The ongoing review of the UK’s Fourth Carbon Budget is closely linked to the debate over the impact that domestic climate change policies can have on the competitiveness of businesses. Notably, there are concerns that, if the UK implements more ambitious climate policies than its trading partners, carbon-intensive producers might relocate.

This important study by Nicholas Stern, the leading climate economist from Grantham Research Institute on Climate Change and Dr Simon Dietz from Centre for Climate Change Economics and Policy warns that the financial damage caused by global warming will be considerably greater than what the current models have predicted.