Climate mitigation that pays for itself?

This briefing summarises a bold new proposal for a tax coalition and reward fund for fossil fuels that would mobilize significant additional financing for climate mitigation in low- and middle-income countries (LMICs) while serving the political, economic and environmental interests of wealthier nations.

The full proposal is set out in a new paper by Prof. Dr. Ottmar Edenhofer, Prof. Dr. Matthias Kalkuhl and Dr. Lennart Stern from the Potsdam Institute for Climate Impact Research (PIK).

The paper “How to Scale Up Effective Climate Finance by the EU? Tax Coalitions and Jurisdictional Reward Funds for the Case of Fossil Fuel” is part of a project led by the Kiel Institute for the World Economy and Global Nation to increase the evidence on where “mutual benefit” can be delivered from concessional international financing flows, and Official Development Assistance (ODA) in particular.