Well the Stern Report is out, probably should have it's own thread but our continue it in here as P3 as put up some links. Lots to go on, but I am just concentrating on the Governments response and plan to combat AGW. Taken from the BBC Site with my own comments added: Create a global market for carbon pricing -Completely agree Carbon pricing is an effective way of starting to reduce CO2e production. Extend the European Emissions Trading Scheme (EETS) globally, bringing in countries such as the US, India and China -Carbon trading is essentially a good idea as long as it's implemented correctly. So I welcome this too. Set new target for EETS to reduce carbon emissions by 30% by 2020 and 60% by 2050 -I don't think these are agressive enough personally by they must be achievable if we are to truelly limit AGW impact. Pass a bill to enshrine carbon reduction targets and create a new independent body to monitor progress. -Yes again agree and the costs of this should be paid by the Carbon trading scheme and CO2e taxation to reduce needless CO2e production. Create a new commission to spearhead British company investment in green technology, with the aim of creating 100,000 new jobs - Um... not a big fan of commissions subsides are a better use of the money (see the UK film industry subsidies to show how these work) Former US vice-president Al Gore will advise the government on the issue. -As long as he's an unpaid adviser I am happy. Work with the World Bank and other financial institutions to create a $20bn fund to help poor countries adjust to climate change challenges -The fund isn't big enough, nor is the world bank the best institution to distribute the money, (look at the problems is caused with forced water privatisation). Work with Brazil, Papua New Guinea and Costa Rica to promote sustainable forestry and prevent deforestation. A no brainer really but what about indonesia etc..... Basically I am all for the use of taxation to combat and correct market imperfections which are term negative externalities, AGW is probably the biggest one of these ever. Capitalism believes in correcting these negative externalities through the use of taxation, hence the real cost of the product, or production of the product is shown to the markets. Matt