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In today’s edition: Parliament braces for a potential first EPP–Patriots alliance in Thursday’s due diligence vote, the EU’s top judge blasts Viktor Orbán over rule-of-law abuse, and lawmakers’ short-lived MFF rebellion fizzles after Commission concessions

Credit: UNICEF/Ulet Ifansasti

By Ian Gary
WASHINGTON DC, Nov 12 2025 (IPS)

The climate crisis is getting worse and requires fundamental changes to societies, economies, and our global financial architecture in response. While extreme economic inequality is on the rise – the world’s billionaires now hold more wealth in the world than every country except the U.S. and China – the impacts of climate change are also unequally felt, with the poor in the Global South and North most at risk.

This month there will be two important UN events focused on addressing the climate crisis and global financial architecture. One event – the 30th UN Framework Convention on Climate Change Conference of Parties (COP30) – will overwhelm the Brazilian city of Belém and attract the media spotlight.

On another continent, in Nairobi, a UN event starting on the same day will get far less attention but is designed to advance an issue which must be central to the climate crisis response – global tax justice.

Starting November 10th, negotiators from member states, along with civil society organizations have sought to influence the process, are holding a formal negotiation session for a planned UN Framework Convention on International Tax Cooperation.

There is a strange irony in the fact that two major UN meetings on climate and tax are happening at the same time, thousands of miles away. On the road to Belém, many stories will be written about how Global North countries are failing to meet their commitments to provide billions of dollars in “climate finance” to help Global South countries invest in projects – such as flood defense – to adapt to the realities of climate change.

Rarely mentioned, though, is the need to look beyond aid to the system of global tax rules which starve Global South countries of the resources they need. A report last week from the UN Environment Program (UNEP) said that developed nations provided only $26 billion in “international adaptation finance” to developing countries, far short of the $40 billion a year committed at the Glasgow COP in 2021. Meanwhile, the same report pegs adaptation costs at $310 billion-$365 billion per year by the mid-2030s. Strangely, the UNEP report is completely silent on the need to reform global tax rules to increase the fiscal space to make realizing climate finance commitments possible.

Global tax justice must be advanced to fill the “yawning gap” highlighted by the UNEP between what has been committed and what is needed to deal with the climate crisis. The OECD has said that countries suffer $100-240 billion in lost revenue annually from profit shifting by multinational corporations.

A significant portion of that is lost by Global South countries. If these “lost” funds were recovered through changes in global tax rules, the resources could dwarf the paltry sums being provided by the Global North.

Given that major Global North donors are slashing their aid budgets or closing their aid programs entirely (see the shuttering of USAID), we must now approach the climate finance debate with a “post-aid” lens. The ritualistic annual highlighting of the failure of Global North countries to meet the climate finance commitments must be supplemented by growing demands for global tax justice, ensuring global tax systems enable countries to tax economic activity where it takes place.

Fair and progressive taxation must be part of the post-aid landscape, particularly to support the ability of Global South countries to respond to the climate crisis with their own financial resources.

While thousands of activists descending on Belém, a hardy band of a few dozen civil society groups, organized by the Global Alliance for Tax Justice, will be engaging the UN tax negotiation process in Nairobi. New and effective rules to ensure that multinational companies pay their fair share – including those companies most directly driving the climate crisis – are desperately needed.

Beyond closing tax loopholes, countries need to remove the tax subsidies that incentivize fossil fuel production. In the US, recent research by the FACT Coalition found that American taxpayers are effectively subsidizing oil drilling abroad.

Other research has found that tax and other subsidies may make some future oil and gas projects appear economically viable when, without these breaks, they aren’t.

Fortunately, some conversations are starting to bridge the climate and tax divide, with campaigners in both camps increasingly understanding that the global climate movement needs tax justice to win. Last month, academics and activists convened in Brazil for a policy research conference, with organizers stating that the “convergence of climate justice and tax reform is an ethical, political, and economic imperative.”

Foreign aid won’t come to the rescue, and the private sector won’t invest in climate adaptation at scale because of mismatched incentives. After the dust settles in Belém and Nairobi, governments, international organizations, and activists must find new ways to bring the climate and tax conversations together to tackle global inequality and the climate crisis. It will be a win for people and the planet.

Ian Gary is the Executive Director of the Financial Accountability & Corporate Transparency (FACT) Coalition

IPS UN Bureau

 

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