Climate Change, the Poor and Carbon Pricing

Abstract

Climate change is a global crisis which affects everyone. However, the impacts of climate change on vulnerable groups, including the poor, are even greater. Whilst extreme weather events pose a tremendous threat to water, food, shelter and income security, air pollution derived from the use of fossil fuels causes severe health problems. Unless climate change is addressed effectively, its impacts will lead to the perpetuation of poverty. Moreover, the number of people pushed into poverty will increase across the world. The revenues generated from carbon pricing that aims at the transition to low or zero carbon economies should be earmarked to the development of mitigation and adaptation projects to protect the poor from the impacts of climate change rather than being allocated directly to the state budget.