Wealth drives warming: Global report calls for ownership-based climate action

A new Climate Inequality Report 2025, released by the World Inequality Lab and UNDP, warns that global warming and economic inequality are tightly linked — with the richest 1% responsible for 41% of all emissions linked to private capital ownership. The report argues that climate change is not only a scientific crisis but also a “capital challenge,” driven by unequal ownership and investment patterns.

The study finds that wealthy individuals and institutional investors, mostly concentrated in high-income countries, continue to bankroll over 200 new oil and gas projects and 850 coal mines despite international pledges to phase them out. “Those who invest today are shaping tomorrow’s climate,” said co-editor Lucas Chancel, adding that ownership of polluting assets, rather than consumption alone, determines global emissions.

India features in the analysis as one of the emerging economies facing rising climate vulnerability and growing exposure to extreme weather. The report stresses that lower- and middle-income nations like India bear the brunt of global warming while holding minimal influence over high-emission investments.

It projects that if the world’s richest 1% continue to dominate green investments, their share of global wealth could rise from 38% to 46% by 2050 — deepening global inequality. Conversely, if public ownership and wealth taxation fund climate transition, the top 1% share could drop to 26%.

To tackle this imbalance, the report proposes three major policy steps: a global ban on new fossil fuel investments, a tax on the carbon content of wealth, and massive public investments in low-carbon infrastructure. It also calls for stronger financial transparency and an international registry to track cross-border fossil investments.

The authors conclude that achieving climate goals and social justice requires treating ownership as central to climate policy — ensuring that the transition to a green economy does not further enrich those most responsible for the crisis.