Linking an FTT to scaled up climate action

20 November 2013

Where is the Finance (WTF) to fill the gap? Here’s one of many answers to that question, the Financial Transaction Tax (FTT).

In early 2013, 11 EU Member States agreed to introduce an FTT that could generate revenues of €37bn a year or more, depending on its scope. While the FTT is still in in the design phase, ECO wonders whether France,  Germany and the other nine European supporters could not only finalise discussions on the scope of the FTT (on which scale of revenue will depend) but make a bold move: by allocating a big portion of the revenues to climate finance. This is a marvellous plan, as it would allow the EU – perhaps in time for the Ban Ki-moon summit in late 2014 – to assign a substantial amount to the very empty Green Climate Fund. 

It’s not a totally mad idea, It’s said France already is earmarking 10% of its FTT revenues to climate action. And we hear that Belgium supports the idea of  using part of the FTT revenues for development and climate action.

But what about the others, for instance Germany – where a new government is being formed even as the ministerial proceeds? One coalition partner had joined a grand campaign to allocate 33% of FTT revenues to climate action. Well, that was before the elections. Let’s see if they stay true to that promise.

Now it’s in the court of the EU-11 to bridge the gap with a bold FTT.  

Support CAN

Help us build power in the climate movement by contributing a one-time or recurring donation that will go to supporting our global work as well as various activities and campaigns in communities in different regions.

Donate to CAN

Stay informed

Subscribe to receive monthly updates on the latest on the climate movement including the content from across the network, upcoming climate change events, news articles and opinion pieces on climate, straight to your inbox.

Subscribe to our newsletter