'Not just lifestyle': Study says the ultrarich cause nearly $1 trillion in climate damage

A new finding has sharpened a complaint many people already have about the climate crisis: The damage linked to the ultra-wealthy comes not only from visible luxuries such as private flights and yachts, but also from the investments that generate their wealth.

What happened?

According to The Guardian, Greenpeace research estimates that the world's richest people cause nearly $1 trillion in climate damage each year.

The impact is driven not only by extravagant consumption but by ownership of carbon-intensive companies, investments, and property.

The poorer half of the world by wealth is associated with about 3% of pollution measured on an ownership basis, while the richest 1% account for about 40%.

Greenpeace also estimated that investments and shareholdings held by the top 1% are linked to roughly one-quarter of annual global pollution.

Why does it matter?

A major point of the study is that ownership-based pollution is less visible than classic signs of excess, such as jets and yachts, even though they may be more significant.

Pollution from businesses and privately owned financial and physical assets make up about 60% of global carbon output.

Within that ownership-based total, the richest 0.1% are responsible for about 17%, and the top 0.01% for about 9%.

Greenpeace suggested that wealth taxes could be one way to make those most responsible pay more toward climate solutions.

The report also comes as separate data shows that major banks and other financial investors put about $900 billion into oil, coal, and gas last year, despite years of promises to reduce that support.

What are people saying?

Clara Thompson, Greenpeace International's global lead campaigner on socioeconomic systems, put it this way: "At a time when people are facing rising energy bills, rising living costs, and growing climate impacts, many are asking why ordinary households should shoulder so much of the burden, while some of the world's wealthiest people continue to profit from the industries driving the crisis."

Thompson also said: "This isn't only a story about private jets and lavish lifestyles. When it comes to the pollution of the ultra-wealthy, ownership matters even more than consumption … Climate debt is about responsibility."

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