Baku, Azerbaijan – A new analysis released today shows that imposing a small tax on just seven of the world’s largest oil and gas companies would increase the United Nations Loss and Damage Response Fund by more than 2,000% and reduce the impact of extreme weather events. This could help address costs. End Poverty with Greenpeace International. These organizations are calling for long-term taxes that increase annually, combined with taxes and other levies on excess profits from fossil fuel extraction.[1][2]
- Taxing ExxonMobil’s 2023 mining could cover half the cost of Hurricane Beryl
- Taxi shell production cuts in 2023 could cover most of the damage caused by Typhoon Karina.
- Taxing TotalEnergies’ 2023 extraction could cover more than 30 times the 2024 floods in Kenya
“While oil and gas giants continue to make grotesque levels of profit from resource development, the harms resulting from the industry’s operations are borne disproportionately by those who did not cause the crisis.” Poverty Eradication Director David Hillman said:. “A climate damage tax, like other taxes on fossil fuels and high-emitting sectors, would force polluters to pay the costs of their climate impacts and protect workers and impacts in the transition to clean energy, jobs and transportation. It will support the local communities that receive it.”
These groups are highlighting the economic costs of some of this year’s worst weather events, which are likely to be caused by climate change. These include Hurricane Beryl, Hurricane Helen, the Indian heatwave in May, Typhoon Karina/Gaemi, the Brazilian floods in May, and the Kenya and Tanzania floods in April.[4] The analysis found that these extreme weather events alone caused damages totaling US$64.6 billion, ranging from US$2.9 billion (Typhoon Kalina) to US$25 billion (Indian heatwave).
These costs represent just a fraction of the total damage caused by extreme weather events around the world, and demonstrate the scale of damage that dirty energy companies can cause. The analysis also found that revenue could be increased by imposing a climate damage tax (CDT) starting in the first year at US$5 per tonne of carbon dioxide equivalent emitted by the oil and gas that companies extract. It shows.[4] The seven oil and gas companies profiled in the report (ExxonMobil, Shell, Chevron, Total Energy, BP, Equinor and ENI) had a combined profit of approximately US$150 billion last year.
Increasing the CDT tax rate by $5 per tonne per year, plus inflation, would generate hundreds of billions of dollars by the end of the decade, analysis shows.
A climate damage tax imposed on wealthy OECD countries could play an important role in financing climate action. The tax increases by US$5 per tonne of CO2e based on oil and gas extraction to support governments and communities around the world, especially the poorest, in the face of increasing climate change impacts. could raise an estimated US$900 billion by 2030. And the most vulnerable.[5]
“Who should pay? This is fundamentally a climate justice issue, and it is time to shift the economic burden of the climate crisis from its victims to the polluters behind it.” Abdullahi Diallo, co-director of Greenpeace International’s Stop Drilling, Start Paying campaign, said:. “Our analysis reveals the scale of the challenge posed by climate change loss and damage and the urgent need for innovative solutions to raise the finance to address it. We call on governments around the world to introduce climate damage taxes and other mechanisms to extract revenue from the oil and gas industry.”
This call to make climate polluters pay reparations comes as Total Energies, Eni and Eni, who shipped containers from the floods containing broken toys, furniture, appliances and other detritus of personal and communal tragedies. Equinor was issued at the end of two weeks of protests delivered to the OMV office. Storm-affected areas around the world by Greenpeace Network. Protests by Greenpeace groups and survivors of extreme weather events took place in Austria, Belgium, France, Italy, Norway, the Philippines, Romania, South Africa and Spain.
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photos and videos Some of the meteorological phenomena covered in the analysis are: Greenpeace Media Library.
Note:
[1] A Loss and Damage Fund was announced at COP27 in Egypt to help developing countries compensate for the effects of natural disasters due to climate change. Recently renamed Loss and Damage Response Fund (FRLD), it is now USD 702 million With promised funds. Greenpeace International and Stamp Out Poverty calculate that a climate damage tax on seven major international oil and gas companies would add US$15.02 billion in the first year alone. This is more than 21 times the amount currently committed to the fund.
[2] Paying the price: The economic impacts of seven extreme weather events in 2024 prove why climate polluters will have to pay a price
[3] Based on 2023 emissions data, the estimated climate damage taxes paid by seven major oil and gas companies are:
| oil and gas companies | Adjusted profit in 2023 (USD billion) | Estimated total Scope 1-3 emissions in 2023 (CO2e equivalent) | Estimated climate damage tax of USD 5 per tonne of CO2e (in USD billion) for 2023 emissions |
|---|---|---|---|
| exxon mobil | 38.6 | 637.57 | 3.19 |
| shell | 28.3 | 460.17 | 2.30 |
| chevron | 24.7 | 507.24 | 2.54 |
| total energy | 23.2 | 411.92 | 2.06 |
| blood pressure | 13.8 | 375.30 | 1.88 |
| Equinor | 10.4 | 343.31 | 1.72 |
| ENI | 9.2 | 267.74 | 1.34 |
| total | 148.20 | 3,003.24 | February 15th |
[4] Hurricane Helen | Hurricane Helen WWA; Typhoon Gaemi | WWA; Floods in Brazil | Photo WWA; Heatwave in India | WWA; Floods in Kenya | Photo WWA; Hurricane Beryl |Climate Central
[5] The climate damage tax is a fossil fuel extraction tax that applies to carbon dioxide equivalent (CO2 equivalent) emissions per tonne of coal, barrel of oil, or cubic meter of gas produced. The proposal, backed by more than 100 environmental NGOs, would tax fossil fuel giants that have been central to driving the climate crisis, including ExxonMobil, Shell, Total Energy, BP, Chevron, Equinor and Eni. The tax rate has been increasing year by year, and in 2023, the revenue reached a total of 148.2 billion USD.
[6] Climate damage tax: A guide to what a tax to eradicate poverty is and how it works.2024, p. 7.
contact address:
Laura Bergamo, Greenpeace Canada, communications activist [email protected]; +1 438 928-5237
Tal Harris, Global Media Lead – “Stop Drilling Start Paying” Campaign, Greenpeace International, +41-782530550; [email protected]
Greenpeace International Press Desk, +31 (0) 20 718 2470 (24 hours); [email protected]
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