A coalition of nearly 40 former heads of state and government have called on governments around the world to adopt a permanent polluter profit tax on fossil fuel companies to finance urgent climate action. The open letter argues that fossil fuel companies must contribute their fair share to fund the global energy transition and address climate damages.

The group of signers — including former UN Secretary-General Ban Ki-moon, former Presidents Carlos Alvarado (Costa Rica), Mary Robinson (Ireland), Vicente Fox (Mexico) and Joaquim Chissano (Mozambique), and former Prime Minister Mari Kiviniemi (Finland) — warn that the climate crisis demands bold and equitable solutions. Last year, fossil fuel companies invested more than $1.1 trillion in fossil fuels last year while spending just 2.5% of capital on clean energy. In the letter, the leaders point to recent Oxfam analysis that found that polluter profits could raise up to $400 billion in its first year — resources that could be redirected toward renewable energy, adaptation, and protecting communities most at risk.

Ban Ki-moon, Eighth Secretary General of the United Nations and Club de Madrid Honorary Member, said:

“For too long, some of the greatest profits in the global economy have come from high emissions and environmental harm, with costs borne by the many, not the few. It is time to put in place permanent taxes on polluter profits so that industries whose emissions threaten all of us pay their fair share to fund the transition, protecting all people and particularly those already facing the most poverty and exclusion, and restoring trust in our shared future.”

Carlos Alvarado, President of Costa Rica (2018-2022) and Club de Madrid Member, said:

“Climate justice demands courage: Taxing fossil fuel profits is an essential step to finance the transition fairly and effectively. A permanent polluter profit tax will not only reduce emissions, but is also critical to promote equality and protect those facing climate and social harms. Progress should happen at the national level—with countries setting examples for others—and at international settings such as COP30 and the UN Tax Convention.”

Mari Kiviniemi, Prime Minister of Finland (2010-2011) and Club de Madrid Member, said:

“When those who profit from pollution contribute their fair share through efficient and clear taxation, we will unlock the resources for innovation, for sustainable growth, and for rebuilding public trust. Wealthier countries must lead on fair taxation, building trust with the Global South and accelerating a just global transition. International discussions, such as at COP 30 in Belem, should support efforts to build coalitions of willing countries making progress on fossil fuel levies.”

These world leaders point to existing innovations, from windfall taxes imposed during the 2022 oil price crisis to new legislation in Vermont and New York, as proof that fair taxation is both possible and popular. A recent survey commissioned by Oxfam and Greenpeace in 13 countries that covered over half the world’s population found eight in 10 people support taxing fossil fuel companies to pay for climate damages.

The letter also calls for polluter profit taxes to be placed on the agenda at the G20 in South Africa, at COP30 in Belém, and in ongoing negotiations for a new UN Framework Convention on International Tax Cooperation. The time has come for wealthier countries to lead by example — ensuring that those with the greatest responsibility and capacity to act contribute to a faster and fairer global energy transition.

The letter was organized by Club de Madrid, the world’s largest forum of democratic former presidents and prime ministers, with the support of Oxfam, a global organization fighting inequality to end poverty and injustice.
Source: Oxfam