Climate change and the Stern Review: the implications for Treasury policy, fourth report of session 2007-08, report, together with formal minutes, oral and written evidenceThe Stationery Office, 2008 M02 5 - 108 pages Climate change is one of the biggest challenges facing the world today and requires an urgent response from Government, industry and the individual. This inquiry was triggered by the publication of the Stern Review on "The Economics of Climate Change" (2006, ISBN 9780102944204), which stressed the need to stabilise carbon emissions sooner rather than later, and warned of potentially catastrophic impacts if that was not achieved. The Review framed the climate change debate in terms of economic choices, and considered the use of economic tools such as environmental taxation and permit trading schemes as economically-efficient mechanisms for cutting emissions. This Report recommends that the Government give primary consideration to the use of economic tools in combating climate change: The Treasury's policies and action in this regard were the main focus of the inquiry. The report looks at work on this topic by the Treasury and other select committees. It then assesses the economics of the Stern Review, and examines the Government's approach to reducing emissions. Further sections cover emissions trading schemes, environmental taxes and adaptation (designed to counter the negative impacts caused by time lags in global and local ecosystems). The Committee calls for a twin track approach involving both adaptation and mitigation. |
Contents
Report | 3 |
Discount rates | 13 |
3 | 19 |
Moving to a global emissions trading scheme | 28 |
Adaptation | 47 |
Conclusions and recommendations | 54 |
Witnesses | 61 |
Common terms and phrases
achieve action adaptation air passenger duty aircraft airlines areas aviation industry behavioural change believe benefits biodiesel biofuels building carbon emissions carbon price carbon tax carbon trading Chairman Climate Change Levy CO2 emissions Committee cost Defra developing countries discount rate economic instruments effective emissions reductions emissions trading scheme encourage energy efficiency ensure environment environmental taxes example Fallon flights flood risk Flybe fuel duty funding Gauke GHG emissions global Government Government's greenhouse gas growth HM Treasury important improve incentives increase investment IPCC issue John Healey John Thurso Kerry McCarthy Lawson of Blaby look Lord Lawson measures mechanism MEPC million mitigation Mudie Peter Viggers pollution potential Pre-Budget Report problem Professor Ekins reduce emissions regulation response revenue Rochat role sector Sir Nicholas Stern Stern report Stern Review sustainable targets taxation technologies tonnes