Climate Change and Economic Inequity
Higher income countries are responsible for 79% of all carbon emissions between 1850 and 2011. G8 countries, including the US, the European Union, and the UK, continue to cause 85% of excess carbon emissions worldwide. In stark contrast, many energy-poor, urbanized countries with limited protection against extreme weather events are disproportionately suffering from the tangible consequences of climate change. For example, flooding in Pakistan since mid-June has affected more than 30 million people, with 6.4 million people requiring immediate support.
Why are climate change and economic inequity related?
Climate change is believed to have some benefits for higher income countries, especially those in temperate geographical regions, but adversely impacts most countries overall. Climate change’s effects on economy is multifaceted, with a correlation between a country’s gross domestic product (GDP) per capita and their carbon emissions. This is reiterated by the richest 1% of the global population creating double the carbon emissions of the poorest 50%. Furthermore, between 1961 and 2010, climate change reduced the poorest countries’ wealth by 17 to 30%, meaning that the difference between the poorest and richest countries’ economic output is 25% greater than it would have been if climate change did not exist.
The Environmental Kuznets Curve (EKC), shown below, delineates a theoretical relationship between economic growth of a country and environmental damage.
Source: Environmental Kuznets Curve, taken from the Office for National Statistics
As a country’s income develops, their economy typically transitions from agricultural to industrial and manufacturing production. During the latter, greenhouse gas production tends to rise, hence why the Anthropocene commonly refers to human activity since the Industrial Revolution. However, environmental damage starts to reduce as a country’s economy transitions towards a service-based industry with improved environmental awareness and policy.
Therefore, a significant challenge is that developing countries, who are at an earlier stage in the EKC, often suffer the consequences of climate change first-hand yet produce relatively minimal greenhouse gases themselves.
Broken Promises to the Climate Vulnerable
Developing countries are climate vulnerable: they are disproportionately affected by extreme weather events, they have increased economical reliance on climate-dependent industries, and they have reduced ability to adapt to climate change. Climate adaptation refers to “changes in processes, practises, and structures to moderate potential damage or to benefit from opportunities associated with climate change.” The Intergovernmental Panel on Climate Change recognizes that the ability to develop climate resilience and sustainable development is not equal and that this is entrenched in socioeconomic inequities.
At the 16th Conference of the Parties (COP16) held under the United Nations Framework Convention on Climate Change, higher income countries agreed to provide $100 billion per year to developing countries by 2020 for climate adaptation and climate mitigation (“efforts to reduce or prevent emissions of greenhouse gases”), but this is yet to be achieved. Much more money, in the trillions annually, is needed to keep temperatures less than 1.5 degrees above pre-Anthropogenic temperatures. However, the pledge prompted responsibility from higher- income countries and helped form the foundations for international climate legislation.
The COVID-19 pandemic has undoubtedly complicated international climate financing, and it has undone years of work towards removing poverty and improving economic growth worldwide, as explained in the updates of the United Nations’ Sustainable Development Goals. However, reducing climate vulnerability in developing countries is also predicted to improve economic recovery from the pandemic. Therefore, providing support to developing countries to promote sustainable development is advantageous for all.
Many countries that are climate vulnerable are in the southern hemisphere. Despite this, there is a distinct lack of climate adaptation literature focusing on the global south. In contrast, climate adaptation literature predominates in the global north, which contributes to 92% of annual carbon emissions worldwide. Therefore, future research must be more inclusive and prioritize countries that are climate vulnerable.
