Global Warming Could Wither Profits

Article from Canada's CTV.ca:

Global warming could devastate the world economy on a scale we haven't seen since the world wars and the Great Depression, a major report by a British economist says.

Sir Nicholas Stern, the report's author and a senior government economist, said unchecked global warming could shrink the global economy by 20 per cent -- and cost a whopping $7 trillion in lost output.

However, taking action now would cost just one per cent of global gross domestic product, Sterns says in his 700-page study.

...If no action is taken, says Stern, up to 200 million people could become refugees as their homes are hit by drought or flood from rising sea levels.

Further, up to 40 per cent of wildlife species could become extinct, and melting glaciers could cause water shortages for one sixth of the world's population, the report says.

...Despite the gloomy forecast, Stern said he is "optimistic" that if the world powers act "strongly and urgently," the effects can be minimized.

"Whilst there is much more we need to understand -- both in science and economics -- we know enough now to be clear about the magnitude of the risks, the timescale for action and how to act effectively," he said.

Stern said the world must shift to a "low-carbon global economy'' through measures including taxation, regulation of greenhouse gas emissions and carbon trading.

...The "green" initiatives, he said, provide an opportunity "for new markets, for new jobs, new technologies, new exports where companies, universities and social enterprises in Britain can lead the world".

...Stern is a former chief economist of the World Bank.

As documented periodically on this blog, I think businesses are starting to wake up to the disastrous effect global warming could have on their profits, and are starting to show that they have the potential to provide leadership that is so sorely needed in this area. Let's hope Adam Smith's invisible hand is a strong hand of progress in this instance.