Bringing science and development together through news and analysis

The Economics of Climate Change

This independent review, commissioned by the UK chancellor of the exchequer, examines the economic impacts of climate change, the economics of stabilising greenhouse gas emissions and considers policymaker's challenges in adapting to climate change and moving towards a low-carbon economy.

The review uses scientific evidence to highlight the risk of irreversible climate change impacts in normal emission scenarios. Evidence of threats to the basic elements of life around the world, including access to water, food production and health are presented, with poorest countries projected to suffer the most.

The review also shows that, left unabated, climate change will damage economic growth. Mitigating climate change effects must be seen as an investment. Moving towards a low-carbon economy may have a significant cost and challenge competitiveness, but it will also bring opportunities for growth.

In discussing the policy challenges for reducing emissions, the review emphasises the need for strong international cooperation and collective action. Climate change policy, says the author, will need to focus on carbon pricing, low-carbon technology, and the removal of barriers to behavioural change across the world. Developing countries in particular will need carbon finance to support emission reductions and curb deforestation, as well as international aid to implement adaptation efforts.

{{LINK_LABEL_GO_TO_DOCUMENT}}