The very richest cause almost 1 trillion dollars (864 billion euros) in climate damage every year. This is evident from a new study by Greenpeace. Not only their extravagant lifestyle, but especially their investments play a major role.
Source: The Guardian
Through their assets, from oil companies to real estate projects, the very rich are responsible for a disproportionate share of the emissions that are warming the planet, says Greenpeace. According to the study, the richest 1 percent would be responsible for about a quarter of global annual emissions through shares and investments, accounting for around $1 trillion (864 billion euros) in climate damage.
Unequal emissions
“At a time of rising energy bills, rising costs of living and increasing climate impacts, many are wondering why ordinary households are bearing so much of the burden while the wealthiest continue to benefit from industries fueling the crisis,” said Clara Thompson of Greenpeace International.
According to Greenpeace, the richest 1 percent are responsible for 40 percent of emissions linked to ‘assets’ such as shares, investments and real estate – accounting for 60 percent of global CO2 emissions. The study defines that 1 percent worldwide as people with assets of 2 million dollars or more (approximately 1.8 million euros). By comparison, the poorest half of the world’s population is responsible for only 3 percent of those emissions.
Not consumption, but wealth
According to Thompson, emissions linked to ownership are important because they are less visible and more difficult to tackle than consumption emissions. “This isn’t just about private jets and luxury,” Thompson said. “For years, climate policy has focused on consumers, but our findings suggest we need to pay more attention to what people own and invest in.” For example, major banks and investors invested $900 billion in fossil fuels last year, despite promises to limit such spending.
As a possible solution, Greenpeace points to a wealth tax. “Climate debt is about responsibility,” Thompson explains. “If we agree that those who contribute most to the problem should also contribute more to the solution, it is reasonable to wonder whether that principle should also apply to extreme wealth.”
As wealth inequality increases worldwide, the impact of the super-rich on the planet is increasingly coming into the spotlight. Governments from around the world are meeting in Bonn this week for an interim climate conference ahead of the COP31 climate conference in November. One of the topics on the agenda is agreements on a “just transition”, helping workers in the transition from a fossil fuel economy to a low-carbon economy.