Why the costs of climate crisis are going up significantly
As storms, floods, fires, and droughts are hitting us more frequently and with greater intensity around the world, the costs of the climate crisis are escalating dramatically. The financial toll is already being felt, with communities being left to pick up the pieces of the damage inflicted by the climate crisis. The time for inaction is over, and we need to hold the polluters accountable for their role in this crisis.
How much did the fossil fuel industry make in the last 20 years?
The profits of the fossil fuel industry over the last two decades have been staggering. Between 2000 and 2019, the industry raked in a whopping US$31.315 trillion. This equates to an average of US$4.3 billion per day. This is a staggering amount of money that could be used to support communities affected by climate change.
Using the money raised through climate taxes and fines
The revenue generated from ambitious polluter taxes and fines could be used to support climate-impacted communities. Governments could introduce genuinely transformative policies to protect citizens from the growing costs of climate change and create a more sustainable and resilient society.
Examples of climate taxes and fines
- A levy on the extraction of fossil fuels could raise a total of $900 billion by 2030.
- A minimal tax of $5 per tonne of CO2-equivalent on the fossil fuel extraction of TotalEnergies in 2023 alone could have covered the costs of Kenya’s 2024 floods 30 times over.
Investing in climate resilience
The money raised through climate taxes and fines could be invested in various initiatives to enhance climate resilience. For example:
- Emergency support after extreme weather events
- Tackle rising food prices by supporting farmers to adapt to climate-resilient food production
- Reduce pressure on energy bills for low-income households
- Prevent heat-related illnesses by upgrading buildings with insulation and reflective surfaces
- Protect homes from flooding by investing in wetland and forest protection and restoration, soil quality improvements, and other natural flood defences
Taxing and fining oil and gas companies more for climate destruction is a no-brainer. It can benefit everyone in the face of growing climate shocks. This approach also ensures that the people most impacted by climate change – living in poverty and least responsible for causing the climate crisis – receive the support they need and deserve.
Despite causing only a small fraction of overall global emissions, six typhoons struck the Philippines in less than a month at the end of 2024. Climate loss and damages in lower-income countries are estimated to cost upwards of US$388 billion per year. Yet, the total support pledged by wealthy nations so far would cover less than 0.2% of this figure.
To put climate justice into practice, governments must make fossil fuel companies pay up. Join the Polluters Pay Pact and support a safe and fair future for all.
| Who will benefit from climate taxes and fines? | Low-income communities, farmers, and households will benefit from the increased funding for climate resilience initiatives. |
| What is the estimated cost of climate damage to the global economy by 2050? | Climate damage could knock US$38 trillion a year off the global economy by 2050. |
“Climate loss and damages in lower-income countries are estimated to cost upwards of US$388 billion per year. Yet, the total support pledged by wealthy nations so far would cover less than 0.2% of this figure.” – Rebecca Newsom, Global Political Lead for Greenpeace’s Stop Drilling, Start Paying campaign
Join the conversation
The time for action is now. Let’s make the polluters pay for the damage they’ve caused. Sign now to join the Polluters Pay Pact and support a safe and fair future for all.
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