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Climate Reparations

Facts for Prelims (FFP)

Source: DTE

 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:

Description
DefinitionClimate 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 ReparationsPolluter 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 ReparationsEstablish 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