Global deal on climate change outlined

The report 'Key Elements of a Global Deal' analyses the implications of the commitment to cut global greenhouse gas emissions in half by 2050 (per the G8 summit in Heiligendamm in June 2007). The project was lead by Lord Nicholas Stern in collaboration with a number of individuals including Nick Butler, Chairman of the Cambridge Centre for Energy Studies at the Judge Business School, University of Cambridge.

The document suggests a comprehensive and coherent set of proposals to advance the climate change debate prior to the United Nations Framework Convention on Climate Change in Copenhagen in December 2009.

Vice-Chancellor Professor Alison Richard said, “The grave consequences of global climate change are becoming increasingly clear. In order to mitigate these consequences, there must be a strong policy framework built upon sound science.

“The publication of this report is an important step to that end, and I am pleased that Cambridge has played a serious role in the drafting of this important document.”

The report recommends that responsibility must be shared between developed countries and the developing world. Additionally, developed countries must demonstrate the way forward by taking on ambitious binding national targets immediately and proving that low carbon growth is possible, that carbon markets will develop substantial financial flows to developing countries, and that technology will be made available and shared.

Underlying the document’s recommendations 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

Nick Butler’s contribution focused on the institutional arrangements which will have to be undertaken to implement whatever terms are agreed. Commenting on this aspect of the report, he said, “If and when an agreement is reached at Copenhagen next year, there will be a need for effective institutions to manage the various terms. Major transfers of funds and technology will be involved and it is therefore imperative that the institutional arrangements establish trust.

“The arrangements also need to be flexible and capable of responding to changing circumstances, including changing science. We can start by building on what we have but a new institution which brings all the strands, such as developing targets, building trading mechanisms, supervision and monitoring, supporting new research, managing the process of stopping deforestation, etc., will need to evolve.”

Lord Stern said, “This publication marks the beginning of a work programme on the economics of climate change for LSE’s Grantham Institute on Climate Change and the Environment, and ESRC Centre for Climate Change Economics and Policy. The urgent challenge is to build analytical foundations for discussions of a global deal so that a coherent, effective, efficient and equitable agreement can be reached in Copenhagen in December 2009. This paper is a contribution to that task. It offers a sense of direction and a basis for discussion and further work, rather than attempting a very formal description of a global deal.”

Tony Blair, former Prime Minister of the United Kingdom, said, “This is an excellent report. It is absolutely right to stress the urgency of the situation and that the concerted action necessary requires a new global deal. Copenhagen is only 18 months away. Every opportunity between now and then must be taken to put in place the core elements of the post-Kyoto framework.

“I believe we can and we must break the deadlock, starting with the discussions at this year’s G8, which is why I intend to continue to work for a new global deal, and set out in June how that might be done. Meanwhile, as ever, Nick Stern and his team have produced a compelling analysis and strong policy recommendations which should be compulsory reading.”