The World’s richest 10% causing environmental damage worth $5.7 trillion annually
The top 10% of global consumers cause $5.7 trillion in annual environmental damage, as they drive global challenges evolving into systemic economic and financial risks requiring immediate collective action, according to a Leiden University study.
Concentrated heavily in the Global North, including over half of the US population and up to 45% of the EU, the wealthy group drives a stark disparity, with an individual American making up to $63,000 in yearly damage compared to India's top 10% causing just $1,400 in per capita damage.
By converting climate change, biodiversity loss, nutrient pollution, and freshwater depletion into monetary terms, researchers aim to hold wealthy individuals and nations accountable for the true cost of their lifestyles.
Inge Schrijver, the research lead from Leiden University, stated that although she feels somewhat uncomfortable putting a price tag on the environment because the true value of nature is priceless, displaying the total damage in monetary terms helps to illustrate the scale of the damage and the responsibility of the top 10%.
“Food” and “energy” are the main causes, making the richest consumer group cause such massive damage to the world. Specifically, red meat consumption, frequent aviation, and heating massive estates are the primary drivers behind the environmental toll of the wealthy.
However, the $5.7 trillion figure is likely underestimated as it omits critical planetary boundaries and excludes high-emission investments.
According to Greenpeace, assets held by the top 1% alone fund industries driving a quarter of global greenhouse gases, inflicting nearly $1 trillion in annual climate destruction through their portfolios.
The $5.7 trillion damage vastly exceeds global sustainability costs, such as the $675 billion needed for biodiversity protection. Since the wealthy act as influential investors, trendsetters, and market shapers, researchers argue they possess unmatched bargaining power to drive systemic environmental change.
To capitalise on this, a "polluter-pays" principle via luxury, wealth, and carbon taxes can promote social equity, redistributing revenue to uplift and shield vulnerable, low-income communities who lack the resources to adapt and suffer the most from extreme natural disasters.
“If money from polluters is used to solve problems, it will create a massive change, but it is not just a matter of money; stricter rules and regulations are absolutely necessary,” Schrijver added.
