Climate change is closely linked to patterns of inequality on both global and local levels (1). The impact of climate change on economic output and financial stability has captured a lot of attention. A World Bank report estimates that an additional 68 to 135 million people could fall into poverty by 2030 due to climate change. This situation could hinder efforts to eliminate poverty, affect the poorest regions the most, and increase income inequality within countries (2). Climate change creates inequalities between countries in two ways. First, rising temperatures from greenhouse gas emissions mainly affect low-income countries, especially in Sub-Saharan Africa and South Asia, where the impact is heavier. Second, the expenses involved in reducing emissions to address climate change might slow economic growth in poorer nations. If climate damages are as unequal as these points indicate, then climate mitigation policies are essential for curbing the rise of future inequalities between countries (3).
Rising wealth inequality and climate change are two of today’s most serious policy challenges, but the link between them is often overlooked. Studies reveal significant gaps in global wealth distribution. The poorest half of the world’s population owns just 2% of total wealth, while the richest 10% control 76%. Wealth inequality affects climate outcomes as well. Tackling these disparities needs us to include climate justice in global policy frameworks. This will help ensure equitable resilience and sustainable development (4).
References:
- Zahnow, R., Yousefnia, A. R., Mahnoosh Hassankhani, & Cheshmehzangi, A. (2025). Climate change inequalities: A systematic review of disparities in access to mitigation and adaptation measures. Environmental Science & Policy, 165, 104021–104021. //doi.org/10.1016/j.envsci.2025.104021
- Cevik, S., & Jalles, J. T. (2023). For whom the bell tolls: Climate change and income inequality. Energy Policy, 174, 113475. //doi.org/10.1016/j.enpol.2023.113475
- Taconet, N., Aurélie Méjean, & Céline Guivarch. (2020). Influence of climate change impacts and mitigation costs on inequality between countries. Climatic Change, 160(1), 15–34. //doi.org/10.1007/s10584-019-02637-w
- Chancel, L., Mohren, C., Bothe, P., & Semieniuk, G. (n.d.). CLIMATE CHANGE AND WEALTH INEQUALITY: A LITERATURE REVIEW AND NUMERICAL INSIGHTS LUCAS CHANCEL CORNELIA MOHREN PHILIPP BOTHE GREGOR SEMIENIUK DECEMBER 2024 Climate Change and Wealth Inequality: A Literature Review and Numerical Insights. Retrieved January 31, 2026, from //wid.world/document/climate-change-and-wealth-inequality-a-literature-review-and-numerical-insights-world-inequality-lab-working-paper-2024-27/
Extreme weather events are deeply intertwined with global patterns of inequality. The poorest and most vulnerable people bear the brunt of climate change impacts yet contribute the least to the crisis. As the impacts of climate change mount, millions of vulnerable people face disproportionate challenges in terms of loss of jobs; physical harm; disease; mental health effects; food insecurity; access to water; migration and forced displacement; loss of shelter, assets, and community ties, and other related risks.(Social Dimensions of Climate Change, 2022)The historical data clearly show that crops are more productive, people are healthier and we are more productive at work when temperatures are neither too hot nor too cold(Climate Change Has Worsened Global Economic Inequality, 2019).
Research shows decades of rising temperatures have helped to accelerate the economic growth per person in many cool countries, while slowing growth in warmer countries.Climate change has had a smaller effect on economic growth in nations with temperate climates, including China, Japan and the United States.(Climate Change Has Worsened Global Economic Inequality, 2019)
Climate change vulnerability has no statistically significant effect on income distribution in advanced economies, the coefficient on climate change vulnerability is seven times greater and statistically highly significant in the case of developing countries due largely to weaker capacity for climate change adaptation and mitigation. (Serhan Cevik & João Tovar Jalles, 2023)
REFERENCE
//www.worldbank.org/en/topic/social-dimensions-of-climate-change#:~:text=Extreme%20weather%20events%20are%20deeply,the%20wellbeing%20of%20their%20families. " target="_blank" rel="noopener">Social Dimensions of Climate Change. (2022). World Bank. //www.worldbank.org/en/topic/social-dimensions-of-climate-change#:~:text=Extreme%20weather%20events%20are%20deeply,the%20wellbeing%20of%20their%20families.
//sustainability.stanford.edu/news/climate-change-has-worsened-global-economic-inequality " target="_blank" rel="noopener">Climate change has worsened global economic inequality. (2019). Stanford Doerr School of Sustainability; Stanford University. //sustainability.stanford.edu/news/climate-change-has-worsened-global-economic-inequality
//doi.org/10.1016/j.enpol.2023.113475 " target="_blank" rel="noopener">Serhan Cevik, & João Tovar Jalles. (2023). For whom the bell tolls: Climate change and income inequality. Energy Policy, 174, 113475–113475. //doi.org/10.1016/j.enpol.2023.113475