Financing Resilience and a Just Transition through Solidarity Levies and Taxation

As climate impacts intensify, countries face a growing gap between resilience needs and available finance. At the same time, governments are exploring how to accelerate the energy transition and mobilise greater investment towards it; this has been a prominent theme in discussions on roadmaps to transition away from fossil fuels, including at the First International Conference on the Phase Out of Fossil Fuels in Santa Marta.

In this context, taxes in sectors of the economy that are polluting, or making excessive profits that drive inequality, are gaining political traction as a fair and effective means of raising new revenues for critical investments. The Global Solidarity Levies Task Force, and initiatives such as the Premium Flyers Solidarity Coalition, have been breakthroughs in maturing this agenda.

For the fossil fuel transition, taxation – and wider reforms to fiscal policy – are essential to incentivise and generate revenues for the shift to clean energy. For climate resilience, solidarity levies are a promising mechanism for unlocking new sources of debt-free finance for developing countries.

Moreover, as highlighted by the Global Justice Report, effective and progressive taxation is essential for addressing the inequalities that sit at the heart of climate change.

This event will bring together two panels to examine these issues further.

Panel 1: High Level Dialogue
This session brings together high-level representatives from a diverse group of governments that are exploring and implementing taxes for financing resilience, fossil fuel transition and wider climate and development objectives.

The session will examine opportunities for regional cooperation and leadership, showcase practical implementation experiences, and discuss how solidarity levies can unlock new and predictable sources of finance, strengthen international cooperation, and support a more resilient and equitable global financial system.

Panel 2: Expert Panel
This panel will convene civil society leaders, academics and technical experts across issues of finance and taxation to discuss emerging breakthroughs in the design and implementation of solidarity levies and wider reforms to fiscal policy. It will examine how we design fiscal policies in ways that are politically viable, aligned with climate goals, and capable of surviving changes in government and public attitudes.

Drawing on the findings of the Global Solidarity Levies Task Force’s flagship report, launched at COP31, as well as insights from the Global Justice Report, the discussion will also open dialogue on the way forward for this agenda and explore how political momentum is translating into policy action. It will bring together insights from initiatives such as the Santa Marta process and the Premium Flyers Solidarity Coalition.