The COVID-19 crisis has amplified the urgency of addressing together the dual challenges
of inequality and environmental degradation. This paper contributes to the debate
on the inequalities-environment nexus by analysing the consequences of the environmental
degradation and of environmental policies on four well-being dimensions: health, income
and wealth, work and job quality, and safety. The analysis shows that the impacts
of environmental degradation tends to be concentrated among vulnerable groups and
households. At the same, the benefits and costs of environmental policies are also
likely to be unevenly distributed across households. In this context, policy packages
for an inclusive green transition should aim at: (i) mitigating the possible regressive
impact of pricing environmental externalities, (ii) investing in human capital and
upgrading skills to facilitate labour reallocation, (iii) addressing systemic inequalities
with sectoral and place-based policies, (iv) ensuring efficient and responsive governance.
The paper concludes by highlighting the need for an effective framework to measure
progress towards a people-centred green recovery, and possible areas of future work.