Progressive climate policy can reduce extreme poverty: study | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Progressive climate policy can reduce extreme poverty: study

Environment

BSS/AFP
28 April, 2021, 02:50 pm
Last modified: 28 April, 2021, 02:54 pm

Related News

  • Begging booms in Dhaka while demand for domestic help remains high
  • There will be no street children in society: Disaster Management adviser 
  • Food security worsens as poverty rises in multiple districts: Study
  • Minimum wage in Bangladesh: All talk and no action
  • Madaripur most poverty-stricken district, Noakhali least: BBS

Progressive climate policy can reduce extreme poverty: study

Industry lobbyists also argue that cheap sources of energy such as coal have a role to play in expanding access to electricity in developing countries

BSS/AFP
28 April, 2021, 02:50 pm
Last modified: 28 April, 2021, 02:54 pm
Representational image. Photo: Reuters
Representational image. Photo: Reuters

Ambitious climate policies could reduce extreme poverty in developing countries if governments opted for robust taxes on emitters that were then fairly distributed to help the poor, new research showed Tuesday.

Authors of the study said the results showed that policymakers were facing a false choice between climate change mitigation and poverty reduction.

Since fossil fuels and agricultural chemicals such as fertilisers are so heavily subsidised, any attempt to remove taxpayer support to these unsustainable practices frequently prompts fears of higher prices for consumers.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Industry lobbyists also argue that cheap sources of energy such as coal have a role to play in expanding access to electricity in developing countries.

Researchers at the Potsdam Institute for Climate Impact Research (PIK) used computer models to predict how levels of global poverty might be affected by various interventions aimed at limiting global warming.

They found that the world was on course to have around 350 million people living in extreme policy — i.e. on less than $1.90 a day — by 2030, far short of the UN goal to eradicate extreme poverty by the end of the decade.

The authors noted that this figure did not factor in the economic disruption caused by the pandemic, or the adverse effects of climate change.

They then modelled in ambitious climate policies consistent with the 1.5C temperature goal of the Paris Agreement, and found that this could increase the number of people living in extreme poverty by an additional 50 million.

But when they modelled in equitable redistribution of national carbon price revenues — which would see poorer, and therefore lower-polluting sections of society receive money accrued from richer polluters — they found that this could compensate for the other effects of climate mitigation.

They even found it slightly reduce the number of people living in poverty — about 6 million fewer by 2030.

"Climate policies safeguard people from climate change impacts like extreme weather risks or crop failure," said Bjoern Soergel a PIK researcher and lead author of the study, published in Nature Communications.

"Yet they can also imply increased energy and food prices. This could result in an additional burden especially from the global poor, who are already more vulnerable to climate impacts."

'Climate dividend'

Soergel said that governments could combine emissions prices with international redistribution of the revenues they generated — a sort of "climate dividend".

"The revenues are returned equally to all citizens, which turns poorer households with typically lower emissions into net beneficiaries," he said.

The authors suggested a scheme of international climate finance transfers from high-income to low-income countries to offset the additional burden poorer nations face in seeking to limit climate change.

Just five percent of emission pricing revenues from industrialised nations would be enough to more than compensate for the policy side effects of climate mitigation in Sub-Saharan Africa, according to the study.

"Combining the national redistribution of emission pricing revenues with international financial transfers could thus provide an important entry point towards a fair and just climate policy in developing countries," said co-author Elmar Kriegler.

Top News / World+Biz / Climate Change

climate policy / poverty

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Foreign firm to draft merger plan for investment promotion agencies
    Foreign firm to draft merger plan for investment promotion agencies
  • Bangladesh's growth forecast unchanged: WB report
    Bangladesh's growth forecast unchanged: WB report
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Begging booms in Dhaka while demand for domestic help remains high
  • There will be no street children in society: Disaster Management adviser 
  • Food security worsens as poverty rises in multiple districts: Study
  • Minimum wage in Bangladesh: All talk and no action
  • Madaripur most poverty-stricken district, Noakhali least: BBS

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

12h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

1d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

3d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Greta Thunberg deported from Israel

Greta Thunberg deported from Israel

14h | TBS World
BNP is not a revolutionary party: Mirza Fakhrul

BNP is not a revolutionary party: Mirza Fakhrul

15h | TBS Today
News of The Day, 10 JUNE 2025

News of The Day, 10 JUNE 2025

13h | TBS News of the day
Trump sends 2,000 more National Guard and 700 Marines to Los Angeles

Trump sends 2,000 more National Guard and 700 Marines to Los Angeles

16h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net