Climate inequality deepening: “Tax the carbon content of assets and investments held by the wealthiest”

Published on : 29 Oct 2025, 10:13 am

Even as the demand for a complete global ban on new fossil fuel investments grows louder, an alternative of taxing the carbon content of assets and financial portfolios seems to be more effective in bringing down carbon intensity.

Economists Lucas Chancel and Cornelia Mohren make this recommendation in the Climate Inequality Report 2025 released on October 29, though as an interim option when there is no outright ban on fossil fuel investments.

The latest report, published by the World Inequality Lab, has made the link between wealth inequality and how it is leading to climate inequality. “Climate crisis and wealth inequality are deeply interconnected,” says Lucas.

Making a distinction between wealth and consumption-sourced emission of green