Estimates of the economic costs of climate change rising rapidly

Creative Commons: Oxford International

A new study by the International Institute for Environment and Development and the Grantham Institute for Climate Change at the Imperial College of London has revised estimates of the economic costs of climate change dramatically, to over $450 billion dollars a year.

The IIED study built upon earlier work, including the Stern Review on the Economics of Climate Change and other landmark analyses. Professor Martin Parry, a former co-chair of the Intergovernmental Panel on Climate Change, said the earlier estimate missed out key sectors such as energy, manufacturing, retailing, mining and tourism. He said, Just looking in depth at the sectors the UNFCCC did study, we estimate adaptation costs to be two to three higher, and when you include the sectors the UNFCCC left out the true cost is probably much greater.

The new report still does not yet include the costs of human migrations and refugees, so costs may still be revised upwards again. (Read more in the Telegraph).

The study shows that the economic costs of climate change could be so prohibitive that the transition to a clean energy future needs to occur before climate impacts drain the global economy of the ability to invest in the future. The Stern Review laid out the economic argument for strong, rapid action on climate change, stating: “the benefits of strong, early action considerably outweigh the costs.”

Prof. Parry unveiled these figures 100 days before the start of the Copenhagen Climate Negotiations, where countries will forge a new global climate treaty. The estimates by the IIED should add extra weight to the efforts by civil society to call for a fair, ambitious, and binding climate agreement.

TckTckTck partner Oxfam International staged an action at the London Aquarium to draw attention to the Copenhagen climate talks and the costs of inaction. Barbara Stocking, Chief Executive of Oxfam, said the photograph featured above of an ordinary family under the water illustrates the risk of sea level rise if nothing is done to stop global warming.

This light-hearted photo sends a very serious message it is time for politicians to act in Copenhagen if we are to avoid catastrophic climate change. Today the poorest people are being hit hard by extreme weather events and other climate shocks, it is for their sake that we must push for a fair deal in Copenhagen,” she said.

Tags: Copenhagen, Oxfam, Renewable Energy, Tck Partners

Category: Issues, News