"Debating the Climate Corporate Tax"

Although the creation a new fund dedicated to climatic loss and damage has been agreed at COP 27 in 2022, it remains unclear how it will be financed. Given the current insufficiency of climate finance, new policy instruments may have to be found. Recently, economist Esther Duflo has proposed the introduction of a global corporate climate tax in order to fund direct transfers to the victims of extreme weather events like heat waves, floods and droughts. It has been presented as a way to discharge the climatic “moral debt” that rich people in the global North have towards vulnerable people in the global South. In this paper, I want to assess the fairness of such an instrument. This raises both normative and empirical questions. On the normative side, there may be a tension between a corrective approach to corporate responsibility and a distributive approach to interpersonal justice. On the factual side, the fairness of a climate corporate tax may also depend on its economic incidence and on the carbon intensity of corporate profits.