Climate change economics conference should make strong statement
13 Nov 2007
Participants at a high-profile international climate change and economics conference taking place in Sydney this week should show their commitment to lessening the impacts of climate change on the economy and the environment by leading the way on early emission reduction targets, says WWF.
The International Counterparts Conference 2007 on Climate Change, to be held in Sydney on November 15 and 16, will bring together key business and economic development institutions from around the world to discuss the economics and science of climate change.
WWF-Australia CEO Greg Bourne said the latest science on climate change showed global warming was occurring faster than expected and with bigger impacts than initially thought, meaning a greater cost to economies and businesses.
"In Australia, the prolonged drought, urban water shortages and severe storms and flooding are already having a detrimental impact on the economy, industry and the hip pocket," Mr Bourne said.
"The global economic development community has an opportunity at its climate change conference to take a lead and provide guidance for business and government to ensure that the environment and our future economies thrive," Mr Bourne said.
The CSIRO estimates that climate change will cost economies around the world between four per cent and 16 per cent of their GDPs, echoing similar findings in last year's Stern Review, which warned the price of not acting early would far outweigh the cost of reducing greenhouse gas emissions.
"In addition, modelling by Allens Consulting has found that Australia's economic growth would be reduced by 0.3 per cent a year if action to reduce emissions was delayed, as compared to 0.1 per cent with early action. The economic sense of acting now is obvious," Mr Bourne said.
WWF calls on the Counterparts Declaration on Climate Change to include the following principles:
- That climate change is a grave threat to the economies, societies and the natural environment;
- That the global objective of climate change policy should be to avoid a warming of 2oC;
- That to achieve this:
- Global emissions need to peak in developed countries by 2010 and globally by 2015;
- Developed countries need to reduce emissions by at least 30% by 2020, with 1990 as the baseline year;
- Global emissions need to fall by at least 50% by 2050, with 1990 as the baseline year;
- Developed countries need to reduce emissions by 80% by 2050, with 1990 as the baseline year.
- That a global framework of emission reduction targets, timelines, policies and measures should be in place by 2012, signed on to by all countries; and
- That business would benefit from the early adoption of emission reduction targets.
More information
Charlie Stevens, Press Officer, WWF-Australia
Phone: 02 8202 1274
Mobile: 0424 649 689
Email: cstevens@wwf.org.au
Economic Facts about Climate Change
Climate change is a result of an increase in greenhouse gas emissions produced by the burning of fossil fuels and deforestation. The 2007 IPCC report concluded a 90 per cent certainty that climate change is human induced.
Greenhouse gas concentrations are growing faster than previously predicted and are generating climate impacts that are bigger and sooner than expected. The Global Carbon Project has identified that carbon intensity in the world economy is increasing and the carbon sinks are removing less carbon, culminating in greenhouse gas emissions growing faster that expected.
Climate change is and will continue to have a serious detrimental impact on the environment, economy and society. CSIRO has identified that climate change will result in loss of unique natural environments, water supplies, more frequent extreme weather events, which will have significant implications for a number of important Australian industry sectors and the economy.
Targets to reduce greenhouse gas emissions are scientifically developed and are based on what is needed to avoid dangerous climate change. The IPCC (WG III) estimated we would need to reduce emissions by 50-85 per cent of 2000 levels by 2050.
Action to avoid dangerous climate change will cost but it will not prevent economic growth and will not cause a recession. Economic modelling has shown that it is affordable to reduce greenhouse gas emissions and that GDP will continue to grow at over 2 per cent per year with a reduction of only 0.1 per cent.
With every minute we delay the costs to the economy increases. Modelling by Allens Consulting found that delaying action to reduce emissions will significantly increase the cost. Australia's economic growth would be reduced by 0.3 per cent a year if action were delayed versus 0.1 per cent with early action.
Failure to reduce emissions will result in serious long term economic costs. Modelling in the Stern Review concluded that the costs of climate change impacts would be equivalent to a reduction in consumption per head of from 5% to 20% . The CSIRO estimated costs at 4% to 16% of GDP.
