Former Head Of World Bank Identifies Costs of Climate Change

Sir Nicholas Stern was commissioned to write a landmark report on climate change, amid growing fears about the human and economic cost of global warming. Stern, an internationally regarded economist, spent more than a year examining the complex problem. The conclusions: climate change is fundamentally altering the planet; the risks of inaction are high; and time is running out.

Out of this enormously complex report comes a simple conclusion: human activity has raised the amount of the key greenhouse gas carbon dioxide (CO2) in the atmosphere.

Stern uses the standard scientific measure to show how the amount has risen from 280 parts per million (ppm) before the industrial revolution to 430ppm now. The gas traps heat and has caused the Earth to warm by more than half a degree, with a further half degree at least to come over the next few decades.

If carbon emissions continue as they are, the level will reach 550ppm by 2050 or sooner. Scientists believe this will drive global average temperatures to two degrees Celsius above pre-industrial levels. It could also release natural stocks of carbon from the soil or permafrost, making the situation worse.

Summary

Carbon emissions have already increased global temperatures by more than 0,5 degrees Celsius.

With no action to cut greenhouse gases, we will warm the planet another two to three degrees Celsius within 50 years.

Temperature rise will transform the physical geography of the planet and the way we live.

Floods, disease, storms and water shortages will become more frequent.

The poorest countries will suffer earliest and most.

The effects of climate change could cost the world 5% to 20% of GDP.

Action to reduce greenhouse gas emissions and the worst of global warming would cost 1% of GDP.

With no action, each ton of carbon dioxide will cause at least $85 of damage.

Levels of carbon dioxide in the atmosphere should be limited to the equivalent of 450 to 550 parts per million.

Action should include carbon pricing, new technology and robust international agreements.

More Read the Stern Review on the economics of climate change