More than a hundred renowned economists have called for a tax on very wealthy individuals to help offset the cost of climate-related harm to the world's poorest people.
Helping developing nations transition to low-carbon economies and "loss and damage," the rescue and rehabilitation of nations hit by climate calamity, would both benefit greatly from a wealth tax on the richest people in the world.
Recent estimates suggest that a 2% tax on very wealthy people would generate around $2.5 trillion annually, as reported by The Guardian.
An Open Letter to World Leaders
The economists, led by Jason Hickel, a prominent degrowth advocate, have sent an open letter to world leaders in advance of this week's global meeting on finance. They propose a tax of 1.5% per 1.5 degrees Celsius to guarantee that the world keeps global temperature increases within 1.5 degrees Celsius of their pre-industrial average.
According to Oxfam via The Guardian, the wealthiest 1% of the world's population produces twice as much carbon dioxide as the poorest half, but they are subject to few regulations that might reduce their carbon footprint.
Recent studies indicate that the rich owe the poor $6 trillion a year as reparations for the harm caused by the climate catastrophe when the aggregate emissions of wealthy nations are weighed against the havoc that the crisis is inflicting in poorer countries.
Rutgers University professor Mark Paul, a letter signatory, claimed wealthy nations were dodging their duties. The said letter was organized by the activist organization Oil Change International.
"Global north leaders saying they can't afford to address global crises is the oldest excuse in the book, and simply put, a lie," Paul stated.
The economists also demand debt cancellation for some of the world's poorest nations and an end to detrimental subsidies for fossil fuels in their open letter.
One signatory, Alex Lenferna of Nelson Mandela University and the Climate Justice Coalition acknowledged that: "Countries in the global south are drowning in debt, which is driving austerity and undermining our ability to respond to the climate crisis."
Upcoming Summit for New Global Financial Accord
On Thursday and Friday, June 22-23, French President Emmanuel Macron and Barbadian Prime Minister Mia Mottley will convene a meeting in Paris for a new global financial accord. They anticipate around 50 heads of state and government to participate.
The goal is to alleviate poor nations' anxiety about the wealthy nations' failure to deliver on their promises of aid to reduce greenhouse gas emissions and deal with the effects of severe weather.
German Chancellor Olaf Scholz, European Commission President Ursula von der Leyen, US Special Presidential Envoy for Climate Change John Kerry, and Chinese Premier Li Qiang are just some of the world leaders scheduled to attend. However, the UK Prime Minister Rishi Sunak is not expected to show up.
