Rich Nations Could Raise $5 Trillion for Climate Finance Annually

A new study suggests that wealthy nations could generate up to $5 trillion per year for climate finance by implementing measures like windfall taxes on fossil fuels, ending harmful subsidies, and imposing a wealth tax on billionaires, The Guardian reported yesterday.

This amount is significantly higher than the $1 trillion that developing countries are currently requesting to address climate change.

The research, conducted by Oil Change International, highlights various avenues for raising additional funds. These include taxes on technology, arms, and luxury goods, as well as redistributing military spending. Additionally, phasing out fossil fuel subsidies and implementing taxes on fossil fuel extraction could free up substantial resources.

The study emphasizes that there is no shortage of public money available for climate action. By taking decisive steps to end fossil fuel subsidies and make polluters pay, wealthy nations can significantly contribute to global efforts to combat climate change.

The findings of this research come ahead of the upcoming COP29 climate summit in Azerbaijan, where climate finance will be a key topic of discussion.