International fund set up at Cop27 is intended to provide compensation to countries worst hit by climate breakdown
A tax on wealthy Britons of just 0.5% could more than meet the UK’s entire “fair share” contribution to the international loss and damage fund established to support countries worst hit by global climate breakdown, a charity has suggested.
Taxing 5p of every £10 of individuals’ wealth over £1m would raise £15bn a year by 2030, well in excess of an estimated $15bn (£12bn) UK contribution to the new fund, according to an analysis by the anti-poverty campaigners Christian Aid.
The loss and damage fund, established at last year’s Cop27 climate summit in Egypt, is intended to provide compensation for climate-related disasters that are beyond the possibility of adaptation.
Sought by developing countries since 1992, the fund was the most contentious issue at the UN conference, and many of its specifics are yet to be ironed out.
Estimates of its potential cost differ, but the range of $290bn-$580bn a year by 2030 is often cited, with a midpoint of about $400bn, taking into account inflation and rising climate impacts. Christian Aid estimates the UK’s “fair share” of this to be about 3.5%, or $15bn.