The world’s wealthiest individuals are responsible for a disproportionate share of climate damage, not only through their lavish lifestyles but also through their investments and ownership of carbon-intensive assets, according to a new study by Greenpeace. The environmental group calculates that the top 1% by wealth control about a quarter of global annual emissions, contributing nearly $1 trillion a year in climate damage.
Greenpeace’s analysis focuses on “ownership-based” emissions, which account for 60% of global carbon output. Within this category, the top 1% are responsible for about 40% of emissions, the top 0.1% for 17%, and the top 0.01% for 9%. In contrast, the bottom half of the world by wealth accounts for just 3% of ownership-based emissions.
Clara Thompson, global lead campaigner on socioeconomic systems at Greenpeace International, said: “This isn’t only a story about private jets and lavish lifestyles. When it comes to the pollution of the ultra-wealthy, ownership matters even more than consumption. A large share of emissions is associated with the ownership of carbon-intensive assets and investments.” She added that climate policy has long focused on consumers, but the findings suggest more attention should be paid to what people own and invest in.
Greenpeace suggests that wealth taxes could help address the imbalance. “Climate debt is about responsibility,” Thompson said. “If we agree that those who contributed most to the problem should contribute more to fixing it, it’s reasonable to ask whether that principle should apply to extreme wealth as well.”
The study comes as separate data shows that big banks and financial investors poured $900 billion into fossil fuels last year, despite promises to curb such investments. The findings also coincide with a report led by economist Thomas Piketty, which argued that the world could live equitably within finite resources if wealth excesses were curbed by taxes.
