As the Iran conflict enters its second month, 350.org and its partners urged Asian governments to tax windfall profits of oil and gas companies, while accelerating a just transition away from fossil fuels. Climate campaigners in the most crisis-affected Asian countries urged governments to protect households from surging energy costs by:
- Taxing windfall oil and gas profits and use revenues to support households
New 350.org analysis reveals that as much as US$111 billion have been lost by consumers and businesses due to oil and gas spikes in the first month of the Iran conflict. Oil giants such as Chevron, Shell and Exxon Mobil are poised to rake in billions of dollars in windfall profits.
Fossil fuel companies cashing in obscene profits from high oil and gas prices should contribute to shielding consumers from the worst impacts. A windfall tax can capture excess oil and gas profits and redistribute them directly to consumers through measures such as targeted bill support, direct cash transfers to most affected sectors, free or heavily subsidised (“lifeline”) electricity tariffs to vulnerable households, and free public transportation.
Philippine lawmakers have recently proposed a windfall tax to curb profiteering by oil companies, while India has reintroduced a windfall tax on oil exports. Following the 2022 Ukraine war, the UK imposed a windfall tax on oil and gas producers and raised around £12 billion in 2024, helping fund its Energy Price Guarantee and limiting average household bills during the crisis.
- Accelerating decentralized renewable energy to lower energy costs
To shield consumers from higher electricity bills and fuel costs, governments should fast-track just renewable energy solutions, prioritizing decentralized renewables that can be deployed quickly and easily – including solar mini-grids, rooftop and balcony solar, clean cooking solutions, and electric public transport.
Instead of straining public finances for costly fossil fuels, emergency energy response funds and development support should be used to fund renewable energy systems that ensure energy access, equity, long-term sustainability, and community ownership.
Governments must act now – not later – to prioritize homegrown renewable energy and avoid the high costs of importing fossil fuels. In Asia, LNG prices have skyrocketed 143% since the war began. The IEEFA Asia Pacific calculates that 1GW of solar energy could save countries roughly US$3 billion on imported LNG.
Sisilia Nurmala Dewi, 350.org Indonesia Country Manager, said:
“The Indonesian people pay for the hidden costs of fossil fuels – not just through our energy bills, but through taxes that go towards subsidies and climate damages. President Prabowo’s directive to build 100GW of solar power to build energy independence is a step in the right direction. But the energy transition must not be a burden to low and middle-income communities – it must be paid for by coal, oil and gas companies through windfall taxes.”
Amanullah Porag, 350.org Bangladesh Coordinator, said:
“We are witnessing the real cost of fossil fuel dependence. A conflict thousands of kilometres away is rapidly undermining economic stability in Bangladesh. Our people should not have to pay for a crisis they did not cause. Governments must act now to tax fossil fuel windfall profits, protect consumers from price shocks, and invest in decentralized renewable energy at scale. Energy security for Bangladesh will not come from imported fuels, but from building systems we can control.”
Fread de Mesa, 350 Pilipinas National Coordinator, said:
“Despite its short-term framing, the Philippine government’s state of national energy emergency declaration contains language that echoes what climate activists have been raising for years. By calling for reduced dependence on petroleum and the scaling of renewables, the government is implicitly acknowledging that clean energy must be central to our long-term resilience. Renewables — from community-led solar to distributed wind and efficiency measures — offer not just climate benefits but energy independence, price stability, and greater protection for everyday Filipinos from the ripple effects of global crises. This moment is an opportunity to pivot from reactive crisis response to a proactive, structural transformation of our energy system.”
Omkar Subedi, Digo Bikas Institute Nepal Campaign Officer, said:
“Today’s energy crisis deepens inequities that stem from decades of dependence on coal, oil, and gas. The answer is not more of the same. It’s high time we focus on renewable energy solutions that put communities at their core and prioritize people over profits. Nepal must invest in homegrown renewable energy solutions that are affordable and locally owned. When communities control their energy resources, we secure not just our energy needs but also social and climate justice that ensures no one is left behind.”
Masayoshi Iyoda, 350.org Japan Campaigner said:
“Japan should accelerate renewable energy deployment and improve energy efficiency, instead of continuing to rely on unstable fossil fuels and dangerous nuclear energy. Consumers have been at the mercy of imported fossil energy for far too long. The window of opportunity to permanently insulate Japan from oil and gas price shocks — and keep its climate commitments — is wide open. The Takaichi administration should take this opportunity, or risk falling behind further on its promises of energy independence and lower energy costs.”
Media Contact:
Ilang-Ilang Quijano, 350.org Media Campaigner, [email protected], +639175810934
Kim Bryan, 350.org Media Strategy and Relations Manager, [email protected], +447770881503