A special capital gains tax that is applied only to the sale of equities (shares of a company’s stock) of companies in the fossil fuel energy sector.
This tax is an incentive for investors to divest from oil, coal and gas energy companies, as it will make these investments less profitable to these investors. The divestment of funds from these companies speeds the transition of the energy sector toward wind, solar and tidal energy sources. The proceeds from the fossil energy capital gains tax can be used to invest in the infrastructure necessary for this transition.
This special capital gain tax is a device designed after the principle that it is wrong for investors to profit from the destruction of the atmosphere.
A window of time before the start date of this special capital gains tax would allow the current holders of these stocks to divest without penalty.