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Home / New Zealand / Politics

Jacinda Ardern brushes off UN call for tax on energy companies

Thomas Coughlan
By Thomas Coughlan
Political Editor·NZ Herald·
20 Sep, 2022 04:28 PM5 mins to read

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The Prime Minister attended the United Nations 77th General Assembly in New York overnight. Video / NZ Herald

The United Nations opened its 77th General Assembly in New York overnight with an impassioned call from Secretary-General António Guterres to slap a windfall tax on fossil fuel companies benefiting from the global energy crisis.

But Prime Minister Jacinda Ardern, who was on the floor of the General Assembly for Guterres' speech, was less keen, saying that those words were probably not intended for countries like New Zealand.

"In my mind you can hear the countries that he'll be angling those arguments towards. The relevance for New Zealand is more in the space of fossil fuel subsidies," Ardern said.

The UK has announced a windfall tax on energy firms, and the EU has also announced a proposal to tax windfall energy profits, but Ardern has ruled out any new taxes this term beyond what was included in Labour's 2020 manifesto and has voiced scepticism about a windfall tax.

She said New Zealand was doing its bit by calling for an end to fossil fuel subsidies and trying to reduce its emissions.

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"I think the subsidy issue is a real one and it has been for some time because it means the right investment decisions aren't being made… other countries are looking at things like windfall taxes and in some areas that will obviously be a focus for them and understandably so in this environment."

Guterres was adamant that fossil fuel companies should pay windfall taxes if they profit from the current energy crisis.

"Polluters must pay," Guterres said.

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"Today, I am calling on all developed economies to tax the windfall profits of fossil fuel companies."

Prime Minister Jacinda Ardern taking questions at the United Nations in New York. Photo / Thomas Coughlan
Prime Minister Jacinda Ardern taking questions at the United Nations in New York. Photo / Thomas Coughlan

Guterres said the world was in a "suicidal battle" with nature, comparing the fight against climate change to the other, more literal conflicts the UN has sought to prevent.

He unloaded on the international fossil fuel industry which he accused of "feasting on record profits", while people struggled under a "cost of living crisis".

"Let's tell it like it is. Our world is a victim to fossil fuels," Guterres said, before accusing banks, private equity, and asset managers of funding a global public relations and lobbying machine "raking in billions" to shield fossil fuel companies from the consequences of global warming.

He said these firms "spew misinformation" about global warming and its effects.

Guterres said revenue from the tax should be used to fund developing countries' climate change efforts, and to help shield vulnerable people from the rising cost of living.

The speech opened the United Nations General Assembly's 77th session in New York.

Roughly 150 world leaders and representatives have gathered in the city for "high level week", a week of rapid leader-to-leader diplomacy between UN members.

Ardern is not speaking until later in the week, but unlike many other leaders, she was on the floor of the General Assembly for Guterres' speech and the opening of the session.

The week is a good opportunity for leaders to meet and conduct rapid diplomacy. Ardern appeared to be popular on the UN floor. She made a beeline for Samoan Prime Minister Fiamē Naomi Mataʻafa who was attending the event in person for the first time.

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Iceland's Prime Minister Katrín Jakobsdóttir stopped by Ardern's seat for a hug and a brief conversation as she was leaving the General Assembly hall.

Other parts of Guterres' speech are more sympathetic to Ardern's agenda at the United Nations, which will include a discussion on food security and efforts to combat misinformation and disinformation online.

"Our data is being bought and sold to influence our behaviour," Guterres said, warning of an epidemic of "misinformation" online.

He said this was causing "untold damage to communities and societies".

That push ties in well with Ardern's work on the Christchurch call to combat online extremism. She will hold a summit on the Christchurch Call with Emmanuel Macron later today.

Prime Minister Jacinda Ardern meeting with Samoan Prime Minister Fiamē Naomi Mataʻafa. Photo / Thomas Coughlan
Prime Minister Jacinda Ardern meeting with Samoan Prime Minister Fiamē Naomi Mataʻafa. Photo / Thomas Coughlan

New Zealand is also leading work on making sure international relations function in the future. The UN is reeling from its inability to prevent Russia's invasion of Ukraine. Russia's use of its veto powers on the United Nations Security Council had stymied progress on things like disarmament.

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"The international community is not ready or willing to solve the dramatic problems of our age," Guterres warned.

He said "progress" on key UN agendas was "being held hostage by geopolitical tensions".

The first speaker, following a UN tradition, was Brazil, represented by its populist President Jair Bolsonaro, a man frequently compared to Donald Trump.

Bolsonaro spent plenty of time talking about his country's state-owned oil company, Petrobras, but he appeared deaf to Guterres' call for a windfall tax.

Instead, Bolsonaro's speech pivoted to a brief meditation on a corruption scandal in Brazil, known as "Operation Car Wash". The scandal centred around dodgy transactions and corruption involving the Government and Petrobras.

The scandal led to the imprisonment of Luiz Inácio Lula da Silva, better known as "Lula", the man Bolsonaro is likely to lose his job to at Brazil's election next month.

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Bolsonaro used his speech to gently remind the audience that his challenger had been to jail.

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