Fossil Fuel Giants and Luxury Polluters Could Be Made to Shoulder Climate Costs Under Proposed UK Law.
Major fossil fuel companies, luxury travel consumers, and investors profiting from carbon-intensive industries may soon be required to directly fund measures to bolster climate resilience, under a new bill set to be introduced in Parliament this week.
The proposed legislation – the Climate Finance Fund (Fossil Fuels and Pollution) Bill – is being brought forward by Labour MP Richard Burgon. It calls for the creation of a dedicated climate resilience fund to finance essential projects such as flood defences, domestic insulation schemes, and infrastructure improvements vital to adapting to a rapidly changing climate.
The fund would be underpinned by new levies targeting oil and gas multinationals, as well as capital gains, dividends and luxury emissions associated with high-polluting activities – including emissions from private jets and superyachts.
“Fossil fuel giants have driven us to the cliff edge of climate catastrophe,” said Burgon. “They’ve made obscene profits while millions suffer the consequences. It’s only right that those most responsible for the crisis fund the urgent climate action needed, both at home and abroad.”
Although the bill is a private member’s motion – and therefore unlikely to become law without government backing – it signals a growing momentum behind a “polluter pays” principle in UK climate policy. It also marks the launch of a wider campaign, uniting MPs and advocacy organisations in pressing for stronger accountability from those most associated with environmental damage.
The timing of the bill coincides with increased political contention over the future of net zero. The recent local election success of Reform UK, a party that has criticised climate initiatives as disproportionate in their impact on working-class households, has fuelled debate over the fairness of the UK’s green transition.
However, a fresh poll commissioned by environmental watchdog Global Witness and carried out by research group More in Common suggests broad public backing for stricter taxation of high emitters. The findings showed that around two-thirds of people in the UK are concerned about the worsening effects of climate change – including wildfires, flooding and extreme weather – and that 70% of would-be Reform voters support higher taxes on fossil fuel firms and major polluters.
“These results debunk assumptions that scepticism about climate action is widespread,” said Flossie Boyd, senior campaigner with Global Witness. “Despite vocal political opposition from Reform’s leadership, our polling clearly shows that most of their support base is deeply worried about climate change and willing to see corporations taxed more fairly.”
The bill includes a call for the removal of fossil fuel subsidies – which in the UK have long been criticised by environmental groups and were estimated to be worth £10 billion per year according to data from the International Monetary Fund. The legislation also proposes expanding current taxation systems to include emissions-heavy luxuries and investment returns from polluting sectors.
All revenues raised would be ringfenced exclusively for climate adaptation, channelled both into UK projects and into contributions supporting vulnerable nations facing the brunt of climate impacts globally.
The concept is loosely based on international climate justice discussions, such as the “Loss and Damage” Fund agreed in principle at COP27 and launched during COP28 in Dubai. That fund – hailed as a breakthrough in climate diplomacy – aims to help the world’s poorest and most climate-vulnerable countries respond to irreversible environmental damage, but has so far struggled with sufficient financing.
“Five oil and gas companies made over $100 billion in profits in 2024 alone,” noted Louise Hutchins, campaigns director at Stamp Out Poverty, citing publicly disclosed earnings by Shell, BP, ExxonMobil, Chevron and TotalEnergies. “There’s huge public support for making these major polluters help fix the damage they’ve caused. It’s time ministers faced up to that.”
The UK government is currently reviewing its approach to climate finance ahead of key international commitments. Chancellor Rachel Reeves has reaffirmed her government’s commitment to achieving net zero emissions, but has yet to fully outline how the transition will be funded or who will bear the cost — issues expected to dominate the political agenda in the run-up to the next general election.
With widespread public concern and mounting advocacy pressure, support for a polluter-pays framework could gain traction even if the bill itself does not pass.
For more, read: MP Launches Bill to Make Polluters Pay for Climate Damage and Resilience.
