ECO’s Idea on Funding for Loss and Damage

ECO understands that the rich, polluting countries are not keen to put money on the table to help vulnerable, developing countries affected by climate change. ECO heard of a very attractive mechanism that could lower their bill–let the industry most responsible for climate change pay for the damage their product is causing.

Fossil fuels are responsible for roughly 70% of emissions. Just two of the biggest fossil fuel companies–Chevron and ExxonMobil–made US$50 billion in profit last year.  Coincidentally, that’s probably how much loss and damage LDCs are facing right now.

Collectively, all vulnerable countries face $100 billion in loss and damage, the same as the annual profits of the top 13 fossil fuel companies. On top of these obscene profits, Chevron is planning to spend $35 billion exploring for new, completely unnecessary sources of fossil fuels.

Idea: make the fossil fuel industry pay a levy into the loss and damage mechanism. Problem solved.