Stern Review concludes world must act on climate change
Mon 30 October 2006
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The costs of dealing with the impacts of climate change will be much greater than the costs of acting now to avert its worst effects according to the Stern Review, a major report commissioned by the UK Government.
The Review, produced by a team of economists led by the former World Bank Chief Economist Sir Nicholas Stern, says that if swift actions are not taken to mitigate climate change there could be truly enormous costs resulting from world-wide recession, mass migration and social upheaval.
Stern's analysis concludes that the worst impacts of climate change could be avoided at a cost of 1% of global GDP per year by 2050 if action is taken now.
On the other hand, if greenhouse gas emissions continue increasing at their present rate, the cost could be 5-20% of GDP per year "now and forever".
The Review concludes: "Delaying action, even by a decade or two, will take us into dangerous territory."
The Review's conclusions triggered immediate calls for stronger, more urgent actions to combat climate change from all around the World.
The Stern Review says that strong policy signals are needed to encourage the uptake of existing low carbon technologies.
The report identifies three key policies to tackle rising emissions: First, carbon must have an effective 'price' through either emissions trading, tax or regulation. Second, there must be policy support for low-carbon technologies (which could prove to be worth at least US$500bn by 2050) and, third, the barriers to energy efficiency improvements must be removed.
An international consensus on long-term goals and a global framework for action is also needed, the report concludes.
Launching the study - which was commissioned by HM Treasury -Tony Blair said the world was facing "nothing more serious, more urgent, or more demanding of leadership" than climate change.
Related Links
Stern Review - HM Treasury download links
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