1% GDP could stabilise carbon emissions

Summary

In this independent report commissioned by the Treasury, ‘The Stern Review on the Economics of Climate Change’, Sir Nicholas Stern, former chief economist of the World Bank, describes the urgent need for action on climate change.

Examining the likely environmental and economic impacts, the Stern Review highlights the fact that, while it would take around 1% of GDP to stabilise carbon emissions at manageable levels, not acting on climate change could reduce global GDP by up to 1%.

Proposals for the Government response include:

Creation of a carbon pricing market
Legislation to provide for carbon reduction targets
Extension of the European Emissions Trading Scheme (EETS) to the US, India and China
Creation of new EETS targets of 30% reduction by 2020 and 60% by 2050
Creation of a fund to assist developing counties in addressing climate change.

Law-Making Explained

This is one of a series of supporting documents accompanying the 'Pre-Budget Report 2006 - Cm 6984' . It is an ad-hoc independent review commissioned by the Treasury.

How does it affect me?

This report addresses carbon emissions, which contribute to global warming and climate change and therefore affects us all.

Read more on climate change and how it affects us on Direct.gov.

Read more on the background to the Stern Review. The formal deadline for submitting evidence has now passed - however, the Review team will endeavour, where possible, to consider material received via the contact details listed below:

Stern Review
2nd Floor,
Room 35/36
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Email: callforevidence@sternreview.org.uk.

See a list of current independent Treasury reviews.