The United Nations reports: Soaring energy prices are exacerbating the cost-of-living crisis for hundreds of millions of people

On August 3, local time, the United Nations Secretary-General's Global Food, Energy and Financial Crisis Response Group (GCRG) released its third report, warning that as geopolitical conflicts continue to rage, soaring energy prices are exacerbating the cost-of-living crisis
for hundreds of millions of people.

Despite the ongoing energy crisis, major oil and gas companies have recently reported record profits, which U.
N.
Secretary-General António Guterres called "unethical" behavior
.

"In the first quarter of this year, the total profit of the largest energy companies was close to $100 billion
," he said.
I urge governments to tax these excessive profits and use the funds to support the most vulnerable through these difficult times
.
”

The latest report, which focuses on energy, recommends that governments find the most effective ways to fund energy solutions, such as publicly funded cash transfers and tax rebates to protect vulnerable communities everywhere, as well as a windfall tax that includes profits on
the largest oil and gas companies.
At the same time, the report urges a transition
to renewable energy.

There is growing concern that rising energy costs could cost many developing countries, especially the most vulnerable communities, from energy markets
, the report said.
These countries have already borne the brunt of the crisis, suffering significant setbacks
in access to energy and sustainable development since the COVID-19 pandemic.

More worryingly, the report warns, there could be a potential "battle for energy" where only countries that pay the highest prices have access to energy
.
Therefore, governments need fiscal space to support their most vulnerable populations to avoid worsening energy poverty levels or the complete loss of energy supplies
.

Guterres put forward four major proposals
, including the imposition of an "excessive profit tax" on energy companies, energy conservation in developed countries, accelerating the conversion to renewable energy, and increasing investment in clean energy.