Shell’s $9b in profit in one quarter makes me wonder why the EU continues to give free carbon allowances to oil refiners

Opinion by Mathew Carr

May 5, 2022 — Environmental lobby groups are calling for an end to free EU carbon allowances, and Shell’s super-normal profits show there needs to be a focus on this effective public subsidy to fossil-fuel companies.

Taxpayers and consumers are losing out on the revenue they should be getting from the sale of carbon allowances, a public good.

Most of the world doesn’t even make polluters pay — at all.

Consumers are also losing out because of the huge cost increases for energy caused by the Russia-Ukraine war.

Politicians need to react. Windfall taxes are being suggested.

Getting rid of free CO2 allowances would be worth considering as part of a package to make markets work better for the climate.

A global system is needed to ensure fossil-fuel burners all pay carbon prices — or at least those wanting to supply G20 nations — and to end FF subsidies in all their guises.

People — taxpayers and consumers — are angry and are set to get angrier.

Here are Shell’s financial results. They are shocking in their scale.

Billions More in Q1 from Drilling, Burning, Products, Chemicals

Shell

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