Business Desk 
Nov 21, 2024
Held in Azerbaijan, the COP29 observed a plethora of discussion recognising the urgency to agree an annual target of $1 trillion to help developing nations deal with global warming.
As the concern is being examined by the Global Solidarity Levies Task Force (GSLT), led by France, Barbados and Kenya, the climate conference led some countries to propose additional taxation to achieve the aforementioned target.
Shipping
Likely the most compelling area for taxing is the shipping industry, responsible for around 3.0% of global emissions, for which governments will discuss shipping emissions at the IMO in April. Proposed levies range from $18.75 to $150/tonne CO2e, potentially generating $127 billion annually by 2030.
Aviation
Making 2.0% of global emissions, the aviation sector is mostly free of value-added tax (VAT) or sales taxes. Proposed taxes on kerosene, private jets, luxury tickets, and frequent flyers could generate $19-164bn annually.
Read more: HBL, BOP impose monthly fees on high-balance accounts
Currently, 29 countries tax aviation fuel, while 21 impose levies on tickets, ranging from €2 to €500. Challenges include legal barriers and ensuring fair competition.
Fossil fuels
Many countries already tax fossil fuels through VAT, carbon levies, or royalties. Future revenues could come from extraction levies or windfall taxes on energy firms. Greenpeace estimates a $5/tonne tax could raise $216bn, while ActionAid suggests $173bn from taxing windfall profits.
Financial transactions
Over 30 countries tax financial transactions. A global levy on stocks, bonds, and derivatives could raise $238–$419bn annually.
Carbon
There are 75 carbon pricing mechanisms covering 24% of global emissions, but most are underpriced below the $40-$80/tonne needed to combat global warming. Proposed solutions include a global minimum carbon price or linking existing trading schemes.
Wealth
The G20 proposed a 2% global wealth tax on billionaires, which could raise $250bn annually, with options to adjust thresholds and rates.
Crypto
Crypto mining consumes significant energy, causing emissions. Kazakhstan charges miners up to $0.056/kWh. A global electricity tax could raise $5.2bn, a 0.1% trading levy $15.8bn, and a 20% capital gains tax up to $323bn.
