2006: The United Kingdom’s Economics and Finance Ministry has released the “Stern Review: The Economics of Climate Change,” which assesses a wide range of evidence on the economic impact of climate change using various analytical techniques to appraise the costs and risks.

Applying formal economic models, the Review estimates that a lack of action will result in a loss of 5% of the global GDP every year, while a broader umbrella of risks and impacts could take this figure to 20% or more.

In contrast, the cost of reducing greenhouse gas emissions to avoid the worse impact on the climate can be limited to only 1% of the global GDP each year.

The Review concludes the benefits of strong and early action far outweigh the economic costs of remaining idle.