News & Views item - October 2006

The Review concludes that markets for low carbon energy products are likely to be worth “at least US$500 billion per year by 2050, and perhaps much more” and recommends that “individual companies and countries should position themselves to take advantage of these opportunities”.

These findings support the arguments that the Corporate Leaders Group, which is made up of fourteen senior executives from some of the UK’s leading businesses, made in their open letter to the Prime Minister in June of this year.

Speaking for the group, James Smith, Chairman of Shell UK said “we are delighted that Sir Nicholas Stern has supported our view that the shift to a low-carbon future has the potential to deliver a range of economic benefits to companies and countries that take the lead in tackling climate change.

“We think that the transition to a low-carbon economy could have a profound impact on British businesses” said Neil Carson, Chief Executive of technology company, Johnson Matthey. “As Stern points out, “the innovation associated with tackling climate change could trigger a new wave of growth and creativity in the global economy”.

The Corporate Leaders Group believe that policy leadership is not only important for the economic opportunities that it will create, but also for helping to catalyse international action on climate change. They believe that convincing other countries – within and beyond the EU – to take action on climate change will require the UK and others to show that they are serious about their commitment to tackling climate change.

They also believe that moving forward on climate change in the UK and elsewhere will require businesses and governments to work together to deliver change.

The Corporate Leaders Group is convened by the University of Cambridge Programme for Industry on behalf of the Prince of Wales’s Business & Environment Programme (BEP).

The combined market capitalization of the companies in the Corporate Leaders Group on Climate Change is over £300 billion. Together they employ over 850,000 people.

The group will meet the Chancellor, Gordon Brown, later in the year to discuss the implications of the Stern Review findings for British businesses and British climate change policy.

John Howard tells MPs not to be mesmerised by Stern report

The Prime Minister has told Coalition MPs not to get mesmerised by the Stern report on the implications of climate change.

The report, commissioned by the British Government, says if countries do not act now the world will face a depression worse than that of the 1930s.

The report also puts the worldwide cost of global warming and its effects at $A9 trillion.

John Howard has told his party room that science shows the globe is getting warmer and the issue has escalated in the public consciousness.

But he says they should not be mesmerised by one report.

Meanwhile the head of one of Australia's largest companies has welcomed the report.

The managing director of the Insurance Australia Group, Michael Hawker, says the report will help business adapt to the challenge of climate change.

He says he supports a carbon emissions tax and the report's findings do not come as a shock.

"I'm not shocked in terms of the change to living standards," he said.

"What I think we didn't have a handle on was on the economic cost.

"I think the impact, the economic impact is startling and one which will drive a lot of behaviour."

The CSIRO says natural icons such as the Great Barrier Reef will still be at risk if the minimum action suggested in the Stern report is taken.

CSIRO research scientist Roger Jones says even if the essential greenhouse reductions nominated by Sir Nicholas are met, there is still an environmental cost.

"We've calculated that there's still a fair risk that some [of] our climate sensitive icons could still suffer significant damage - the Great Barrier Reef, the alpine areas and some of our endemic flors and fauna," he said.

Australian Academy of Science's stern message on climate change report

Let's get on with it now! - that's the message, loud and clear, from Australian Academy of Science President Professor Kurt Lambeck in commenting on the Stern Review of the Economics of Climate Change.

Professor Lambeck says: 'Here's the essential message: climate change is real, global and long term. There is increasing risk of serious irreversible impacts from climate change under a "business as usual"
policy.

'The consequences of climate change threaten the basic elements of life for people around the world, impacting on access to water, food production, health, land use and on the environment, including biodiversity.

'The impact of these scenarios is already coming home to roost - the sad but avoidable spectacle of a dried-up and dusty Darling River, can only become more frequent.

'The Stern Review recognises the global nature of the problem and of the impacts and the need for international solutions. There are successful examples such as the response to ozone depletion, which did lead to international solutions and collaboration.

Professor Lambeck added: 'The report will no doubt stimulate much debate. But its tenets are well founded. The Australian Academy of Science emphasises therefore, that it deserves a considered, immediate and positive response from Federal, State and Territory Governments.'