• The richest 10% contributed to two-thirds of global warming since 1990.
• Wealthy individuals are linked to increased climate extremes like heatwaves and drought.
• Research emphasizes taxing carbon-intensive investments as a solution.

Research indicates that the world’s wealthiest 10% are responsible for two-thirds of global warming since 1990. The study highlights how the consumption and investment patterns of the rich have significantly contributed to extreme climate events, such as heatwaves and droughts. Lead author Sarah Schoengart from ETH Zurich stated, “We link the carbon footprints of the wealthiest individuals directly to real-world climate impacts,” reflecting a shift from carbon accounting to climate accountability according to Channel News Asia and India Times.

Comparatively, the richest 1% contributed 26 times more to once-a-century heatwaves and 17 times more to droughts in the Amazon than the global average. Emissions associated with the wealthiest individuals in China and the United States — which together contribute nearly half of global carbon emissions — resulted in a two-to-threefold increase in heat extremes. The cumulative effect of fossil fuel combustion and deforestation has raised Earth’s surface temperature by 1.3 degrees Celsius since 1990, according to Al Jazeera and Dawn.

The study authors argue that emissions linked to financial investments play a crucial role in this climate change narrative. Sustainable actions must focus on the high emissions stemming from wealthy individuals' lifestyles and their financial decisions. Carl-Friedrich Schleussner, a co-author, stressed the importance of addressing the significant responsibilities of the wealthiest segments of society to implement effective climate action, reiterating, “Climate action that doesn’t address the outsized responsibilities of the wealthiest members of society risk missing one of the most powerful levers we have to reduce future harm” according to Channel News Asia and Al Jazeera.

Moreover, for effective climate policy, targeting the emissions from wealthy individuals through progressive taxes on wealth and carbon-intensive investments is suggested. Earlier research has highlighted that taxing asset-related emissions is more equitable than applying broad carbon taxes, which disproportionately affect lower-income individuals. Although there have been calls to raise taxes on the ultra-rich, progress has been slow, especially following the return of Donald Trump to the presidency. In 2021, almost 140 countries reached a consensus on establishing a global corporate tax, with nearly half endorsing a minimum rate of 15%, yet those discussions have also stalled according to India Times, Al Jazeera, and Dawn.