Levies on Equity Transactions to Finance Climate Action

Gunther Capelle-Blancard () and Avinash Persaud ()
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Gunther Capelle-Blancard: Université Paris 1 Panthéon-Sorbonne, Centre d'Econonomie de la Sorbonne, https://sites.google.com/site/capelleblancard/
Avinash Persaud: Inter-American Development Bank - IADB

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Mobilising substantial new resources is essential to address the climate crisis, particularly for low-income developing countries disproportionately affected by its impacts. Financial Transactions Taxes (FTTs) on equity trading, already implemented in several countries and generating around $17 billion annually, represent an underutilised but promising revenue stream. Drawing on existing implementations, particularly in France and the UK, the paper evaluates legal feasibility and revenue potential. We argue that expanding and harmonising such levies — designed with simplicity, enforceability, and fairness in mind —could raise an additional $87 billion per year, significantly contributing to climate action, especially related loss and damage needs. In the context of the Global Solidarity Levies Task Force (GSLTF) initiated at COP28, the study highlights the FTT as a technically feasible, low-cost, and non-distortive mechanism to raise climate finance quickly and effectively, fulfilling the criteria sought by GSLTF and offering a practical path forward in the broader effort to scale up international development and climate funding

Keywords: Financial transaction tax; Securities Transaction Tax; Tobin tax; Innovative financing (search for similar items in EconPapers)
JEL-codes: G21 H25 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2025-06
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http://mse.univ-paris1.fr/pub/mse/CES2025/25011.pdf (application/pdf)
https://shs.hal.science/halshs-05116106

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:25011

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