Climate Inequality Report 2025
Context:
The Climate Inequality Report 2025, titled “Climate Change: A Capital Challenge Why Climate Policy Must Tackle Ownership” was released the World Inequality Lab.
The report proposed a financial investment tax on the carbon content of assets which may help redirect capital flows away from high-carbon assets, especially in the absence of an outright ban on high-carbon investments.
Key Findings:
Wealthy individuals fuel the climate crisis more through their wealth than their consumption.
Consumption-Based Emissions:
The top 1% globally represents 15% of consumption-based emissions.
The bottom 50% account for 10% of consumption emissions
Ownership-Based Emissions:
41% of global emissions are associated with private capital ownership (Wealth)
The report's data shows the top 1% account for 20% of private ownership emissions
In the US,
The top 1% accounts for 24% of emissions under the consumption-based approach, but 72% under the ownership-based approach (Wealth).
Impact on Wealth Inequality
The report states that climate change can deepen wealth inequality.
The share of wealth held by the global top 1% could increase from its current 38.5% to 45% in 2050 if those individuals were to make and own all necessary climate investments.
Suggestions given in the report:
The report proposes a financial investment tax on the carbon content of assets to redirect capital from high-carbon assets.
It also suggests a carbon-adjusted tax on wealth
It suggests a global ban on new fossil fuel investments