Counting the costs of climate change (03/11/06)

The UK’s HM Treasury has published a report warning that global warming could shrink the global economy by 20 per cent.

The Stern Review ― commissioned by Chancellor Gordon Brown in July 2005 and carried out by Sir Nicholas Stern, the head of the Government Economic Service ― calls for drastic action to limit future damage to the world’s economy.

Urgent situation
The review calculates that the dangers of not dealing with climate change would be equivalent to at least five per cent of GDP each year.

However, taking steps to avoid the worst impacts of climate change could limit the damage to around one per cent of global GDP each year.

Most comprehensive review ever
The report, which has been described as "the most comprehensive review ever", tackles a number of issues, including the impact and risks that will occur from uncontrolled climate change and the costs associated with tackling the situation.

The national and international policy challenges of moving to a low-carbon global economy are also explored in the review.

The report suggests that the way forward is taking a global policy response to include future international frameworks like emissions trading and development policy to assist poor countries, which are more vulnerable to the effects of climate change.

Act now and act internationally
Commenting on the review, Sir Nicholas said: "There is still time to avoid the worst impacts of climate change, if we act now and act internationally. Governments, businesses and individuals all need to work together to respond to the challenge.

"Strong, deliberate policy choices by governments are essential to motivate change. But the task is urgent. Delaying action, even by a decade or two, will take us into dangerous territory."

A turning point
The scientific world also echoed the urgency of tackling climate change, in response to what was outlined in the Review.

Martin Rees, president of the Royal Society — the national academy of science of the UK and the Commonwealth — said: "This should be a turning point in a debate which has pitted short term economic interests against long term costs to the environment, society and the economy.

"We must accelerate the development of carbon free energy sources, increase our investment in innovative technologies and improve the efficiency with which we use energy in industry, in business, and individually through our lifestyle choices."

Stop climate chaos
The UK Government's attempts to challenge climate change have been echoed by the British public.

For example, thousands of people are estimated to turn up to the Stop Climate Chaos I Count event in London's Trafalgar Square on 4 November, which will include guest speakers, like singer KT Tunstall.

Biggest climate change event
"This is going to be the biggest climate change event this year and an opportunity for all of us who care to stand up and be counted," says Ashok Sinha, the Stop Climate Chaos director.