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Stern Review on the economics of climate change
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Stern Review on the economics of climate change

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The Stern Review was announced by the Chancellor of the Exchequer in July 2005. The Review set out to provide a report to the Prime Minister and Chancellor by Autumn 2006 assessing the nature of the economic challenges of climate change and how they can be met, both in the UK and globally.

The Stern Review on the Economics of Climate Change, the most comprehensive review ever carried out on the economics of climate change, was published on October 30 2006 and was lead by Lord Stern, the then Head of the Government Economic Service and former World Bank Chief Economist.

Lord Stern stepped down as Head of the Government Economic Service in March 2007 to take up the IG Patel Professorship at the London School of Economics and Political Science (LSE). Nicholas Stern became Lord Stern of Brentford in December 2007, when he was appointed to the House of Lords as a non-party-political peer.

The Stern team, based at the Department of Energy and Climate Change, work closely with Lord Stern to develop further analysis on the economics of climate change, disseminate the Review's analysis and findings and provide advice to other countries and regions that are planning similar work.

The Stern Team organised the US Symposium which was held in Washington DC on the 3rd March 2009. Academics, CEOs of large US corporations, cross party Senators, and staffers attended, with a view to gaining a global economic perspective on U.S climate change action.

The event was sponsored by the World Resources Institute, the Peterson Institute for International Economics, the Centre for Global Development, the Grantham Research Institute on Climate Change & the Environment, and with assistance from CISCO and The Climate Group. This was the first time anything of this magnitude had been held on Capitol Hill, and with bi-partisan support. Co-sponsorship was provided from four US Senators, and Mr Todd Stern (US Special Envoy for Climate Change, US Dept of State) attended as a keynote speaker. Lord Nicholas Stern chaired several sessions with other notable speakers including Tony Blair, who chaired the closed door session and press conference, Connie Hedegaard; Danish minister for climate and energy and Ed Milliband.

The report estimated that climate change would cost at least 5 percent of global GDP annually, now and forever. The worst case scenario would be 20 percent a year ($7 trillion). The Stern Review was the first of many reports that tried to put climate change under an economic perspective. The UN Framework Convention for Climate Change suggests that climate change could cost between $70 to $100 billion by 2030, that's the cost of 3 Beijing Olympics.











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