We need more than a tax on the super rich to deliver climate and economic justice

This November, global attention turned to two major events shaping our future: the G20 Leaders’ Summit in Rio de Janeiro and COP29 in Azerbaijan. As these summits conclude, the challenges they sought to address – economic inequality and the climate crisis – demand bolder, more urgent action. But to deliver this, global leaders need to turn their attention to a vital question: how do we dismantle extreme wealth inequities that are having a devastating impact on both people and the planet? The answer begins with taxing the wealth of the super-rich, but it doesn’t end there. To build a truly just world, we must confront and change the systems that allow such extraordinary wealth to accumulate in the first place.

This year’s G20 Summit in Rio wasn’t just another meeting of world leaders. Under Brazil’s leadership, the event included the first-ever G20 Social Summit, bringing together civil society groups, trade unions, businesses and artists alongside policymakers. This vibrant and inclusive space allowed for meaningful discussions on hunger, poverty, digital democracy, and inequality – and as a Rio native I was delighted to have been able to attend.

What stood out most was the Brazilian government’s bold stance on progressive taxation on the wealth of the super-rich. Their determination – driven by a concerted effort by a range of groups from civil society – ensured that the final G20 communique included a commitment to cooperate on ensuring billionaires and multinational corporations pay their fair share of taxes. In a world where a handful of billionaires control more wealth than entire nations, this was a critical and welcome step forward.

“Fairer taxation of extreme wealth isn’t just a moral imperative – it’s an economic necessity.”

Fairer taxation of extreme wealth isn’t just a moral imperative – it’s an economic necessity. When billionaires hoard wealth, it stifles innovation, undermines resilience, and concentrates power in ways that harm us all. Taxing extreme wealth can help redistribute resources to support public goods and economic resilience.

Tackling extreme wealth inequalities is also necessary for fighting the climate crisis. The world’s wealthiest individuals and corporations are among the largest contributors to greenhouse gas emissions. Meanwhile, the poorest nations and communities – those least responsible for the climate crisis – are the hardest hit by its impacts.

At COP29 in Azerbaijan, the international community once again failed to provide confidence on adequate financing for a just climate transition. This lack of progress underscores a fundamental flaw in the global system: concentrated wealth not only perpetuates inequality, it also blocks the resources needed to address the climate emergency.

Wealth that remains locked away in tax havens or spent on luxury assets could instead fund renewable energy projects, disaster preparedness, and sustainable infrastructure. Brazil’s presidency of the G20 – and Brazilian civil society groups – this year, demonstrated how these issues can be addressed together. By involving finance ministers in climate discussions and championing progressive taxation, Brazil offered an innovative approach to tackling these interconnected crises. With COP30 set to take place in the Amazon next year, there’s hope that this momentum will continue.

While taxing the super-rich is vital, it is not enough. We need systemic change to stop extreme wealth from accumulating in the first place. Billionaire fortunes are often built on exploitative practices – whether through underpaid labour, unequal value exchange, or unpaid care work. Addressing these structural injustices requires more than redistribution; it demands a transformation in how wealth creation is perceived, who is valued, and how wealth is shared.

We need to rethink ownership itself. Alternative models like cooperatives, social and public enterprises, and community-led initiatives can distribute wealth and power more fairly. Policies that empower workers, promote gender and racial equity, and protect public goods are essential for creating a just economy.

“Countries can’t just agree that taxing the wealth of billionaires is the right thing to do.”

Global cooperation is also key. Countries can’t just agree that taxing the wealth of billionaires is the right thing to do. They must now effectively implement domestic measures to tax wealth more. Crucially, world leaders must ensure that the revenue generated is used to reduce inequities and combat the climate crisis. This means prioritising the welfare of the poorest in society which are human rights; and ensuring that climate financing resources flow to where they are most needed in the international community.

Extreme wealth inequities are a roadblock to economic and climate justice. To deliver a just transition, we need bold, coordinated action and a fundamental shift in our economic priorities. This year’s G20 and COP29 meetings showed that progress is possible – but the current system remains deeply flawed.

Taxing the super-rich is a crucial starting point, but it’s not enough. To truly tackle inequality, we must address the root causes – from exploitative labour practices to the unchecked accumulation of wealth. If we create an economy where resources are shared more equitably from the outset, we wouldn’t need to rely on wealth taxes to fix the system’s failures.

Image: iStock