The Stern Review

The Stern Review:The Economics of Climate Chnage was published in 2006. Commissioned by the then Prime Minister Tony Blair, this 700-page report by Lord Nicholas Stern who was formerly Chief Economist at the World Bank has been highly influential in the climate change debate. In particular, it explains the economic value of tackling this global problem now.

For example, to keep emissions under 550 parts per million in the atmosphere and therefore limiting global warming to 2-3 degrees Celsius, it is estimated that the annual cost would be around 1% of GDP by 2050. If emissions were allowed to rise unchecked and temperatures rise unabated, this cost would be 5-20%. Conservative estimates by the UK Met Office indicate that without changes to business as usual, global temperatures are projected to rise 4 degrees Celsius within the century. So there is a strong economic rationale to take early action to reduce Greenhouse Gas emissions.

Stern Review  - full report on the HM Treasury website