UN Negotiations Seek Global Tax to Make Fossil Fuel Firms Pay for Climate Damage
Negotiations at the United Nations are underway on a global tax treaty aimed at making fossil fuel companies financially responsible for climate-related damage, with proposals to impose levies on polluters’ profits and potentially on the ultra-wealthy, according to The Guardian.
The draft treaty — initially proposed by African nations in 2022 and now under discussion by UN member states — would create new international tax rules designed to shift the economic burden of climate loss and damage to the industries most responsible for greenhouse gas emissions.
Proponents say such a mechanism could generate significant revenue to support vulnerable countries facing escalating climate impacts, including extreme weather and sea-level rise. Advocates have suggested that a 20 % surtax on profits of the world’s 100 largest fossil fuel producers might have raised more than $1 trillion since 2015, and a global wealth tax of up to 5 % could produce roughly $1.7 trillion annually.
However, tensions persist among negotiating parties. Some developing countries argue the current draft is too weak, lacking clear mechanisms to tax polluters or track global assets, while the United States has withdrawn from talks, and some wealthy nations want such discussions moved to the Organisation for Economic Co-operation and Development (OECD), where fewer countries participate.
Supporters of the tax say it reflects the long-established polluter pays principle, which holds that those responsible for environmental harm should be financially accountable for damage costs — a concept entrenched in environmental law across many regions.
Civil society groups and campaigners have urged negotiators to strengthen provisions linking taxation to climate mitigation and resilience, emphasizing fairness and climate justice for nations disproportionately affected by global warming.
While detailed treaty language is still being negotiated, proponents argue that agreed rules could be adopted as soon as next year, potentially reshaping the global landscape for climate finance and corporate accountability.
