Abstract

Professor Lord Nicholas Stern will discuss the economics of climate change and the implications of the commitment to cut global greenhouse gas emissions in half by 2050. What should the main elements of a global deal look like, what sort of a deal should it be, and how should it be built and sustained? He will emphasize that this is about low-carbon growth and not a low growth story. Low-carbon growth is the growth strategy.

“The urgent challenge is to build a framework for a global deal so that a coherent, effective, efficient and equitable agreement can be reached at the United Nations Framework Convention on Climate Change 15th Conference of the Parties in Copenhagen in December 2009”

Underlying the discussion are three guiding principles:

• Effectiveness - the ability to reduce greenhouse gases to an acceptable level
• Efficiency - controlling overall costs
• Equity - accounting for relative living standards, historical responsibilities and aspirations for growth and development

On the basis of these principles, Professor Stern will lay out the key elements of a global deal to meet this challenge. It includes key proposals on the following elements:

1. Emissions targets globally and for rich countries.
2. The role of developing countries in mitigation and trading.
3. International emissions trading.
4. Financing emissions reductions from deforestation.
5. Technology.
6. Adaptation in developing countries

The story is one of collaboration in which countries continue to take on the challenges of growth, development and poverty reduction. It is a story of low carbon growth, and a cleaner, safer, more bio-diverse world. It is not a story of low growth. He will also discuss the challenges of building and sustaining a global deal.