Intergenerational equity
Intergenerational equity is a principle that emphasizes the moral obligation of the current generation to ensure that future generations have the same opportunities and resources available to them as the present generation. Rooted in the United Nations Framework Convention on Climate Change, this concept gained prominence through the Brundtland Report, which advocates for sustainable development that does not compromise future needs. The Declaration of Rio further frames this principle within a rights-based context, underscoring the importance of meeting both current and future development and environmental needs.
The implications of intergenerational equity are particularly significant in the context of climate change policymaking, as it raises crucial questions about balancing the interests of today’s population against those of future generations. Economists often employ discounting factors to analyze the costs and benefits of climate-related policies, highlighting the potential consequences of inaction. However, challenges persist, such as the uncertainty surrounding climate change impacts and the varying capacities of nations to address both current and future needs. The principle also reveals tensions between fulfilling immediate needs and preparing for future challenges, as well as questions about the influence that present generations exert over the lives of those yet to come.
Intergenerational equity
Definition
The principle of intergenerational equity is strongly embedded in the United Nations (UN) Framework Convention on Climate Change. Historically, it owes its recognition to the Brundtland Report, Our Common Future (1987), which popularized the principle of “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” The Declaration of Rio on Environment and Development (1992) adds a rights-based perspective to the principle, suggesting that “the right to development must be fulfilled to equitably meet development and environmental needs of present and future generations.”
Significance for Climate Change
The moral concerns over intergenerational equity have strong implications for climate-change-related policymaking. The concept of intergenerational equity acknowledges the obligations of present generations in protecting the opportunities of future generations, as well as the rights of future generations in enjoying the same level of opportunities and stocks of assets. This concept raises questions about how the interests of current generations are weighed against those of future generations, and about the costs of inaction. Economists use discounting factors to address climate change by attempting to weigh the costs and benefits of alternative policies to different generations. The Stern Review, a report released by the British government in 2006, uses a similar approach to calculate optimal policy response and to highlight the consequences of inaction for future damage.
The concept of intergenerational equity is not without problems. It is hard to know the precise magnitude and distribution of the effects of climate change because of scientific uncertainty, as well as limited current knowledge about the future aspirations of particular societies. For instance, it is not clear how evenly the impact of climate change would be distributed over successive future generations. There is potential conflict between intragenerational and intergenerational needs. If current needs have not been met, this creates a dilemma about whether there is an obligation to meet future needs. Furthermore, countries have different capacities in meeting present and future needs. There are doubts about the reliability of discount rates. Research shows that unless the discount rate is very low, the benefits of climate change mitigation policies in future centuries are almost worthless in present value terms. There is also an implicit asymmetrical power in the concept. While current generations can influence how future generations live, future generations cannot exercise such an influence on presently living people.
"Duties to the Future Through an Intergenerational Equity Lens." United Nations, 13 Feb. 2023, unsceb.org/sites/default/files/2023-02/HLCP%20Duties%20to%20the%20Future%20discussion%20paper%20%28public%29.pdf. Accessed 13 Dec. 2024.
Rittereiser, Cathleen M. "How Can Trustees Achieve Intergenerational Equity in the Face of Rising Costs?" Commonfund, 2 Apr. 2020, www.commonfund.org/research-center/articles/intergenerational-equity-in-the-face-of-rising-costs. Accessed 13 Dec. 2024.
Suttles, George. "Intergenerational Equity and Sustainable Investing." Commonfund, 24 Apr. 2020, www.commonfund.org/research-center/articles/intergenerational-equity-sustainable-investing. Accessed 13 Dec. 2024.