The Climate Governance Commission proposes the creation of global financing mechanisms to support transition to green economies, including through public revenue-generation, debt relief and enhanced ESG (Environment – Social – Governance) investing. In addition, global financing mechanisms are required to address a “great finance divide” between high-income and low and middle-income countries with respect to climate protection, mitigation and adaption.
One objective in the proposals is to facilitate a phase-out of fossil fuel subsidies (currently $7 trillion per year) and a redirection of these subsidies to raise enough revenues for climate mitigation/adaptation activities as well as re-distributional policy for climate justice
Proposals include:
- Establishing a global calibrated carbon tax;
- Create a levy on windfall profits of fossil fuel corporations;
- Establishing minimum corporate tax rate for international corporations;
- Operationalize Article 26 of the UN Charter to facilitate multilateral cuts in military spending and redirecting these to a Global Peace Dividend;
- Enhancing and expanding debt relief initiatives including Debt Relief for Green and Inclusive Recovery and Debt-for-Nature swaps;
- Establish a Global Clean Investment Risk Mitigation Mechanism.
- Create a Green Technology Licensing Facility to harness private sector innovation and address licensing and IP restrictions in the technology sector