Fiona O'Malley (Dún Laoghaire, Progressive Democrats)

The Stern Review on the Economics of Climate Change, published yesterday, marks a significant milestone in global co-operation. The report should be compulsory reading for every Government in the world. The threat of climate change is global and the response must be on a global scale. The comprehensive research conducted by Mr. Nicholas Stern is of such international significance and application that it is important we in Ireland take the opportunity to discuss it and I welcome that opportunity tonight.

Economics do not change with international boundaries. We have much to be thankful to the British for and we do not need to conduct our own research into the phenomenon now. This report provides the evidence, as if we need it, of the economic cost of global climate change. It is important that we respond to and act upon the findings of the review. It is comforting to note what the author said yesterday:

The conclusion of the review is essentially optimistic. There is still time to avoid the worst impacts of climate change, if we act now and act internationally. Governments, businesses and individuals all need to work together to respond to the challenge. Strong, deliberate policy choices by governments are essential to motivate change.

But the task is urgent. Delaying action, even by a decade or two, will take us into dangerous territory. We must not let this window of opportunity close.

It is not too late. That is the message, essentially, but we must act now.

Our Kyoto obligations are indeed onerous. That our economic growth took place between the benchmark year of 1990 and the present accentuates the challenge before us. However, this fact does not absolve us, particularly those of us in government, of the responsibility to implement policies which will permit us to respond positively to the task before us. The cost of doing nothing is prohibitive. Risk modelling forecasts a minimum cost of 5% of global GDP, rising to a possible 20%. In contrast, Mr. Stern predicts that the cost of taking action to reduce the worst effects of climate change could be limited to 1% of global GDP.

Tackling climate change will have consequences for our lifestyles. Should we continue to be able to take flights with impunity? The review suggests that the carbon costs of our actions should be transparent to increase our awareness of the problem and I would welcome that move. Developing new, cleaner and more efficient technologies offers enormous opportunities for Ireland. As has been stated on numerous occasions, we are ideally located to develop wind energy in particular. We could realise my own personal ambition of making Ireland the research capital for renewable technologies. We must have that ambitious target.

We must take action to stimulate energy efficiency. We must inform and educate people about the cost of their lifestyles so they can respond to the challenge. Last year, when measures were taken in the budget in this area, people could not get enough. People will respond to measures to create efficiencies, particularly those that will make their homes more energy efficient. I hope the forthcoming budget will go a step further to meet the appetite that is clearly there among people. We must realise that people want to change. If we inform and educate them about the cost of climate change, they will want to take mitigating measures themselves.

Tackling climate change is a pro-growth strategy. Ignoring it will ultimately undermine economic growth.

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