Fossil fuel giants, luxury travel users, and shareholders profiting from polluting industries could be forced to contribute directly to climate resilience measures under a new bill to be introduced in Parliament on Thursday.
The Climate Finance Fund (Fossil Fuels and Pollution) Bill, tabled by Labour MP Richard Burgon, calls for the creation of a dedicated fund to finance flood defences, home insulation programmes, and other climate-related protections. It proposes new levies on oil and gas firms, capital gains and dividends from polluting industries, and high-emission luxury activities including superyachts and private jets.
“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.”
Though the bill stands little chance of becoming law as a private member’s motion, it marks the start of a broader campaign inside and outside Parliament to mobilise public and political support for a “polluter pays” approach to climate finance.
The proposal comes amid mounting concerns over the politicisation of net zero policy, particularly following the local electoral success of Reform UK, which has openly criticised climate initiatives as unfair to lower-income households. Yet polling commissioned by Global Witness and conducted by More in Common suggests significant cross-party support for making major polluters contribute more.
According to the survey, two-thirds of UK adults are concerned about increasing damages from climate change, and 70% of Reform-leaning voters support higher taxes on fossil fuel firms and other high-emitting businesses.
Flossie Boyd, senior campaigner at Global Witness, said the findings challenged assumptions about climate scepticism: “Despite Reform leaders’ vocal opposition to climate action, the poll reveals most Reform-leaning voters are worried about climate change and want to see the firms and individuals most responsible taxed more.”
The bill also proposes the removal of fossil fuel subsidies, and would expand existing taxation frameworks to include dividends, capital gains, and luxury emissions. These funds would be ringfenced for domestic and international climate adaptation efforts, such as preparing communities for flooding, extreme weather events, and rising sea levels.
Louise Hutchins, campaigns director at Stamp Out Poverty, said: “There’s huge public support for making big polluters pay up for the climate damage they’ve caused. When five oil and gas corporations made over $100 billion in profits in 2024, it’s time ministers started looking to those responsible.”
The push for a dedicated climate damage fund comes as the UK government faces key decisions about future climate finance commitments, both domestically and internationally. While Chancellor Rachel Reeves has reaffirmed her government’s commitment to net zero, the path to paying for it — and who foots the bill — remains politically charged.
With growing voter appetite for fairer funding mechanisms and sustained pressure from civil society groups, the “polluter pays” campaign may yet gain further political traction in the run-up to the next general election.
