money & economicsanalysisLSE British Politics and Policy2006 · London, England
The Stern Review said acting on climate is cheaper than not acting
Twenty years ago, the Stern Review on the economics of climate change reached a conclusion that surprised many: cutting greenhouse gas emissions would cost far less than living with the consequences of rising emissions. Launched in 2006 at the Royal Society with Tony Blair and Gordon Brown, it estimated that unchecked climate change could cost at least 5 percent of global output a year, against about 1 percent for action. Two decades later, renewable energy is cheaper and evidence on damage has grown, yet governments are still held back by political blockages, short election cycles and the problem of acting before costs are visible.
The Stern Review changed the debate from 'can we afford to act?' to 'can we afford not to?', and its lessons remain central to ongoing climate talks.
Nicholas Stern called climate change 'the greatest market failure the world has seen'.
LSE British Politics and Policy · CC BY 4.0
