Civil Society Groups Demand Climate Damage Tax, Adaptation Fund

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A group of civil society organisations on Tuesday wrote to the 16th Finance Commission, urging it to push for the creation of a climate adaptation fund and the introduction of a climate damage tax.

In a letter, the organisations that include Greenpeace, Youth for Climate India, Heatwave Action Coalition India and People for Himalayan Development said the 16th Finance Commission should recommend that the National Disaster Management Authority officially declare heatwaves a national disaster.

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The letter addressed to the chairman of the commission said that despite improved weather forecasts, heatwave-related deaths have increased by 55 per cent between 2000-2004 and 2017-2021. It also noted that India could lose 34 million jobs by 2030 due to heat stress.

The organisations called for the creation of a 'Climate Adaptation and Resilience Fund for Vulnerable Communities', saying that the existing national adaptation fund does not adequately support marginalised groups such as women, indigenous communities, and informal sector workers, who are the most affected by climate disasters.

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They proposed integrating climate adaptation into large-scale development programmes like MGNREGA and watershed management initiatives to help communities become more resilient.

The organisations also recommended that climate funds be distributed based on updated vulnerability data. They said states should receive funds for extreme weather events based on scientific assessments like the 'Climate Vulnerability Mapping Atlas' to ensure resources go to the regions most at risk.

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They also suggested introducing a progressive tax on industries with high emissions, such as oil corporations and plastic manufacturers. The letter pointed out that the top 100 fossil fuel companies are responsible for over 70% of global emissions.

The revenue from this tax should be used to fund climate adaptation, renewable energy projects and support for communities affected by extreme weather events.

The letter also warned that climate change could push 45 million Indians back into poverty by 2030, primarily due to agricultural losses and increased disease outbreaks.

To address this, they proposed compensation measures, such as universal basic income for informal and nature-based workers and climate insurance programmes to provide financial security to those most vulnerable to climate change.

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