Today the Finance Working Group within YOUNGO organized a brilliantly successful action to raise awareness about the Financial Transaction Tax (or “Robin Hood Tax”). Costumed as Robin Hoods, they displayed a giant green and white target outside the COP17 International Conference Center. As delegates passed by on their lunch break, they were offered a bow and arrow to shoot towards the target, which had a Robin Hood hat posted as the bulls-eye. While the atmosphere had an easy going circus feel to it, instead of music the background was calls to “target filling the Green Climate Fund!” and, “Take aim for the Robin Hood Tax!” Delegates from several countries listened or participated; including South Korea, Malawi, Taiwan, the Philippines and Norway.
A surprise supportive appearance from the Mrs. Naledi Pandor, the Minister of Science and Technology of South Africa, earned her our ROBIN HOOD AWARD today. South Africa has recently joined the emerging coalition of the willing on the Financial Transaction Tax (Robin Hood Tax) at the G20 Summit in Cannes. We are incredibly grateful for their leadership support for FTT, as well as for hosting us in their nation for COP17!
The demonstration was especially powerful as it included participants from all over the world. Zora Chia-Yun Tsai from Taiwan Youth Climate Coalition states: “I support the FTT because it’s a tool for social justice and a way to rebalance cash from the wealthy to the poor. I think if there was international support Taiwan would follow.” Barry McCarron from the UK said; “I’m taking part in the action after listening to stories from African young people about how climate finance could make so much difference to them at grassroots level.”
Why do we need a tax? UN parties have agreed that $100 billion annually must be mobilized by 2020 to mitigate climate change and support communities in developing nations adapt. Under a “Polluter Pays” Principle, it should be the developed nations that fill this fund. However, they have been slow to make good on this promise, claiming that the economic crisis means that there just isn’t any money for climate change.
That’s where the Robin Hood Tax comes in. This micro-tax on the order of 0.01%-0.05% would apply to each trade of stocks, derivatives, currency, and other financial instruments. It would have no effect on the average person’s transactions like withdrawing money from a bank account. This has two benefits: raising huge amounts of revenue and discouraging high-frequency trading that has little social value but poses big risks to the economy. The YOUNGO finance working group takes the stance that it is an essential way to fill the empty Green Climate Fund. We ask more nations to join the “Coalition of the Willing”, and that the Coalition meet in the next two months with a concrete plan supporting implementation. As the saying goes – the more the “merrier”! Estimates by economists vary, but with global realization they predict potential revenue of $176 billion to $650 billion annually.
