Glossary

Financial Transactions Tax

A Financial Transactions Tax (FTT) is geared at speculative traders. According to a 2011 European Parliament report, it could raise up to $650 billion per year globally by putting a small tax on trades in stocks, bonds, derivatives, currency and other financial instruments. A share of this revenue could be allocated to climate finance.

Proponents of an FTT point out that it does not redirect other climate finance, that it offers a fairly stable revenue stream (despite the volatility of the transactions being taxed), and it could play a modest role in limiting financial speculation.

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