New Report Proposes Linking Climate Action with Reducing Inequality
Could tackling climate change and levelling inequality go hand in hand?
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A new report from the World Inequality Lab suggests that tackling climate change and reducing inequality can be achieved together. It proposes structural changes, including phasing out fossil fuels and taxing the wealthy, to create a fairer world while limiting global warming to 1.8 degrees Celsius.
- 01The report advocates for a global average monthly income of €5,000 by 2100, up from current figures of €290 in sub-Saharan Africa to €4,600 in North America.
- 02It proposes a global justice fund financed by steep taxes on billionaires, with rates up to 20% annually and income taxes as high as 90%.
- 03The share of global wealth held by the poorest half of the population could increase from 2% to 30% under the proposed changes.
- 04The report calls for a rapid phase-out of fossil fuels and significant dietary changes to facilitate reforestation and limit global warming.
- 05Political resistance is anticipated, with suggestions for tariffs on non-participating countries to encourage cooperation.
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The World Inequality Lab's recent Global Justice Report posits that addressing climate change and reducing global inequality can be mutually reinforcing goals. The report argues for a radical economic transformation, advocating for rich countries to decarbonize rapidly, reduce wealth disparities, and shift consumption patterns. Co-directed by economist Thomas Piketty, the report envisions an average global income of €5,000 by 2100 and suggests that the poorest half of the population could increase their share of global wealth from 2% to 30%. To finance this transition, it proposes a 'global justice fund' funded by high taxes on the wealthy. This fund would focus on social development and climate mitigation, aiming to spend over 10% of global GDP annually between 2026 and 2060. However, the authors acknowledge potential political challenges, including resistance from wealthy individuals and governments, and suggest forming a coalition of willing countries to implement tariffs on non-participants. The report coincides with the World Inequality Conference in Paris, where its findings will be debated.
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The proposed changes could significantly alter economic structures in both wealthy and poorer nations, aiming for equitable wealth distribution and environmental sustainability.
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