Ambitious climate policies could help to reduce extreme poverty in developing countries. This is the result of a new study by scientists of the Potsdam Institute for Climate Impact Research (PIK)—a result that is in contrast to wide-spread assumptions that climate change mitigation comes with a trade-off for poverty reduction. To turn climate policies and poverty reduction into a win-win situation for planet and people, a progressive redistribution of emission pricing revenues and a fair international burden sharing are key.