The Spanish government seeks to establish a tax on the profits of gas and oil companies in the EU. This measure is part of efforts to finance climate adaptation following recent extreme weather events.
Spain has proposed to the European Union the implementation of a tax on the profits of companies in the oil and gas sector. This push comes after severe droughts and wildfires hit Europe during the hottest summer on record in the region, according to expansion.com.
The initiative aims to redirect the extraordinary revenues from these sectors towards investments in climate adaptation, such as modernising infrastructure and supporting water management. The Minister for Ecological Transition, Sara Aagesen, has called for the creation of a climate adaptation fund, financed through this levy and the issuance of common debt.
In a letter addressed to the European Climate Commissioner, Wopke Hoekstra, Aagesen emphasised that many member states are vulnerable to extreme weather phenomena, indicating that “the strategy should empower Europe to anticipate and respond collectively to climate risks.”
Estimates from the Triodos bank suggest that extreme heat could reduce the EU's GDP by between 1% in 2026 and 2.3% in 2050. Additionally, it is estimated that drought damages in Europe during this summer amount to at least 50 billion euros, with a total cost that could reach 180 billion euros.
The proposal will be debated by the finance ministers of several European countries at an informal meeting to be held in Dublin on September 18 and 19. However, the European Commission has shown reluctance to impose extraordinary taxes, allowing member states to establish their own national systems.
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