United Nations Chief Calls for Fossil Fuel Windfall Tax

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New York: Antonio Guterres, Secretary General of the United Nations, urged world leaders today to raise taxes on oil, coal, and natural gas companies to reduce inflation and mitigate the impact of climate change.

Guterres stated Tuesday that he was calling for all developed countries to tax the windfall profits from fossil fuel companies. “These funds should be directed in two directions: to countries that are suffering from the climate crisis and to those who are struggling to cope with rising energy and food prices.

Guterres’s proposal is coming as the European Commission contemplates a 33% windfall tax that would levy excess profits derived by European Union energy businesses. The 21% surtax proposed by President Joe Biden was defeated in negotiations between Senator Chuck Schumer (D–NY) and Sen. Joe Manchin(D-WV), which took place this summer. The new Conservative British Prime Minister Liz Truss said this month that she will not renew the 25% windfall tax in the United Kingdom, which was established in May.

Guterres warned of a “rendezvous of a climate disaster” as well as a “winter global discontent”. He also used his “state of the world” address, to emphasize how countries have become “gridlocked with colossal global dysfunction” during Russia’s war in Ukraine.

He said, “Our world is in serious trouble.” “Divides are getting deeper, inequalities and challenges are expanding further.” Collaboration and dialogue are the only way forward.

Guterres’s address opened the 77th session’s annual debate of the General Assembly. Biden will appear before the body Wednesday.