London (January 2, 2007)- Commissioned by the United Kingdom’s economics and finance ministry, the Stern Review is an independent report assessing the evidence and building understanding of the economics of climate change.
The Review first examines the evidence on the economic impacts of climate change itself, and explores the economics of stabilizing greenhouse gases in the atmosphere. The second half of the Review considers the policy challenges involved in managing the transition to a low-carbon economy and in ensuring that societies can adapt to the consequences of climate change.
Greenhouse-gas emissions can be cut in four ways. Costs will differ considerably depending on which combination of these methods is used, and in which sector:
* Reducing demand for emissions-intensive goods and services
* Increased efficiency, which can save both money and emissions
* Action on non-energy emissions, such as avoiding deforestation
* Switching to lower-carbon technologies for power, heat and transport
Non-energy emissions make up one-third of total greenhouse-gas emissions, with emissions from deforestation estimated at more than 18% of global emissions (a share greater than is produced by the global transport sector).
The loss of natural forests around the world contributes more to global emissions each year than the transport sector. Curbing deforestation is a highly cost-effective way to reduce emissions; largescale international pilot programs to explore the best ways to do this could get underway very quickly.
Stern Review- Executive Summary
Stern Review on the Economics of Climate Change