A new bill set to be introduced in Parliament on Thursday aims to hold fossil fuel companies, luxury polluters, and investors in high-emission industries financially accountable for climate change impacts. The Climate Finance Fund (Fossil Fuels and Pollution) Bill, brought forward by Labour MP Richard Burgon, proposes creating a dedicated fund to support climate resilience projects such as flood defences and home insulation schemes.
The bill suggests imposing new levies on oil and gas firms, as well as taxes on capital gains and dividends derived from polluting industries. It also targets emissions linked to luxury travel, including private jets and superyachts. The funds raised would be ringfenced to finance both domestic and international efforts to prepare communities for extreme weather, flooding, and rising sea levels.
“Fossil fuel giants have driven us to the cliff edge of climate catastrophe,” Burgon said. “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 private members’ bills rarely become law, the proposal is part of a wider campaign seeking to build public and political support for a “polluter pays” principle in climate finance. This push comes amid heightened political debate over net zero policies, especially following the local electoral gains of Reform UK, a party critical of climate measures it deems unfair to lower-income families.
However, polling commissioned by Global Witness and conducted by More in Common suggests broad backing across political divides for increasing taxes on fossil fuel companies and major emitters. The survey found that two-thirds of UK adults are concerned about climate change damages, and notably, 70% of voters who lean towards Reform UK also support higher levies on polluters.
Flossie Boyd, senior campaigner at Global Witness, said the data challenges assumptions about climate scepticism within Reform’s voter base. “Despite Reform leaders’ vocal opposition, most Reform-leaning voters want firms responsible for pollution to pay more,” she noted.
The bill also calls for ending fossil fuel subsidies and extending taxation frameworks to cover dividends, capital gains, and emissions tied to luxury consumption. Louise Hutchins, campaigns director at Stamp Out Poverty, stressed the public appetite for such measures: “When five oil and gas companies made over $100 billion in profits last year, it’s time ministers started holding them accountable for the damage caused.”
As the UK government debates future climate finance commitments, both at home and internationally, the question of who should bear the costs remains contentious. Chancellor Rachel Reeves has reaffirmed the government’s net zero ambitions, but how those ambitions are funded continues to spark political debate.
With growing public demand for fairer funding solutions and strong advocacy from civil society, the “polluter pays” approach could gain momentum ahead of the next general election.
