A new study by the Potsdam Institute for Climate Impact Research (PIK) has found that the wealthy face the fastest-growing economic risks from climate change. The study, published in Nature Sustainability, analyzed how erratic weather events, increasingly intensified by global warming, affect global production and consumption across different income groups. The results confirm that the poor worldwide bear the greatest economic risks from climate change.
However, the risk for the wealthy is growing the fastest. Economies in transition like Brazil or China are also highly vulnerable to severe impacts and negative trade effects. PIK scientist Anders Levermann stated, “In the next 20 years, climate change will increase economic risks from erratic weather.
The highest risks remain with the poorest around the world.
Fastest-growing economic climate risks
But the increase in economic risk is strongest for the wealthy, in countries like the US and the EU.”
A survey of thousands of people revealed that respondents underestimated the massive difference between the carbon footprints of the wealthiest and poorest individuals.
This misunderstanding could have serious implications for climate policies, as it may skew public support away from the most effective measures for mitigating climate change. The survey found that people greatly underestimate the personal carbon footprints of the top 1 per cent wealthiest individuals while overestimating the carbon emissions of low-income individuals. Private jet use, for example, significantly increases an individual’s carbon footprint, highlighting the environmental impact of the ultra-wealthy.
In his new book, economist Thomas Piketty argues that the world can’t stop climate change without addressing issues of inequality. Piketty’s analysis suggests that to effectively tackle climate change, policies must address the significant disparities in emissions between the world’s wealthy and poor. Piketty’s work adds a layer of complexity to the dialogue, insisting that climate solutions must go hand in hand with efforts to reduce inequality.
His insights come at a time when many nations are grappling with how to meet ambitious climate targets while ensuring fair and just economic transitions.
