Tax reform is needed to ensure that the broadest shoulders contribute their fair share and to generate the revenues needed to invest in the transition. Remember that climate inaction will cost us more than the measures we need to take to decarbonise. Progressive taxation must cover all incomes, exempting low incomes, introducing a progressive tax on wealth and introducing a minimum effective corporate tax rate.
A structural mechanism must exist in case of crises to tax the excess profits of advantaged sectors. Furthermore, the dividend rebate must be coupled with a climate plan aligned with the Paris agreement and a just transition plan in industries that will lose jobs or change direction in the transition. A climate wealth tax must be introduced to tax financial assets that contribute to the climate crisis. Direct or indirect subsidies to fossil fuels – which in our view includes ‘pay-as-you-go’ cars, which although electric in 2026 remain an unfair system – must be abolished entirely.
