Just $400 billion 鈥� 0.8% of global GDP. That鈥檚 how much money one of the world鈥檚 leading economists says governments around the world need to put towards 鈥済reen鈥� policies that will ensure global finances and the global environment prosper in the 21st century.
There鈥檚 a catch, and it鈥檚 a big one: the money needs to be set aside by this summer and spent by mid-2010.
The former chief economist of the world bank, Nicholas Stern, and three leading economists have compiled their report under the auspices of the . Their aim was to determine whether it made sense to solve 鈥渢he two great crises of our time鈥� 鈥� one financial, one environmental 鈥� in one fell swoop.
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The four were co-authors of the 2006 Stern Review, which estimated the economic cost of tackling climate change.
Green revolution
Two weeks ago Stern told New 杏吧原创 that the economic downturn presented an unprecedented opportunity to launch a green revolution.
Governments, Stern said at the official launch of the report today in London, are preparing to spend vast sums of public funds to bolster the global economy. It is imperative, he argued, that they invest a portion of those funds in laying down a green infrastructure
Stern鈥檚 Grantham colleague Sam Fankhauser, who is also a member of the UK , says the $400 billion are unlikely to be enough to reduce emissions by 50% by 2050 relative to 1990 levels 鈥� a target which many science policy researchers have called for. However, he says, public spending to solve the financial crisis offers 鈥渁n opportunity to make a dent in getting started鈥�
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