CSOs call for global tax reforms, access to climate finance for developing nations

Civil society organizations (CSOs) globally are intensifying their calls for comprehensive reforms in international tax systems and enhanced access to climate finance for developing nations. These demands have gained momentum amid ongoing negotiations at the United Nations and recent climate discussions.

Global Tax Reform: A Call for a UN Tax Convention

Over 200 CSOs and trade unions have expressed strong support for a United Nations-led tax convention aimed at establishing a fair and inclusive global tax framework. This initiative seeks to address issues such as profit shifting, illicit financial flows, and tax avoidance by multinational corporations. Advocates argue that the current OECD-led frameworks disproportionately favor wealthy nations and corporations, undermining the tax sovereignty of developing countries .

The Africa Group has been at the forefront of this advocacy, proposing a draft resolution for a UN Tax Convention that emphasizes progressive taxation, transparency, and special considerations for developing nations. CSOs have rallied behind this resolution, highlighting the need for an equitable international tax system that supports sustainable development goals and addresses systemic inequalities .

Climate Finance: Addressing the Funding Gap

At the COP29 summit in Baku, Azerbaijan, developing countries reiterated their call for substantial financial support to combat climate change. While wealthier nations pledged $250 billion annually by 2035, this amount falls significantly short of the $1.3 trillion demanded by poorer countries. The disparity underscores the urgent need for innovative funding mechanisms, such as carbon taxes and financial transaction levies, to bridge the financing gap .

CSOs have been vocal in advocating for increased climate finance, emphasizing that the current commitments are insufficient to address the escalating impacts of climate change in vulnerable regions. They argue for a more robust and equitable financial framework that ensures developing countries receive the necessary resources to implement effective climate adaptation and mitigation strategies.

The Intersection of Tax Justice and Climate Finance

The push for global tax reforms is intrinsically linked to the demand for increased climate finance. CSOs contend that by curbing tax abuses and enhancing domestic resource mobilization, developing countries can generate additional revenue to fund climate initiatives. This dual approach aims to create a sustainable financial ecosystem that supports both economic development and environmental resilience.

As negotiations continue, the alignment of tax justice and climate finance agendas remains crucial. CSOs are calling for a cohesive strategy that integrates these issues into broader development policies, ensuring that the voices and needs of developing nations are adequately represented and addressed.