The World Economic Forum has introduced a tool to evaluate the extent of climate inequalities and to develop comprehensive policies that promote a fair transition. Historically, high-income countries have been the largest contributors to global emissions, accounting for over half of the total. However, climate change disproportionately impacts developing economies and emerging markets. This situation leads to increased costs for adaptation and mitigation, even as many of these countries already face fiscal constraints. With limited access to resilient infrastructure and low-carbon technologies, marginalized communities risk falling deeper into cycles of poverty.
To effectively understand the distributional impact of climate change and the subsequent mitigation plan, the World Economic Forum (WEF) has developed the Economic Equity Framework. This framework includes seven dimensions related to the green transition, such as moving away from fossil fuels and promoting greener infrastructure and food production. Additionally, it encompasses five economic equity dimensions that highlight essential aspects of economic participation, including employment, access to financing, and the affordability of essential goods. This framework offers valuable insights to policymakers for effectively targeting support and designing inclusive policies.
Rising inequality presents additional challenges for the climate change strategies that policymakers must design and implement. First, each government needs to assess the specific needs of its country to tailor the green transition effectively. Once the policy is in place, targeted support can ensure a fair transition. Cash transfers and subsidies for adopting green technologies can prevent marginalized groups from being excluded from the green transition. Additionally, skills training will help workers transition to low-carbon industries, thus mitigating the risks associated with job losses in traditional sectors. Finally, communication campaigns, along with stakeholder engagement and social dialogue, will promote inclusivity and foster trust among all parties involved, facilitating a smoother transition.
Accelerating an Equitable Transition: Policy Guidelines for Impact | World Economic Forum
