Anne Jellema is executive director of 350.org and David Hillman is director of Stamp Out Poverty.
This coming week, as record-breaking heat has morphed into killer wildfires, major oil and gas companies will report their second-quarter earnings and are widely expected to announce profits that have doubled or even quadrupled in the last three months. The obscenity of that contradiction is impossible to ignore.
Oxfam analysis, released as the Q2 earnings season gets underway, shows that the world’s six largest fossil fuel corporations – BP, Chevron, Eni, ExxonMobil, Shell and TotalEnergies – are on course to nearly double their combined net income compared with the first quarter of the year, from $23 billion to around $45 billion.
Their projected full-year profits of $147 billion would exceed everything the six firms made combined over the previous 21 months. Chevron’s profits alone are expected to have quadrupled to $1,200 a second over the last three months; ExxonMobil’s have roughly tripled to $1,800 a second. The juxtaposition of profit on that scale, arriving in the same weeks that communities are counting the cost of deadly heatwaves, forest fires and high energy bills, is increasingly difficult to ignore.
Covering the cost of climate damage
Not long ago, the idea that fossil fuel companies should contribute directly towards the cost of climate damage was dismissed as activist rhetoric. Today it is reflected in legislation, litigation and mainstream policy debate.
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Anne Jellema is executive director of 350.org and David Hillman is director of Stamp Out Poverty.
This coming week, as record-breaking heat has morphed into killer wildfires, major oil and gas companies will report their second-quarter earnings and are widely expected to announce profits that have doubled or even quadrupled in the last three months. The obscenity of that contradiction is impossible to ignore.
Oxfam analysis, released as the Q2 earnings season gets underway, shows that the world’s six largest fossil fuel corporations – BP, Chevron, Eni, ExxonMobil, Shell and TotalEnergies – are on course to nearly double their combined net income compared with the first quarter of the year, from $23 billion to around $45 billion.
Their projected full-year profits of $147 billion would exceed everything the six firms made combined over the previous 21 months. Chevron’s profits alone are expected to have quadrupled to $1,200 a second over the last three months; ExxonMobil’s have roughly tripled to $1,800 a second. The juxtaposition of profit on that scale, arriving in the same weeks that communities are counting the cost of deadly heatwaves, forest fires and high energy bills, is increasingly difficult to ignore.
Covering the cost of climate damage
Not long ago, the idea that fossil fuel companies should contribute directly towards the cost of climate damage was dismissed as activist rhetoric. Today it is reflected in legislation, litigation and mainstream policy debate.
Several US states have passed “Climate Superfund” laws requiring major fossil fuel companies to help fund climate adaptation and disaster recovery. Courts are hearing cases seeking compensation for climate harms, while governments across Europe continue to debate the future of windfall taxes on outsized energy profits.
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These developments may appear disconnected, but they reflect a broader shift in public thinking: if societies are paying an ever higher price as our climate warms, should the excessively profitable fossil fuel companies whose products have substantially caused those costs not bear more of the burden of paying for them?
Europe’s heatwaves fuelled by emissions
The events of this summer have only sharpened that question. Europe has experienced repeated heatwaves, with temperatures exceeding 40°C across parts of Spain, Portugal, France and Germany. England recorded its hottest June on record, while wildfires have affected communities across southern Europe and, increasingly, parts of the UK.
According to researchers at the London School of Hygiene & Tropical Medicine and Imperial College London, more than 2,300 heat-related deaths occurred across twelve European cities during one recent ten-day heatwave alone, with climate change estimated to have roughly tripled the number of deaths.
Separate Oxfam analysis of academic data published in Nature goes further, finding that the emissions of just five of these corporations – BP, Chevron, ExxonMobil, Shell and TotalEnergies – were sufficient to cause around one in four of the heatwaves reported globally between 2000 and 2023: heatwaves that would have been virtually impossible without human-made climate change.
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Nor is Europe unique. There is looming famine in Uganda and India endured prolonged pre-monsoon temperatures above 48°C earlier this year. North America has faced successive heat domes, while smoke from hundreds of Canadian wildfires has periodically produced some of the world’s worst urban air quality, affecting millions of people across Canada and the United States.
Scientists have become increasingly confident in attributing many of these extremes to human-caused climate change. Rapid attribution studies, pioneered over the past decade, now routinely assess how much more likely or more intense individual weather events have become because of greenhouse gas emissions.
‘Polluter pays’ principle in law
Against this backdrop, the “polluter pays” principle is a basic standard of responsible behaviour: if you cause damage, it is on you to pay for it. It is a longstanding concept in environmental law and economics that those responsible for creating pollution should bear a proportionate share of the costs it imposes on society.
In 2025 a survey found that 81% of people supported increased fossil fuel taxes being directed to help communities most impacted by extreme weather. And it is no longer just a hypothetical prospect.
A mandatory surtax on highly polluting industries is gaining support as part of the UN Convention on International Tax Cooperation, alongside robust measures to prevent jurisdiction-shopping and anchor taxing rights in real economic activity. Governments meeting in New York next month to negotiate the framework convention should seize the moment to get behind both.
The stakes are high because the economics of the energy transition are increasingly clear. Renewable electricity is now among the cheapest forms of new power generation in much of the world. Yet many countries with abundant renewable resources continue to face prohibitively expensive borrowing costs, limiting their ability to invest at the speed required. Meanwhile, massive fossil fuel profits remain only lightly taxed or entirely avoided in many jurisdictions.
Analysis by the Global Alliance for Tax Justice and partners estimated that a 20% surtax on the profits of the world’s 100 largest oil and gas companies could have generated more than US$1 trillion since the Paris Agreement was signed in 2015.
Time to design mechanisms for justice
Whether governments choose that particular mechanism is ultimately a political decision. But the analysis illustrates a broader point: claims that public investment in climate resilience or clean energy is unaffordable sit uneasily alongside the scale of profits regularly generated by the fossil fuel industry, profits that, this quarter, are on course to nearly double in three months.
There are legitimate debates about the design of windfall taxes, competitiveness, investment incentives and international coordination. But the wider principle – that those who have benefited most from fossil fuel extraction should pay more towards managing its consequences – is no longer confined to campaign groups.
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It is increasingly part of mainstream discussions among policymakers, economists and legal scholars and, if well designed, such mechanisms will incentivise investment where it’s needed and strengthen international coordination.
This summer has made that conversation harder to avoid. The question is no longer whether fossil fuel giants should pay for the enormous economic and human costs being suffered by communities every day due to our rapidly warming climate. It is when will governments step up and make them pay, for the damage already done and to build the resilience we need going forward?
