COP29: GSLTF Proposes Climate Taxes on Cryptocurrencies, Plastics, and the Ultra-Rich
Barbadean PM Mia Mottley (R) and Spanish President Pedro Sanchez (L), COP29, Nov. 14, 2024. X/ @abc_es
November 14, 2024 Hour: 12:24 pm
The solidarity levies would also affect aviation, fossil fuels, and financial transactions.
On Thursday, the Global Solidarity Levies Task Force (GSLTF) published its progress report at COP29, presenting proposals for new taxes on cryptocurrencies, plastics, and the ultra-wealthy to help close the global climate financing gap. These new “solidarity levies” would be used to finance climate action and development efforts and would also affect aviation, fossil fuels, and financial transactions.
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For cryptocurrencies, “considering the high energy demand of mining” necessary to obtain them, this coalition of countries and organizations proposes a tax of US$0.045 per kilowatt-hour, which could generate US$5.2 billion while also reducing emissions.
The levy on the plastics sector would apply to the primary production of polymers at a rate ranging between US$60 and US$90 per ton, which would allow for the collection of between US$25 billion and US$35 billion annually and simultaneously support actions against pollution from this material.
Regarding individuals with very high net worth, the report proposes a coordinated minimum tax of 2 percent that would impact billionaires, which was recently discussed at the G20 and would generate between US$200 billion and US$250 billion, promoting a fairer global tax landscape.
The GSLTF also includes other “more specific” options in its document to tax industries considered “highly polluting” like aviation, for which it suggests a kerosene fuel tax, including a coordinated levy on private jet fuel, luxury tickets, and frequent fliers, which would provide between US$19 billion and US$164 billion annually “depending on design and scope.”
It also proposes tougher measures on the fossil fuel sector with “a combination of levies” that would include new taxes on extraction and on windfall profits, as well as an increase in the minimum corporate tax rate for multinationals or a mixed instrument that would vary by country.
As for financial transactions, options under consideration include “revitalizing EU efforts” to design a global tax by mobilizing a coalition of countries willing to adopt measures on stocks, bonds, and derivatives, while also working toward global harmonization of transaction taxes. This action would include a tax of 0.1 percent on equity and bond instruments and another of 0.01 percent on derivatives.
Officially led by Kenya, Barbados, and France, the GSLTF currently includes 17 countries and associated observer organizations, among which are Spain, Denmark, the European Commission, the African Union, and Senegal. All members are committed to finding solutions to generate substantial, fair, and predictable funding to address urgent global needs.
teleSUR/JF Source: EFE
