I am sure you have noticed that there have been quite a few new reports coming out lately about climate change and the possible catastrophic consequences of inaction. A new British report from a renowned British economist warns that the financial costs of NOT doing anything now will be far greater than taking action. In the next 50 years the world economy could lose 3.5 trillion dollars if we keep our pollution levels as they are. In comparison, the costs of doing something about it now is “only” 200 billion dollars. Smart businesses and governments will be active in the fight against climate change. Britain wants to limit greenhouse gases by Europe and other rich nations. It feels that a post-Kyoto agreement is needed to get the biggest polluter (the US) on board. The latter also depends on what kind of government takes charge after G.W. Bush leaves. His government has refused to back the Kyoto treaty arguing the costs to the US economy would be too high.
Failure to act over climate change could lead to upheavals on a scale of the two world wars or the Great Depression, a major British report warns on Monday.
Compiled by the government’s chief economist Sir Nicholas Stern, it says the benefits of determined worldwide steps to tackle global warming will massively outweigh the costs.
Without drastic action, climate change could shrink the global economy by up to a fifth over the coming half-century, at a cost of over $3.5 trillion (1.8 trillion pounds), it estimates. Reducing emissions now, however, would cost under $200 billion.
“The risks are very big and unless we act soon to reduce those risks they will become very difficult to deal with,” Stern told BBC radio on Monday. “And unless this is international, we will not make the reductions on the scale that is required.”
Britain wants tighter limits on greenhouse gases by Europe and other rich countries as a first step towards establishing a global carbon trading system to avoid the economic upheaval of climate change.
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