Our planet is warming up at a record rate. Scientists believe that the climate is warming up as a consequence of the increase in greenhouse gases. Studies have also shown that there is a link between climate change and inequality. Yet, the global economy continues to be overly dependent on fossil fuels—oil, natural gas, and coal—which are by far the largest contributor to global warming. What does all this say about current climate policies and the goal of achieving carbon neutrality by 2050? And how do we address the twin challenges of inequality and climate change?

In the interview that follows, progressive political economist James K. Boyce sheds light on the above questions. James K. Boyce is a senior fellow at the Political Economy Research Institute at the University of Massachusetts Amherst, and recipient of the inaugural Global Inequality Research Award. He is the author, among many other works, of The Case for Carbon Dividends and Economics for People and the Planet: Inequality in the Era of Climate Change.

C. J. Polychroniou: Over the past several years, climate records have been repeatedly broken. Last year was the planet’s hottest by a huge margin since global records began in 1850, and 2024 is on course to break that record again. Are climate policies designed to reduce greenhouse gas emissions working, especially when we have wars going on that contribute significantly to climate change? Indeed, with everything going on, which includes increased demand for oil, is it at this point even realistic to expect that we can achieve climate neutrality by 2050?

James K. Boyce: You’re right, it’s getting hotter year by year. This is no surprise: it’s exactly what we can expect until the world reaches climate neutrality (net-zero emissions of greenhouse gases). Some climate policies are working better than others—it is not as if nothing is happening. Renewable energy from solar and wind has become cost-competitive more quickly than most people expected. But we are not on track to achieve climate neutrality by 2050. To do so we would need to phase out the use of oil, natural gas, and coal. Instead, global consumption of all three fossil fuels is at an all-time high.

You are right, too, that wars exacerbate the problem. They distract attention and resources from addressing the climate crisis, and they add to greenhouse gas emissions. In just the first two months of the war in Gaza, for example, carbon emissions (mostly from Israeli warplanes and U.S. weaponry supply flights) exceeded the annual emissions of 20 countries, according to a team of U.K. researchers. Postwar reconstruction, once this latest round of bloodshed ends, is likely to release much more.

You ask whether it is “realistic” to expect that we can achieve climate neutrality by 2050? Obviously not if we continue on this path.

Each ton of carbon is more harmful than the one that came before.

Yet it is realistic to say that it is possible to achieve it. There is no technical reason it cannot be done: the obstacles are political. To do it, each country would need to set a hard ceiling on the quantity of fossil fuels entering its economy, a cap that declines year-by-year on a path to net zero. Restrictions on the supply of fossil fuels would raise their price—possibly a lot. But instead of the money going to into the bank accounts of oil producers, as happens when OPEC and oligopolistic corporations restrict their output to boost prices, the money could go directly back to the public on an equal per person basis with a cap-and-dividend system. This would maintain the real incomes of working people in the face of rising fuel prices, and it would make a modest contribution to addressing the other great challenge of our time, curbing rampant inequality.

I wish I could tell you this will happen sooner rather than later. But the political stars do not seem to be favorably aligned at this moment. That said, the climate crisis is not going to disappear. Pretending it’s not real doesn’t make it any less real. It will keep worsening unless and until we achieve climate neutrality.

Think about that: it will keep getting worse. Climate change is not like a cliff, where once we fall off the edge it is too late to do anything. Instead, it is a cascade of damages, with costs that grow exponentially over time. To proclaim that before long it will be “too late” to do anything about it would be irresponsible and misleading. Each ton of carbon is more harmful than the one that came before. Each day we delay, the need for action becomes more urgent, not less.

C. J. Polychroniou: There is a global backlash on climate action. The pushback against climate policies comes from the fossil fuel industry and major corporations, Europe’s far right, and the Republican Party in the U.S. But this wrecking-ball strategy seems, unfortunately, to be paying off as we still lack sufficient public and political will for bold climate action. Could things be different if plans to combat climate change effectively addressed environmental and social concerns? Indeed, where do things stand with regard to just transition and environmental justice?

James K. Boyce: Denial of the reality of climate change was the first line of defense of the fossil fuel lobby. But this could work for only so long. As the results of climate destabilization become ever more apparent, denial becomes ever more untenable. Of course, there are some who will cling to it. There are still people who insist the world is flat. But most people cannot be persuaded to keep their heads in the sand most of the time.

So today the industry has fallen back on its second line of defense: the claim that cost of moving away from fossil fuels would be unacceptably high, undermining the living standards of working people at home and abroad. The distinguished economist John Kenneth Galbraith anticipated this tactic more than 50 years ago. In his 1972 presidential address to the American Economics Association, he observed that in pursuit of private profits, corporations seek to persuade the public that pollution is “palatable or worth the cost.”

The claim that ordinary people must “tighten their belts” and endure sacrifices to save the planet appeals to a finger-wagging element in the environmental movement, but it is antithetical to building the broad public support we need for climate action.

It is an open question how the costs of the transition to a net-zero economy will be distributed across the population. This is a policy choice rather than a foregone conclusion. With the right policies, the clean energy transition can raise living standards for working people rather than lowering them. What is certain is that climate change, left unchecked, poses a grave threat to human well-being, above all to the well-being of working people who cannot afford to buy private shelter from the approaching storm.

The groundwork for this line of defense was prepared when oil corporations launched a concerted effort to shift the blame for the climate crisis onto consumers. It is a twist on the classic scoundrel’s stratagem of blaming the victim. Two decades ago, BP (the former British Petroleum) propagated the notion of individual “carbon footprints,”........

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