Statement by Nicholas Stern about new report by International Energy Agency
Welcoming the publication on 10 June of the new report on ‘Redrawing the Energy-Climate Map’ by the International Energy Agency, Professor Nicholas Stern (Lord Stern of Brentford), Chair of the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science, said:
“In this very important analysis, the International Energy Agency has identified four clear, strong and credible policy measures which make sense for both the economy and the climate. Given that many rich countries are facing sluggish economic growth, governments should recognise the significant benefits of providing consistent policies that incentivise investments in new clean energy technologies instead of old, dirty and inefficient ones.
“Government-induced policy risk from lack of clarity on energy and climate policy is, in many parts of the world, a major deterrent to long-term investment. This is surely unacceptable at a time of idle resources, low interest rates, strong liquidity within much of the private sector, the attractive medium-term prospects for low-carbon growth and a climate at great risk. The Agency has also warned of the dangers of locking in fossil fuel infrastructure, which would need to be retired early, at great additional cost, in order to meet the 2°C target.
“The Agency’s message is crystal clear: dither and delay in making the transition to a low-carbon energy system will be risky and expensive.”
Notes for Editors
- Nicholas Stern was Second Permanent Secretary at HM Treasury of the UK Government between 2003 and 2007. He also served as Head of the Government Economic Service, head of the review of economics of climate change (the results of which were published in ‘The Economics of Climate Change: The Stern Review’ in October 2006), and director of policy and research for the Commission for Africa. His previous posts included Senior Vice-President and Chief Economist at the World Bank, and Chief Economist and Special Counsellor to the President at the European Bank for Reconstruction and Development. He was recommended as a non-party-political life peer by the UK House of Lords Appointments Commission in October 2007. Baron Stern of Brentford was introduced in December 2007 to the House of Lords, where he sits on the independent cross-benches.
- Lord Stern is Chair of the Grantham Research Institute on Climate Change and the Environment, which was launched at the London School of Economics and Political Science in October 2008. It is funded by The Grantham Foundation for the Protection of the Environment. Lord Stern is also Chair of the Centre for Climate Change Economics and Policy, which is hosted by the University of Leeds and the London School of Economics and Political Science. He is also Director of the India Observatory and the Asia Research Centre at London School of Economics and Political Science.