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