How to direct the continuing investments that will be necessary in buildings, transport, industrial processes and energy systems towards low carbon technologies?

The evidence gathered by the Stern Review on Climate Change and Economic Cost leads to a simple conclusion: the benefits of strong and early action far outweigh the economic costs of not acting. Climate change will affect the basic elements of life for people around the world – access to water, food production, health, and the environment.

The Review estimates that if we don’t act, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever. In contrast, the cost of action – reducing greenhouse gas emissions to avoid the worst impacts of climate change – can be limited to around 1% of global GDP each year.

If society accepts the findings of the Stern report, rapid action on climate change mitigation is an important response to the risks of climate change. The issue now is not just how much do low carbon technologies cost, but how to direct the continuing investments that will be necessary in buildings, transport, industrial processes and energy systems towards low carbon technologies in ways that will stimulate innovation and reduce these costs, while at the same time reducing greenhouse gas emissions.

In February, the Tyndall Centre for Climate Change hosted a gathering of the world’s experts on low carbon investing, including Robert Watson, chief scientist of the World Bank, and Terry Barker, Director of the Cambridge Centre for Mitigation Research, for a one day workshop to discuss this issue.

Podcasts and powerpoint presentation of the event can be viewed on the Tyndall Centre website