Overview

This bill mandates the UK Secretary of State to publish proposals for a Climate Finance Fund within three months of its passing. The Fund will be financed by a levy on fossil fuel companies and other polluting organizations, with the aim of using the revenue for climate action in the UK and internationally.

Description

The bill requires the Secretary of State to publish proposals for a Climate Finance Fund, adhering to specific principles. These principles emphasize the "polluter pays" approach, holding those most responsible for climate change accountable. The Fund's revenue will be raised via a levy on various entities, including:

• Fossil fuel extractors (based on volume extracted)
• Companies involved in fossil fuel exploration, production, and pipeline transport
• Shareholders receiving dividends/capital gains from heavily polluting assets
• Companies in heavily polluting industries (based on historical emissions)
• Companies impacting nature (incentivizing protection and restoration)
• Luxury travel users and operators (superyachts, private jets)

The proposals must also consider ending certain tax reliefs for oil and gas companies and redirecting that revenue to the Fund. The bill proposes the creation of an independent Climate Finance Committee to advise the Secretary of State and report annually to Parliament on the Fund's operation and revenue.

The proposed spending of the fund includes investment in a green economy, meeting domestic climate targets, supporting communities vulnerable to climate damage, helping households lower energy costs, and supporting the transition of oil and gas workers to green jobs. Internationally, the funds would contribute to loss and damage funds and increase the UK's contribution to international climate finance obligations.

Government Spending

The bill doesn't specify exact figures for government spending. However, it aims to generate revenue through a levy on polluting entities, which will then be allocated to climate-related initiatives both domestically and internationally. This revenue is intended to be additional to, not a replacement for, existing climate budgets.

Groups Affected

• Fossil fuel companies: Will be subject to a levy based on their extraction and emissions.
• Companies in heavily polluting industries: Will face a levy based on historical emissions.
• Shareholders in polluting companies: Will be subject to a levy on dividends and capital gains from heavily polluting assets.
• Luxury travel users: Owners of superyachts and private jets, and associated businesses will be subject to a levy.
• UK taxpayers: May benefit from increased investment in green initiatives and support for energy cost reduction.
• Oil and gas workers: Will receive support for transitioning to jobs in the renewable energy sector.
• Developing countries: Will potentially benefit from increased UK financial contributions to climate adaptation and mitigation efforts.

Powered by nyModel