COP29 this year was highly anticipated, especially considering it was held in a petrostate. The COP process remains the only means we have to agree on global climate action. Activist Luisa Neubauer emphasizes the importance of people showing up. However, despite calls from small island states and vulnerable developing nations, countries failed to reach an ambitious climate finance target. The world is on track for significant warming, and we are already witnessing catastrophic consequences worldwide.
Where Will the Money Come From?
Oxfam data shows that 50 of the world's richest billionaires produce more carbon in under three hours through their investments and luxury assets than the average Brit in a lifetime. Currently, billionaires contribute only around 0.3% of their wealth in taxes. At the G20 summit in Brazil, the concept of a 'billionaire tax' was discussed for the first time. President Lula and supported by several countries proposed a 2% annual tax on billionaire wealth. If implemented, it could generate $250 billion annually from fewer than 3,000 individuals worldwide, which would be used to address poverty, hunger, and climate change.Quentin Parrinello, policy director at the EU Tax Observatory, believes it is technically possible. He points to the global agreement on corporate tax reform in 2021 as a successful case study. The Organisation for Economic Co-operation and Development's minimum corporation tax came into effect this year, showing the progress in international tax cooperation. Parrinello argues that the main obstacle is political will.British billionaire John Caudwell agrees that the ultra-wealthy have a responsibility to pay their fair share but doubts the effectiveness of a specific 'billionaire tax'. He founded a children's charity and advocates for climate action. He believes in fair wealth redistribution but thinks taxing individual billionaires is not practical. Instead, he encourages billionaires to give away at least 50% of their wealth through the Giving Pledge. He also supports the UK government implementing a special differential corporation tax to incentivize environmental technology and create jobs.In the US, the 'Patriotic Millionaires' group advocates for higher taxes on the ultra-wealthy and corporations. At the World Economic Forum in Davos, 260 millionaires signed a letter expressing their willingness to pay more in taxes.The likelihood of a 'global billionaire tax' depends on the fragile political climate. Trump's vow to take the US out of the Paris Agreement again poses a hurdle. Tax experts like Parrinello worry that the US may be reluctant to give away money. The question remains whether billionaires are willing to trust elected officials with their money. This is an important and difficult conversation that we need to have.READ MORE