A new report warns that climate change left unchecked would cause the global economy to lose 20% of its value, while acting to address the problem would only cost 1% of global GDP. Sir Nicholas Stern’s report is the first major attempt to address the economics, as opposed to the science, of global warming.
Without action up to 200 million people could become refugees as their homes are hit by drought or flood, he added.
An international plan to tackle climate change is needed to prevent a global recession, the UK review said.
“On the basis of Sir Nicholas Stern’s report, we would be crazy not to take action,” said the BBC Business Editor Robert Peston.
“Stern calculates that not doing anything would be a reduction in the value of the global economy of 20% - we would all be a fifth poorer as a result of climate change - which he says would be as big a shock as we would get from a global war.”