UN secretary general says 'polluters must pay,' calls for extra tax on fossil fuel profits

The U.N. caput wide said Tuesday that developed economies should enforce an other taxation connected the profits of fossil substance firms, with the funds diverted to countries affected by clime alteration and households struggling with the cost-of-living crisis.

In a wide-ranging code to the U.N. General Assembly successful New York, Antonio Guterres described the fossil substance manufacture arsenic "feasting connected hundreds of billions of dollars successful subsidies and windfall profits portion households' budgets shrink and our satellite burns."

Fossil substance firms and their "enablers" needed to beryllium held to account, helium went connected to state. "That includes the banks, backstage equity, plus managers and different fiscal institutions that proceed to put and underwrite c pollution."

It besides included what helium called "the monolithic nationalist relations instrumentality raking successful billions to shield the fossil substance manufacture from scrutiny."

Despite the remarks, Guterres appeared to admit the world of the existent situation, successful which coal, lipid and state proceed to play a important relation successful the modern world, successful some developed and emerging economies.

"Of course, fossil fuels cannot beryllium unopen down overnight," helium said. "A conscionable modulation means leaving nary idiosyncratic oregon state behind. But it's precocious clip to enactment fossil substance producers, investors and enablers connected notice."

"Polluters indispensable pay. And today, I americium calling connected each developed economies to taxation the windfall profits of fossil substance companies."

Guterres said that these funds should beryllium re-directed to "countries suffering nonaccomplishment and harm caused by the clime crisis; and to radical struggling with rising nutrient and vigor prices."

Guterres' code connected Tuesday reinforced comments he made backmost successful August, erstwhile helium said it was "immoral for lipid and state companies to beryllium making grounds profits from this vigor situation connected the backmost of the poorest radical and communities and astatine a monolithic outgo to the climate."

"The combined profits of the largest vigor companies successful the archetypal 4th of this twelvemonth are adjacent to 100 cardinal U.S. dollars," helium added. "I impulse each governments to taxation these excessive profits and usage the funds to enactment the astir susceptible radical done these hard times."

The conception of imposing a windfall, oregon one-off, taxation connected vigor companies has gained traction successful immoderate quarters implicit the past fewer months, with the assemblage signaling immense profits amid a spike successful commodity prices, portion galore homes and businesses conflict with rising vigor bills and a wider cost-of-living crisis.

Back successful May, for example, the U.K.'s erstwhile concern minister, Rishi Sunak, announced details of what helium called a "temporary, targeted vigor profits levy" connected lipid and state firms.

Last week, European Commission President Ursula von der Leyen said it was proposing "a headdress connected the revenues of companies that nutrient energy astatine debased costs." These businesses, she argued, were "making revenues they ne'er accounted for, they ne'er adjacent dreamt of."

"And don't get maine wrong: In our societal marketplace economy, profits are OK, they are good," von der Leyen added. "But successful these times, it is incorrect to person extraordinary, grounds revenues and profits benefitting from warfare and connected the backmost of our consumers."

"In these times, profits indispensable beryllium shared and channeled to those who request it most. And therefore, our connection besides includes the fossil substance energy producers, who person to springiness a situation contribution."

Overall, von der Leyen said the connection would rise implicit 140 cardinal euros, oregon astir $140.1 billion.

While specified actions and initiatives person backers, determination is besides opposition. After Sunak announced his plans, for example, Offshore Energies UK said the levy would "discourage UK offshore vigor investments, meaning declines successful lipid and state exploration and production, and truthful unit an summation successful imports."

The statement and treatment astir the relation fossil fuels play successful the planet's vigor premix is simply a unrecorded one, and looks acceptable to proceed implicit the coming years.

Earlier this year, Standard Chartered CEO Bill Winters acknowledged astir radical would subscribe to what helium called a "just transition."

"Those are 2 truly important words … conscionable means fair, it besides means implementable," Winters, who was speaking to CNBC's Geoff Cutmore astatine the City Week forum successful London, said. "And modulation means modulation — it means it takes immoderate time."

"The thought that we tin crook disconnected the taps and extremity fossil fuels tomorrow, it's evidently ridiculous and naive," Winters said. "Well, archetypal of all, it's not going to hap and secondly, it would beryllium precise disruptive."

It would beryllium bully for clime change, Winters went connected to state, but "bad for wars, revolutions and quality beingness due to the fact that you'd person … havoc." The "ultimate divestment option" needed to beryllium taken disconnected the table, helium argued.