Oil and gas profits could fund global climate efforts, study suggests

A new study argues that taxing excess oil and gas profits could provide billions of dollars in climate financing, easing the financial burden on developing countries.

Maxwell Radwin reports for Mongabay.

In short:

• Oil and gas companies earned $495 billion in unexpected profits in 2022 due to energy price spikes from the Russia-Ukraine war.
• A 30% tax on these profits could have raised $147 billion, while a 100% tax could have generated $324 billion.
• The study suggests using these profits to meet the climate finance needs of developing countries, which currently fall far short of the $1.3 trillion experts estimate is necessary.

Key quote:

“The sheer magnitude of these numbers illustrates that there is ample potential for governments to raise funds for climate action.”

— Study published in Climate Policy

Why this matters:

Redirecting these profits could help mitigate climate impacts, but it requires global political will and cooperation.

Read more: Lawmakers target fossil fuel companies to fund climate disaster recovery