Nicholas Stern, an economist at the London School of Economics, has emphasized that investment in climate action represents a significant economic opportunity in the 21st century. He asserts that continuing to rely on fossil fuels for economic growth is unsustainable due to the resulting environmental damage. Stern cites the decreasing costs of clean technologies, such as renewable energy and electric vehicles, as crucial elements that can simultaneously address climate issues and stimulate economic growth.
He acknowledges the need for substantial policy changes and increased investment despite a challenging geopolitical landscape. Stern referenced U.S. President Donald Trump’s dismissive view of climate change but argued that the necessity of rational discourse is critical. He suggests that discussions about the personal impact of climate change on Trump’s family could bring awareness to the risks posed by rising sea levels and extreme weather events.
Stern’s earlier work, notably a 2006 review that identified climate change as a major market failure, remains relevant today, he notes, with climate impacts intensifying more rapidly than initially projected. He points to the significant decrease in costs for solar power and wind energy, highlighting the economic benefits of transitioning to low-carbon technologies. For example, the cost of solar power has decreased by 80% over the past decade, while costs for offshore and onshore wind energy have similarly fallen.
He noted that healthier populations resulting from cleaner air could lead to improved productivity and economic growth. Additionally, Stern issued caution regarding political leaders like Kemi Badenoch and Nigel Farage, encouraging them to understand the potential economic advantages of climate action and the detrimental consequences of inaction.
Stern remains hopeful for future advancements but expresses concern about the potential for ineffective political dialogues to hinder progress, reinforcing the need for rational discussion to address the urgency of climate change.
Source: https://www.theguardian.com/environment/2025/oct/13/climate-investment-is-biggest-growth-opportunity-of-21st-century-says-economist-nicholas-stern