We should tax fossil fuel companies to help fund a renewables revolution
3 min read
Energy price shocks are no longer a once-in-a-generation event. An unstable world means they are increasingly common, and we can't afford to remain exposed.
I find that the Westminster bubble often falls into the trap of talking about energy in technical terms. Those discussions are far too removed from the reality facing communities on the front line of soaring energy costs. For most people, it is about whether they can heat their homes, pay their bills, and plan their lives with any sense of confidence. And right now, our energy system is failing on all of these fronts.
It’s hard to justify Global Witness's analysis, which shows that the world’s top 100 oil and gas companies made over $30m per hour in windfall profits in the first month of the US-Israeli war on Iran. If this isn’t the hallmark of a broken system, I don’t know what is. We should not be lining shareholders' pockets while families struggle. We cannot be in a situation where, for the second time in a few years, people are unable to make ends meet as a result of our reliance on international fossil fuel markets.
The government must provide meaningful targeted support to those most exposed to the current oil price shock, particularly households who rely on heating oil, like many in my constituency, and have seen their bills double or even triple.
But while we deliver targeted support to those who are struggling, we also need to lay the foundations for a more economically secure and sustainable future. Because this is not a series of unfortunate shocks. It is a system failure.
These energy price surges are no longer a once-in-a-generation event. More frequent global crises will leave households paying the price again and again. And more North Sea drilling, as is being peddled by the owners of proposed new fields like Rosebank or Jackdaw, is a false solution. New oil and gas will not bring bills down because UK output is too small to influence global prices. The government’s own data shows that 93 per cent of recoverable oil and gas has already been extracted. If ministers learn anything from this latest crisis, they will rule out all new drilling, hold the line on new licenses, and close loopholes such as tiebacks.
The only path forward is to accelerate the adoption of renewables. While progress is being made towards this, including some welcome announcements last week, as is too often the case, it is nowhere near the level of ambition that we need.
The Greens have long argued that borrowing to invest in our future is both economically responsible and essential. But to raise the necessary funds, the government needs to stand up to fossil fuel companies and make them pay their fair share. This starts with ending tax breaks to fossil fuel producers, worth nearly £3bn, introducing fair carbon taxes, and championing a global climate levy.
This is a political choice. We can stay locked into fossil fuels and repeated crises, or transition towards an energy system that delivers for planet and people, with lower, more stable energy bills. The last few months have once again shown that there is only one viable path.
Adrian Ramsay is the Green Party MP for Waveney Valley
