At the UN climate summit, COP28, held in Dubai, leaders from developing nations highlighted the urgent need for substantial financial support to help them cope with the impacts of global warming. Mia Mottley, Prime Minister of Barbados, called for global taxes on industries like financial services, oil, gas, and shipping to generate the necessary funds to support poorer countries in adapting to climate change and dealing with the losses caused by extreme weather events such as floods, wildfires, and heatwaves.

Mottley emphasized that billions, not just millions, are needed to address the crisis. She proposed a 0.1% tax on global financial services which could raise $420 billion—a significant boost compared to the current $720 million in commitments to the loss and damage fund. The Prime Minister also suggested taxing the oil and gas sector, which posted $4 trillion in profits last year, and the shipping industry, valued at $7 trillion, to generate more revenue.

“The $720 million we have today is a far cry from the $420 billion needed to address these challenges,” Mottley said, stressing the importance of meeting the financial requirements to enable developing countries to transition to clean energy and reduce the future impacts of climate change.

The Financial Gap for Developing Nations

Developing nations are facing the brunt of climate change impacts, despite contributing only a small fraction of global emissions. Leaders from small island states, such as Samoa, echoed Mottley’s sentiments, warning that climate finance is critical for their survival. Cedric Schuster, Samoa’s Minister for Natural Resources, emphasized that his people are relying on the international community to ensure their voices are heard in the climate negotiations.

“The people of Samoa want to be assured that they will survive the impacts of climate change,” Schuster said. “Our role is to amplify their concerns and ensure that global decisions reflect their needs.”

Activists Demand Action

Climate activists also took to the stage during the COP28 summit, holding protests demanding that wealthy nations contribute significantly to the loss and damage fund. While some countries, including Germany and the UAE, have pledged hundreds of millions, activists, including Eric Njuguna from Kenya, argue that much larger sums are required.

“We need rich nations to contribute to the loss and damage fund on a scale of hundreds of billions,” Njuguna said, echoing the calls for more significant financial commitments from developed countries.

Challenges in Global Taxation

While these proposals may offer a way forward, experts acknowledge that international taxes are difficult to implement. Lord Nicolas Stern, co-chair of a panel on climate financing, pointed out that creating a global tax system requires unanimous agreement among nations. The United States, the world’s largest economy, has traditionally been opposed to global taxes, especially as its Congress remains hesitant to fund international programs.

Despite these challenges, Stern stressed the importance of bringing countries together to increase investment in the fight against climate change. He noted that the maritime, oil, gas, and travel industries are particularly relevant to funding efforts.

The urgency of the situation is underscored by a report from the G20, which estimates that developing countries will need approximately $5.9 trillion by 2030 to meet their climate goals, with another $4 trillion required to achieve net-zero emissions by 2050.

Moving Forward with Financial Support

As the COP28 talks continue, the call for stronger financial commitments from richer nations remains a central issue. Without substantial funding for developing countries, the path to mitigating climate change and adapting to its effects will remain out of reach for those most vulnerable.

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