Who pays for climate adaptation?






A climate levy is not a trading scheme prone to market manipulations but a cost anchored to consequences over time. It need not be a tax since the levies could go into a statutory fund rather than directly into government revenues. The fund could be used to help upgrade vulnerable infrastructure like bridges and hospitals. Higher building standards might be subsidised to limit damage. Property might be bought out where it is not cost effective to rebuild or defend.

A climate levy could also be a wedge for fundamental change because it links a liability to consumption. Once established, the principle can be applied to not just to fossil fuels but to other industries causing harm and that is a key step in building a sustainable economy. It is also an essential prerequisite in acknowledging global responsibility.

But what about reducing greenhouse gas emissions? Since the effect of greenhouse gases is amplified by water vapour and other feedbacks then impacts are also amplified and are already growing faster than greenhouse gas levels. A polluter could only avoid rising climate levy obligations by reducing fossil fuel usage since weather is not responsive to special pleading.

Instead of pursuing a carbon price or tax prone to manipulation or repeal perhaps it is time to outflank vested interests by calling instead for a climate levy on fossil fuels. Off course there would still be opposition but the debate side steps models and emissions to offer the least painful answer to “Who pays for the damage and adaptation?”

Greg Reid

Flooded road.JPG146.63 KB


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