Small Island Developing States (SIDS) and Least Developed Countries (LDCs) face some of the highest climate costs and the widest adaptation finance gaps. Developing countries need around US$359 billion a year for adaptation, but received just US$26 billion in international adaptation finance in 2023.
This new study assesses how a solidarity levy on premium class air travel could help close that gap. It covers ten climate-vulnerable countries, from Fiji to Senegal: Antigua and Barbuda, Barbados, Colombia, Fiji, Kenya, Mauritius, Mozambique, Senegal, Sierra Leone and Zambia.
Building on the “polluter pays” and “ability to pay” principles, the study models a flat levy on first- and business-class passengers arriving in each country: US$60 per ticket on short-haul flights (under 1,500 km) and US$90 on long-haul flights. Economy and premium economy passengers are not levied.
Key findings
1. Significant new revenue for adaptation.
Even after accounting for any fall in demand, the levy could raise about US$199 million a year across the ten countries. Kenya (US$84 million), Colombia (US$50 million) and Mauritius (US$22 million) have the highest potential.
2. A scale comparable to existing climate finance.
Across the ten countries, levy revenue would equal about 81% of the average annual financing they receive from the Green Climate Fund. It would exceed it in Mauritius, Kenya and Colombia.
3. Limited impact on demand.
Economy class travel is unaffected. Premium class arrivals would fall by 2.2–7.5% in the upper-bound estimate. This is roughly halved when using premium-specific price sensitivities, and declines over time as fares rise while the levy stays fixed.
4. Small economic exposure for tourism.
In the central case, lost visitor spending stays below 0.15% of GDP in every country, and below 0.05% in eight of the ten.
Policy recommendations
The study finds that premium flyer levies could become a predictable, nationally controlled source of adaptation finance. They would complement, not replace, international climate finance. The authors recommend:
- Embedding the levy in law, earmarked for adaptation, with independent audits.
- Protecting essential connectivity through targeted exemptions, for example for medical or student travel.
- Seeking recognition of levy proceeds under the international climate finance architecture, including matching by the GCF and other climate funds.
- Combining national revenues with a pooled solidarity component. This would let countries with smaller aviation markets but high vulnerability also benefit.
The study was conducted by Prof. Mizan R. Khan (LDC Universities Consortium on Climate Change), Ayesha Noor (BRAC Institute of Governance & Development) and Ekhtekharul Islam (Independent University, Bangladesh) for the Global Solidarity Levies Task Force Secretariat.
