Stern Report 2006

This report, compiled by the former chief economist of the World Bank, Nicholas Stern, and commissioned for publication in 2006 by the British government, also attracted attention: According to the report, the economic cost of non-action (5-20 percent of GDP) is several times higher than the costs involved in investing in the stabilisation of the CO2 concentration (1-2 percent of GDP).

Carbon offset therefore does not, according to Stern, boil down to a choice between avoiding climate change and promoting growth and development. Seen on a long-term basis, the fight against climate change is rather one of a strategy for the preservation of growth, not least because it creates new markets, such as, for example, for technologies directed at CO2-neutral energy production as well as for CO2-efficient products and services.

The most important measures proposed are:

• More adequate price on carbon emissions (through taxes, official regulatory procedures and setting up a global Emission Trading System (setup and expansion of existing systems) 
• Supporting innovations in the field of low-carbon technologies and energy efficiency
• The elimination of obstacles to efficient energy consumption. Changing attitudes and behaviour patterns through improved communication of information to the public.

Further Information:

Stern Report (English)
Stern Report (overview in various languages)