A Nature Climate Change editorial argues that carbon accounting needs to go beyond production and consumption based methods. A new study by Chancel and Rehm shows that in 2022 the global top 1% wealth group was linked to 41% of private ownership based emissions, while the top 10% accounted for 77%. This ownership perspective reveals how wealthy individuals hold portfolios that rely heavily on carbon intensive activities, and how cross border investment shifts national responsibility for emissions. The editorial makes the case that ownership based accounting should complement existing frameworks. Production based accounting tracks where emissions are released. Consumption based accounting tracks emissions embedded in goods and services. Ownership based accounting tracks who holds the assets that generate emissions. This third lens could help redirect capital toward low carbon investments and inform better regulation of carbon intensive assets. For anyone following carbon markets or climate finance, this is a useful read on how responsibility is distributed and where pressure for change could be applied.
