of carbon dioxide each in just ten days. In contrast, it takes the world’s poorest 50% – 3.9 billion people – nearly three years to pollute that much. The United Nations Environment Programme has set 2.1 tonnes per year as the maximum individual carbon budget by 2030 to avoid breaching 1.5C of global warming.
Oxfam GB’s senior climate justice policy adviser, Chiara Liguori, emphasized the urgent need for action, stating that the super-rich must pay their fair share for the environmental damage caused by their lavish lifestyles and polluting investments. She called on governments to hold the wealthiest polluters accountable and prioritize funding for climate action.
The proposal to tax billionaires at least 2% of their wealth to fund climate action gained momentum during Brazil’s G20 presidency. Economists estimate that such a tax could generate $250 billion annually, which could be used to address poverty, hunger, and climate change. G20 leaders agreed to explore effective taxation of ultra-high-net-worth individuals at a summit in Rio de Janeiro, with support from countries like France, South Africa, and Spain.
Brazil is taking a leading role in promoting solidarity levies, including taxes on super-rich individuals and polluting sectors of the economy. The upcoming COP30 climate summit in November will focus on scaling up finance for climate projects, potentially through measures like taxes on private jets and super-yachts. Additionally, a Global Solidarity Levies Taskforce will examine ways to raise international funding, including taxes on shipping, private air travel, fossil fuels, and financial transactions.
Friederike Roder, director of the taskforce’s secretariat, emphasized the importance of the wealthy contributing their fair share to combat climate change and support development, especially in vulnerable countries. The taskforce aims to secure commitments from countries to implement these proposals by COP30, highlighting the need for immediate action.
Overall, the push to tax the super-rich to fund climate action reflects a growing recognition of the need for equitable and sustainable financing to address the global climate crisis. As discussions continue and proposals are developed, the focus remains on holding the wealthiest individuals accountable for their environmental impact and ensuring that resources are allocated effectively to combat climate change.