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Source: The post is based on the article “Small island nations call for windfall tax on Big Oil to pay for Climate Change” published in Livemint on 9th November 2022.
What is the News?
A group of small island nations has joined calls for a windfall tax on oil companies to compensate developing countries for the damage caused by climate change-induced natural disasters.
What is the Windfall Tax?
Why should there be a Windfall Tax on oil companies?
The oil companies have benefited from extortionate profits at the expense of human civilization. While they are profiting, the planet is burning.
For instance, in the first half of this year six fossil fuel companies alone had made nearly €70 billion in profits – “more than enough money to cover the costs of major climate damages in developing nations”.
On the other hand, Small Island States’ very existence is under threat by rising sea levels and increasingly intense tropical storms.
Hence, a 10% windfall tax on these oil companies will help in compensating the Small island nations suffering some of the worst impacts of climate change.