These also P encourage the assessment and management of climate risk in relevant sectors. However, there is still a long way to go before the right instruments and institutions are in place to explicitly incorporate climate change risk into policies and projects, increase private-sector engagement in adaptation actions and integrate climate change adaptation into development co-operation. Ambitious mitigation action substantially lowers the risk of catastrophic climate change. The cost of reaching the 2 °C goal would slow global GDP growth from 3.5 to 3.3% per year (or by 0.2 percentage-points) on average, costing roughly 5.5% of global GDP in 2050. This cost should be compared with the potential cost of inaction, which could be as high as 14% of average world consumption per capita according to some estimates (Stem, 2006). Delayed or only moderate action up to 2020 (such as implementing the Copenhagen/Cancun pledges only, or waiting for better technologies to come on stream) would increase the pace and scale of efforts needed after 2020.