The European Commission has proposed exploring new ways to finance climate action, including taxing global oil companies, as the bloc seeks additional resources to strengthen its response to climate change.

European Commission Executive Vice-President Teresa Ribera said existing public budgets are no longer sufficient to cover the growing economic costs of global warming, pointing to alternative funding options such as joint borrowing, a larger EU budget, wider use of green bonds and contributions from the profits of major energy companies.

Ribera said Europe’s recent experience with extreme heat, wildfires and agricultural losses had highlighted the urgent need for greater investment in climate resilience and adaptation.

Stressing the urgency of the issue, Ribera said, "We will make every effort to encourage the Council to take urgent action and to revive stalled processes." She argued that Europe must accelerate climate investment as the effects of global warming become increasingly severe.

According to European Commission estimates, EU member states will need to invest an additional €70 billion annually by 2050 to meet the bloc's climate and resilience objectives.

The proposed package is expected to include a broad range of measures covering the energy transition, climate adaptation and infrastructure upgrades.

Under the financing proposals, sectors with high carbon emissions could face higher tax burdens, while additional revenues would be directed toward climate-related investment in an effort to ease pressure on public finances.

The proposal is expected to be discussed by EU member states as part of broader negotiations on the bloc's long-term budget and climate financing strategy.(ILKHA)