Context:
The Climate Inequality Report 2025, co-authored by Lucas Chancel and Cornelia Mohren of the World Inequality Lab, recently presented a striking new dimension of climate injustice.
Key Findings:
1. Wealth-Based Emissions Outpace Consumption-Based Emissions
-
- The top 1% of the global population is responsible for:
- 15% of global emissions under the consumption-based approach.
- 41% of global emissions under the ownership-based approach (linked to private capital ownership).
- 15% of global emissions under the consumption-based approach.
- This means that the emissions associated with what the rich own (industries, shares, assets) far exceed those from what they consume.
- The top 1% of the global population is responsible for:
2. Per-Capita Emission Disparity
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- Under consumption-based accounting, emissions of an individual in the global top 1% are about 75 times higher than those of someone in the bottom 50%.
- Under ownership-based accounting, this rises dramatically to around 680 times higher revealing how wealth magnifies climate responsibility.
- Under consumption-based accounting, emissions of an individual in the global top 1% are about 75 times higher than those of someone in the bottom 50%.
3. Country-Wise Insights
|
Country |
Top 1% Share of Emissions (Consumption-Based) |
Top 1% Share of Emissions (Ownership-Based) |
|
France |
3 % |
44 % |
|
Germany |
2 % |
45 % |
|
USA |
6 % |
43 % |
Inequality in Climate Wealth:
- If the current pattern of investment continues, the share of wealth held by the global top 1% could rise from 38.5% today to 46% by 2050, deepening global inequality.
Proposed Policy Measures:
1. Carbon-Adjusted Wealth Tax
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- The report proposes a tax on the carbon content of wealth and financial assets, designed to:
- Discourage investment in high-carbon sectors.
- Redirect private capital toward green, low-carbon assets.
- Discourage investment in high-carbon sectors.
- The report proposes a tax on the carbon content of wealth and financial assets, designed to:
2. Global Ban on New Fossil Fuel Investments
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- Recommends an outright global ban on new domestic investments in fossil fuel exploration and production.
- Advocates major public investment in low-carbon infrastructure and shared public ownership (through international, national, or cooperative green funds).
- Recommends an outright global ban on new domestic investments in fossil fuel exploration and production.
3. Public Green Investment Funds
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- Suggests establishing sovereign green investment funds to build publicly-owned low-carbon assets that can:
- Rebuild state capacity.
- Ensure fair access to the benefits of green transition.
- Generate long-term social value.
- Rebuild state capacity.
- Suggests establishing sovereign green investment funds to build publicly-owned low-carbon assets that can:
Conclusion:
The Climate Inequality Report 2025 reframes the climate crisis as a crisis of capital ownership. A carbon-adjusted wealth tax, coupled with public green investment, could be key to aligning justice, equality, and sustainability in the global climate response.
