Proposed fossil fuel levy could generate $109 billion annually

A study by CE Delft, commissioned by Oxfam International, suggests that a levy on fossil fuel business investments held by ultra-wealthy individuals could generate an estimated $109 billion per year globally.

Unlike existing climate policies such as carbon taxes or emissions trading, which target operational costs and energy use, this proposed levy would target the capital invested in fossil fuel activities. By affecting the return on capital, the measure aims to make fossil fuel investments less attractive compared to non-fossil alternatives.

The central scenario proposes the levy apply to individuals with more than $5 million in business assets. Researchers estimate this would affect approximately 1.4 million people, representing about 0.02% of the global population, who collectively hold an estimated $47 trillion in business assets. The levy would target shares in private and listed companies, as well as investments through funds and ETFs, specifically the portion linked to fossil fuel activities.