. . SUSTAINABLE DEVELOPMENT . .

An article by Jessica Corbett from Common Dreams

Tax justice advocates around the world on Wednesday celebrated the unanimous adoption of a resolution to “begin intergovernmental discussions in New York at United Nations Headquarters on ways to strengthen the inclusiveness and effectiveness of international tax cooperation.”

The U.N. General Assembly (UNGA) resolution on the “promotion of inclusive and effective international tax cooperation at the United Nations” was spearheaded by the African Group —which is composed of the continent’s 54 member states—and comes after about a decade of delays on the topic at the Organization for Economic Cooperation and Development (OECD).

“We note that the OECD has played a role in these areas,” a representative of the Nigerian delegation to the U.N. reportedly said Wednesday. “It is clear after 10 years of attempting to reform international tax rules that there is no substitute for the global, inclusive, transparent forum provided by the United Nations.”

“The African Group urges countries to remain committed to the development of inclusive tax instruments at the United Nations and encourage the OECD to play a supporting role in this regard,” the Nigerian representative continued.

After the resolution was adopted, Global Alliance for Tax Justice executive coordinator Dereje Alemayehu declared that “this is a historic win for the tax justice and the broader economic justice movement and a big step forward to combat illicit financial flows and tax abuse.”

“African countries stood together and made historic strides, breaking through the long-standing blockade by the OECD countries,” Alemayehu added. “Shifting power from the OECD is paramount to end the exploitation and plunder of developing countries.”

Tax Justice Network chief executive Alex Cobham similarly commended member nations “on their bold action today to move rule-making on global tax into the daylight of democracy at the U.N.,” highlighting that “the adopted resolution will now open the way for intergovernmental discussions on the negotiation of a U.N. tax convention and a global tax body.”

A proposed amendment to the resolution from the United States that would have cut the mention of “the possibility of developing an international tax cooperation framework or instrument that is developed and agreed upon through a United Nations intergovernmental process” was defeated.

Cobham emphasized that the resolution moved forward despite the fact that “the OECD has been unprecedentedly aggressive in its lobbying.”

“Some OECD countries spoke in favor of the organization’s role after the resolution’s adoption, but… the OECD’s two-pillar tax proposal is on life support, with even the organization’s own members… struggling to defend its work,” he said. “Work which has failed to deliver after nearly a decade of promises and work which has left countries losing $483 billion in tax to tax havens a year; and work which has been widely identified as exclusionary by countries outside the core membership of rich countries. Ultimately, this only confirms the importance of moving tax rule-making to a globally inclusive and transparent forum at the United Nations.”

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Opposing tax havens and corruption: part of the culture of peace?

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Though it was backed by more than 100 countries and jurisdictions last year, the OECD’s international tax reform framework has been called “skewed-to-the-rich and completely unfair,” with critics warning that its 15% global minimum tax for multinational corporations is “way too low.”

“Fears that the OECD process had stalled grew over the summer after the nation of Hungary blocked a 15% minimum corporate tax from being adopted in the European Union,” The Hill reported Wednesday. Experts said the timing of the UNGA resolution was tied to “the delay on the OECD provision that stipulates where a corporation can be taxed for the use of its products as well as frustration from lower-income countries about the amount of that tax.”

According to news outlet:

“There’s a document that’s supposed to be coming out in December outlining which unilateral measures will need to be abandoned, including digital services taxes,” Daniel Bunn, president of the Tax Foundation, a Washington think tank, said in an interview. “The goal is to have a multilateral treaty ready for signature middle of next year.”

On the amount that corporations can be taxed—which is known as Pillar Two within the agreement—E.U. finance ministers are set to meet again in December.

“The language of their announcement is that they’re going to be ‘aiming for agreement’ on Pillar Two, but it’s not clear that that’s certain. Hungary has been holding things up,” Bunn added.

Other analysts in Washington say that the interests of developing countries are not given proper consideration in the OECD’s framework, an oversight that could further delay a final deal.

Tove Maria Ryding, tax coordinator at the European Network on Debt and Development (Eurodad), said Wednesday that “some rich countries are still holding on to the archaic idea that they can keep global rule-making on tax under the control of the OECD—also known as the rich countries’ club.”

“But today’s vote shows that at the end of the day, they know they cannot stop the development towards inclusive, transparent, and U.N.-led tax governance, which is already highly overdue,” Ryding argued. “The OECD-led governance is coming to an end—both because it was deeply unjust and biased in favor of a few rich countries. But also because the OECD has so blatantly failed to stop international tax abuse.”

While welcoming the success of the resolution on Wednesday, Pooja Rangaprasad at the Society for International Development warned that “the post-adoption statements by some developed countries have made it clear that the road ahead will be challenging.”

“However, it is in the interest of all countries to fix an outdated international tax system that is bleeding hundreds of billions of dollars in much-needed resources and public revenue,” Rangaprasad said. “The fight continues in holding all our governments accountable to agree to an effective U.N. tax convention that will ensure wealthy corporations and elites pay their fair share in taxes.”

Cobham of Tax Justice Network stressed that “the intergovernmental discussions next year will be crucial in setting the path for this new era of international tax. It is vital that countries in each region of the world follow the African leadership that underpinned this success, and engage together to generate common positions on an ambitious agenda.”

. . SUSTAINABLE DEVELOPMENT . .

A press release from The Elders

The agreement reached at COP27 in Egypt shows that solidarity and co-operation between nations on the world’s most pressing issues is possible through negotiation and compromise, even in testing times. But the world needs urgent actions, not just carefully crafted words, to avoid climate catastrophe.

Photo: Rafapress/Shutterstock

We welcome governments’ reaffirmation of the need to limit the global temperature rise to 1.5℃,  the historic breakthrough on financial help for countries experiencing loss and damage caused by climate change, and the pressure COP27 has added for bold reform of the international financial system to generate more climate finance.

We now call on G20 leaders in particular to build on this restored foundation of cooperation to implement the changes needed, before it is too late. It is time for governments to turn their commitments into real change, not more promises that are broken. 

With the 1.5℃ limit reinforced in the final COP27 agreement, following similar commitments at the G20 summit last week, world leaders now have a clear mandate to redouble efforts to reduce global emissions by 43% by 2030. This will require bold leadership at home to convince citizens and businesses that the costs of inaction outweigh the costs of action, and reform of the multilateral development banks to generate more money to support countries most in need of help.

We welcome the recognition that renewables are the answer to the energy crisis, but regret that not all governments could agree the necessity of phasing down fossil fuels to keep 1.5℃ alive, notably Saudi Arabia and Russia. Disappointingly, developed countries failed to follow up on their COP26 pledge to double adaptation finance by agreeing a roadmap for delivery. At future COPs, climate science must drive decisions, and commitments must be kept.

We welcome the USA and China’s renewed dialogue at the G20 and COP27. We call for sustained leadership from the world’s two largest economies and emitters, and for all G20 countries to reduce emissions more rapidly and accelerate their phase out of fossil fuels by transitioning faster from coal, oil and gas to renewable energy. We urge accelerated financing of just transition partnerships in South Africa, Indonesia and elsewhere to ensure this change happens across all major emitters.

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Sustainable Development Summits of States, What are the results?

Despite the vested interests of companies and governments, Can we make progress toward sustainable development?

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We commend youth activists, indigenous communities, other civil society organisations and businesses who refused to allow governments to backtrack on the Paris Agreement and COP26 commitments to 1.5℃. Their persistence, in spite of unacceptable state restrictions on civic space in Egypt, reminds us why COPs should be open and inclusive, with hosts abiding by their human rights commitments. The climate crisis affects us all, and everyone’s voice should be heard in finding solutions to it.

The outcome of COP27 demonstrates the potential for multilateral negotiations to deliver tangible results, sometimes against predictions. But this was only a partial success. There is no room for complacency, given the continuing increases in global emissions and extreme weather events around the world.

Mary Robinson, Chair of The Elders and former President of Ireland, said:

“In a year of multiple crises and climate shocks, the historic outcome on loss and damage at COP27 shows international cooperation is possible, even in these testing times. Equally, the renewed commitment on the 1.5℃ global warming limit was a source of relief. However, none of this changes the fact that the world remains on the brink of climate catastrophe.

“All climate commitments must be transformed into real-world action, including the rapid phase out of fossil fuels, a much faster transition towards green energy, and tangible plans for delivering both adaptation and loss and damage finance. We avoided backsliding and made progress in Sharm El-Sheikh. Now leaders must stop sidestepping and fulfil their promises to safeguard a liveable future.”

Graça Machel, Deputy Chair of The Elders and first Education Minister of Mozambique, said:

“This was the ‘African COP’, and at COP27 in Sharm-el-Sheikh the multiple crises of food, energy and the impacts of climate change on vulnerable nations were at the forefront of discussions. Though there were restrictions on civil society in Egypt, people living on the frontlines of the climate crisis still made their voices heard: their cries for a loss and damage fund for nations devastated by climate impacts were heeded. Now rich countries must deliver on their promises and ensure the funding starts to flow as quickly as possible.”

Ban Ki-moon, Deputy Chair of The Elders and former UN Secretary-General, said:

“Richer countries – particularly those in the G20 – must continue to come together to address the threat posed by the climate crisis, and to seek solutions inside and outside the UNFCCC system. We have seen signals of solidarity on tackling climate change at COP27, but these signals must evolve into meaningful actions that benefit the most vulnerable. COP27 is part of a process, not an endpoint.”

. . SUSTAINABLE DEVELOPMENT . .

An article from the United Nations

With 161 votes in favour, and eight abstentions*, the UN General Assembly adopted a historic resolution on Thursday (July 28), declaring access to a clean, healthy and sustainable environment, a universal human right.

The resolution, based on a similar text adopted last year by the Human Rights Council, calls upon States, international organisations, and business enterprises to scale up efforts to ensure a healthy environment for all. 

The UN Secretary-General, António Guterres, welcomed the ‘historic’ decision and said the landmark development demonstrates that Member States can come together in the collective fight against the triple planetary crisis of climate change, biodiversity loss and pollution.

“The resolution will help reduce environmental injustices, close protection gaps and empower people, especially those that are in vulnerable situations, including environmental human rights defenders, children, youth, women and indigenous peoples”, he said in a statement released by his Spokesperson’s Office.

He added that the decision will also help States accelerate the implementation of their environmental and human rights obligations and commitments.

“The international community has given universal recognition to this right and brought us closer to making it a reality for all”, he said.

Guterres underscored that however, the adoption of the resolution ‘is only the beginning’ and urged nations to make this newly recognised right ‘a reality for everyone, everywhere’.

Urgent action needed

In a statement, UN High Commissioner for Human Rights Michelle Bachelet also hailed the Assembly’s decision and echoed the Secretary-General’s call for urgent action to implement it.

“Today is a historic moment, but simply affirming our right to a healthy environment is not enough. The General Assembly resolution is very clear: States must implement their international commitments and scale up their efforts to realize it. We will all suffer much worse effects from environmental crises, if we do not work together to collectively avert them now,” she said.

Ms. Bachelet explained that environmental action based on human rights obligations provides vital guardrails for economic policies and business models.

“It emphasizes the underpinning of legal obligations to act, rather than simply of discretionary policy.  It is also more effective, legitimate and sustainable,” she added.

A resolution for the whole planet

The text, originally presented by Costa Rica, the Maldives, Morocco, Slovenia and Switzerland last June, and now co-sponsored by over 100 countries, notes that the right to a healthy environment is related to existing international law and affirms that its promotion requires the full implementation of multilateral environmental agreements.

It also recognises that the impact of climate change, the unsustainable management and use of natural resources, the pollution of air, land and water, the unsound management of chemicals and waste, and the resulting loss in biodiversity interfere with the enjoyment of this right – and that environmental damage has negative implications, both direct and indirect, for the effective enjoyment of all human rights.

According to the UN Special Rapporteur on Human Rights and the Environment, Mr. David Boyd, the Assembly’s decision will change the very nature of international human rights law.

“Governments have made promises to clean up the environment and address the climate emergency for decades but having a right to a healthy environment changes people’s perspective from ‘begging’ to demanding governments to act”, he United Nations Conference on the Environment in Stockholm, which ended with its own historic declaration, was the first one to place environmental issues at the forefront of international concerns and marked the start of a dialogue between industrialized and developing countries on the link between economic growth, the pollution of the air, water and the ocean, and the well-being of people around the world.

UN Member States back then, declared that people have a fundamental right to “an environment of a quality that permits a life of dignity and well-being,” calling for concrete action and the recognition of this right.

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Despite the vested interests of companies and governments, Can we make progress toward sustainable development?

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Last October, after decades of work by nations at the front lines of climate change, such as the Maldives archipelago, as well as more than 1,000 civil society organisations, the Human Rights Council finally recognised this right and called for the UN General Assembly to do the same.

“From a foothold in the 1972 Stockholm Declaration, the right has been integrated into constitutions, national laws and regional agreements. Today’s decision elevates the right to where it belongs: universal recognition”, UN Environment chief, Inger Andersen, explained in a statement published this Thursday.

The recognition of the right to a healthy environment by these UN bodies, although not legally binding— meaning countries don’t have a legal obligation to comply— is expected to be a catalyst for action and to empower ordinary people to hold their governments accountable.

“So, the recognition of this right is a victory we should celebrate. My thanks to Member States and to the thousands of civil society organizations and indigenous peoples’ groups, and tens of thousands of young people who advocated relentlessly for this right. But now we must build on this victory and implement the right”, Ms. Andersen added.

Triple crisis response

As mentioned by the UN Secretary-General, the newly recognised right will be crucial to tackling the triple planetary crisis.

This refers to the three main interlinked environmental threats that humanity currently faces: climate change, pollution and biodiversity loss – all mentioned in the text of the resolution.

Each of these issues has its own causes and effects and they need to be resolved if we are to have a viable future on Earth.

The consequences of climate change are becoming increasingly apparent, through increased intensity and severity of droughts, water scarcity, wildfires, rising sea levels, flooding, melting polar ice, catastrophic storms and declining biodiversity.

Meanwhile, according to the World Health Organization (WHO), air pollution is the largest cause of disease and premature death in the world, with more than seven million people dying prematurely each year due to pollution.

Finally, the decline or disappearance of biological diversity – which includes animals, plants and ecosystems – impacts food supplies, access to clean water and life as we know it.

* States who abstained: China, Russian Federation, Belarus, Cambodia, Iran, Syria, Kyrgyzstan and Ethiopia.

(Note from the editor: Here is a translation of the explanation of their vote by the Russian Federation.

Mr Chairman, We would like to start by thanking the delegations of Slovenia, Switzerland, Costa Rica, Maldives and Morocco as the main sponsors of the draft resolution “The human right to a clean, healthy and sustainable environment” for their openness and constructive approach upon approval of the document.

The Russian Federation attaches great importance to the protection of environment and gives it increased attention both at the national, as well as at the international level. The theme of the draft resolution is at the intersection of two branches of law – international human rights law and international environmental law. However, neither universal environmental agreements nor international human rights treaties do not disclose the content of such concepts such as “clean environment”, “healthy environment”, “sustainable environment” or any similar concepts.

The wording of the existing international acts differ significantly. The main legal content of these concepts today occurs in national level. Each of the countries, based on the situation prevailing there and conditions, defines its own standards.

In this regard, the proclamation of the right to a clean, healthy and sustainable environment, without defining at least minimum standards universal character, prematurely.

Moreover, we are convinced that a new right can be recognized exclusively within the framework of international treaties, which are carefully prepared by authorized experts and approved by states. Only in this case can we speak of legal recognized law to be taken into account by States. Chosen one the authors of the method – the recognition of the right through the resolution of the General Assembly – is, at least controversial from a legal point of view, and in the future may lead to negative consequences.

In view of the foregoing, the Russian Federation cannot support the submitted draft resolution A/76/L.75 and puts it on vote. However, recognizing the importance of the topic under consideration as a whole, the Russian delegation will not oppose, but will refrain from voting.

Thank you for your attention.

(Thank you to Georgina Galanis for sending this article to CPNN.)