Ahead of COP29, which will be held in Baku from November 11 to 22, Oxfam on Monday published a report demonstrating the impact of the carbon emissions of the ultra-rich on the planet, and how the super-rich “largely fuel.” global climate.
But economists contacted by BFM Business warn against these sometimes exaggerated claims.
50 ultra-rich contaminate more than a billion people
According to the report, there are two modes of pollution by the ultra-rich: through consumption (use of private jets, yachts, etc.), but also mainly through financial assets, that is, investments in issuing companies.
Bernard Arnault, for example, would have “a carbon footprint linked to his heritage 200,000 times greater than that of an average Frenchman.” “In other words,” the report continues, “Bernard Arnault emits as much CO2 in 200 minutes (3h20) as a Frenchman does in his entire life, through his financial assets.”
How is this calculation done? Oxfam Quebec political analyst Julie McClatchie explained the calculation method to Noovo Info: “We have calculated that if a billionaire has 10% of the investments in company financed emissions.
A responsibility that cannot fall solely on the ultra-rich
But according to Pierre-Olivier Pineau, holder of the energy sector management chair at HEC Montréal, these conclusions must be qualified.
For the professor, it is “as if corporate emissions were the exclusive responsibility of its shareholders.” However, “consumers are generally very happy (in the short term) to pay less,” and often have lower-emission alternatives available.
Regarding consumption, according to Oxfam, “on average, a billionaire among the 50 richest people in the world emits 7,746 tons of CO2 per year just from their consumption of planes and yachts.” In comparison, the report continues, “a person from the poorest 50% of humanity emits 1.01 tons of CO2 per year through their consumption.”
“Most emissions come from burning coal to produce electricity”
Conclusions that must also be qualified, because these emissions are still lower compared to global emissions, as Alexandre Delaigue, an economist at the University of Lille, explains to BFM Business. “Most emissions come from burning coal to produce electricity. Of course, this does not mean that we should not act, but it gives an idea of the proportion.”
Finally, with regard to consumption in general, for Alexandre Delaigue the calculations must be qualified. Oxfam will carry out an automatic conversion between the level of consumption and the level of carbon emissions, which is not necessarily representative of reality. However, one euro spent is not necessarily equivalent in terms of carbon cost, whether you are ultra-rich or not.
According to the report, Elon Musk has a carbon footprint of 5,947 tons of CO2, which is equivalent to 834 years of emissions for the average person in the world, or 5,437 years for someone in the world’s poorest 50%.
A proposed climate FSI
Oxfam concludes with recommendations, including implementing a climate wealth tax for billionaires and billionaires. It is about taxing, on the one hand, the level of heritage and, on the other, its impact on the climate. Oxfam is also proposing a dividend tax for companies that do not respect the Paris Climate Agreement.
Therefore, if the conclusions of the international organization must be qualified, “the inequalities in terms of emissions are enormous,” confirms Pierre-Olivier Pineau.
“Universal carbon pricing would allow the ultra-rich to pay for their pollution and redistribute the money. This would allow us to take some steps towards a less unequal world,” concludes the HEC Montreal professor.
Source: BFM TV
