• Coalition launched by the Global Solidarity Levies Task Force, run by France, Kenya and Barbados
  • Experts believe solidarity levies can help restore balance to the financial system based on the polluter pays principle
  • The coalition provides countries with a way to progress climate finance, during a period of heightened geopolitical uncertainty

12 November 2024, Baku – Countries from the global north and south today launched a Coalition for Solidarity Levies at COP29 in Baku, Azerbaijan. The new coalition – spearheaded by France, Kenya and Barbados – aims to secure sustainable funding for climate and development action by establishing levies on carbon-intensive industries, based on the polluter pays principle.

Climate change is the single greatest challenge facing humanity, with devastating impacts on people’s lives. People around the world have seen that with events this year, from Hurricane Beryl and the floods in Spain, to droughts in Zambia and Somalia. These countries have experienced first-hand the devastating effects of climate change, and this makes the case and need for solidarity levies even more pressing.

Today, five new countries joined the coalition: Sierra Leone, Zambia, Fiji, Djibouti and Somalia. This group backed the Global Solidarity Levies Task Force, and includes Barbados, France, Kenya, Antigua & Barbuda, Colombia, Marshall Islands, Senegal, Spain, Denmark. This brings the total membership of the coalition to 17, including three observers: the African Union, the European Commission and Germany.

 

The Coalition for Solidarity Levies also provides countries interested in tackling climate change with a new forum to advance their interests, without having to wait for broader geopolitical alignment when some countries oppose the principle.

Solidarity levies will help restore balance to the global financial system, something which is especially relevant as people worldwide grapple with the rising cost of living. For example, coal, oil, and gas companies produce over 75% of global greenhouse gas emissions, yet the five largest firms alone reported $281 billion in profits over the past two years. Meanwhile, fossil fuel subsidies surged to $7 trillion in 2023, underscoring the misalignment between corporate profits and public costs.

Solidarity levies offer a way to shift this balance, ensuring that those profiting most from carbon emissions will contribute more to climate action. It will also help create a reliable funding stream for resilience, adaptation, and mitigation projects in vulnerable regions.

Prime Minister Mia Amor Mottley, Barbados, said: “The polluter pays principle has guided us thus far: if you have contributed to the problem, you should contribute to the solution. We know that levies on shipping, aviation and fossil fuel extraction could raise a combined $350bn a year. A 0.1% levy on all stock and bond trades could raise $418bn a year.

“These decisions are not beyond us. We now have the possibility of some kind of (shipping) levy and have already made phenomenal progress.”

Prime Minister Pedro Sanchez, Spain, said: “Our aim is to boost climate finance by focusing on those who are not paying their fair share. This will lay the ground for Ff4D in Sevilla. How do we get the volume and quality of capital that we need? We need to focus on more than just loans, more resources without debt; focus on justice; and bring as many countries as possible on board. Thank you for setting up this coalition. You have Spain’s full support and commitment.”

Speaking in the plenary at COP29, UN Secretary-General António Guterres also expressed support for solidarity levies, saying: “Tapping innovative sources, particularly levies on shipping, aviation, and fossil fuel extraction based on the principle that polluters must pay” is “critical for success.”

President Hilda Heine, Marshall Islands, said: “I appreciate the work of the Global Solidarity Levies Task Force and now the Coalition for Solidarity Levies.

“The Marshall Islands has been involved in this initiative since it began. We know it will cost $35bn to implement our national adaptation plan. We have to think creatively about how to get the climate
finance we need. Let us now go beyond thinking and towards action. This coalition can be one that drives action.”

Ali Mohamed, Climate Envoy, Kenya, said: “The greatest challenge of our time, climate change, demands bold collective action. The cost of inaction grows every day, measured not in economic losses but also in human suffering. For many in the global south it is not about measuring future impacts, but the ability to survive.

“Our mission is grounded in a simple but profound principle, that those most responsible for emissions, should contribute to solutions. By investing in solidarity levies, we invest in a shared future and our humanity. Together, let’s rise to the challenge.”

Secretary General of the Commonwealth, Patricia Scotland, said: “Those who are suffering the most are small vulnerable states. Many are tired of calling for finance that is promised but never arrives. I will do everything I can to encourage and enable our members to look at this issue effectively.”

Deputy Prime Minister, Salah Ahmed Jama, Somalia, said: “Coming from Somalia, a frontline country hit by climate change, a discussion on climate finance is very pertinent. As we speak, there is a looming drought, affecting almost half the Somalia population. What Somalians feel is a world apart from financial discussions. But we need diverse, scalable sources of climate finance and we commend the efforts of the Global Solidarity Levies Task Force.”

Deputy Prime Minister of Fiji Biman Prasad, said: “We express our support for the Coalition for Solidarity Levies which can help address the climate and development finance gap. When you look at the principles of those who are responsible and can afford, be it in shipping or financial transactions, these are areas where the affordability of those who use these services is there. If we have the right balance and level of these levies, the potential to raise funds will be possible.”

Remarks by Commissioner Wopke Hoekstra, European Union, said: “We need to mobilise the necessary finance and no matter how difficult the geopolitics, we have to deliver.  

“The reality of the world has changed but the EU will continue to play its part. The polluter pays principle should be at the heart. An aviation levy would inject further solidarity in the sector – a sector which needs to do more.

“Taxing wealth, how to embark on oil levies… we know these policies are difficult, but all are topics we should embark on.”

Minister of Environment, Mohamed Abdoulkader Moussa, Djibouti, said: “Today, Djibouti joins the Coalition for Solidarity Levies with a deep sense of agency and responsibilities. We believe solidarity levies on polluters align with the principle of fairness and equity, without increasing the financial burdens on vulnerable nations, bringing solidarity to future generations.”

Minister of Green Economy and Environment, Mike Elton Mposha, Zambia, said: “Today, Zambia is proud to join the Coalition for Solidarity Levies. This decision is rooted in our commitment to address the climate crisis, which poses challenges to citizens, communities and development trajectory.

“Today, Zambia is experiencing the worst drought in living memory. Solidarity levies represent a practical and transformative approach (to raising climate finance), without deepening the debt burdens of vulnerable countries.”

Ana Toni, Brazil’s National Secretary for Climate Change said:  “We need to look at new financial instruments to help in combatting climate change, and global levies are a key part of that. Brazil will finalize our G20 presidency and the topic of solidarity levy and our super-rich levy has come up very strongly in the debate. We want to congratulate the task force on the great work it has been doing.”

Dr. Kandeh K. Yumkella, Chairman of the Presidential Initiative on Climate Change, Renewable Energy and Food Security, Sierra Leone: “We are delighted to join the Coalition for Solidarity Levies. Together, let’s save the world.”

Kevin Magron, Special Advisor on Climate Action, France: “We are opening a new chapter with the Coalition for Solidarity Levies and we want this coalition to open a new chapter for climate finance. We want member states and sub-national governments that can implement solidarity levies.

“We have made progress since last year, and as we speak, we are preparing to issue our progress report this Thursday. It will show clear pathways forwards for solidarity levies.”

ENDS

For more information, please contact: [email protected]

About the Coalition for Solidarity Levies

The coalition is coordinated by the Global Solidarity Levies Task Force, co-chaired by Barbados, France, and Kenya. Launched at COP28, the task force is responsible for designing levy mechanisms that make polluters accountable while aligning climate finance with the goals of the Paris Agreement. The task force was formed following the Nairobi Climate Declaration, Paris Pact for People and Planet, and Bridgetown Initiative. Over the next year, the task force will consult with global stakeholders and refine these levy proposals, before presenting solidarity levy proposals at COP30 in 2025.  Previously, countries and organisation were classified as either members or observers of the task force, whereas that has now changed to simply expressing broader support for solidarity levies through joining the coalition.