Climate Inequality Report 2025

The World Inequality Lab has released the Climate Inequality Report 2025, revealing that wealthy individuals are major drivers of the climate crisis, with their wealth having a bigger impact on emissions than their personal consumption.

Key Findings

• Private Capital & Emissions: 41% of global emissions are linked to private capital ownership.
• Top 1% Consumption: The richest 1% account for 15% of global consumption-based emissions.
• Wealth Inequality and Climate Change:
  • If the top 1% were to make and own all climate-related investments, their share of global wealth could rise from 38.5% today to 46% by 2050, further deepening inequality.

Policy Recommendations

1. Financial Investment Tax:
   • Tax based on the carbon content of assets to redirect capital flows away from high-carbon investments.
   • Provides an alternative in the absence of outright bans on high-carbon investments.
2. Global Ban on New Fossil Fuel Investments:
   • Stop new high-carbon investments globally to curb future emissions.
3. Major Public Investment in Low-Carbon Infrastructure:
   • Scale up renewable energy, sustainable transport, and green technologies through public funding.

Source: IE