Subject: ECOFIN meeting 18 September : Taxing fossil fuel profits
Dear Minister,
We, the European Grandparents for Climate (EGC), are writing to urge you to put the issue of taxing fossil fuel profits on the agenda for the upcoming informal ECOFIN meeting in Dublin on 18–19 September, as requested by 6 member states
The European Grandparents for Climate is an NGO, whose members are national organizations of senior citizens in 11 countries. We are seriously worried about the world we are leaving to future generations. We, the older generation in Europe, are jointly a strong force, representing more than 21 % of the European population and voting power.
While we note the European Commission’s preference for national-level action We are aware that the European Commission believes that the conditions to legislate based on Art. 122 TFEU have not yet been met, and therefore unanimity would be required for a European tax framework on fossil fuel profits. , inaction is not an option. There is very broad public support across the whole European Union for such a tax, and the tremendous human, economic, financial and environmental costs of climate change on
citizens and public budgets require strong action. Emissions from oil and gas produced by EU-headquartered firms since the 2015 Paris Agreement are set to cause an estimated €1.5 trillion in climate damages worldwide.European households and SMEs continue to face high energy costs, while major fossil fuel companies report colossal profits—driven by market volatility and geopolitical shocks. With oil and gas emissions causing escalating climate damage, adopting a fair tax framework is essential to raise revenue for the energy transition, public budgets, and international climate finance.
Now is the time to end the stalemate between the Commission and Member States. A strategic discussion in the Council should kickstart EU-level coordination and request immediate, non-legislative support from the European Commission to assist Member States acting nationally:
- Price & Margin Monitoring: Track fossil fuel prices in real time and publicly report on corporate profit margins periodically.
- Best Practice Analysis: Map existing national efforts to tax fossil fuel profits and evaluate the effective deployment of those revenues.
- Tax Design Frameworks: Explore viable tax designs, building on the 2022 Solidarity Contribution and permanent top-up regimes like those in Norway and the UK.
- Anti-Profit-Shifting Measures: Develop mechanisms to stop companies shifting windfall profits to low-tax jurisdictions, including exploring unitary taxation of global profits.
- Investor Protection Shields: Propose measures to prevent investor protection provisions from being used to block legitimate taxation.
Not only because of the ongoing impact of the wars in Ukraine and Iran and of the recent blockades of sea routes on fossil fuel prices and profits our tax system must provide a clear signal that fossil fuels are not part of Europe’s future. The returns from taxes on fossil fuel profits should support the shift towards efficient, renewable, sustainable, and fair energy systems – a key ingredient of our collective security and resilience against both geopolitical shocks and climate breakdown.
These initial steps will support Member States ready to act now while laying the groundwork for a broader EU approach. They also align with Ireland’s leadership alongside Tuvalu for the 2027 International Conference on Transitioning Away from Fossil Fuels and ongoing UN Tax Convention negotiations.
The citizens of Europe deserve leadership and strategic progress on this issue rather than continuous stalemate in the interest of private profit. We, the European Grandparents for Climate, ask you to ensure this crucial discussion takes place in Dublin.
Thank you for your consideration.
Yours sincerely,
Dr. Godela von Kirchbach and Eva Riemer
Co-chairs European Grandparents for Climate