Ribera calls on EU to weigh oil tax and joint debt to boost climate resilience
EU climate commissioner Teresa Ribera says the bloc should consider a bigger budget, more joint borrowing and a windfall tax on fossil fuel profits to fund climate resilience. She warns national budgets alone cannot cover the costs.
European Commission climate and competition commissioner Teresa Ribera told POLITICO that the EU must start considering "bold" measures to raise the funds needed to tackle the costs of climate change.
Ribera suggested the bloc should discuss a larger joint budget, expanded common borrowing and a special tax on fossil fuel profits to secure the hundreds of billions of euros in investment required to make European economies and societies more resilient to a warming world.
New financial tools under debate
According to Ribera, national budgets and traditional EU resources alone will not be enough. She stopped short of naming a specific solution, saying the debate needs to open on options including greater fiscal flexibility, a bigger common budget, continued use of green Eurobonds, and reviving UN Secretary-General António Guterres' proposal to tax big oil companies to fund a resilience fund.
The ideas are likely to draw mixed reactions. Frugal member states such as Germany oppose higher spending and debt, while Germany, Portugal, Italy, Poland, Austria and Ribera's native Spain are pushing for a windfall tax on oil firms following the recent energy price shock, as fossil fuel companies have reaped billions in extra profits since the war in Iran began.
Extreme weather cited as a warning
Ribera pointed to this summer's extreme weather as evidence that Europe urgently needs to invest in adaptation. The Commission estimates the EU needs €70 billion a year to prepare for the dangers of a warmer world. She noted that climate change is weighing on France's economic growth, overwhelming emergency hospital services, forcing dams to be drained to cool nuclear plants, and fueling wildfires and crop failures. She also referenced devastating floods in Nepal and collapsing glaciers.
Ribera said European countries are "not prepared" for intensifying climate change, and public budgets will not be able to cover every risk. The Commission is working on a package of measures expected in October or November, but she stressed that ambition without adequate funding risks remaining just wishful thinking.
