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A new global initiative was launched on September 24 on the economics of climate change. Overseen by an eminent group of former heads of government, finance ministers and leaders in the fields of economics, business and finance, and backed by seven research institutes on six continents, the Global Commission on the Economy and Climate will provide new, independent evidence on the economic opportunities and costs of acting on climate change.
The New Climate Economy project will be expected to report in September 2014 with recommendations on the policies that can simultaneously deliver better economic growth and address climate risks. Moreover, the new project aims to contribute to the global debate about economic policy, and to inform government, business and investment decisions.
Chaired by former President of Mexico Felipe Calderón, with 14 countries represented, the project aims to inform the global debate about economic policy, and to influence government policy choices and business investment decisions in the run up to the international climate negotiations in 2015.
The Ethiopian Development Research Institute (EDRI) will take part in preparing the report. The EDRI’s involvement will be particularly important. Climate change is likely to have a substantial economic impact on developing countries. Thus, as an institute from a developing country, the involvement of the EDRI in the NEC project is expected to focus due attention to, and enhance the studies on, the economic implications of climate change for developing countries. Ethiopia also has demonstrated its political commitment through its green growth strategy. As policies to address climate change require global coordination, the NEC is expected to provide Ethiopia with a useful forum to encourage global cooperation in climate policy.
The research institutes in the partnership are the Climate Policy Initiative, the Ethiopian Development Research Institute, the Global Green Growth Institute, the Indian Council for Research on International Economic Relations, the Stockholm Environment Institute, Tsinghua University, and the World Resources Institute.
The Global Commission on the Economy and Climate is an independent initiative established by a group of seven countries: Colombia, Ethiopia, Indonesia, Korea, Norway, Sweden and the United Kingdom. A partnership of research institutes from six continents will carry out the analysis.
An Advisory Panel of world-leading economists, chaired by Nicholas Stern and including Nobel Prize winner Daniel Kahneman, will carry out an expert review of the work.
The project will directly engage with key decision makers in finance ministries and with major businesses and investors, and work with leading economic organizations, such as the World Bank and the International Monetary Fund. It will also invite contributions from a wide variety of academic, business and other institutions.
The New Climate Economy project is expected to publish its comprehensive analysis in September 2014, a year before the culmination of negotiations for a new international climate agreement in Paris in 2015. The Commission will then take its findings and recommendations directly to heads of government, finance and economic ministers, business leaders, investors and city mayors throughout the world.