The Secretary-General of the United Nations, António Guterres, called this Thursday on the “fossil fuel magnates” to support those suffering from the consequences of the climate crisis. Fossil fuels – oil, gas and coal – are primarily responsible for climate change because when they are burned for energy, they emit greenhouse gases that overheat the planet. Guterres has also proposed that world governments “tax the extraordinary profits of the fossil fuel industry and dedicate some of these funds to countries suffering loss and damage from the climate crisis.” “We are in an adaptation emergency,” Guterres warned in a statement.
The Secretary-General’s request comes a month before the start of the annual climate summit, which is being held this year in the city of Dubai in the United Arab Emirates. And that’s right, Guterres reminds the almost 200 countries that will meet in this city that at this conference they “must put the Loss and Damage Fund into operation.” It is necessary, explains the United Nations’ top official, “that the fund starts with a solid base,” and one of the options it proposes is to tax the profits of the fossil fuel industry.
The creation of this fund was the main promise of the climate summit a year ago, which took place in the Egyptian city of Sharm el Sheikh. The fund is intended to help the most vulnerable countries economically cope with the loss and damage that climate change has caused and will cause, the most malignant expression of which is increasing extreme weather events. But determining how it will be funded, what it will cover and which countries will benefit is complicated, and meetings are still being held in advance of the summit to try to agree on all of these details.
The international fight against climate change is based on two pillars: mitigation and adaptation. The term “mitigation” refers to the reduction in greenhouse gas emissions necessary to bring global warming, which can no longer be reversed, within safe limits. However, as this warming will not abate, adaptation measures must also be taken to protect against increasing extreme events or sea level rise.
Rich countries, historically responsible for climate change, pledged years ago to financially help developing countries so they could adapt. But this funding has so far been inadequate.
Guterres’ proposal to tax the fossil fuel industry’s profits also comes on the same day that the United Nations Environment Program (UNEP) presented its report on climate change adaptation measures.
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The analysis highlights that “as a result of slow mitigation and adaptation measures,” “losses and damages related to climate change” are increasing. As an example, UNEP cites a recent study showing that just the 55 economies most affected by climate change have suffered more than $500 billion in losses and damage over the past two decades. And he warns: “These costs will rise significantly in the coming decades, particularly if strong mitigation and adaptation measures are not taken.” “The new loss and damage fund will represent an important resource mobilization tool,” but warns that There are doubts about its application and advocates the introduction of “more innovative financing mechanisms to achieve the required amount of investment”.
Funding gap
In general, the report presented this Thursday warns in all countries that, despite the historical signs of warming and the increase in extreme phenomena, “progress in adapting to climate change is slowing in all areas”. “This lack of adaptation is worsening the climate crisis and causing enormous loss and damage, especially for the most vulnerable people,” UNEP added.
Regarding developing countries, the study concludes that the need for annual adjustments in these countries is between $215,000 and $387,000 million per year this decade, much higher than estimated in previous reports. However, the flows mobilized by the richest nations barely reached 21 billion in 2021 (the last year according to official data). That is, “the adaptation financing needs of developing countries correspond to a value that is between 10 and 18 times the international public financing flows.”
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