ecbi has published a note, which summarises a series of Oxford Climate Policy Blog posts advocating for the formation of a Climate Solidarity Alliance (CSA) and implementation of Climate Solidarity Levies (CSLs) as a means of generating innovative and additional funding, in particular for climate-related loss and damage.

The CSA is envisioned as a partnership of national and sub-national actors who are willing to show solidarity with the poorest and most vulnerable to help them deal with climate change. A bottom-up voluntary partnership approach is chosen to enable immediate action and to sidestep the complexities of international agreements. The key characteristics of the proposed CSA are: the establishment of national Climate Solidarity Trust Funds (CSTFs) with Loss and Damage (L&D) windows; the use of domestic CSLs to replenish these trust funds; and the use of a specific Solidarity Bonus Mechanism to show solidarity with the poorest and most vulnerable, both bilaterally (North-South and South-South), as well as through multilateral channels, such as the Fund for responding to Loss and Damage (FRLD). The CSA model could be used as a solidarity tool – the way in which to provide solidarity – for the coalition of countries working together through the Global Solidarity Levies Taskforce.

Climate Solidarity Trust Funds (CSTFs): National CSTFs are central to the CSA proposal, with national partners expected to establish these funds with a L&D window designed to finance responses to loss and damage both domestically and internationally. France’s Solidarity Fund for Development and Fiji’s Climate Relocation of Communities Trust Fund are examples of existing national funds that could be used for this purpose.

Climate Solidarity Levies (CSLs): CSLs are a cornerstone of the CSA. Inspired by the French solidarity tax on air tickets, these levies are nationally determined, designed to be easily collectable at the national or sub-national level, and used for the CSA. They could, for example, take the form of:

• Air ticket charges: A flat-rate charge on air tickets, differentiated by class or destination.
• Maritime cargo container charges: A levy on cargo containers processed at ports.
• For-hire vehicle charges: A levy per trip for for-hire vehicles entering or leaving major airports.
• Cruise ship passenger charges: A charge on cruise ship passengers dis-/embarking at ports.

Solidarity Bonus Mechanism: A solidarity bonus mechanism is proposed to encourage developing countries to voluntarily contribute to the FRLD. Developed country partners would provide pay back and bonus payments directly into the L&D window of developing country partners’ CSTFs for their contributions to the FRLD. This offers a direct solidarity benefit and incentivises participation.