The UN secretary general said Tuesday that developed economies should impose an extra tax on the profits of fossil fuel firms, with the funds diverted to countries affected by climate change and households struggling with the cost of living crisis.
In an address to the U.N. General Assembly in New York, Antonio Guterres described the fossil fuel industry as "feasting on hundreds of billions of dollars in subsidies and windfall profits."
He stated that fossil fuel firms and their "enablers" needed to be held accountable. The banks, private equity, asset managers and other financial institutions continue to invest in carbon pollution
He said the public relations machine was raking in billions to shield the fossil fuel industry.
Coal, oil and gas are important to the modern world in both developed and emerging economies.
Fossil fuels can't be shut down overnight. Leaving no one behind is a just transition. It is time to put fossil fuel producers on notice.
Pollsters have to pay. All developed economies should tax the windfall profits of fossil fuel companies.
The funds should be directed to countries suffering loss and damage caused by the climate crisis, as well as to people struggling with rising food and energy prices, according to the UN Secretary-General.
In August, he said it was morally wrong for oil and gas companies to be making record profits from the energy crisis on the back of the poor.
The combined profits of the largest energy companies are close to 100 billion U.S. dollars. All governments should tax excessive profits and use the money to support the most vulnerable people.
The idea of imposing a windfall, or one-off, tax on energy companies has gained traction in some quarters over the past few months, with the sector recording huge profits amidst a spike in commodity prices, while many homes and businesses struggle with rising energy bills and a wider cost-of-
In May, the U.K.'s former finance minister, Rishi Sunak, announced details of a "temporary, targeted energy profits levy" on oil and gas companies.
The president of the European Commission proposed a cap on the revenues of companies that produce electricity. She argued that these businesses were making revenues they didn't account for.
Von der Leyen said that profits are okay in the social market economy. It's wrong to get record revenues and profits from war and on the back of consumers.
Profits must be shared and given to those who need them the most. Fossil fuel electricity producers have to give a crisis contribution as well.
The proposal would raise over 140 billion euros.
There is also opposition. After Sunak announced his plans, offshore energy investment in the UK would be discouraged, meaning declines in oil and gas exploration and production, and so force an increase in imports, according to offshore energy investment in the UK.
The debate and discussion about the role fossil fuels play in the planet's energy mix looks set to continue over the next few years.
Bill Winters said that most people would subscribe to what he called a "just transition."
Winters was speaking at the City Week forum in London about the importance of fair and implementable. Transition means taking some time.
Winters said that the idea of turning off the taps and ending fossil fuels was ridiculous. It wouldn't happen and it would be very disruptive.
Winters stated that it would be good for climate change, but bad for revolutions and human life. He argued that the ultimate option should be removed from the table.
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