Facts for Prelims (FFP)
Context: A new study has found that the world’s top 21 fossil fuel companies owed over US $ 5 trillion in climate reparations, to be disbursed over a 26-year period from 2025 to 2050.
The companies with the highest reparations: ExxonMobil, Saudi Aramco, and Shell.
About Climate reparations:
|Definition||Climate reparations aim to rectify climate injustice by requiring those most responsible for climate change to provide support to those who have been wronged.|
|Principles of Climate Reparations||Polluter pays principle (Polluters should be held liable for the costs of remedial action); More responsibility of rich countries (for past historical emissions); Reparations-based approach to climate refugees; Rich countries should provide financial and technological support to developing nations|
|Steps Taken||Warsaw International Mechanism (WIM) (Established in 2013 to compensate developing countries affected by climate disasters); Green Climate Fund (promise of $100 billion per year by 2020); Least Developed Countries Fund|
|Additional Measures Needed for Reparations||Establish an international compensation commission to handle claims from countries that have incurred adaptation expenses, similar to the United Nations Claims Commission; Prioritize adaptation measures; Establish a separate channel for loss and damages; Long-term climate finance; enforce legal measures for petroleum companies to share a part of their profit for GHG mitigation efforts|