Trump’s war: Tax excessive energy profits
Everyone in Europe is concerned about prices going up, either to heat homes, to fuel cars or to fill shopping carts: No matter if you are a single mum in Poland, a student in Italy or trying to find work in Denmark.
The reckless Iran war started by Trump and Netanyahu is causing the oil and gas prices to skyrocket.
The big winners are the big oil and gas companies, their CEOs and speculating billionaires, who are raking in record profits. This is because we are still stuck in a society dependent on imported energy from authoritarian states.
Our solution: Impose a tax on the enormous profits made by dirty energy companies and use that money to fund our home-grown renewable energy like sun and wind. This will not only lower bills for all of us, it will also make us less dependent on polluting energy from unreliable countries.
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We ask the European Commission to introduce a strong windfall profits tax – at least 50%, based on the average profits of recent years.
Part of these profits will be used to help people cope with the crisis. That is just common sense.
Another part will fund renewables, energy efficiency, electrification, investments in grids, storage and flexibility. That is the only durable solution.
Trump’s Iran war causes sharp rise in energy prices
The Trump-Netanyahu attacks on Iran have unleashed a war in the Middle East in which it is becoming increasingly clear that there is no exit strategy. The continuation of the American-Israeli military strikes and the Iranian counter strikes threaten to cause the biggest shock to the European energy supply since the Russian invasion of Ukraine.
The war clearly shows how dependent Europe still is on the import of fossil fuels, often from autocratic regimes. The blockade of the Strait of Hormuz by Iran caused an immediate price increase at the gas pumps in European countries, and industry and households are also facing higher energy prices. Since the outbreak of the war, all of us in the EU together have spent about 14 billion Euros more on the import of fossil fuels, on top of the annual 400 billion Euros spent. Researchers predict that US oil companies will make more than 56 billion Euros extra this year if prices stay this high
While people are still recovering from the energy crisis in 2022, the long-term risks of a new energy crisis are real and growing. No one knows how long this situation will last. Meanwhile, pressure is mounting on the European Commission from governments and industry to act quickly on rising energy prices.
For the Greens/EFA in the European Parliament, the priority is clear: any short-term relief must go hand in hand with accelerating the shift to renewable energy, improving energy efficiency, and reducing dependence on fossil fuels.
"By funding wind and solar projects, and boosting home insulations and battery use, we are freeing ourselves from these price hikes that are destroying families’ financial security."
EU measures must finally free us from energy dependence
So far, most of the proposed measures, like lowering the price of carbon emissions or price caps, miss the mark. They are largely designed to shield big, energy-intensive industries, while offering only limited relief to vulnerable households and small businesses: the very people who need support the most. At the same time, the focus remains too narrow, short-term and conventional. Plus, they do not take into account innovative practices such as citizen energy communities – championed by the Greens/EFA – which give back power to the people.
By concentrating on immediate price fixes, the European Commission risks ignoring the real root of the crisis: Europe’s ongoing dependence on imported fossil fuels.
Fossil fuel companies make record profits in crisis while we struggle to pay our bills
And there is a deeper injustice at play. While we struggle to pay our bills, fossil fuel giants are making record profits. Since the start of the war, companies like ExxonMobil and Chevron have seen their share prices rise significantly. Already before, in 2024 alone, the five largest oil companies made over 100 billion dollars in profits, and with prices expected to rise further, these windfalls could grow even larger in the coming years.
For us Greens/EFA, this is unacceptable. The crisis can not be used to protect polluters or boost their profits. It will be a turning point to accelerate the transition to clean, affordable energy for all.
Bas Eickhout 🇳🇱
Terry Reintke 🇩🇪
Co-Presidents – The Greens/EFA in the European Parliament
Michael Bloss 🇩🇪
Christina Guarda 🇮🇹
Vicent Marzà 🇪🇸
Members of the European Parliament – The Greens/EFA
What about the people in Iran and the gulf region?
While Europe is bracing for the sharp increase in energy prices, we see the people in Iran suffering from repression, a failing economy and now an escalating conflict. Peace and security cannot be brought about by brutal force. The regional escalation has now put millions of lives at risk.
Our European response should not only protect people in Europe, but also stand by those directly hit by the conflict and repression in the region. The Iranian people have the right to determine their own future.