Windfall taxes in Europe would hit renewables investment

Ad hoc interventions by governments would create regulatory uncertainty and deter investors, say energy firms

Short-term government interventions such as the imposition of windfall taxes to cushion the impact on consumers of rising energy prices could drive investment in renewables away from Europe and slow the region’s transition, according to energy industry executives speaking at the Financial Times Commodities Global Summit this week. The European Commission is expected to back the use of windfall taxes on energy companies to raise funds as part of its response to the energy crisis which has deepened since Russia’s invasion of Ukraine in February. But ad hoc interventions would create regulatory uncertainty and encourage investors to focus on other regions when planning long-term investment in w