The Stern Review on the Economics of Climate Change, by former World Bank chief economist, Sir Nicholas Stern, was commissioned by the UK government in July 2005. Released on 30 October, 2006,  the review examines the economic, social and environmental impacts of climate change.

The 700-page review focuses on the economic consequences of global warming, concluding that inaction could cost the world more than $9 trillion.

"If we don't take global action... we will be faced with the kind of downturn that has not been seen since the Great Depression and the two world wars."

Chief UK scientist, David King

The small cost of urgent action

The Stern Review directly contradicts the Australian government's line on climate change: that taking action will damage the economy.

The Stern Review found that not taking action will devastate global economies.

The review also assesses the costs and benefits of actions to reduce global greenhouse gas emissions. In an interview prior to the review's release, Chief UK scientist, David King, said the review indicates that "if we don't take global action... we will be faced with the kind ofdownturn that has not been seen since the Great Depression and the two world wars".

He described the Stern Review as the most detailed economic analysis that has been conducted and said it would "surprise many people in terms of the relatively small cost of action".

The review warns that the problem is so urgent that a successor to the Kyoto Protocol must be signed next year, not in 2010 or 2011 as planned.

Read the Stern Review summary of conclusions

Solutions for Australia

Australian Minister for Industry, Tourism and Resources, Ian Macfarlane, was briefed on the outcome of the Stern Review by its author in Mexico recently.

Greenpeace campaigns manager, Danny Kennedy, says, "Ian Macfarlane’s credibility is on the line here. This report says the exact opposite to what he has been saying during his entire time as resources minister.

"The government is going to have to do more than a small u-turn on solar. It will need to start the big u-turn away from coal for domestic energy and exports.

"Touting nuclear energy and clean coal technology as the silver bullets for climate change is morally wrong and irresponsible. These are not solutions to climate change because action needs to be taken right now - 10-15 years' time is just too late. We have solutions in wind, solar and biomass, which can provide base load power.

"If Macfarlane wants to gain some credibility as resources minister, he will need to demonstrate how Australia will switch to renewable energy, set strong targets to reduce emissions, and repair our pariah status on climate change with the international community."

Related reports

The Great Opportunity: 25% Renewable Energy for NSW

Solar Generation 2006 (3rd edition)

Global Wind Energy Outlook 2006

Read the Greenpeace submission to the Stern Review