Study Highlights the Impact of Concentrated Private Wealth on Extreme Climate Events
The wealthiest 10% of the global population is responsible for two-thirds of global warming since 1990, according to a study released on Wednesday.
The way the affluent consume and invest has significantly increased the risk of deadly heatwaves and droughts, according to this study that quantifies the impact of concentrated private wealth on extreme climate events.
“We directly link the carbon footprint of the wealthiest individuals to real-world climate impacts,”
said lead author Sarah Schoengart, a scientist at ETH Zurich, to AFP.
Compared to the global average, for example, the wealthiest 1% contributed 26 times more to century-scale heatwaves and 17 times more to Amazonian droughts, according to the findings published in Nature Climate Change.
The emissions from the wealthiest 10% in China and the United States together account for nearly half of global carbon pollution. The burning of fossil fuels and deforestation have caused the Earth’s surface to warm by an average of +1.3°C, primarily over the past 30 years.
In-depth Analysis of Wealth and Climate Change
Schoengart and her colleagues combined economic data with climate simulations to trace emissions from various socioeconomic groups based on their income levels. Their analysis included the role of hidden emissions in financial investments, not just personal lifestyle and consumption.
Previous research has shown that taxing emissions linked to assets is more equitable than general taxes on greenhouse gas emissions, which tend to affect lower-income individuals more.
Stalled Progress on Taxing the Super-Rich and Multinationals
Most recent initiatives to increase taxes on the super-rich and multinationals have stalled, especially since Donald Trump regained the presidency.
Last year, as G20 host, Brazil proposed a 2% wealth tax on individuals with over $1 billion in assets.
Although G20 leaders agreed to “cooperatively ensure that ultra-high net worth individuals are effectively taxed,” there has been no follow-through to date.
Key Questions and Answers
- What does the study reveal about wealth and climate change? The wealthiest 10% of the global population is responsible for two-thirds of global warming since 1990, with their consumption and investment patterns significantly increasing the risk of extreme climate events.
- How does the study quantify the impact of wealth on climate change? The study directly links the carbon footprint of the wealthiest individuals to real-world climate impacts, such as deadly heatwaves and droughts.
- What role do hidden emissions play in the study? The researchers considered hidden emissions from financial investments, not just personal lifestyle and consumption.
- What progress has been made in taxing the super-rich and multinationals? Recent initiatives to increase taxes on the super-rich and multinationals have stalled, with no significant progress since Donald Trump’s presidency.
- What was proposed by Brazil as G20 host? Brazil proposed a 2% wealth tax on individuals with over $1 billion in assets.
- What agreement did G20 leaders make regarding taxing the super-rich? G20 leaders agreed to cooperatively ensure that ultra-high net worth individuals are effectively taxed, but there has been no follow-through to date.
