The conclusion of the review is essentially optimistic. It argues that there is still time to avoid the worst impacts of climate change if action is taken internationally and immediately.
The review calculates that the dangers of unabated climate change would be equivalent to at least 5% of GDP each year, and could possibly rise to 20% of GDP if more recent scientific and economic data predictions are correct.
In contrast, the review calculates that to avoid the worst impacts of climate change the costs of stabilisation at 500-550ppm CO2e could be limited to around 1% of global GDP each year. However, stabilising at or below 550ppm CO2e would require global emissions to peak in the next 10 - 20 years, and then fall at a rate of at least 1 - 3% per year.
Delaying emissions cuts would require that emissions be reduced more rapidly to achieve the same stabilisation goal. While theoretically it might be possible to “overshoot” stabilisation levels and then drastically reduce atmospheric greenhouse gas concentrations the review considers such action very difficult and very unwise. It also questions whether in reality such action is actually feasible.
In order to address the problems associated with climate change the Review argues that a global policy response, guided by a common international framework for co-operation, is necessary.
It states that key elements of future international frameworks should include: expanding and linking the growing number of emissions trading schemes around the world; improving R&D of low carbon technologies; reducing global deforestation; informing and protecting the poorest countries most susceptible to the effects of climate change.
The review has won widespread support from the various UK political parties and from Non-Governmental Organisations. EEF generally supports the publication of the Stern Review and is keen to work with government to ensure that any policy aspirations to reduce CO2 can be realized.
It is critical that we are engaged in this process to ensure that schemes are well designed, secure international participation and reward efficient plant performance rather than penalize increased production.
EEF has also stressed that all sectors of society must now play their part in tackling climate change, and the review must not be used as an excuse for the introduction of more punitive taxes on industry.
The Stern Review report can be found here on the Treasury website.