FoE: Climate change will cost trillions...Shell: low carbon business could be worth £30bn
Sat 14 October 2006
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A new report by a leading US university for Friends of the Earth says that the cost of allowing global temperatures to increase by two degrees or more above pre-industrial levels will run into trillions of pounds and that the environmental and social costs will be incalculable. Meanwhile, a report commissioned by Shell Springboard shows that tackling climate change could create a market of up to £30bn for British business over the next ten years.
The FoE-published report - Climate Change; the Costs of Inaction - by the Global Development and Environment Institute at Tufts University was based on a survey of over one hundred economic and scientific papers on climate change.
The survey highlights the enormous costs that would result if temperatures rise by more than two degrees. For example, it is estimated that annual economic damage could reach £11 trillion by 2100, equivalent to 6-8% of global economic output at that time.
FoE says, however, that even this figure is likely to be an underestimate as it does not include the costs of biodiversity loss or of unpredictable events such as the collapse of the Gulf Stream.
The true costs of climate change are, according to Tufts University economists, incalculable.
The Shell Springboard research, carried out by independent consultancy Vivid Economics, is the first attempt to quantify the potential size of the market for businesses that develop technologies, products and services that help combat climate change. The report focuses on small and medium-size businesses (SMEs) who are already capitalising on opportunities in the new 'green' markets.
The research identifies major opportunities for SMEs in a wide range of markets, by both responding to consumer demand for environmentally friendly goods and to demands created by government action. It highlights, in particular, a growth in markets for renewable road transport fuels, renewable electricity and 'greener', energy efficient buildings in the industrial, commercial and domestic sectors.
James Smith, Chairman of Shell UK, said: “For business, tackling climate change is both a necessity and a huge opportunity. This creates a huge new opportunity for British business nationally and internationally. We have to step up to the challenge. Our small businesses and the scientific depth in our universities are going to be vital contributors.”
The FoE and Shell Springboard reports are released shortly before the expected publication of the Stern Report which will present the Government's views on the economic issues associated with climate change.
Related Links
Shell Springboard press release link
Shell Springboard report download (30 pages)
Friends of the Earth press release link
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