Sir Stern to review the economics of climate change

The Chancellor announced on July 19 2005 that he had asked Sir
Nicholas Stern to lead a major review of the economics of climate change, to understand more comprehensively the nature of the economic challenges and how they can be met, in the UK and globally.

The Terms of Reference for the review have now been announced and are annexed to this Press Notice. A call for evidence has also been issued. The review will be taken forward jointly by the Cabinet Office and HM Treasury, and will report to the Prime Minister and Chancellor by Autumn 2006.

It takes place within the context of existing national and international climate change policy. The announcement of this review is a further demonstration of the importance which this Government attaches to the issue of climate change, and follows its decision to make climate change a priority for the UK Presidencies of the G8 and EU.

Sir Stern is head of the government economic service, and has also been appointed today as adviser to the Government on the economics of climate change and development.

Sir Stern says: “I am delighted to be taking on the challenge of conducting this review of the economics of climate change. Climate change is one of the most serious issues facing the world in the 21st century.

In order to tackle it whilst also promoting a dynamic, equitable and sustainable global economy, we will need to have a deep understanding of the economics of this complex problem. That is what I hope this Review can achieve”

Sir Stern is today asking interested stakeholders in the UK and the rest of the world, including academic, private sector, scientific, NGO and other experts, to submit evidence to the Review.

Evidence on all areas relevant to the Terms of Reference will be welcomed. The deadline for evidence to be submitted is December 9 2005.