Having received the 3rdFrontiers of Knowledge Award in Climate Change, economist Nicholas Stern analyzes in this interview why the climate crisis represents the greatest market failure in history and what the economic implications are of not acting quickly. Stern explains how the costs of inaction far outweigh the investments needed for a sustainable energy transition and underscores the importance of ambitious policies that drive innovation, clean energy, and global decarbonization. Drawing on his influential Stern Review, he details how climate change affects growth, well-being, and economic stability, highlighting the need for international cooperation and bold decisions to protect the future of generations to come.
The BBVA Foundation Frontiers of Knowledge Award in the Climate Change category goes in this third edition to British economist Nicholas Stern, whose pioneering 20
Having received the 3rdFrontiers of Knowledge Award in Climate Change, economist Nicholas Stern analyzes in this interview why the climate crisis represents the greatest market failure in history and what the economic implications are of not acting quickly. Stern explains how the costs of inaction far outweigh the investments needed for a sustainable energy transition and underscores the importance of ambitious policies that drive innovation, clean energy, and global decarbonization. Drawing on his influential Stern Review, he details how climate change affects growth, well-being, and economic stability, highlighting the need for international cooperation and bold decisions to protect the future of generations to come.
The BBVA Foundation Frontiers of Knowledge Award in the Climate Change category goes in this third edition to British economist Nicholas Stern, whose pioneering 2006 report shaped and focused the discourse on the economics of climate change. The advanced economic analysis applied by Stern has been the means to quantify the impacts and costs arising from the alteration of our planet’s climate, as well as providing a unique and robust basis for decision-making.
00:00 Introduction
00:45 Are you happy with this success? Did you expect it?
01:30 The report was published in 2006 and it stated that world economic growth would be reduced by 20% if we continue on the same path. Furthermore, action to reduce greenhouse gas emissions to avoid the worst effects of climate change can be limited to 1% of global GDP each year. Are these figures still valid for 2011?
03:45 How do you think the current economic crisis has influenced the fight against climate change? Are governments using it as an excuse not to take action?
