The world’s richest citizens are fuelling the global climate crisis far more than everyone else, according to a major new report that highlights the stark divide between wealth and environmental damage.

The Climate Inequality Report 2025, released by the World Inequality Lab in partnership with the UN Environment Programme (UNEP), finds that the richest 1% of the global population are responsible for 41% of emissions linked to private capital ownership. That amounts to nearly 680 times more emissions per person than the poorest 50% of people.

The findings underscore how the climate emergency is deeply intertwined with global economic inequality.

“The wealthiest not only consume more, they own and finance the very assets responsible for the majority of global emissions,” said economist Lucas Chancel, co-author of the report.

Poorest Bear the Heaviest Burden

While the richest contribute most to the crisis, the world’s poorest are suffering its harshest consequences. By 2050, the report estimates:

• The bottom 50% of the global population could lose 74% of their income due to climate impacts.
• The richest 10% may lose just 3%.

These losses stem from rising temperatures, extreme weather events, reduced agricultural yields and worsening economic instability, all of which disproportionately harm vulnerable communities.

Climate Finance Risks Widening Inequality

The report also warns that the current trajectory of climate finance could exacerbate inequalities rather than resolve them. Without fairer systems, the global green transition risks deepening financial divides — particularly between wealthy nations and developing economies.

It urges governments and institutions to expand progressive climate funding models, increase accountability for high-emitters and ensure developing regions receive adequate support for climate adaptation.

As climate impacts intensify, the study calls for urgent global coordination to align climate action with social equity — ensuring that those who contribute least to the crisis are not left paying the highest price.