Economy
‘Stern 2.0’ review to look at costs and benefits of tackling climate change
The Global Commission on the Economy and Climate is set to review the economic costs of climate change. It is expected that the project will build on the 2006 review by Lord Stern, who will also work on the new project.
Lord Stern said, “At a time when governments throughout the world are struggling to boost growth, increase access to energy, and improve food security, it is essential that the full costs and benefits of climate policies are more clearly understood.
“It cannot be a case of either achieving growth or tackling global warming. It must be both.”
The project will engage directly with key decisions makers in finance ministries and with major businesses and investors, including leading economic organisations, such as the World Bank and International Monetary Fund.
The New Climate Economy project will be published in September 2014, a year before the culmination of negotiation for a new international climate agreement in Paris in 2015.
Felip Calderón, commission chair and former president of Mexico, said, “Climate impacts are rising and the evidence of warming is increasingly clear, but most economic analysis still does not properly factor in the increasing risks of climate change or the potential benefits of acting on it.
“We need urgently to identify how we can achieve economic growth and job creation while also reducing emissions and tackling climate change.”
Lord Stern’s 2006 report concluded that the benefits of strong, early action on climate change far outweigh the costs. It also looked at the potential impact climate change could have on water resources, food production, health and the environment.
At the beginning of this year, Stern admitted he underestimated climate change in his review, saying the effects were “coming through more quickly than we thought”.
Further reading:
Stern admits to underestimating climate change in 2006 review
Stark warning from experts on the consequences of climate change
Lord Stern challenges people to move to a low carbon economy
Report says investing in fossil fuels is a ‘very risk decision’