Civil Society Organisations Urge Finance Commission to Establish Climate Damage Tax and Adaptation Fund

A coalition of civil society groups has urged the 16th Finance Commission to establish a climate adaptation fund and implement a climate damage tax. The organisations, including Greenpeace and Youth for Climate India, stressed the need for the National Disaster Management Authority (NDMA) to classify heatwaves as a national disaster. They highlighted that despite better weather forecasts, heatwave-related deaths have surged by 55% from 2000-2004 to 2017-2021.

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The organisations emphasised the necessity of a Climate Adaptation and Resilience Fund specifically for vulnerable communities. They argued that the current national adaptation fund fails to adequately support marginalised groups like women, indigenous communities, and informal sector workers, who are disproportionately impacted by climate disasters. They suggested integrating climate adaptation into large-scale development programmes such as MGNREGA and watershed management initiatives to bolster community resilience.

Climate Vulnerability and Tax Recommendations

They proposed that climate funds should be allocated based on updated vulnerability data. The organisations recommended that states receive funding for extreme weather events through scientific assessments like the Climate Vulnerability Mapping Atlas. This approach would ensure resources are directed to regions most at risk. Additionally, they advocated for a progressive tax on high-emission industries, including oil corporations and plastic manufacturers.

The letter noted that the top 100 fossil fuel companies contribute over 70% of global emissions. Revenue from this proposed tax should support climate adaptation efforts, renewable energy projects, and aid communities affected by extreme weather events. The organisations warned that climate change could drive 45 million Indians back into poverty by 2030 due to agricultural losses and increased disease outbreaks.

Compensation Measures for Vulnerable Groups

To mitigate these impacts, they suggested compensation measures such as universal basic income for informal and nature-based workers. Climate insurance programmes were also proposed to provide financial security to those most vulnerable to climate change. The letter underscored the potential loss of 34 million jobs in India by 2030 due to heat stress.

The coalition's recommendations aim to address both immediate and long-term challenges posed by climate change. By focusing on vulnerable communities and high-emission industries, they seek to create a more resilient society capable of withstanding future climate-related adversities.