In the current economic climate, additional funds can be hard to come by.

The Instant Action Group is commited to identifying and implementing ways in which resources can be committed to fighting the effects of climate change in the developing worls by making the most efficient use of existing financial resources and funding opportunities, rather than requiring additional funding from hard-pressed budgets.

Some potential solutions include:

1. The introduction of a Carbon Usage fee (CUF)

• evaluated in a similar way to the current VAT system
• collected using real-time technology alongside VAT revenue
• reduces the administrative burden of collection for both businesses and governments
• similar system for sales tax in US states
• simpler, cheaper to collect and fairer than Carbon Taxes

2. The use of a ‘Carbon Card’

• charges for current credit cards are based on  ‘interchange fee’ as a percentage of the transaction cost
• the opportunity for a dedicated credit/debit card with much lower operating costs and a ‘flat fee’ for merchants
• savings passed to merchants and to dedicated climate change mitigation projects
• adoption may be encouraged by deposits of benefits and other government payments direct to card
• Extension to mobile phones, bank transfers, e-wallets etc.

3. Savings on tax collection systems

• current estimates of over $150 billion per annum in uncollected VAT in the EU
• updating and improving tax collection systems using current real-time technologies can considerably lessen collection gap
• self-funding nature of proposed system means effectively no cost to governments or business – only to fraudsters
• a percentage of the savings made dedicated to climate change mitigation projects could have huge impact
• Africa can lead the way in developing efficient, fraud-free and self-financing tax collection systems as a model

By working together in a partnership commitment for immediate and effective action while recognising the economic realities of the global economy, business and governments can begin to reverse the disastrous environmental and human impact of climate change.