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Commission on Environmental Markets and Economic Performance

The Commission was set up by Gordon Brown as Chancellor of the Exchequer following the publication of the Stern Review on the Economics of Climate Change. Its Terms of Reference and Membership were first announced by David Miliband and Alistair Darling on 8 November 2006.

Terms of reference

1. The Commission will investigate the likely growth of global markets in environmental goods and services over the next 20 years, giving indications of possible market size, and identify the current and potential comparative advantage of UK firms in these markets, building on the economic analysis and identified opportunities of the DTI/Defra Environmental Innovations Advisory Group.

2. Within the framework of the Government’s economic policies and principles of better regulation, it will make recommendations for actions by Government and business which could stimulate the growth of productivity and employment in the UK’s environmental goods and services sectors and other sectors with a significant contribution to environmental outcomes and resource productivity. Recommendations should identify costs and benefits and their incidence.

3. In doing this work, the following questions should be addressed:

  • What are the key trends in world markets for environmental products and services which can generate opportunities for the UK economy?
  • Which are the key environmental sectors in which the UK has an existing and potential comparative advantage?
  • What, if anything, is holding these sectors back from achieving their full potential?
  • What kinds of environmental policy/regulatory approaches best drive innovation?
  • What other forms of public and private sector interventions best promote innovation in environmental technologies and services? Are there gaps in the current framework?

A broad interpretation of environmental markets should be used, encompassing all products, technologies, processes, services and systems that are more environmentally beneficial than those that they replace.

4. This is a time limited mandate designed to provide pointers for further steps. A report should be delivered to the Government by Spring 2007.

Page last modified: 19 November 2007
Page published: 19 March 2007

Department for Environment, Food and Rural Affairs