We analyze in this paper the implications of a global carbon tax on CO2 to finance the damage and adaptation costs of the developing countries. To attain our objective, we use the GEMINI-E3 model. We considered two options for our scenarios, first that the tax is only applied to industrialized countries and secondly, that the tax is charged globally. We conclude that a scheme that put the entire tax burden on the industrialized countries would not be a feasible policy strategy. Furthermore, it would be more likely that industrialized countries accept to finance adaptation because it entails a lower financial burden and might incentive DCs to reduce their emissions.