Source: Oxfam Aotearoa
The richest 1% have exhausted their annual carbon budget – the amount of CO2 that can be emitted while staying within 1.5 degrees of warming – only ten days into the year, according to new analysis from Oxfam. The richest 0.1% already used up their carbon limit on the 3rd January.
This day – named by Oxfam as ‘Pollutocrat Day’ – highlights how the super-rich are disproportionately responsible for driving the climate crisis.
The emissions of the richest 1% generated in one year alone will cause an estimated 1.3 million heat-related deaths by the end of the century. Decades of overconsumption of emissions by the world’s super-rich are also causing significant economic damage to low and lower-middle income countries, which could add up to $44 trillion by 2050.
To stay within the 1.5 degrees limit, the richest 1% would have to slash their emissions by 97% by 2030. Meanwhile, those who have done the least to cause the climate crisis – including communities in poorer and climate-vulnerable countries, Indigenous groups, women and girls – will be the worst impacted.
“Time and time again, the research shows that governments have a very clear and simple route to drastically slash carbon emissions and tackle inequality: by targeting the richest polluters. By cracking down on the gross carbon recklessness of the super-rich, global leaders have an opportunity to put the world back on track for climate targets and unlock net benefits for people and the planet,” said Oxfam’s Climate Policy Lead Nafkote Dabi.
On top of their lifestyle emissions, the super-rich are also investing in the most polluting industries. Oxfam’s research finds that each billionaire carries, on average, an investment portfolio in companies that will produce 1.9 million tonnes of CO2 a year, further locking the world into climate breakdown.
The wealthiest individuals and corporations also hold disproportionate power and influence. The number of lobbyists from fossil fuel companies attending the recent COP summit in Brazil, for example, was more than any delegation apart from the host nation, with 1600 attendees.
“The immense power and wealth of super-rich individuals and corporations have also allowed them to wield unjust influence over policymaking and water down climate negotiations,” Nafkote Dabi added.
Oxfam calls on governments to slash the emissions of the super-rich and make rich polluters pay through:
– Increase taxes on income and wealth of the super-rich and proactively support and engage on the negotiations for the UN Convention of International Tax Cooperation to deliver a fairer global architecture.
– Excess profit taxes on fossil fuel corporations. A Rich Polluter Profits Tax on 585 oil, gas and coal companies could raise up to US $400 billion in its first year, equivalent to the cost of climate damages in the Global South.
– Ban or punitively tax carbon-intensive luxury items like super-yachts and private jets. The carbon footprint of a super-rich European, accumulated from nearly a week of using super yachts and private jets, matches the lifetime carbon footprint of someone in the world’s poorest 1 percent.
– Build an equal economic system that puts people and planet first by rejecting dominant neoliberal economics and moving towards an economy based on sustainability and equality.
Oxfam’s latest research into climate and inequality, using data from the Stockholm Environment Institute, finds that the richest 1% emit 75.1 tonnes per person per year (using 2023 data, the latest available data), or 0.206 tonnes per person per day, which means that 10.2 days of emissions is enough to use the 2.1t CO2 budget.
Further information about carbon budgets and the data behind Oxfam’s research can be found within this methodology note.
Oxfam’s latest briefing paper, How to increase taxes on fossil fuel profits – Oxfam Policy & Practice proposes a Rich Polluter Profit Tax on fossil fuel corporations to help ensure renewable energy investments are always more profitable than fossil fuels. It also proposes an Excess Profit Tax on all other sectors to curb market concentration and accumulation of extreme wealth. These measures could raise over US$1 trillion in their first year.
Oxfam’s report, “ Climate Inequality Kills”, found that the outsized consumption emissions of the world’s super-rich 1% over four decades (1990-2030) alone are causing significant net economic damage, with low- and lower-middle-income countries being most affected. Between 1990 and 2050, low- and lower-middle-income countries will accrue economic damage totalling $44 trillion.
