UN Chief Urges Global Tax on Windfall Energy Profits and Faster Shift to Renewables
The United Nations Secretary-General, António Guterres, spoke this week about what he called an immoral spike in profits earned by oil and gas companies amid the ongoing energy crisis. He urged governments worldwide to tax these excess gains and to use the proceeds to support the most vulnerable populations during these challenging times.
Guterres described the vast profits as a form of grotesque greed that harms the poorest and most at-risk communities by aggravating inequality and contributing to environmental harm. He pressed for policy measures that redirect windfall earnings toward social protections and sustainable development, rather than leaving the burden on ordinary households.
During a press conference, he highlighted that the combined profits of the world’s largest energy companies reached close to $100 billion in the first quarter of the year. He noted the sector’s substantial environmental footprint and called for accountability about the costs borne by communities and ecosystems worldwide.
The UN released a third analysis from its independent experts on the global consequences of the war in Ukraine, with a focus this time on the energy sector. The report portrays the world as navigating a major energy crisis, marked by high and volatile fuel prices that disproportionately affect developing nations and vulnerable families with inflamed costs of living.
Even in markets that have shown some wholesale price stability recently, the UN concludes that relief for consumers remains elusive. The organization emphasizes the need for immediate short-term actions alongside longer-term systemic reforms to reduce energy insecurity for households and small businesses alike.
In its recommendations, the UN calls for expanded energy efficiency programs and a sustained commitment to renewable energy sources. Guterres argued that in many cases renewable power is cheaper than fossil fuels, and stressed the importance of accelerating the energy transition through practical policies and private investment.
The secretary-general urged governments to diversify and strengthen supply chains for raw materials and technologies related to renewable energy. He also urged governments to simplify bureaucratic procedures that hinder the transition and to replace fossil fuel subsidies with measures that safeguard vulnerable households while boosting investments in clean energy options.
As the world moves toward a cleaner energy mix, Guterres called for a greater joint effort from both public and private sectors. He asked development banks to take on more risk and to support funding that accelerates progress for energy access, resilience, and climate goals in developing countries.
He stressed that developing nations have every incentive to invest in renewable resources, yet they often lack the required financial resources. Wealthier nations should acknowledge this gap and provide meaningful technical and financial support rather than imposing the transition through unconditional terms. He noted that some advanced economies still subsidize fossil fuels or maintain gas subsidies while others are reopening coal-fired plants, a contradiction that undermines climate and economic stability. Such steps, he warned, are difficult to justify even as temporary measures.
The secretary-general emphasized that the path forward requires a balanced approach: promoting affordable, reliable energy for all while accelerating the shift to low-emission technologies. This balance, he argued, is essential for protecting the vulnerable, stabilizing markets, and safeguarding the planet for future generations.