UN chief Calls For Windfall Tax On Oil Industry

UN chief Calls For Windfall Tax On Oil Industry

UN Secretary-General António Guterres has renewed his call for a special windfall tax on oil companies to finance the energy transition.

This week, the European Union's Copernicus weather agency claimed that May had become the 12th hottest month in a row, and Guterres called oil companies "the root causes of climate chaos" in his World Environment Day speech.

"Climate change is a hidden tax paid by ordinary people, countries and communities. Meanwhile, the main culprit of climate chaos - the fossil fuel industry - is making record profits and enjoying trillions of dollars in taxpayer-funded subsidies," the UN chief said.

The senior UN official also urged advertisers to stop working with oil and gas drilling rig Oil and Gas drilling rigproducers. "I call on advertising and PR companies to stop working for the fossil fuel industry and being a driver of the destruction of the planet," Guterres said. "Stop accepting new fossil fuel customers and make plans to abandon existing ones. They are poisoning our planet and are bad for your brand."

Antonio Guterres has been one of the most ardent advocates of the energy transition, arguing that unless we get rid of hydrocarbons, the current course of human civilization will be a "road to hell."

It is not the first time that Guterres has called for a windfall tax on oil and gas companies. Back in 2022, he called on wealthy countries to start taxing their oil and gas companies and use the money to help poor countries that are said to be bearing the brunt of the adverse effects of climate change.

"The fossil fuel industry is enjoying hundreds of billions of dollars in subsidies and windfalls, while at the same time household budgets are shrinking and the planet is burning," Guterres said in September 2022. He added: "The polluter must pay."

"These funds should be used in two ways: first, to countries suffering loss and damage caused by the climate crisis; second, to those who are struggling because of rising food and energy prices," Guterres suggested at the time.