Climate Change and the Stern Review - January 2007

Climate Change and the Stern Review - January 2007

The Stern Review analyzed the severe impact of climate change on the economy, warning that an increase in average temperature of up to 5°C by the end of the century would result in losses equivalent to 5% to 20% of GDP. As countermeasures, the report recommended a carbon price, the promotion of low-carbon technologies, and the importance of energy conservation; the EU has set a target of reducing greenhouse gas emissions by 20% by 2030 compared to 1990 levels, and the UK plays a leading role in the emissions trading market. However, as of 2023, economic losses are not as evident as projected, and some projections are considered overstated. Nevertheless, the effects of climate change will continue, and initiatives such as the introduction of renewable energy are required.