The new report "Green and Progressive Taxes for Socioecological Transition: A Perspective from Latin America and the Caribbean" was presented within the framework of COP28. GI-ESCR, DeJusticia, GFLAC, Nuestra América Verde, AIDA, and FIMA jointly developed this report.

The event took place at the Climate Justice Hub (expo Dubai). It brought together representatives from civil society organisations in the Latin American region to discuss the role of fiscal policy in addressing the triple planetary crisis and growing inequalities. 

This crisis demands action now. According to the latest IPCC report, climate change will severely impact the Latin America and Caribbean (LAC) region if urgent measures are not taken. Nevertheless, this crisis also presents an opportunity for the region to position itself as a leader in the global socio-ecological transition. 

LAC has the resources and the potential to tackle climate change with renewable energies and restore vital ecosystems. However, structural changes and reconciling between social, economic, and environmental well-being are required. This transition must be based on equity and climate justice. 

It is time for those most responsible for historical emissions – developed countries, large corporations, and economic elites – to financially contribute to the ecological transition and support more vulnerable countries. Given the magnitude of resources needed to address the crisis, LAC should explore green and progressive fiscal reforms at the domestic and regional levels. 

Taxing the ultra-rich and their luxury consumption and investments would reduce their environmental footprint and generate funds for climate adaptation and support for the most vulnerable. Achieving a just transition requires an unprecedented mobilisation of resources and profound changes in production and sustainable practices. To meet these challenges, international cooperation in fiscal matters can and must play a critical role. LAC should seize spaces like COP28 to advocate for a reform of the outdated global tax system that currently benefits developed countries and large corporations. 

The newly published report proposes a regional package of progressive and green fiscal measures that LAC can jointly promote at COP28, including: 

• Coordinated wealth tax, taxes on luxury vehicles, private air travel, and extraordinary profits 
• Combatting tax avoidance and evasion through greater regional coordination 
• Green taxes on carbon, extractive industries, pollution, and transportation 
• Elimination of regressive fiscal benefits 

LAC has the opportunity to assume the global climate leadership that the world needs. COP28 is the ideal platform for the region to collectively drive transformative fiscal reforms based on equity and environmental protection. The planet cannot wait any longer.

Access the executive summary HERE

Access the report in Spanish HERE