'Tax the carbon content of investments of the rich'

The world's billionaires hold more capital than many governments, and wield greater political power to influence future growth trajectories. The transition to a carbon-neutral future is a once-in-a-century opportunity to rebalance private and public investment in ways that can reduce both wealth and climate inequalities, say Lucas Chancel and Cornelia Mohren, editors of the "Climate Inequality Report 2025". Excerpts:

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Could you elaborate on the nexus of wealth and climate inequality?

Lucas Chancel: Wealth inequality between countries is closely linked to the colonial periods. Extraction of resources by colonial powers is linked to the wealth creation, and the inequality that started with it.

This also marks the beginning of climate inequality. Both wealth and climate inequality are deeply intertwined.

This [inequality] led to climate space appropriation by the western countries. You [the western countries] are burning the coal to run the industries; you are also appropriating the carbon space. It is the historical responsibility [the western countries hold] for emissions. This is closely linked to the broader pattern of wealth inequality since the beginning of 19th century. And this is deepening due to the Industrial Revolution, that is, both a colonial and also an environmental extraction.

Cornelia Mohren: What we see in the historical data, both between countries and within countries, [is that] inequality is very high. The transition-to a carbon neutral future and also to a wealth-equal situation-is going to be very tough, even though it needs to be equal.

The climate discourse is centred on industrialised countries versus developing nations. You have focused on wealthy individuals irrespective of countries. Is it an indicator that wealth inequality is so high that just a few wealthy individuals define or decide everything, including the carbon budget?