A proposed tax on first and business class air travel could generate hundreds of millions in predictable adaptation finance for climate-vulnerable countries, according to a new study commissioned by the Global Solidarity Levy Taskforce and led by Bangladeshi experts.
A new study has found that a “Solidarity Levy” on premium airline tickets could provide a major boost to climate adaptation funding for Small Island Developing States (SIDS) and Least Developed Countries (LDCs) struggling with escalating climate losses.
Commissioned by the Global Solidarity Levy Taskforce, the research, led by Professors Mizan Khan, Ayesha Noor and Ekhtekharul Islam, examined the potential of taxing first and business class passengers as a fair and predictable source of climate finance. The analysis focused on ten climate-vulnerable countries, including Antigua and Barbuda, Barbados, Colombia, Fiji, Kenya, Mauritius, Mozambique, Sierra Leone, Senegal and Zambia.
These nations already bear heavy climate losses. Fiji alone loses an amount equal to 5.8 percent of GDP annually, while tourism accounts for as much as 30 to 40 percent of its economy. The researchers modelled three policy scenarios for short- and long-haul flights, with levies ranging from USD 20 to 90.
The results indicate substantial revenue potential: USD 708 million annually for Colombia, USD 56.8 million for Fiji, USD 140 million for Barbados.
In many cases, revenues could exceed tourism-related climate losses. Fiji could cover over 250 percent, while Mozambique, Senegal and Mauritius could surpass 200 percent, creating surplus funds for wider national adaptation needs.
Professor Mizan Khan, a Bangladeshi scholar and long-time LDC climate finance negotiator, described the mechanism as an “auto-generation” model: adaptation finance drawn directly from a high-emitting, luxury-consumption activity rather than from slow or uncertain public pledges from developed countries.
“The proposed Solidarity Levy is a fair and predictable financing tool, particularly effective for small island and coastal economies that depend on tourism,” Khan said. “It provides resources that do not rely on slow and uncertain international aid.”
He added that the Global Solidarity Levy Taskforce, established at COP26, has since commissioned multiple studies to mobilize substantial adaptation and loss-and-damage finance from high-emitting sectors, with the aim of generating billions beyond traditional public sources.
With international adaptation finance at just USD 26 billion in 2023, barely one-tenth of estimated needs, the study argues that innovative tools like the Solidarity Levy could play a crucial role in closing the widening gap. The full research paper will be released after COP30.
