FEMISE is proud to launch its latest series of policy briefs, stemming from insightful conference papers presented at the FEMISE annual conference. These briefs are rooted in scientific research and offer actionable political recommendations to address critical challenges in the Euro-Mediterranean region.

The objective if this new series of Policy Briefs is to provide policy makers, international organisers, researchers and stakeholders in the EU-Med region with research-based policy recommendations that: advocate a better EU-Med integration;  promote mobilization of investments towards green transition and sustainable economies; empower young people through innovation and entrepreneurship advocacy; and facilitate a better and more equal integration of youth and women, aiming to create pathways for decent employment.

These Policy Briefs aspire to drive impactful dialogue and action across the EU-Med region.

Context

Climate change and socioeconomic inequality are among the most pressing challenges facing the Mediterranean region today. Rising temperatures, water scarcity, desertification, food insecurity, and increasingly frequent extreme weather events are placing growing pressure on economies and societies across both Southern Europe and North Africa. At the same time, persistent inequalities continue to limit the capacity of vulnerable populations to adapt to these environmental shocks.

While climate change affects all countries, its impacts are unevenly distributed. Low-income households, rural communities, and workers employed in climate-sensitive sectors such as agriculture are often the most exposed to climate-related risks while having the fewest resources to cope with them. As a result, climate change not only threatens economic development but also risks deepening existing social and income inequalities.

Despite growing attention to the economic consequences of climate change, relatively little research has examined how climate vulnerability affects income distribution within countries. This policy brief addresses this gap by investigating the relationship between climate vulnerability and inequality across sixteen Mediterranean countries between 1995 and 2021. Drawing on the Notre Dame Global Adaptation Initiative (ND-GAIN) Vulnerability Index, the study explores how climate risks interact with structural factors such as agricultural employment and institutional quality to shape inequality outcomes across the region.

Summary

This policy brief examines the relationship between climate vulnerability and income inequality in sixteen Mediterranean countries, providing new evidence on how climate change amplifies socioeconomic disparities. Using panel data covering the period 1995–2021 and the ND-GAIN Vulnerability Index, the analysis finds a significant positive relationship between climate vulnerability and income inequality, indicating that climate-related risks disproportionately affect the most vulnerable segments of society.

The findings identify food vulnerability as the most important driver of climate-related inequality. The region’s dependence on agriculture, exposure to climate shocks, and reliance on food imports contribute to rising food insecurity and increased pressure on low-income households. As food prices become more volatile, poorer populations bear a disproportionate share of the economic burden, particularly in North African countries.

The study also highlights the critical role of the agricultural sector in transmitting the effects of climate change to income distribution. Countries with a larger share of agricultural employment experience stronger inequality impacts, as rural workers and farming households are particularly vulnerable to droughts, declining productivity, and other climate-induced disruptions.

Furthermore, the analysis suggests that institutional quality alone is not sufficient to mitigate the inequality effects of climate vulnerability in the countries studied. Weak governance mechanisms, unequal access to resources, and limited support for vulnerable populations can reduce the effectiveness of adaptation policies and exacerbate existing disparities.

To address these challenges, the brief calls for a more inclusive approach to climate policy that places social equity at the center of adaptation and mitigation strategies. Priority actions include strengthening food security systems, supporting climate-resilient agriculture, expanding social protection mechanisms, investing in rural and marginalized communities, promoting participatory climate governance, and ensuring that climate finance incorporates social impact considerations. By integrating climate resilience and social justice objectives, Mediterranean countries can reduce vulnerability, narrow inequality gaps, and build a more sustainable and inclusive future.

Read the full Policy Brief no.20 here.

The opinions and contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of FEMISE, IEMED, ERF or the AECID