Stern review

The Stern Review on the Economics of Climate Change, issued in 2006, was based on Met Office Hadley Centre scientific research.

The review focused on the impacts and risks arising from climate change, the costs and opportunities associated with tackling it, and the national and international policy challenge of moving to a low-carbon global economy.

Led by Prof. Sir Nicholas Stern (Head of the Government Economic Service and former World Bank Chief Economist) it was the most comprehensive review ever undertaken on the economics of climate change.

There is real potential in terms of what relevant climate research can do. The UK is one of the leaders the field of climate research, with the Met Office at the helm. We have some of the best climate scientists in the world.

Much more work is needed if we are to fully answer the questions that policymakers and the public are now asking about adaptation to, and mitigation of, climate change.

With current scientific understanding, climate scientists could usefully use several thousand times the computing capability that is presently in operation.

The decision about how much supercomputing to use is limited by technical feasibility and affordability. However, the potential costs of climate change are several orders of magnitude larger than the costs of improving climate projections.

Findings

• The overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever
• All countries will be affected
• The costs of extreme weather, including floods, droughts and storms, are already rising, including for rich countries
• The benefits of strong and early action far outweigh the economic costs of not acting