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Energy giants are taking advantage of rising energy prices.



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The European Union could be on the verge of a new tax on the exceptional profits made by some energy companies that are linked to rising gas prices, according to Euronews.

A working paper, seen by Bloomberg, suggests that a temporary tax on exceptional profits could be a “useful source of funding”.

Heads of government are due to discuss these measures on Thursday to help the most vulnerable consumers.

The energy crisis means that gas, coal, nuclear power, hydropower and other renewable sources in the EU could generate excess profits of up to € 200 billion in 2022, according to the International Energy Agency (IEA).

Redistributing these funds to help consumers offset higher energy bills is one of the suggestions in the IEA’s 10-point plan to move Europe away from Russian oil and gas. It has already been adopted in Italy and Romania in 2022.

Others suggest that funds for exceptional taxes could be allocated to renewable energy resources.

“Fossil companies have made record profits, while people have suffered in their frozen homes this winter, and now they are relying on the money we need to fund the transition to a clean energy future,” said Murray Worthy. Global Witness gas campaign leader

Worthy adds that EU leaders have a “moral responsibility” to work for an exceptional tax on fossil fuel profits and to “spend on a massive construction of renewable sources to put an end to the fossil fuel era and to provide renewable sources at affordable prices.” accessible to everyone. ”

A number of pipeline projects and gas terminals are also being considered by fossil fuel companies in response to the crisis.

Greece, Italy, the Netherlands, Germany, Spain and France have recently revived gas projects. Without drilling gas, money is made in Europe by building infrastructure for imported natural gas.

In those places with drilling resources, operations are growing in response to the energy crisis. Liquefied natural gas and fracking lobbies in the United States are pushing for expansion and more exports to fill the gap left by Russian fossil fuels.

In the UK, Shell is reconsidering its decision to exit the Cambo oil field. A project that was considered unviable just three months ago is now back on the table due to the urgent situation in Ukraine, explains Mike Davis, CEO of Global Witness.

Governments need to act because these corporations clearly will not, ”said Mike Davis. “The fossil fuel industry has not seen any limits that it does not exceed. From profiting from the destruction of our planet to profiting from the killing of innocent people, they have repeatedly shown that their only interest is to make money. ”

Davis adds that Shell should have seen the crisis as a time to dramatically increase its investment in renewable technologies. Instead, fossil fuel consumption has doubled.