The climate crisis isn’t just an environmental issue; it’s deeply tied to wealth and inequality. A recent report by the World Inequality Lab and the United Nations Environment Programme reveals that the wealthiest 1% of people produce a staggering 41% of emissions linked to private capital ownership. This means they contribute nearly 680 times more emissions per person than the poorest half of the world’s population.
Lucas Chancel, one of the report’s authors, emphasizes that the rich not only consume more, but they also own and manage the assets responsible for most global emissions. Paradoxically, those who are least responsible for climate change, mainly the world’s poorest, suffer the most. The report forecasts that by 2050, the bottom half of the global population could face 74% of income losses due to climate damage, while the richest 10% might only see a 3% decrease in income.
The study warns that the ongoing green transition could inadvertently exacerbate inequality. If current trends continue, affluent individuals and corporations might see their share of global wealth rise from 38% today to 46% by 2050. However, a fairer system with taxes on high-carbon assets could drop that concentration to around 26%.
Interestingly, developing countries are at a disadvantage, often paying higher interest rates on green loans despite contributing less to climate change. The report advocates for a reformed global credit system, urging countries to prioritize equitable climate financing.
To address this, experts argue for a halt to new fossil fuel investments, the implementation of carbon taxes, and increased public investment in clean technologies. According to a 2023 report by the International Renewable Energy Agency, every dollar invested in renewable energy could yield approximately three times as many jobs as the same investment in fossil fuels.
In summary, the path to a low-carbon economy must also prioritize equity. Public ownership and shared financing are essential to accelerate decarbonization and bridge the wealth gap. Climate change and inequality are linked, and addressing one means tackling the other.
For a deeper understanding, you can refer to the full Climate Inequality Report 2025.
Source link
climate inequality report 2025, Lucas Chancel, climate finance India, Global South, wealth inequality, carbon ownership, climate justice, UNEP report, India climate losses
