Flooded road, Yangshuo, China
Flooded road, Yangshuo, China

Insights from the Global South Climate justice: The intersection of economics, the environment, and inequality

Climate change is a global crisis, but the responsibilities for causing climate change, the impacts it has, and the capacities to act vary across countries and social groups. This Insight explores how the principles of climate justice can help design policy responses and influence global negotiations.

Authors

  • Benjamín Leiva, Sustainable Economic Observatory, Universidad del Valle de Guatemala
  • Edwin Castellanos, Vice-Ministry of Natural Resources and Climate Change, Ministry of the Environment and Natural Resources of Guatemala; Center for Environmental Studies and Biodiversity, Universidad del Valle de Guatemala
  • Debora Ley, Vice-Ministry of Natural Resources and Climate Change, Ministry of the Environment and Natural Resources of Guatemala
  • Pascal Girot, Geography Department, Universidad de Costa Rica

30 March 2026

Concepts

Concepts in this Insight are related to material in:

Recommended reading before starting this Insight:

  • Sections 4.2-4.4 of The Economy 2.0: Microeconomics for an overview of game theory concepts.
  • Section 5.12 of The Economy 2.0: Microeconomics for an explanation of the Gini coefficient as a measure of inequality.
  • Sections 10.1-10.2 of The Economy 2.0: Microeconomics for an overview of negative externalities.

Highlights

  • Human-made climate change threatens the existence of human societies and economies.
  • The responsibility for causing climate change and the capacity to deal with it varies widely between high- and low-income countries and across social groups.
  • Appeals for climate justice emphasize that the responsibilities for and impacts of climate change are not distributed equally. Vulnerable and marginalized communities often bear a disproportionate burden of the consequences and lack the power to determine solutions.
  • Addressing climate change requires both mitigation policies to reduce emissions, such as carbon pricing mechanisms, and adaptation policies to help society adjust to actual or expected disruptions. Using the principles of climate justice, policymakers need to consider two dimensions of fairness: intergenerational (current vs future generations) and intragenerational (social groups within the same generation).
  • Climate justice encompasses the idea of climate-resilient development (CRD). Societal choices in shaping pathways towards a sustainable future and the need for system transitions to implement mitigation and adaptation measures are both important in order to achieve CRD.
  • Since the 1990s, global negotiations to address climate change, such as the Paris Agreement, have focused on reducing emissions and financing adaptation and mitigation measures. While many countries have made formal agreements or commitments to addressing climate change, actual progress in achieving emission reductions or providing sufficient support for vulnerable countries has been limited.