Canada does not plan to tax windfall profits of oil companies

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The Canada does not plan to tax oil windfall profits

Canada's Environment Minister Steven Guilbeault says Canada is already making sure oil companies pay their fair share.

Called to respond to Secretary General's statement of the UN calling on developed countries “to tax the windfall profits of fossil fuel companies”, Canada's Environment Minister said his government was putting in place different mechanisms for oil companies to pay their fair share.

In a speech to the United Nations General Assembly on Tuesday, UN Secretary-General Antonio Guterres called the climate crisis a textbook case. #x27;moral and economic injustice, pointing out that the G20 emits 80% of total greenhouse gas emissions.

“The planet is on fire, people are suffering, and the most vulnerable are the most affected,” Antonio Guterres indignantly told the United Nations General Assembly.< /p>

“Today, I call on all developed countries to tax the windfall profits of fossil fuel companies.

— Antonio Guterres, UN Secretary General

These funds should be returned, on the one hand, to the countries in which the climate crisis is causing loss and damage, and, on the other hand, to the people who are put in difficulty by the rise in food prices. food and energy, Guterres said.

On Thursday morning, The Canadian Press asked Canada's Environment Minister to comment on the outing by the UN Secretary General, but Steven Guilbeault showed no interest in taxing the oil companies' windfall profits.

“I think the Secretary General was also talking about the fact that these companies have to do their part in the fight against climate change.

— Steven Guilbeault, Minister of the Environment of Canada

This is why, in Canada, we have implemented carbon pricing. We fought all the way to the Supreme Court to be able to put this mechanism in place and it is in place, said the minister during a teleconference with the media to conclude his participation in the climate week in New York.

Steven Guilbeault added that his government has implemented many mechanisms, such as regulations for the reduction of methane emissions.

Canada is committed to reducing methane emissions from the oil and gas sector by at least 75% by 2030 compared to 2012 levels.

We have a number of existing programs as well as many regulations in the works. We agree that polluters must pay their fair share. We also agree that we must ensure a fair transition. Our government is working hard to reduce emissions, protect our environment and support Canadians and industries on the path to a carbon neutral country, the environment minister's office said Thursday afternoon.

The Deputy Leader of the New Democratic Party, Alexandre Boulerice, made a point of reacting to the declaration of the Secretary General of the UN and that of the Minister of the Environment. We welcome the appeal of the Secretary General of the United Nations. When the Liberals let the big oil companies pocket billions of dollars, it is the people who are struggling with the rising cost of living who pay the price. For quite some time, New Democrats have been calling for a tax on these excessive profits so that the money can be invested in the social programs that people need to make ends meet. It's time for the Liberal government to make these companies pay their fair share, said Alexandre Boulerice in an email sent to The Canadian Press.

On Tuesday, Antonio Guterres recalled that global greenhouse gas emissions must be reduced by 45% by 2030 so that we can hope to reach zero by 2050.

Yet emissions are at record highs: they are on track to increase by 14% this decade, he added.

The UN Secretary General began his speech with these words: Our world is in dire straits, emphasizing that the climate crisis is the defining issue of our time.

The planet is on fire, people are suffering – and the most vulnerable are the most affected, Antonio Guterres outraged, mentioning that the suicidal war on nature jeopardizes the Charter of the United Nations and the ideals she wears.

Oil companies have reaped windfall profits this year due to soaring energy prices, linked to the conflict in Ukraine.

Canadian Cenovus Energy, for example, posted a net profit of $2.4 billion last July, more than ten times higher than last year for its most recent quarter.

During the same period, Suncor announced that it had made profits of $3.99 billion in the second quarter, a result t more than four and a half times higher than that of $868 million for the same period in 2021.

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