According to a comprehensive new report from the World Inequality Lab (WIL), humanity has the potential to enhance living standards, diminish inequality, and limit global warming to a 2°C increase. This ambitious vision outlines a pathway for planetary sustainability amid the multifaceted crises threatening climate stability, political extremism, and escalating social and economic strife.
The report presents a series of transformative policy recommendations, which include significant wealth taxes on billionaires, substantial reductions in working hours, dietary changes, and a reallocation of investments from resource-intensive industries, such as mining and manufacturing, towards education and healthcare.
Implementing these strategies could lead to an increase in incomes for 89% of the global population by 2100 while ensuring that global temperature rise remains below 2°C compared to preindustrial levels. The authors assert that their proposal offers a constructive alternative to the pessimistic forecasts put forth by far-right techno-extractivists, nationalists, and the ultra-wealthy, who predict a future dominated by fossil fuels, climate disruption, and growing inequality.
Thomas Piketty, co-director of the WIL and a professor at the Paris School of Economics, emphasized the ongoing cultural, intellectual, and political struggle. He stated that the current ideologies, exemplified by figures like Trump and similar leaders worldwide, will not yield positive outcomes. He stressed the necessity for a cooperative approach to redistributing resources and power, warning that failing to do so could lead to disastrous environmental and social consequences.
The Global Justice Report, released on Thursday, seeks to address the limitations of conventional responses to the polycrisis, including the materialistic focus of traditional leftist parties, the questionable effectiveness of economic degrowth proposed by some environmentalists, and the lack of social impact assessments by the United Nations Intergovernmental Panel on Climate Change.
By integrating research on inequality, climate science, and political strategies, the report aims to create a coalition capable of reforming the global financial system. This “plan for equality and prosperity within planetary boundaries” is the culmination of efforts from 45 authors, utilizing data compiled by over 200 researchers worldwide.
At the heart of the report is the principle of sufficiency, which posits that individuals can lead fulfilling and healthy lives without the incessant pursuit of consumption and material accumulation that harms the environment.
To realize this vision, the authors propose three key steps: reducing average annual working hours from 2,100 to 1,000—equivalent to a two-and-a-half-day workweek; promoting a decrease in red meat consumption, a major factor in deforestation and ecological harm; and redirecting the economy towards low-consumption sectors by significantly increasing education funding to €8,400 (approximately £7,250) per person and healthcare spending to €14,400.
Piketty noted that an additional euro invested in education and healthcare generates significantly lower material and energy footprints compared to the same amount in manufacturing, highlighting the importance of sectoral shifts.
Addressing inequality is a primary objective of the plan, aiming for a global average gross national income of €5,000 per month by the end of the century, with the most substantial increases occurring in the Global South. In contrast, the wealth of billionaires—who constitute a mere 0.001% of the global population—would be heavily taxed, reducing their share of total wealth from 6% to 0.05%. Meanwhile, the bottom 50% would see their wealth share rise from 2% to 30%.
The plan also prioritizes minimizing climate risks by striving for near-zero emissions. The report analyzes three mid-century decarbonization scenarios proposed by the International Energy Agency and extrapolates them to 2100. Its most ambitious strategy involves reallocating capital from the wealthiest individuals to invest in renewable energy sources such as wind and solar, aiming for complete decarbonization and electrification of energy supplies by 2050. Additional emissions reductions would stem from reduced working hours and shifts in dietary and economic practices.
This approach is projected to limit global temperature increases to 1.8°C by the century’s end, significantly lower than the alarming estimates of 4°C to 4.5°C associated with slow decarbonization and rising material consumption. It also outperforms the 1.9°C figure predicted under a scenario of universal economic degrowth.
Crucial to achieving these goals is the establishment of a global justice fund designed to finance the energy transition and facilitate an increase in education and healthcare expenditures to 38% of global GDP, a marked rise from the current 13%. This initiative would be supported by a world sovereign fund aimed at redistributing global public and private wealth to levels reminiscent of the 1970s.
The report concludes with a hopeful assertion that a just and sustainable 21st century is within reach. It emphasizes that the barriers to achieving this vision are not technical in nature, but rather stem from political choices and the essential work of building a supportive coalition.
Cornelia Mohren, a co-author and environmental coordinator at WIL, acknowledged that while the report may appear visionary or even utopian, it is essential for demonstrating that alternative paths are feasible. She expressed optimism, stating, “It is reassuring to know that we can achieve an equitable world while staying within carbon budgets. This is a promising outcome.”
