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Low carbon economies
Economic studies have made it very clear that the cost of action against climate change now is small while the cost of doing nothing is very great.
The Stern Review estimated the social, environmental and economic impact of not taking immediate action on climate change to be the equivalent to losing between 5% and 20% of global GDP each year. Agreeing collectively to act now, and pursuing the right courses of action to mitigate climate change and adapt to its demands, reduces that figure to 1-2% of global GDP by 2050.
The 'costs' of taking action can also present huge economic opportunities. Globally, it is estimated that 'clean tech' industries will be worth $700 billion by 2010. That is equal to the value of the global aerospace industry. Countries and companies which invest now in low carbon approaches will reap the benefits in the long term, as demands for these goods and services will only increase.
There are also short term jobs and growth opportunities through 'smart' investments in energy efficiency and low carbon infrastructure. Some countries have already started. That is why huge investments are going into wind turbines, carbon capture and storage, and electric vehicles.
The low carbon economy is, and will continue to be, a source of UK employment, innovation and wealth-generation. The UK's environmental goods and services sector already has an annual turnover of around £25 billion and employs around 400,000 people.
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