About this Episode
The city of Portland has raised around €880 million for climate initiatives through a local tax on large corporations. The idea emerged nearly a decade ago from leaders of non-profit organisations run by communities of colour, who wanted to create a funding source for climate action while giving affected communities a role in deciding how the money would be used. Their proposal led to the creation of the Portland Clean Energy Fund, which voters approved in 2018. City officials estimate the fund could grow to around €1.4 billion by 2029.
The programme applies a one percent tax on retail sales made by large corporations operating in Portland. Companies must pay the tax themselves and are not allowed to pass the cost directly on to customers.
Revenue is directed into the Portland Clean Energy Fund, which provides grants to community organisations, non-profits and public agencies. Priority is given to projects that reduce emissions while supporting communities most affected by climate change.
Funded projects include community solar programmes, free air-conditioning units for vulnerable households, energy-efficiency improvements for homes and training programmes in renewable energy and construction. The model has since inspired similar climate funds in other US cities, including Denver and Ann Arbor.
Taxing large corporations to support local climate action and community projects — that’s what’s right with the world.
