Stern launches UK climate research centre

Lord Nicholas Stern, the influential author of the UK government's Stern Report on the economics of climate change, will today officially launch a new UK research centre, designed to undertake world-leading research on the economic and policy implications presented by climate change.

The Centre for Climate Change Economics and Policy will be chaired by Lord Stern and jointly managed by the London School of Economics and Political Science and the University of Leeds. It will initially offer five research programmes: developing climate science and economics, climate change governance, adaptation to climate change, climate change mitigation and evaluating the economics of climate risks.

Lord Stern is expected to set out the remit of the new centre at a launch event later today and will outline plans to ensure its research informs both public and private sector action to address climate change.

"We are at a crucial stage in the battle to avoid the worst potential impacts of climate change, which could have devastating social and economic consequences for people around the world," he will say. "I am determined that this centre should generate rigorous and innovative research to inform public and private action."

The Centre is to be funded by a £5m grant from the UK Economic and Social Research Council (ESRC) and £3m from insurance giant Munich Re.

Ernst Rauch, head of Munich Re's corporate climate team, said that the centre's work had the potential to help shape new commercial offerings from the re-insurance firm.

"We see opportunities for us in addressing the substantial demand for insurance-based solutions stemming from the very different strategies necessary to mitigate and adapt to climate change and the ensuing challenges," he said.