Well-known developing-nation leader on climate change, Mia Mottley, suggested on Monday that global levies on the shipping, oil and gas, and financial services sectors might raise hundreds of billions of dollars to help less developed nations adapt to and deal with climate change.
With assistance from wealthier nations and international funding, Prime Minister Mia Amor Mottley emphasized that developing nations should bear the enormous costs of adapting to climate change, mitigating its future effects, and covering losses and damages incurred when natural disasters such as heat waves, forest fires, and floods wreak havoc on communities.
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The focus of the UN climate meeting, known as COP28, which is being led by the CEO of the largest oil firm in the United Arab Emirates, was on how impoverished nations could be able to afford the trillions of dollars that scientists predict they will need to combat global warming.
Speaking with the media, PM Mottley discussed commitments to support the switch to sustainable energy, prepare for climate change, and respond to extreme weather occurrences, “This has probably been the most progress we’ve seen in the last 12 months on finance.”
“But we’re not where we need to be yet,” she noted.
Small island states have been advocating for climate financing at the talks, arguing that it is essential for the nations to have the capacity to adjust to the sea level rising and encroaching on their territory.
Samoan Minister of Natural Resources Cedric Schuster expressed optimism that progress on the money problem in the climate discussions may be made but emphasized that nations are still far from where they should be.
Samoans are the target audience for Schuster, who chairs the Alliance of Small Island nations, “want to be assured that they will survive … Their trust in us is to be here, to amplify their voices and for the world to understand the outcome of their concerns and for us to make sure the right global decisions are made.”
A demonstration was organized by climate activists during the two-week conference in Dubai, which is hosting tens of thousands of politicians, economists, corporate executives, philanthropists, and others to discuss how to restructure the way the world produces and consumes energy in the twenty-first century.
“Billions, not millions! Fill the fund now!” They made reference to the loss and damage fund for nations affected by climate change in their chants. Numerous nations, such as the United Arab Emirates and Germany, have contributed hundreds of millions to the fund.
However, Kenyan activist Eric Njuguna stated, “we need the rich countries to pay into the loss and damage fund on the scale of hundreds of billions.”
Though PM Mottley acknowledged the official opening of a “loss and damage” fund at COP28, which organizers claim has already attracted donations of almost $720 million, she pointed out that this is a far cry from the $420 billion, with a “B,” that is required.
According to the prime minister, $420 billion might be raised by imposing a 0.1% tax on global financial services. “not $720 million where we are today.”
“If we took 5 per cent of oil and gas profits last year — oil and gas profits were $4 trillion — that would give us $200 billion,” PM Mottley said. “If we had a 1 per cent tax on the value of shipping — that, last year, the value of that was $7 trillion — that would give us $70 billion.”
The G20, a major alliance of industrialized and developing nations accountable for four-fifths of global greenhouse gas emissions, said earlier this year in New Delhi that in order to achieve their climate targets by 2030, developing nations will require $5.9 trillion. They claim that in order to reach their goal of net-zero emissions by 2050, an additional $4 trillion will be required.
The richest nation on earth, the United States, has never imposed a worldwide tax, and Republicans in the US Congress are reluctant to enact new levies in general and to provide funding for several international organizations and initiatives in particular.
Lord Nicolas Stern, a co-chair of an expert team investigating the expense of funding the battle against climate change, stated, “It’s not easy to levy an international tax. It needs countries agreeing to make those taxes.”
It also needs upfront financial support for developing nations to be able to invest in renewable energy.
“Where we’re talking about climate change, I think the maritime, and oil and gas, and travel is of particular relevance to this issue,” Stern noted “And that means countries getting together.”
“So, we can see what to do increase to increase the investment: It’s got to be big,” he noted.
