The Climate Change Charter

“Tackling climate change is the pro-growth strategy; ignoring it will ultimately undermine economic growth.”
Sir Nicholas Stern

Climate change and the enormously damaging effects of inaction are now undeniable. Awareness over the threat of climate change has been strengthened with every new report, creating a bed-rock of consensus for effective action. The business community, alongside large elements of society as a whole, has woken up to the reality the environmental challenges we face and accept responsibility for action.

In October 2006, Sir Nicholas Stern published his comprehensive review into the economics of climate change. He set out the extent of the potential economic damage and underlined the urgency for action. Without concerted efforts to reduce emissions, climate change risks raising average temperatures by over 5°C from pre-industrial levels, changing physical geographies, societies and the economic basis of our well-being. Stern calculated that the dangers of unabated climate change would be equivalent to at least 5% of GDP each year, rising to 20% of GDP if compounding environmental factors come into play.

The cost of acting now, by contrast, was estimated by Stern to be in the region of just 1% of GDP per year.

In March the Government published the draft Climate Change Bill, the first of its kind in any country. The Bill sets out a series of targets to reduce emissions by 60% by 2050. The Bill provides for ‘carbon budgets’ and the creation of a new independent body to advise the Government on carbon reduction measures.

Against this backdrop of legislative change, the business community is taking all the steps it can to meet the challenge of environmental change. Businesses have taken the threat on board and realise that the window of opportunity for effective action is small. Stern called for businesses, individuals and Government to work together in their efforts. This is precisely what the BCC Climate Change Charter is all about.

Businesses are promising to adopt real practices to reduce carbon emissions and to spread advice and best-practice in the drive to increase energy efficiency. We want to work in partnership with Government and all stakeholders to enact genuine and tangible behavioural change. In return businesses, who continually struggle with bottom lines, are asking for clear, stable and genuinely environmentally-minded regulation and taxation that puts an emphasis on incentives rather than punitive measures. We’re also asking Government to support and foster the business opportunities in green technologies and green markets that Stern predicted could be worth $500bn for UK industry.

The Charter is the basis of a new shared understanding between Government and business over the nature of climate change. Such a partnership is fundamental to achieving environmental goals and avoiding the worst consequences of unchecked emissions.

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