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Guterres urges to tax windfall oil and gas companies amid energy crisis

The rapid rise in energy prices, caused by the Russian war against Ukraine, worsens the living conditions of hundreds of millions of people.

About it declared UN Secretary-General António Guterres at a briefing by the Global Food, Energy and Financial Crisis Response Team, Ukrinform reports.

He called it immoral for large oil and gas companies to make “record profits” amid soaring energy prices.

“The combined profits of the largest energy companies in the first quarter of this year reached almost $100 billion,” the UN Secretary General said, urging governments to tax these excess profits and use the proceeds “to support the most vulnerable people in these difficult times.”

Read also: G7 is working on reducing dependencies from oil and gas from Russia

Panel reportcreated by Guterres after Russia’s full-scale invasion of Ukraine, recommends that governments find effective financing to solve energy problems, in particular, support the vulnerable segments of the population and increase taxation of the largest oil and gas companies, as well as switch to cost-effective renewable energy sources.

Due to rising prices, it may happen that only rich countries can afford access to energy sources, UN experts say. Switching to a renewable energy could prevent 4-7 million deaths from air pollution annually.

It is also noted that the war unleashed by Russia and the global energy crisis caused by it serves as a stark reminder of the need for energy sustainability and the transition to renewable energy sources.

Read also: Construction of renewable energy facilities: the government has changed the procedure for holding “green auctions”

The report emphasizes that in the short term it is necessary to take protective measures to mitigate the crisis, and in the medium and long term – to switch to renewable sources.

UN experts also suggest that by 2030 the transition to such energy sources could create an additional 85 million jobs.

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