One of the common arguments against being green is that it “costs too much”. EnergyStar appliances cost more than non-EnergyStar appliances. A front loading washing machine costs more than a top-loading machine. Hybrid cars cost more than normal cars.

However, the British government has just released a report detailling the costs of not being green.

The Stern Review on the Economics of Climate Change calls climate change “the greatest and widest-ranging market failure ever seen”, with the threat to shrink global economy by 20%, and result in economic and social disruption equal to the two World Wars and Great Depression.

One of the most significant aspects of this report is the fact that its author, Sir Nicholas Stern, is an economist and a former Vice President of the World Bank, not an environmentalist.

While many of the arguments in the report may seem like old hat to those in the environmental community, the fact that these same messages are now being delivered by a well respected economist can help move the discussion into the mainstream.

One of the most important conclusions in the report is that the costs of inaction on global warming far outstrip the costs of action. According to the report, “If we don’t act, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever. If a wider range of risks and impacts is taken into account, the estimates of damage could rise to 20% of GDP or more.”

The report continues saying, “In contrast, the costs of action – reducing greenhouse gas emissions to avoid the worst impacts of climate change – can be limited to around 1% of global GDP each year.”

In addition, the review indicates that there are substantial economic opportunities to be found in solving the climate change problem. The Stern review indicates markets for low-carbon energy products could be worth at least $500 billion per year by 2050, if action is taken, using already available technologies and know-how. This would employ an increase of many millions of persons.

I think that in the coming years we are going to see more and more business people are going to realize that going green can be as much about dollars and cents as about any moral issues.

There are already stories about ski resorts reducing greenhouse gas emissions because they realize that their businesses will be destroyed if climate change is not averted.

I predict that the same forces that drove small businesses and municipalities to support health care reform will drive business folk and politicians of all sorts to “go green”.