Financing the costs of tackling climate change: the financial transaction tax at the COP 30

Correia, Miguel

http://hdl.handle.net/10400.14/53826

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Authors

Correia, Miguel

Abstract(s)

Adapting to climate change and mitigating its effects will require a major global financial effort. One of the financial instruments that has been discussed over the past two decades to finance this effort, without ever achieving visible success, is the Financial Transaction Tax (FTT). More recently, at the COP 28, the tax was given new impetus with the creation of the Global Solidarity Levies Task Force, led by France, Kenya and Barbados and supported by several other countries and a wide range of international organisations (including the IMF, the World Bank, the UN, the OECD and the G20), with the aim of identifying sources of financing for the global effort. The Task Force has identified the FTT as one of the levies that merits further research. It is hoped that at the forthcoming COP 30, to be held in Brazil in November 2025, the Task Force will present final technical proposals for the introduction of new levies at the global level, including an FTT. The aim of this study is to contribute to this endeavour by evaluating the FTT proposal recently released by the Task Force for public consultation and, where relevant, making policy suggestions for consideration.