EU plans ‘solidarity contribution’ from oil and gas firms during energy crisis

(EurActiv, 12 Sep 2022) Oil and gas companies will have to share their excess profits to help European households and industries cope with red-hot energy bills, a draft European Union plan showed on Monday (12 September).

Energy prices and inflation have surged as Moscow slashed gas supplies in response to Western sanctions imposed over its war in Ukraine.

The draft European Commission proposal, which is expected to be unveiled this week, would see the 27 EU countries introduce a ‘solidarity contribution’ for the fossil fuel industry.

Oil, gas, coal and refining companies would have to make a financial contribution based on “taxable surplus profits made in the fiscal year 2022”, according to the draft, which could still change and will then need to approval from EU governments in order to become law.

The temporary scheme would raise cash to help governments mitigate Europe’s energy crisis with measures such as supporting households and businesses with high bills, helping energy-intensive industries, cutting EU energy consumption and making Europe more self-sufficient in its energy supplies.

The plans were outlined last week by European Commission president Ursula von der Leyen, who said a “solidarity contribution” from oil and gas companies would help support vulnerable households and go towards investments in clean energy.

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EurActiv, 12 Sep 2022: EU plans ‘solidarity contribution’ from oil and gas firms during energy crisis