Source: IE
Context:
- Released 2025, co-authored by Lucas Chancel and Cornelia Mohren of the World Inequality Lab.
- Title: “Climate Change: A Capital Challenge – Why Climate Policy Must Tackle Ownership”.
- Focus: Relationship between wealth concentration, capital ownership, and greenhouse gas emissions.
Key Findings:
- Wealth vs Consumption Impact on Emissions:
- Ownership-based emissions (linked to wealth/capital):
- Top 1% globally → 41% of emissions.
- Top 10% in US, Germany, France → 3–5× higher than consumption-based estimates.
- Consumption-based emissions:
- Top 1% globally → 15% of emissions.
- Example (top 1%): France 3%, Germany 2%, US 6%.
- Per-capita emissions:
- Top 1% emits ~680× more than bottom 50% via ownership.
- Via consumption approach → ~75× more.
- Ownership-based emissions (linked to wealth/capital):
- Climate Inequality and Wealth Concentration:
- If wealthy individuals make and own all climate-related investments, top 1% wealth share could rise from 38.5% → 46% by 2050.
- Wealth concentration and climate damage exacerbate both social and economic inequality.
Policy Recommendations:
- Carbon-Adjusted Wealth Tax:
- Tax wealth based on carbon content of assets rather than consumption.
- Progressive: discourages high-carbon investments, finances green transition.
- Example: €150/tonne carbon tax → Revenue:
- France: €36B, Germany: €74B, US: $534B.
- Ban on New Fossil Fuel Investments:
- Restrict domestic dirty investments (exploration, extraction).
- Public Investment in Low-Carbon Infrastructure:
- Shared public ownership (national, local, cooperative).
- Boosts resilient energy systems and reduces inequality.
- Redirect Capital Flows:
- Encourage shift from high-carbon to low-carbon assets via fiscal and regulatory measures.
