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Livelihoods and inequality

Economic damages due to climate change may be severe and there is a chance of disastrous consequences. Severe impacts are expected in South-East Asia and sub-Saharan Africa, where most of the local inhabitants are dependent upon natural and agricultural resources. Heat stress can prevent outdoor labourers from working. If warming reaches 4 °C then labour capacity in those regions could be reduced by 30 to 50%. The World Bank estimates that between 2016 and 2030, climate change could drive over 120 million people into extreme poverty without adaptation.

Inequalities based on wealth and social status have worsened due to climate change. Major difficulties in mitigating, adapting to, and recovering from climate shocks are faced by marginalized people who have less control over resources. Indigenous people, who are subsistent on their land and ecosystems, will face endangerment to their wellness and lifestyles due to climate change. An expert elicitation concluded that the role of climate change in armed conflict has been small compared to factors such as socio-economic inequality and state capabilities.

While women are not inherently more at risk from climate change and shocks, limits on women's resources and discriminatory gender norms constrain their adaptive capacity and resilience. For example, women's work burdens, including hours worked in agriculture, tend to decline less than men's during climate shocks such as heat stress.