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Business Standard
5 hours ago
- Business
- Business Standard
Small coalitions could unlock $66 bn a year to fight climate change: Study
New research from the Potsdam Institute for Climate Impact Research (PIK) suggests that smaller alliances of fossil fuel-importing countries could raise up to $66 billion every year to help developing nations reduce emissions. This approach, the study says, would not increase costs for consumers and could be a realistic way to support global climate goals, news agency PTI reported. At the COP29 summit in Baku, Azerbaijan, held in November 2024, countries agreed on a new goal to raise $300 billion per year by 2035 for climate finance. There is also a broader target of mobilising $1.3 trillion from both public and private sources. However, the agreement did not include any concrete plan on how this money would be raised. Several countries are proposing different types of levies to support climate funding: -Brazil and other nations are supporting a 2 per cent global wealth tax on billionaires, which could generate up to $250 billion annually. -The International Maritime Organisation (IMO) has approved a carbon dioxide fee of $100 per tonne on shipping emissions starting in 2027. This could bring in $13 billion per year. Fossil fuel levies could raise $66 billion annually According to the PIK study, countries working together on fossil fuel import taxes could generate $66 billion a year to help lower-income countries shift to cleaner energy. If levies also covered emissions from international flights and shipping, the total could reach $200 billion per year. 'Governments are facing tightening fiscal space and are grappling with the question of where the money for international climate finance will come from. Smaller coalitions of countries cooperating on different kinds of levies could go a long way to solve the problem, without extra cost to consumers,' said Ottmar Edenhofer, PIK Director and lead author of the study, as quoted by PTI. EU-China cooperation could be a game-changer The research also shows that cooperation between large importers like the European Union and China could significantly boost climate finance. In one scenario, EU-China collaboration would quadruple the funds raised compared to what either could generate on its own. Consumers could also benefit from this cooperation, as lower global fuel prices would balance out any price increases from the levies. The study estimates that such collaboration could deliver: -$66 billion yearly for emission reductions in developing nations -$33 billion in net gains for those countries -$78 billion in avoided climate damages -$19 billion in annual fossil fuel savings India achieves non-fossil power target India has reached its target of 50 per cent non-fossil fuel-based power capacity five years prior to its 2030 deadline, Minister of New and Renewable Energy Pralhad Joshi announced earlier this month. Out of a total 484.8 GW installed capacity, 242.8 GW now comes from non-fossil sources. India has also set a goal of generating 500 GW from renewable energy by 2030. Fossil fuel combustion kills 1,500 In a separate study, scientists found that about 1,500 people died during the heatwave in the first week of July in Europe, solely because of climate change. 'These people would not have died if it had not been for our burning of oil, coal and gas in the last century,' said Friederike Otto, a climate scientist at Imperial College London and co-author of the study. Researchers from Imperial College and the London School of Hygiene and Tropical Medicine used peer-reviewed methods to estimate that 2,300 people died across 12 cities due to the heat. Nearly two-thirds of these deaths were directly linked to higher temperatures caused by climate change. Of the 1,500 climate-related deaths, over 1,100 were people aged 75 or older, the study found.
Time of India
6 hours ago
- Business
- Time of India
Cooperative fossil fuel levies could raise 66 bn annually to fight climate change: Study
A new study by PIK proposes that coalitions of fossil fuel-importing countries could generate USD 66 billion annually to aid developing nations in cutting emissions. Cooperative levies on fossil fuels, especially with EU-China collaboration, could significantly boost climate finance. This approach offers a win-win scenario, reducing emissions and benefiting consumers through lower fuel prices and avoided climate damages. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Smaller coalitions of fossil fuel-importing countries could generate USD 66 billion annually to help developing nations cut emissions, according to a new study by climate economists at the Potsdam Institute for Climate Impact Research (PIK).Governments at COP29 in Baku, Azerbaijan, in November 2024 agreed to a new climate finance goal of USD 300 billion per year by 2035, with an ambition to mobilise USD 1.3 trillion from public and private sources, but failed to propose a mechanism to incentivise are advancing new taxes to boost climate finance. Brazil and others back a 2 per cent global wealth tax on billionaires, which could generate USD 230-250 billion International Maritime Organization (IMO) has approved a USD 100 per tonne carbon dioxide shipping fee from 2027, expected to generate USD 13 billion. France, Spain, Kenya, and Barbados plan levies on premium flyers and private jets, which could add over USD 100 billion yearly for climate to the PIK study, cooperative levies on fossil fuels could raise USD 66 billion every year for financing emission reduction efforts in low and middle-income the scope to include pricing emissions from international aviation and maritime shipping could push contributions to USD 200 billion annually."Governments are facing tightening fiscal space and are grappling with the question of where the money for international climate finance will come from. Smaller coalitions of countries cooperating on different kinds of levies could go a long way to solve the problem, without extra cost to consumers," said PIK Director and lead author Ottmar study explores scenarios where countries act in their own interest but cooperate on fossil fuel levies and channel the revenues to support energy transition in developing finds that if the European Union makes the levy rates conditional on other countries joining, large importers like China would have an incentive to one scenario, the EU-China cooperation would quadruple the climate finance raised by each compared to acting alone. Such collaboration would also benefit consumers by lowering global fuel prices, offsetting any price increases from the study estimates that with the EU-China cooperation, developing countries could receive USD 66 billion annually to reduce fossil fuel use, including USD 33 billion in net damages from climate impacts could be worth USD 78 billion, with an additional USD 19 billion saved on fossil fuel prices each funding from these levies could also cut emissions by more than a billion tonnes of CO2 annually, exceeding Germany's current researchers say this approach offers a model for funding global public goods."Our analysis strongly suggests that coalitions to raise funds for global public good provision would be a win-win. We show by pairing targeted spending of these levies on international climate finance, benefits can be shared by all," said Matthias Kalkuhl, one of the study's study is part of the project "ODA in the Mutual Interest of Donors and Recipients", funded by the Gates Foundation and coordinated by the Kiel Institute for the World Economy.
The Print
6 hours ago
- Business
- The Print
Cooperative fossil fuel levies could raise 66 bn annually to fight climate change: Study
Countries are advancing new taxes to boost climate finance. Brazil and others back a 2 per cent global wealth tax on billionaires, which could generate USD 230-250 billion annually. Governments at COP29 in Baku, Azerbaijan, in November 2024 agreed to a new climate finance goal of USD 300 billion per year by 2035, with an ambition to mobilise USD 1.3 trillion from public and private sources, but failed to propose a mechanism to incentivise contributions. New Delhi, Jul 30 (PTI) Smaller coalitions of fossil fuel-importing countries could generate USD 66 billion annually to help developing nations cut emissions, according to a new study by climate economists at the Potsdam Institute for Climate Impact Research (PIK). The International Maritime Organization (IMO) has approved a USD 100 per tonne carbon dioxide shipping fee from 2027, expected to generate USD 13 billion. France, Spain, Kenya, and Barbados plan levies on premium flyers and private jets, which could add over USD 100 billion yearly for climate action. According to the PIK study, cooperative levies on fossil fuels could raise USD 66 billion every year for financing emission reduction efforts in low and middle-income countries. Expanding the scope to include pricing emissions from international aviation and maritime shipping could push contributions to USD 200 billion annually. 'Governments are facing tightening fiscal space and are grappling with the question of where the money for international climate finance will come from. Smaller coalitions of countries cooperating on different kinds of levies could go a long way to solve the problem, without extra cost to consumers,' said PIK Director and lead author Ottmar Edenhofer. The study explores scenarios where countries act in their own interest but cooperate on fossil fuel levies and channel the revenues to support energy transition in developing nations. It finds that if the European Union makes the levy rates conditional on other countries joining, large importers like China would have an incentive to participate. In one scenario, the EU-China cooperation would quadruple the climate finance raised by each compared to acting alone. Such collaboration would also benefit consumers by lowering global fuel prices, offsetting any price increases from the levies. The study estimates that with the EU-China cooperation, developing countries could receive USD 66 billion annually to reduce fossil fuel use, including USD 33 billion in net gains. Avoided damages from climate impacts could be worth USD 78 billion, with an additional USD 19 billion saved on fossil fuel prices each year. The funding from these levies could also cut emissions by more than a billion tonnes of CO2 annually, exceeding Germany's current emissions. PIK researchers say this approach offers a model for funding global public goods. 'Our analysis strongly suggests that coalitions to raise funds for global public good provision would be a win-win. We show by pairing targeted spending of these levies on international climate finance, benefits can be shared by all,' said Matthias Kalkuhl, one of the study's authors. The study is part of the project 'ODA in the Mutual Interest of Donors and Recipients', funded by the Gates Foundation and coordinated by the Kiel Institute for the World Economy. PTI GVS RHL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
South China Morning Post
a day ago
- Business
- South China Morning Post
Is EU's global clout fading amid gruelling stand-offs with China and the US?
After tense talks in Beijing and a bruising trade blow from Washington, EU bureaucrats are heading into their August break weary and short of wins, as doubts deepen over the bloc's global leverage. Last week's summit in Beijing went off without too much drama, seen as an achievement in itself, given how fraught EU-China ties had become in the run-up to the long-awaited event. But on some of their longest-standing complaints, the Europeans found that Beijing would not budge and was keen to display the confidence and swagger that European officials say has been on show since it forced a climbdown on US tariffs three months ago, according to sources familiar with proceedings. Talks on Ukraine , however, were said to have been open, frank and more meaningful than previous summits, during which European Union officials felt their concerns were dismissed out of hand. Over more than three hours of talks with Chinese President Xi Jinping, the Europeans pushed him again to rein in his Russian counterpart Vladimir Putin, only for Xi to point to US President Donald Trump's failure to deliver on a pre-election pledge to end the war in Ukraine in 24 hours as evidence of how little leverage anyone has over the conflict. A repeated motif of the Europeans' face-to-face engagement with Xi is the Chinese leader telling them that he has less leverage over Putin – whom he often describes as a 'good friend' – than they think. But whereas in previous years the EU complained that Xi had batted their assertions about China's support for Russia away, this time there was an in-depth debate.
Euractiv
2 days ago
- Business
- Euractiv
Europe can't pivot from its rare earth dependency on China
This article is part of our special report 50 Years of EU-China Relations: the future of the strategic partnership . Breaking free from China's dominance of rare earths will not be a simple feat for the European Union, even though both sides reached a tentative deal to ease Beijing's limitations on their exports. Considered one of the few breakthroughs of the 24 July summit in Beijing, Commission President Ursula von der Leyen announced an 'upgraded export supply mechanism' that will 'immediately check and solve problems or issues if there are bottlenecks'. Beijing's ironclad restrictions, introduced in early April against the backdrop of escalating tensions with the United States, triggered alarm across Europe, as rare earths are essential components in advanced technologies and defence. Highlighting the 'significant' strain on European companies caused by these export controls, von der Leyen underscored the need for 'reliable and secure supplies' of critical raw materials from China to maintain trust in 'our trade relationship'. Overwhelming dominance China's grip on the sector is astounding from a European risk perspective; it controls 85 per cent of global rare-earth processing and more than 90 per cent of magnet production. The export restrictions exposed the EU's vulnerability to Beijing's supremacy over the elements. Although June saw a 245 per cent surge in China's exports of rare-earth magnets to the EU compared to May, the figure remained 35 per cent lower than the level reported a year earlier. The one-day summit in Beijing, marking half a century of diplomatic relations between China and the EU, placed the issue high on the agenda. But despite the newly agreed mechanism, experts see little room for optimism. Europe's 'I want to break free' moment Writing for Foreign Policy, Christina Lu argues that Europe will have a hard time escaping China's grip on these elements. Decades of Chinese investment has created an industry with unmatched expertise, infrastructure and pricing power. According to Lu, an energy and environment reporter, replacing this system demands more than just new mines – it requires end-to-end supply chains with technical know-how and capital. Unlike the US, the EU must also overcome internal divisions among its member states. Current trade tensions do not help the bloc's case. On the one hand, Trump's trade policies loom; on the other, China is demanding recalibrated ties. China, not the problem? In Beijing, the issue is viewed differently. President Xi Jinping boldly stated that Europe's problems do not stem from China, urging the bloc to uphold 'openness and cooperation, properly managing differences'. Reporting for the South China Morning Post, Finbarr Bermingham notes that this assertion only underscores the stark divide in how each side perceives the state of their relationship. The summit was, however, presented as a necessary exercise in high-level dialogue. Xi described China and Europe as 'big guys' in the international system, with a responsibility to strengthen communication and mutual trust. No united front Beyond sugar-coated descriptions or wishful thinking of what the summit should have been, the high-level dialogue did little to genuinely bring the EU and China into a united front against Trump's tariff war. For its part, the EU is focused on achieving a negotiated solution to avoid the 30 per cent levy Trump has threatened to impose on products imported from the 27-nation bloc from 1 August. Meanwhile, Chinese officials are preparing for a meeting in Stockholm to discuss a deadline extension for negotiating a trade deal with the US. Treasury Secretary Scott Bessent stated that these talks would focus on rebalancing US-China trade relations. Missed chance Deep-seated mistrust, a refusal to walk in each other's shoes, hawkish stances followed by efforts to soften rhetoric – none of it helps either side. Another shot at meaningful reconciliation may now be harder to come by. The tentative rare-earth agreement reached during the summit may not suffice this time. Vulnerabilities and insecurities are running high, and the consequences of inaction will become increasingly difficult to ignore. There is a saying that when two fight, a third one wins. But when three fight… Well, may the best one win! [Edited By Brian Maguire | Euractiv's Advocacy Lab ]
