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A new report commissioned by the Centre of Democracy and Human Rights (CDD), in collaboration with Tax Justice Network Africa (TJNA), Tax Justice Network (TJN) and with financial support from the African Climate Foundation (ACF) examines the strategies for achieving tax justice for climate action in Mozambique’s extractive industry by using Domestic Resource Mobilisation (DRM) as a revenue source for climate financing in the country.
The report, which was launched on 31st October 2023, informs advocacy initiatives that contribute to ongoing global advocacy efforts for tax justice, climate finance, and climate justice, particularly in advocating for systemic reforms in the global tax and financial domain.
The report takes a closer look at Mozambique’s climate, highlighting how the country is confronted with a rising frequency of severe climate events like cyclones, tropical storms, floods, and droughts and remains significantly impacted by the climate crisis.
The report further highlights how the Mozambican economy is significantly characterised by its reliance on extractive industries, encompassing the export of key resources such as aluminium, coal, natural gas, graphite, and other metals.
An analysis of the efforts that are underway to address the revenue leaks in the extractive industry in the report, concludes that as a result of advocacy done by civil society organisations, (CSOs), there is already a movement in the country to revise double taxation agreements (DTAs), preventing multinational corporations from exploiting them for tax avoidance.
To conclude, given the size and value of extractive resources in Mozambique today and in the near future, the extractive sector stands as a potentially important revenue source to meet the country’s climate financing needs.
To achieve its climate financing mandate, the report highlights the need for continued global advocacy for the materialisation of the climate finance commitments made by rich countries.
Read and download the full report: tjna.me/3SjCNus
For more details on the report please contact mnsenduluka@taxjusticeafrica.net