UN calls on fossil fuel companies to pay for climate damages – Solution lies in transition to clean energy

Climate change is increasingly burdening nations and citizens, particularly developing countries, prompting Antonio Guterres to call for greater financial contributions from oil, gas, and coal companies toward addressing damages and adaptation efforts.

At the same time, he urges nations to accelerate emissions reductions and invest in renewable energy sources.

United Nations Secretary-General Antonio Guterres has once again called on governments worldwide to compel major fossil fuel companies to contribute to financing the costs associated with the consequences of climate change.

Climate crisis a global problem

Speaking during the UN General Assembly’s High-Level Week in New York, Guterres warned that greenhouse gas emissions continued to rise, whereas they ought to be falling rapidly.

He also noted that investments in new fossil fuel deposits and production were continuing despite established climate goals.

Guterres believes that companies generating massive revenues from fossil fuels should bear a larger share of the costs resulting from climate change.

He pointed out that major oil companies were reaping huge profits, while the burden of paying for the consequences of climate change increasingly fell on nations and citizens.

He specifically highlighted developing countries, simultaneously exposed to climate disasters and often lacking the financial resources to protect their populations and infrastructure. The UN Secretary-General has stated that the climate crisis represents one of the greatest challenges regarding intergenerational justice.

He noted that countries which had contributed the least to historical emissions were often among those suffering the most severe consequences of global warming, including extreme weather events, infrastructure damage, and rising costs associated with climate change adaptation.

Consequently, Guterres is calling for increased funding for adaptation measures, particularly in poorer nations.

One of his key messages centers on the principle that polluters should bear a share of the costs for the damage caused.

Guterres pointed out that fossil fuel companies were reaping substantial profits while governments were spending ever-increasing amounts to address the aftermath of climate-related disasters.

He therefore urged governments to implement mechanisms that would channel a portion of the profits from oil, gas, and coal companies toward funding climate action.

New York attempts to establish a USD 75 billion fund

The issue of the fossil fuel industry’s accountability has increasingly surfaced in concrete political and legal initiatives in recent years.

One example comes from the U.S., where the state of New York attempted to establish a USD 75 billion fund, to be financed over 25 years by companies responsible for significant historical emissions.

However, in late August 2026, a U.S. federal court blocked the implementation of the law, ruling that it conflicted with federal regulations and that the state lacked the authority to enact such a measure.

At the same time, Guterres warned that the world was entering a period in which achieving the goal of limiting global warming would become increasingly difficult.

According to him, scientific assessments indicate that the threshold of 1.5 degrees Celsius above pre-industrial levels will be temporarily exceeded.

He believes it is therefore essential to ensure that any such overshoot is as small and as brief as possible, accompanied by much faster emissions reductions.

He identified continued investment in fossil fuel production as a particular problem. Guterres called on nations to set clear timelines for transitioning from fossil fuels to cleaner energy sources, while simultaneously increasing investment in renewables and energy efficiency.

He has assessed that the current pace of change is insufficient to meet internationally agreed-upon climate goals.

UN calls for faster transition to RES

Warnings from the UN Secretary-General come at a time when the issue of financing climate-related damages is increasingly linked to demands for greater contributions from major fossil fuel producers.

Proponents of this approach argue that companies which have generated revenue from oil, gas, and coal sales for decades should help finance the consequences of their use.

On the other hand, concrete models for recovering such costs face political and legal hurdles, as illustrated by the case of New York.

Guterres emphasized that climate policy could not be reduced merely to setting long-term goals.

In his view, nations must simultaneously secure funding to adapt to changes that have already occurred, reduce emissions, and curb the further expansion of fossil fuel production.

He specifically called on developed nations to increase financial aid to countries with the greatest need for climate change adaptation.

The UN Secretary-General’s message thus boils down to a demand that the costs of the climate crisis be shifted, to a greater extent, onto the companies and sectors that derive the most financial benefit from fossil fuel use.

However, whether such an approach is adopted will depend on the decisions of individual states, international agreements, and future legal proceedings.

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Antonio Guterres

fossil fuels

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